Why Githurai Has The Most Affordable Mortgage Market


When I first saw this report I thought Cytonn Research team is not serious! The first thing that came to my mind was, do they real know Githurai and Kariobangi or they have just heard about it?

The population itself in these areas is wanting! Leave alone other  things that give the residents sleepless nights. Nonetheless this is a story for another day.

Nonetheless, as a passionate and curious business journalist, I read through the Nairobi Metropolis Affordability Report which they released and was amazed in the findings.

The report is aimed at informing households on the areas that are affordable to purchase homes with mortgages, or rent houses, based on corresponding house prices in areas in the Nairobi metropolis, and their levels of income.

I was glad to learn that Githurai was ranked as the most affordable Mortgage market, while it also featured as the most rental market in Nairobi Metropolis among other areas such as Embakasi, Komarock and Kariobangi.

“This research seeks to assist households in making a decision on the best areas to purchase a home using mortgages, or best areas to rent as a tenant”, said Elizabeth Nkukuu, Chief Investment Officer at the launch of the report.

Factors considered

To come up with these conclusions, the Affordability Report is constructed as an index, with the key factors under consideration being household income, house prices, locations in Nairobi and the metropolis, and monthly payments for mortgages and rent.

The report attributes the access to affordable mortgages and rental houses in satellite towns to lower land costs in regions such as Ruai, Athi River. Houses are also more affordable in regions with less modernized houses.

It also ranks Githurai as the most affordable mortgage market requiring a median income between Kshs 25,000- Kshs 50,000 to purchase a house using a mortgage.

Areas such as Nyari, Karen, Runda, Muthaiga and Kitsuru are the most unaffordable mortgage markets with households requiring a minimum of Kshs 3.1 Million to purchase a house through mortgage option.

On the rental front, Embakasi, Githurai, Komarock and Kariobangi are the most affordable rental markets in Nairobi Metropolitan area.

Households in these areas require a median income of Kshs 25,000 – Kshs 50,000. The most unaffordable rental markets requiring a median income of more thanks Kshs 1,000,000 are Nyari and Rosslyn areas.

“With Kenya’s total number of mortgages at 22,000 compared to a population of 44 million, equating to 2.7% of GDP, Kenya’s mortgage market is still at a very nascent stage compared to more developed housing markets such as South Africa, where mortgages equate to 24% of GDP,” added Elizabeth Nkukuu.



About the Author

Trust is my currency, biscuits are my best snacks. A business story by me that has sparked change, informed and made a positive difference is what makes me going. I yearn to achieve more through writing Reach me via editor@biznews.co.ke