The Influence of Macro Economic Factors on Mortgage Market Growth in Kenya
Journal of Finance and Accounting
Volume 3, Issue 4, July 2015, Pages: 77-85
Received: May 28, 2015; Accepted: Jun. 6, 2015; Published: Jun. 25, 2015
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Authors
Ariemba Jared Mogaka, School of Business and Economics, South Eastern Kenya University, Kitui, Kenya
Kiweu Josephat Mboya, School of Management and Commerce, Strathmore University, Nairobi, Kenya
Riro George Kamau, School of Business Management and Economics, Dedan Kimathi University of Technology, Nyeri, Kenya
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Abstract
This study examines the influence of macro-economic variables on the growth of the mortgage market in Kenya. Panel data is collected for a 30 year period, from 1984 to 2013 on the outstanding Real Estate Loan Portfolio as the dependent variable and the macro-economic variables of Average Yearly Inflation Rate, Average Yearly GDP growth Rate, Average Yearly Exchange Rate, Percentage Informal Sector Employment, Treasury bill rate and National Savings Rate as the predictor variables. Regression Analysis was used and the study found no evidence of significant influence of inflation, average GDP growth rate, Treasury bill rate and national savings rate on total real estate loan portfolio. However, the study finds evidence of relationship between informal sector employment, the per capita income and exchange rate. However, the model showed that 81% of the variation in the dependent variable could be explained by the predictor variables.
Keywords
Real Estate, Mortgage Market, Macro-Economic Factors
To cite this article
Ariemba Jared Mogaka, Kiweu Josephat Mboya, Riro George Kamau, The Influence of Macro Economic Factors on Mortgage Market Growth in Kenya, Journal of Finance and Accounting. Vol. 3, No. 4, 2015, pp. 77-85. doi: 10.11648/j.jfa.20150304.13
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