Banks will not lend to dying businesses. This is a haircut to the banks and those lending to government.
Government is rigging the market for itself.
If the Government can properly structure the housing fund, cap interest rates at under 10%, and set repayment terms between 0 and 15 years, I am confident that those hoarding capital, including banks, will flood the market. Kenyans, including hustlers, can afford to borrow 5 million and repay it slowly over a period of more than 10 years. In the west, especially the USA, 80% of people cannot give you even 100K in shillings. Funny thing is most of these broke homeowners have mortgages spanning 30 years with homes worth over 50 million shillings+. I don't see why credit/debt should not be used as such in Kenya. It will spur the construction of residential and commercial buildings on a large scale, further spurring economic activity. A well-oiled construction industry tends to become refined over time, making construction efficient, the way affordable homes has done in a short period of time. Standardised windows, hinges, paint, doors, roofing, etc., make the cost of construction lower over time instead of everyone doing custom-made homes. In brief, the developing world should just copy the developed world and tailor it to be even better in their jurisdictions. Why rely on guesswork when other countries have successfully implemented these strategies with visible results?
Kenyans may need to learn zoning, and stop constructing small shops and homes. Shopping centers all over Kenya is an eyesore, and I think proper zoning and influx of capital is what is needed. Affordable housing has shown what organized construction can do, not only to landcape/skyline, but to also to a region!
Topic: Everyone can now borow 4 million shillings to build homes from Housing Fund (Read 187 times)