Kenya, especially its growing urban centers, has a need for affordable and accessible housing options. While many policies have focused on expanding the home ownership across income ranges, rental housing has also proved an important sector of focus. There are many components that go into making microfinance successful, however, from the need to ensure profitability to the macroeconomic environment.
In 2012, Letshego Kenya, a financial service provider, began offering a housing microfinance product geared toward rental housing. Especially in Kenya’s growing urban centers, the demand for urban rental housing has been growing, and due to the demand, Letshego has added housing finance products. As of 2018, over half of Letshego’s loan portfolio was in housing, and they found profitability due to the lack of competition and the room to grow.
Source:
Terwilliger Center for Innovation in Shelter. (2018) Building the Business Case for Housing Microfinance. Habitat for Humanity Terwilliger Center for Innovation in Shelter.
Link: https://www.habitat.org/our-work/terwilliger-center-innovation-in-shelter/publications-videos