The Cheapest Mortgages in Kenya

• Buying a home in Kenya feels out of reach for many, especially young Kenyans.
• To put it in perspective, countries like the U.S. or parts of Europe offer mortgage rates between 3% and 6%. Meanwhile, Kenya’s double-digit rates.
• If you’re planning to take a mortgage soon, it’s worth asking your bank or SACCO whether they’re offering KMRC products.
• Your journey to homeownership doesn’t have to begin with wealth, it can begin with knowledge, strategy, and the right financial partner.

Let’s be honest, buying a home in Kenya feels out of reach for many, especially young Kenyans. Property prices keep climbing, and mortgage rates haven’t made things any easier. With average interest rates hovering around 11% to 13%, Kenya ranks among the countries with some of the highest mortgage costs globally.

At a recent EAPI event I attended, a young woman who identified herself as Gen Z voiced what many are quietly thinking. She shared her growing doubt about ever owning a home at her age—not just because mortgages are expensive, but because qualifying for one demands a level of income that many simply don’t have. The reality is, a large portion of young people are either unemployed or working jobs that pay just enough to get by.

To put it in perspective, countries like the U.S. or parts of Europe offer mortgage rates between 3% and 6%. Meanwhile, Kenya’s double-digit rates can stretch repayments over decades, and that’s assuming you even qualify. Most lenders require a stable income, significant deposits, and extensive documentation. So it’s no surprise that many young Kenyans see homeownership as something only achievable much later in life—if ever.

That said, not all hope is lost. While many lenders offer high interest rates, there are a few institutions whose rates are slightly lower and more manageable, especially if you know where to look.

So, Where Can You Find the Most Affordable Mortgage Rates in Kenya?

Let’s start with the Kenya Mortgage Refinance Company (KMRC). KMRC is not a bank, it doesn’t lend to individuals directly, but it partners with commercial banks and SACCOs to offer subsidized mortgage loans. These loans are specifically targeted at low and middle-income earners and come with interest rates as low as 9%.

To qualify for a KMRC-supported mortgage, the home you’re buying needs to be valued at Ksh 8 million or less, and your income must fall within the set limits. While the criteria can vary slightly between lenders, this is by far one of the most affordable ways to access a home loan in Kenya today.

KMRC-backed loans are currently being offered by institutions such as:

• KCB
• NCBA
• Co-operative Bank
• Housing Finance Company
• Stima SACCO
• Tower SACCO, among others

If you’re planning to take a mortgage soon, it’s worth asking your bank or SACCO whether they’re offering KMRC products.

2. Housing Finance Bank (HF Group)

HF is one of Kenya’s oldest mortgage lenders, and it continues to offer tailored home loan products. Interest rates range between 11% and 13%, and repayment periods stretch up to 25 years, making it easier to spread out your costs.

HF also provides loans for purchasing land, building a home, or completing a stalled project. If you’re self-employed or in the gig economy, they offer options designed around flexible income.

3. NCBA Mortgage Plus

NCBA’s Mortgage Plus product offers competitive interest rates starting at 11.9%, with financing of up to 90% of the property value. They also offer construction loans and equity release options. If you’re looking for a clean, well-structured mortgage with room to negotiate, NCBA is worth considering.

4. Co-operative Bank

Co-op Bank is known for being SACCO-friendly and has a variety of mortgage products. Their rates typically range from 11% to 13%, and they support tenant purchase schemes—ideal if you’re looking to move in now and pay over time.

They also work with groups and chamas, which opens up opportunities for collective property ownership.

5. SACCO Mortgage Loans

Don’t underestimate your SACCO. Many SACCOs are now offering home loans at interest rates between 10% and 12%, with longer repayment periods and fewer bureaucratic hurdles than traditional banks.

If you’re a consistent saver and a loyal member, your SACCO could be your most affordable route to homeownership. Some also work directly with KMRC, which means you can enjoy even lower rates.

How to Keep Your Mortgage Costs Down

Even with the best deals, your choices can significantly affect the long-term cost of your mortgage. Here are a few smart steps:

• Work on your credit profile. A good repayment history can help you secure better terms.
• Save up for a bigger deposit. A higher deposit reduces the amount you need to borrow.
• Compare across lenders. Don’t settle for the first offer—shop around and ask questions.
• Ask about KMRC-backed options. Not all lenders advertise it upfront, but it could cut your interest rate significantly.
• Be aware of extra costs. Budget for processing fees, legal costs, valuation, and insurance.

Conclusion

While the cost of homeownership in Kenya is still high for many, it’s not out of reach. With the emergence of KMRC and growing flexibility from banks and SACCOs, affordable mortgage options are more accessible than ever before.

The key is to be informed. Don’t shy away from walking into banks, asking hard questions, or comparing options. And don’t let outdated perceptions stop you from exploring what’s possible today.

Your journey to homeownership doesn’t have to begin with wealth, it can begin with knowledge, strategy, and the right financial partner.