As of June 2025, there is no standalone “Real Estate Finance Bill” that has been passed into law. However, the Kenyan government is actively advancing key legislative and policy initiatives under the broader Affordable Housing Program (AHP) and National Mortgage Refinancing Company (NMRC) framework to transform real estate finance in Kenya.
The Real Estate Finance Bill—often discussed in media and policy circles—is part of a larger legislative push to:
- Expand mortgage access
- Regulate developer financing
- Support affordable housing
- Encourage institutional investment
Here’s what you need to know about the status, goals, and impact of real estate finance reforms in Kenya in 2025.
🏛️ The Real Estate Finance Agenda (2025)
While not yet a single bill, the real estate finance reform agenda includes:
| Affordable Housing Finance Framework | Active | Mobilize KSh 2 trillion for 500,000 homes |
| National Mortgage Refinancing Company (NMRC) | Operational | Buy mortgages from banks to free up lending |
| Real Estate Investment Trusts (REITs) Bill | In drafting | Allow small investors to own property shares |
| Housing Finance Regulatory Sandbox | Ongoing | Test digital lending, rent-to-own, and tokenization |
| Sacco Real Estate Financing Guidelines | Issued by SASRA | Regulate Sacco property lending (e.g., Stima, Mwalimu) |
📜 Key Provisions in the Proposed Real Estate Finance Reforms
1. Mortgage Market Expansion
- Goal: Increase homeownership from 26% to 50%+
- How:
- NMRC buys mortgages from banks, enabling longer loans (20–30 years)
- Interest rates capped at 7–9% for AHP buyers
- Lower down payment: 10% deposit (vs. traditional 20–30%)
2. Developer Financing Regulation
- Requirement: Developers offering installment plans must:
- Register with Central Bank or SASRA (if Sacco-backed)
- Disclose project progress and financials
- Protect buyer deposits in escrow accounts
✅ This aims to stop ghost projects and off-plan fraud.
3. Real Estate Investment Trusts (REITs)
- Status: Bill under review by Parliament and Capital Markets Authority (CMA)
- Goal: Allow Kenyans to invest in property with as little as KSh 50,000
- How It Works:
- Pool money to buy malls, apartments, offices
- Earn dividends from rent
- Trade shares on the Nairobi Securities Exchange (NSE)
👉 Expected launch: 2026
💡 How the Finance Reforms Will Help You
| First-Time Buyer | Lower deposit, 20-year loans, 7–9% interest |
| Investor | Access REITs, rent-to-own, and tokenized assets |
| Developer | Easier access to bulk financing and refinancing |
| Diaspora Kenyan | Secure financing via partner banks or Saccos |
| Low-Income Earner | Affordable homes under AHP with flexible payment plans |
🚀 Impact of Real Estate Finance Reforms (2025–2030)
| More Mortgages | 100,000+ new mortgages by 2030 (up from 15,000/year) |
| Lower Interest Rates | Avg. mortgage rate to drop from 14% to 9% |
| Faster Project Delivery | Regulated developer financing reduces delays |
| Inclusive Investment | REITs and Sacco plans open real estate to millions |
| Reduced Fraud | Escrow and disclosure rules protect buyers |
🔍 Current Real Estate Finance Options (2025)
Even without the full bill, these options are available:
| AHP Loan (NHC) | 7–9% | 15–20 years | NHC + Partner Banks |
| Sacco Loan | 10–13% | 10–15 years | Stima, Mwalimu, Harambee |
| Bank Mortgage | 12–16% | 10–20 years | KCB, Co-op, Equity, NCBA |
| Developer Installment | 0% interest | 24–36 months | Bloom Court, Optiven, Saphyre |
| Rent-to-Own | N/A | 3–5 years | Emerging pilot programs |
📢 Who’s Driving the Reforms?
| Ministry of Lands & Housing | Leads AHP and policy coordination |
| Central Bank of Kenya (CBK) | Oversees NMRC and financial stability |
| Capital Markets Authority (CMA) | Regulates REITs and securities |
| National Housing Corporation (NHC) | Delivers AHP units and manages financing |
| SASRA | Regulates Sacco real estate lending |
FAQs
Q: Is there a Real Estate Finance Bill in Kenya in 2025?
A: Not yet passed, but key components are being implemented under the Affordable Housing Program and NMRC.
Q: What is the National Mortgage Refinancing Company (NMRC)?
A: A government-backed institution that buys mortgages from banks, freeing them to lend more at lower rates.
Q: Will the Real Estate Finance Bill lower mortgage rates?
A: Yes—by enabling longer loans and refinancing, rates are expected to drop from 14% to 9% or lower.
Q: When will REITs be available in Kenya?
A: The REITs Bill is expected in 2025–2026, with first trusts launching by 2027.
Q: Can I get a 20-year mortgage in Kenya now?
A: Yes—under the AHP, qualified buyers can access 20-year loans at 7–9% through partner banks.
Final Word
While the Real Estate Finance Bill 2025 has not yet been enacted as a single law, its core goals are already in motion through the Affordable Housing Program, NMRC, and REITs framework.
