Buying a home in Kenya with a shilling mortgage
In Kenya, a home loan or mortgage comes mainly from banks and a few SACCOs, with a deposit, a verified title deed, stamp duty charges and a variable rate now pegged to KESONIA.
Kenya's mortgage market is still narrow
The number of outstanding mortgages remains small relative to Kenya's population, because many households build in stages with their own money. Mortgages are concentrated in Nairobi, Kiambu, Machakos, Kajiado, Mombasa and Nakuru, where salaried incomes are steadier.
Banks and SACCOs that finance housing in Kenya
HF Group, KCB, Stanbic, Absa, NCBA, Co-operative Bank and Equity offer mortgages in KES. Several civil servant and teacher SACCOs also finance purchases or construction for members, usually as a multiple of savings and backed by guarantors.
The role of the Kenya Mortgage Refinance Company
Set up in 2018, the Kenya Mortgage Refinance Company refinances partner banks and SACCOs to lengthen terms and hold down rates on affordable housing loans. Conditions, price ceilings and eligible incomes are set by KMRC and its lenders.
Affordable Housing Programme and the Boma Yangu portal
The Affordable Housing Programme is funded partly by a levy of 1.5% of gross salary, also paid by the employer. Units built in Nairobi, for example at Mukuru or Pangani, are allocated through the Boma Yangu portal, including rent-to-own schemes.
KESONIA variable rates and fixed-rate mortgages
Variable-rate shilling mortgages track KESONIA plus each bank's own premium, so the monthly payment moves with CBK monetary policy. Some lenders, particularly those refinanced by KMRC, also offer long-term fixed rates.
Checking the title deed before you commit
Double sales and fake titles are a known risk in Kenya. An official search at the land registry, now digitised on the Ardhisasa platform for Nairobi, confirms the owner, charges and restrictions, and the bank also instructs its own lawyer.
Freehold, leasehold and agricultural land
Many urban plots are held on 99-year leaseholds, so the remaining term and ground rent must be checked. Selling an agricultural parcel requires consent from the local Land Control Board, otherwise the transaction can be voided.
Deposit, valuation and insurance required by lenders
Banks rarely finance the full price: a personal deposit, sometimes 10 to 20% depending on the lender, is still common. A licensed valuer sets the property value, and fire insurance plus life cover for the borrower are required.
Using pension savings as mortgage security
Retirement Benefits Authority rules allow part of the benefits accrued in a pension scheme to back a mortgage on a main home. This mechanism is covered in our guide to loans for retirees and pension savings in Kenya.
Building in stages on your own plot
In rural and peri-urban counties, incremental building financed by SACCOs, chamas or development loans is still the norm. Banks also offer construction loans paid out in tranches after inspection, provided the land is titled and the county permit obtained.
Diaspora mortgages and buying from abroad
Kenyans abroad, whose remittances exceed 3% of GDP, can use diaspora mortgages offered by several banks. They may compare with a mortgage in neighbouring Rwanda, but must closely monitor building work and titles from a distance.
Comparing Kenyan mortgage offers without rushing
Beyond the rate, add up arrangement fees, legal fees, valuation, stamp duty and insurance. Our overview of credit in Kenya also explains how to check your CRB record, a decisive factor in getting a mortgage on good terms.
Steps of a Kenyan mortgage, from offer to transfer
- Get pre-approval from the bank or SACCO based on your income, savings and CRB report.
- Choose the property, then have an official search done on the title deed through Ardhisasa or the county land registry.
- Sign the sale agreement at the lawyer's office and pay the agreed deposit, often ten per cent of the price.
- Let the bank appoint a licensed valuer and its lawyer, then accept the letter of offer and take out the insurance policies.
- Pay stamp duty after the official valuation and register the transfer and then the legal charge at the registry.
- Receive disbursement to the seller and start repayments, usually debited from your salary account.
Budget for buying property in Kenya
| Item | Indicative amount | What makes it vary |
|---|---|---|
| Personal deposit | Often 10 to 20% of the price (indicative) | Lender policy and KMRC eligibility |
| Stamp duty | 4% in urban areas, 2% in rural areas (indicative) | Value set by the government valuer |
| Legal fees | Statutory scale based on value | Buyer and bank sides billed separately |
| Property valuation | Flat fee in KES based on value | Licensed valuer chosen by the bank |
| Insurance | Annual premium | Building fire cover and borrower life cover |
| Arrangement fee | Percentage of the loan | Negotiable depending on bank and profile |
Mortgage file required by Kenyan banks
- National ID card or Maisha Namba and KRA PIN
- Payslips and bank statements for the last six months
- Copy of the title deed or lease certificate and official search result
- Sale agreement signed at the lawyer's office
- Building permit and county-approved plans for construction
- Land Control Board consent for agricultural land
- Audited accounts and KRA returns for the self-employed
Home loan pitfalls in Kenya
- Paying a deposit before any official title deed search, while double sales of plots remain common around Nairobi.
- Buying off-plan from a developer with no bank guarantee or escrow account, then seeing the site stall for lack of funding.
- Underestimating how much a KESONIA-linked repayment rises when the CBK policy rate goes back up.
- Forgetting stamp duty and legal fees, which must be paid in cash on top of the deposit.
- Handing money to a fake agent promising a guaranteed Boma Yangu home in exchange for payment outside the official portal.
Questions about getting a mortgage in Kenya
What is the longest term for a Kenyan mortgage?
Banks commonly offer terms of fifteen to twenty years, sometimes longer for loans refinanced by KMRC. The borrower's age at the final instalment also matters, as most lenders want repayment finished before or shortly after retirement.
Can a non-resident get a home loan in Kenya?
Yes, several banks have diaspora offers for Kenyans abroad, with documented income and sometimes a larger deposit. Foreigners who are not citizens can only hold land on leasehold, which limits some projects.
Does Boma Yangu affordable housing require a mortgage?
Not necessarily. Beneficiaries can pay cash, save a deposit on the platform or choose rent-to-own. For units that are sold, bank or SACCO financing can top up the payment, depending on the conditions published for each project.
Why is the official title search so important?
It confirms the registered owner, existing charges, easements and any cautions. Without it, a buyer risks paying a seller who has no right to sell or discovering an undischarged bank charge on the property.