The value of approved building plans has fallen to the lowest level in the last three years, a new report shows.
According to the Financial Sector Stability (FSR) Report, 2020 released by Central Bank of Kenya (CBK), approved actual building plans fell to Sh2.33 billion between January 2019 to June 2020 compared to Sh2.45 billion in 2018 and Sh2.81 billion in 2017.
This was despite an increase in the value of approved plans to Sh1 billion in the first two months of this year on the back of the government’s affordable housing initiative, and the repeal of the interest rate cap last November.
The drop came amid a subdued real estate sector in the last year that has now been worsened by the Covid-19 pandemic.
“The demand for property was subdued due to slow economic growth, especially for middle and high-income earners,” said the FSR.
The report, produced by CBK in collaboration with the other financial sector regulators, assessed the global and domestic macro-financial developments and risks to the Kenyan economy and on the stability of the financial sector. – The Standard
