Buying a home in Kenya often requires long-term financing—and real estate loans, commonly known as mortgages, are the most reliable way to make property ownership possible. With rising demand for housing and increasing support from financial institutions, more Kenyans than ever can access real estate loans with favorable terms.
From commercial banks to Saccos and government-backed schemes, here’s what you need to know about securing a property loan in Kenya.
Types of Real Estate Loans in Kenya
1. Bank Mortgages
Offered by major banks like Co-operative Bank, KCB, Equity Bank, and Absa.
- Loan Amount: Up to 80–90% of property value
- Term: 5–20 years
- Interest Rates: 12% – 16% per annum (fixed or variable)
- Eligibility:
- Steady formal income (payslip or bank statements)
- Good credit history (check via CRC)
- Age 21–60 (retirement age limit)
2. Sacco Loans (Staff & Savings Co-operatives)
Popular for their lower rates and faster processing.
- Examples: Stima Sacco, Mwalimu Sacco, Harambee Sacco
- Loan Amount: Up to KSh 10 million (depends on savings and salary)
- Interest Rates: 10% – 13% (lower than banks)
- Security: Salary deduction and sometimes a guarantor
Ideal for teachers, civil servants, and private sector employees affiliated with Saccos.
3. Affordable Housing Program (AHP) Loans
Part of the government’s Big Four Agenda, in partnership with banks and the National Housing Corporation (NHC).
- Targets low- and middle-income earners
- Down payment as low as 10%
- Subsidized interest rates (as low as 7–9%)
- Properties in Pangani, Mavoko, Ruiru, and Kitengela
4. Developer Financing (In-House Payment Plans)
Many developers offer direct installment plans without bank involvement.
- No credit checks
- Flexible terms (e.g., 24–36 months)
- Examples: Bloom Court, Saphyre Properties, Papaya Real Estate
- Often require 20–30% deposit
Great for self-employed or informal sector workers who don’t qualify for traditional loans.
How to Qualify for a Real Estate Loan
✅ Stable Income – Regular salary or documented business income
✅ Good Credit Score – Check your report via TransUnion or Metropol
✅ Valid ID & KRA PIN – Required for all financial applications
✅ Down Payment – Typically 10%–20% of property value
✅ Title Search & Valuation – The bank will conduct due diligence and property assessment
Step-by-Step: Getting a Real Estate Loan
- Pre-Qualification – Get a loan eligibility letter from your bank or Sacco
- Choose a Property – Must be legally titled and bankable
- Apply for Loan – Submit payslips, ID, KRA PIN, and property details
- Property Valuation – Bank assesses market value
- Approval & Disbursement – Once approved, funds go to the seller or developer
- Registration – You’re issued a title deed with a caveat (mortgage lien) until full repayment
Tips for Success
- Start with pre-approval to know your budget
- Compare rates across 2–3 banks or Saccos
- Avoid multiple applications—they hurt your credit score
- Use a real estate lawyer to handle the transfer and documentation
- Consider insurance (mortgage protection or life cover) to secure your loan
FAQs
Q: What is the minimum salary to qualify for a mortgage in Kenya?
A: Most banks require a minimum of KSh 50,000 per month, though some Saccos accept as low as KSh 30,000.
Q: Can I get a real estate loan if I’m self-employed?
A: Yes. Provide 6–12 months of audited accounts, bank statements, and tax returns to prove income stability.
Q: How long does it take to get a real estate loan in Kenya?
A: 2–6 weeks, depending on the institution, property type, and completeness of documents.
