Only a small share of Kenyan homes are bought with a mortgage, mainly because rates are high compared with many countries. But rates have fallen, and cheaper government-backed loans exist for lower- and middle-income buyers.

Interest rates

  • Standard bank mortgages have mostly charged around 12% to 16% a year in 2026, usually on a variable rate that moves with the Central Bank rate.
  • KMRC-backed affordable home loans - banks and SACCOs refinanced by the Kenya Mortgage Refinance Company - start from around 9.9%, with fixed rates, for eligible buyers. They have limits on income (around KES 150,000 a month) and on the home’s price.
  • SACCO mortgages can be cheaper for members.

Deposits and terms

  • Deposit: usually 10% to 20% of the price, sometimes less for affordable housing loans.
  • Term: up to 20 or 25 years, often ending by retirement age.
  • Affordability: lenders usually limit repayments to about a third to a half of your net income.

Check what you could borrow with the mortgage affordability calculator.

Costs on top

  • Stamp duty - 4% of the value in Nairobi. See the stamp duty calculator.
  • Valuation, legal fees (for both your advocate and the bank’s), and the bank’s arrangement fee.
  • Insurance - mortgage protection (life) and building insurance.

These often add 6 to 8% of the price, and are usually paid from savings.

Applying

  1. Get pre-approval to know your budget.
  2. Find the property, and have your advocate run the checks. See Buying property in Kenya.
  3. The bank values the property, issues an offer letter and registers a charge on the title.
  4. The loan pays the seller at completion.

You will need ID, KRA PIN, payslips and bank statements (six to twelve months), and for the self-employed, audited accounts or business records.

Kenyans abroad

Several Kenyan banks offer diaspora mortgages, with income assessed in foreign currency. Expect to show a foreign payslip, bank statements and proof of residence abroad. See Kenyans abroad.

Other ways to buy

  • Tenant purchase through the Affordable Housing Programme. See Housing Levy and Boma Yangu.
  • Developer payment plans for off-plan property - check the developer carefully.

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