@Mukiha,thats some good inspiration for us starters,I am currently on my first mortgage (a flat) I am not paying more than I should,what I am doing is investing monthly in the NSE with the intention of making a lumpsum payment on the house later (I am hoping the NSE will pay better than the interest that I would have saved by paying high monthly instalments),but I have also identified a new upgrade that i will make a deposit for some time this year and the houses will be ready in 2-3 year period. I will then sell my house and upgrade to the bigger space or if I will have completed the payments,then i will simply start on the new mortgage and rent the current one.

Having said that,I think the point on cost of borrowing is that its just unnecessarily high in Kenya. 14-15% interest p.a on a long-term loan is unfair esp. when one considers that T-B's average 7% and interest income for deposits is 1-3%.


I guess if you can't win with facts,you can always pen bile-laced,xenophobic rants to distract everyone.

As at the time of termination of employment,the Daudi Mwiraria pensions rule had not been effected. Thus my pension had been withdrawn and placed in an interest earning account awaiting collection.

Mortgage rates are quite high! At the end of the repayment period,you end up paying 2-2.5 times the loan value. To take or not to take a mortgage is a decision to be taken carefully after several considerations.

If you are now paying rent to a landlord,how much would you spend in rent in 15 years? If you set a similar amount and invest it each month,how much would it be in 15 years. Will it be enough to buy the same property at that time? (in 15 years).

I took a mortgage last year,but the rate is 6% (negotiated by employer with HF) and am repaying slightly less than the current rent level in the area. However,from last year the property value has increased by 60%.(as it has in several areas in Nairobi).

These are some considerations to make.

Note the law allowing the withdrawal of pension funds for house purchase was not gazetted. However,when you change jobs,you can access the personal pension contributions in full,but you cannot access the contributions from the employer until you retire.


The plans of the diligent lead surely to plenty,but those of everyone who is hasty,surely to poverty.

Interesting article in today's Standard on Sharia mortgages.

http://www.eastandard.ne...013476&cid=470&

hi all

another point is lets say you take the mortgage for 15yrs then u want to sell the house after 5 or so years as the house price has appreciated. Can u sell the house before u have cleared the entire loan or does the bank prevent u from doing so


bobby the shares guru