How to Get a Mortgage in Kenya 2026: Complete Application Guide

Step-by-step guide to securing a home loan in Kenya. Learn about eligibility, documentation, application process, and insider tips for approval. Updated October 2026.

🏠Comprehensive Guide

📋Complete Checklist

💡Expert Tips

Understanding Mortgages in Kenya

A mortgage is a long-term loan secured against property that enables you to buy a home without paying the full purchase price upfront. In Kenya, mortgages typically require a deposit of 10-30% of the property value, with the bank financing the balance over 5-25 years. Understanding the mortgage landscape is crucial for making informed decisions about what is likely the largest financial commitment of your life.

Loan Amount

Up to 90%

Of property value financed

Interest Rates

11-15%

Annual rates vary by bank

Repayment Period

5-25 Years

Flexible loan tenure

Types of Mortgages in Kenya

Kenyan banks offer different mortgage products to suit various financial situations and risk appetites. Understanding these options helps you choose the most suitable product for your circumstances.

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Fixed Rate Mortgage

Variable Rate Mortgage

Lower Initial Rate

Interest rate fluctuates based on the Central Bank Rate (CBR) and market conditions. Typically starts 1-2% lower than fixed rates (10-13% p.a.) but can increase or decrease over time. Monthly payments vary accordingly.

Best For:

Risk-tolerant borrowers, when rates are high and expected to fall, those with flexible budgets.

🔄

Hybrid Mortgage

Best of Both

Combines fixed and variable rates. Typically fixed for initial 2-5 years, then switches to variable rate. Offers short-term stability while allowing you to benefit from potential rate decreases later.

Best For:

Those seeking initial payment certainty with future flexibility, expecting income growth.

🏗️

Construction Mortgage

For New Builds

Designed for building your own home. Funds are released in stages as construction progresses based on quantity surveyor valuations. Interest charged only on disbursed amount until construction completes.

Best For:

Those building on owned land, property developers, when buying land and building is cheaper than buying completed property.

Mortgage Eligibility Requirements

Meeting these eligibility criteria is essential for mortgage approval. Banks assess your ability to repay the loan based on income, existing debts, credit history, and employment stability.

1. Age Requirements

✓Minimum age: 21 years at application
✓Maximum age: 60-65 years at loan maturity (varies by bank)
ℹ️Some banks extend to 70 years for professionals like doctors and lawyers

2. Income Requirements

✓Minimum net monthly income: KES 50,000-100,000 (varies by bank and loan amount)
✓Debt-to-income ratio below 45-50%
✓Stable income for at least 12 months
ℹ️Monthly mortgage payment should not exceed 30-40% of net income

3. Employment Status

Salaried Employees

✓ Permanent employment
✓ Minimum 1 year with current employer
✓ 3 years total work experience
✓ Employment letter required

Self-Employed/Business Owners

✓ Business operational 2+ years
✓ Audited accounts required
✓ KRA tax returns for 2 years
✓ Business bank statements 12 months

4. Credit Score and History

✓Clean CRB (Credit Reference Bureau) report required
✓No loan defaults or arrears in past 12 months
✓History of timely loan/credit card payments preferred
⚠️Previous mortgage or large loan repayment improves chances

5. Deposit/Down Payment

✓Minimum 10% of property value (most banks)
✓20-30% deposit gets better interest rates
✓Source of deposit must be verifiable (savings, sale proceeds, gift)
💡Larger deposit = lower monthly payments and less interest paid