Step-by-step guide to securing a home loan in Kenya. Learn about eligibility, documentation, application process, and insider tips for approval. Updated October 2025.
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.
Up to 90%
Of property value financed
11-15%
Annual rates vary by bank
5-25 Years
Flexible loan tenure
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.
Interest rate remains constant throughout the loan period, providing predictable monthly payments. This protects you from interest rate fluctuations and makes budgeting easier. Fixed rates in Kenya typically range from 12-14% per annum.
Best For:
First-time buyers, those who prefer certainty, and when interest rates are expected to rise.
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.
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.
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.
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.