Most people in Kenya buy a home with a mix of savings and borrowing. The buyers who do this well treat financing as something to plan and verify, not something to rush. This guide walks through the routes, how lenders assess you, the costs beyond the headline rate, and a clear path from saving to keys. It is general information current to 2026, drawn from how Kenyan property finance works in practice. It is not financial, tax, or legal advice; talk to a CBK-regulated lender and your own advisers for your specific situation.
The one idea. A lender is buying a share of your future income and a claim on the property. The stronger and clearer your income, your deposit and the property’s title and lease, the better the terms you will be offered. Everything below is about making each of those strong.
1. The main routes to financing a home
- Mortgage. A bank lends against a completed, titled home and you repay over a long term, commonly up to 20 to 25 years. The home is the security; the bank registers a charge over it until you finish paying.
- Plot or land loan. Shorter-term finance to buy land, usually at a higher rate and a shorter term than a home mortgage, because vacant land is harder for a bank to value and sell.
- Construction loan. Staged finance released as you build, against approved plans and a registered title. The bank inspects progress before each release.
- Off-plan finance. Staged payments as a development is built. Banks lend against completed, titled units, so off-plan finance is usually conditional and timed. See the off-plan complete guide for tying payments to registration.
- Sacco and cooperative loans. Many Kenyans access property finance through a sacco, often at competitive rates against savings and guarantors. Confirm the sacco is regulated and understand the security it takes.
- Diaspora products. Several banks run diaspora accounts and property-finance products. Build the documentation and timelines into your plan early. See the diaspora guide.
2. How a lender assesses you
A mortgage decision usually turns on four things:
- Income and stability. Lenders look at your regular, provable income and how long you have earned it. Self-employed applicants typically show audited accounts and bank statements.
- Repayment capacity. As a rule of thumb a lender wants your total loan repayments to stay within roughly a third of your income, after existing debts. The illustrative estimate below gives you a sense of the numbers.
Illustrative only, not a loan offer or financial advice. Your CBK-regulated lender makes the real assessment and decision based on your full circumstances.
- Deposit. You usually contribute a share of the price yourself, commonly in the 10% to 20% range, plus the transaction costs. A larger deposit improves your terms.
- The property and its title. The bank values the home and checks the title and the unexpired lease. A short remaining lease can make a home difficult to mortgage at all.
3. KMRC and what affects your rate
The Kenya Mortgage Refinance Company (KMRC) refinances participating lenders so they can offer longer-term, more affordable home loans, often at a fixed rate, within qualifying limits. Ask your lender whether your loan can be structured under a KMRC-refinanced product.
Your rate and terms move with:
- the Central Bank Rate and the lender’s own pricing,
- your deposit size and repayment capacity,
- the property type and title quality, and
- whether the product is KMRC-refinanced or a standard commercial mortgage.
Rates change; compare current offers from more than one CBK-regulated lender before you commit.
4. The true cost, beyond the rate
The interest rate is only part of what you pay. Budget for:
| Cost | Rough guide |
|---|---|
| Stamp duty | 4% of value in urban areas (2% rural), paid by the buyer on transfer |
| Legal fees (your advocate) | Per the Advocates Remuneration scale, roughly a percentage of value plus 16% VAT |
| Valuation fee | A fixed professional fee for the bank’s valuation |
| Bank arrangement / facility fee | A percentage of the loan, charged by the lender |
| Mortgage protection and property insurance | Required by most lenders; an ongoing cost |
| Registration and disbursements | Fixed registry and processing costs |
Ask each lender for the full schedule of fees and the total cost of credit in writing, not just the rate, so you can compare like with like.
5. Protecting yourself
- Confirm the title and lease first. A bank will not lend against a short or unclear lease, and neither should you buy against one. See title check.
- Use your own advocate. Your independent conveyancer reviews the charge, the sale agreement and the title before you sign. See find a professional.
- Read the charge terms. Understand the rate basis, how and when it can change, early-repayment terms, and what happens if you fall behind.
- Do not over-borrow. Size repayments to what you can meet comfortably, with room for rate rises and life changes.
6. Your step-by-step path
- Build your deposit and keep clean, provable income records.
- Get a KRA PIN and your documents in order (ID, payslips or accounts, bank statements).
- Ask two or three CBK-regulated lenders for an indication of how much you can borrow and on what terms.
- Find the home; confirm the title, the unexpired lease and the approvals.
- Engage your own advocate to run the searches and review the paperwork.
- Get the formal offer, compare the total cost of credit, and confirm insurance.
- Complete: the charge is registered alongside your transfer, and you receive your title with the bank’s charge noted on it.
Where Space Kenya fits
We help you understand and compare, not borrow. Use the illustrative affordability estimate above, browse the CBK-regulated lenders we track, and verify everything with your own lender and advocate. The loan, the rate and the decision stay with your bank.
This guide is general information current to 2026. It is not financial, tax, or legal advice. Rates, fees and rules change. Always confirm with a CBK-regulated lender and your own advisers before borrowing or buying.