Once in a while you come across a tweet that you read twice, then favourite; This was one of those
Then this came through yesterday
And it immediately hit me that maybe this could answer, once and for all, how many Kenyans earn above 100K per month. I think that the original post on this issue was not empirical, and though the assumptions they made were plausible, there figure of “ just under 20,000” seamed somewhat assumptious to me. This post hopefully, settles this (and I can now unfavorite the tweets!)
I will make a few assumptions of my own though. First, that banks, the main financiers in mortgage financing will look at the applicant’s ability to repay the loans (bank account details). And second, the report from which the second tweet is from (i think) is reliable.
Okay, now lets start with this tweet:
Kenya has about 8 million urban dwellers. Doing the math, that means about 80,000 Kenyans can finance 5.7M mortgage. To finance that kind of mortgage, you need to put a 20% deposit and need to have a salary of at least 100,000 per month.
There you have it, about 80,000 Kenyans may be earning 100K a month (what they actually carry home is another thing all together)
My three pence thought