The Influence of Macro Economic Factors on Mortgage Market Growth in Kenya

Ariemba Jared Mogaka; Kiweu Josephat Mboya; Riro George Kamau

doi:doi:10.11648/j.jfa.20150304.13

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The Influence of Macro Economic Factors on Mortgage Market Growth in Kenya

Ariemba Jared Mogaka, Kiweu Josephat Mboya, Riro George Kamau

Published in Journal of Finance and Accounting (Volume 3, Issue 4)

Received: 28 May 2015 Accepted: 6 June 2015 Published: 25 June 2015

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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.

Published in	Journal of Finance and Accounting (Volume 3, Issue 4)
DOI	10.11648/j.jfa.20150304.13
Page(s)	77-85
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2015. Published by Science Publishing Group

Keywords

Real Estate, Mortgage Market, Macro-Economic Factors

References

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APA Style

Ariemba Jared Mogaka, Kiweu Josephat Mboya, Riro George Kamau. (2015). The Influence of Macro Economic Factors on Mortgage Market Growth in Kenya. Journal of Finance and Accounting, 3(4), 77-85. https://doi.org/10.11648/j.jfa.20150304.13

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ACS Style

Ariemba Jared Mogaka; Kiweu Josephat Mboya; Riro George Kamau. The Influence of Macro Economic Factors on Mortgage Market Growth in Kenya. J. Finance Account. 2015, 3(4), 77-85. doi: 10.11648/j.jfa.20150304.13

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AMA Style

Ariemba Jared Mogaka, Kiweu Josephat Mboya, Riro George Kamau. The Influence of Macro Economic Factors on Mortgage Market Growth in Kenya. J Finance Account. 2015;3(4):77-85. doi: 10.11648/j.jfa.20150304.13

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@article{10.11648/j.jfa.20150304.13,
  author = {Ariemba Jared Mogaka and Kiweu Josephat Mboya and Riro George Kamau},
  title = {The Influence of Macro Economic Factors on Mortgage Market Growth in Kenya},
  journal = {Journal of Finance and Accounting},
  volume = {3},
  number = {4},
  pages = {77-85},
  doi = {10.11648/j.jfa.20150304.13},
  url = {https://doi.org/10.11648/j.jfa.20150304.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20150304.13},
  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.},
 year = {2015}
}

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TY  - JOUR
T1  - The Influence of Macro Economic Factors on Mortgage Market Growth in Kenya
AU  - Ariemba Jared Mogaka
AU  - Kiweu Josephat Mboya
AU  - Riro George Kamau
Y1  - 2015/06/25
PY  - 2015
N1  - https://doi.org/10.11648/j.jfa.20150304.13
DO  - 10.11648/j.jfa.20150304.13
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 77
EP  - 85
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20150304.13
AB  - 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.
VL  - 3
IS  - 4
ER  -

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Author Information

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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Plain Text BibTeX RIS

APA Style

Ariemba Jared Mogaka, Kiweu Josephat Mboya, Riro George Kamau. (2015). The Influence of Macro Economic Factors on Mortgage Market Growth in Kenya. Journal of Finance and Accounting, 3(4), 77-85. https://doi.org/10.11648/j.jfa.20150304.13

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ACS Style

Ariemba Jared Mogaka; Kiweu Josephat Mboya; Riro George Kamau. The Influence of Macro Economic Factors on Mortgage Market Growth in Kenya. J. Finance Account. 2015, 3(4), 77-85. doi: 10.11648/j.jfa.20150304.13

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AMA Style

Ariemba Jared Mogaka, Kiweu Josephat Mboya, Riro George Kamau. The Influence of Macro Economic Factors on Mortgage Market Growth in Kenya. J Finance Account. 2015;3(4):77-85. doi: 10.11648/j.jfa.20150304.13

Copy | Download

@article{10.11648/j.jfa.20150304.13,
  author = {Ariemba Jared Mogaka and Kiweu Josephat Mboya and Riro George Kamau},
  title = {The Influence of Macro Economic Factors on Mortgage Market Growth in Kenya},
  journal = {Journal of Finance and Accounting},
  volume = {3},
  number = {4},
  pages = {77-85},
  doi = {10.11648/j.jfa.20150304.13},
  url = {https://doi.org/10.11648/j.jfa.20150304.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20150304.13},
  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.},
 year = {2015}
}

Copy | Download

TY  - JOUR
T1  - The Influence of Macro Economic Factors on Mortgage Market Growth in Kenya
AU  - Ariemba Jared Mogaka
AU  - Kiweu Josephat Mboya
AU  - Riro George Kamau
Y1  - 2015/06/25
PY  - 2015
N1  - https://doi.org/10.11648/j.jfa.20150304.13
DO  - 10.11648/j.jfa.20150304.13
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 77
EP  - 85
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20150304.13
AB  - 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.
VL  - 3
IS  - 4
ER  -

Copy | Download