Dennis Kioko

  In one of those episodes where history is doomed to repeat itself, September 2016 saw Kenya implement interest rate caps, which had been done away with in 1991. Many Kenyans rejoiced, mistakenly thinking that it would result in easy and affordable loans. The result, however, was a distorted market. It is safe to claim that most Kenyans have never borrowed from a bank. Cheaper loans weren’t going to see them rushing to borrow from banks. Capped interest rates also saw banks become more careful with whom they lend to. Many small businesses will naturally fail - business is hard, for those who have attempted their hands at one. It therefore makes no sense for a bank to lend to many of these businesses - you simply won’t get your money back. The other thing with this country is that it’s very hard to tell who will repay a loan and who will not. Those who have lent to their friends and family can attest to this. There are also fewer ways to make those who have borrowed repay loans. Gi

In my last post, I explained how difficult for people looking for housing in Nairobi . The main challenge is lack of information. On this front, I began a project that will collect some information, which will provide some start for those looking for housing in different areas in the city. In the last one month, 33 people have given their responses. Interesting enough, majority of the respondents, 16 to be exact, live in 2 bedrooms. This may mean that either 2 bedrooms are the most popular rentals in the city, or the most available. Only one way to find out - if you live in a 2 bedroom rental, here’s another survey. 10 of those who filled in the survey live in self contained 1 bedrooms. 5 people have 3 bedrooms, including 2 in Kikuyu, 1 in Ngong and Lower Kabete each, and another around Langata/National Park. 1 respondent has a 4 bedroom, while another one has a self contained bedsitter. Pricing Turning to pricing, the price of 1 bedrooms ranges from Kshs. 10,000 in