Mortgages in Kenya: Your Complete Q&A Guide

How do mortgages work in Kenya?

A mortgage is a loan provided by a bank or financial institution to help you purchase property. The bank pays the seller on your behalf, and you repay the loan in monthly instalments over an agreed period. The property serves as security for the loan until full repayment.

How much deposit is required for a mortgage in Kenya?

Most banks in Kenya require a deposit ranging between 10% and 30% of the property value.

What is the maximum financing I can get?

Upto 85% financing is commonly available for foreign currency mortgages (USD, GBP, EUR) and up to 95% financing may be available for local currency mortgages (KES), subject to the bank’s credit assessment and eligibility criteria.

What are the current mortgage interest rates in Kenya (2026)?

Mortgage interest rates in Kenya vary depending on the loan currency and property value.

• USD-denominated mortgages currently attract competitive rates from approximately 9.80% per annum.
• For KES-denominated mortgages, rates may start from 9.5% per annum for affordable housing properties valued at KES 10,500,000 and below.
• For properties valued above KES 10,500,000, interest rates are typically around 15.39% per annum

What is the difference between fixed and variable mortgage rates?

A fixed rate remains constant for a specified period (e.g., 1–5 years). A variable rate fluctuates based on market conditions and the Central Bank Rate. Fixed rates offer predictability, while variable rates may decrease if market rates drop.

How does a bank determine mortgage eligibility?

Banks assess your income, employment stability, credit history, existing loans, and ability to repay. Your monthly mortgage repayment should generally not exceed 40% of your net income.

What repayment period is available?

The maximum loan repayment period is 20 years but is subject to the retirement age.

What documents are required to apply for a mortgage?

• A completed home loan application form from the bank
• Copy of your current pay slip/ proof of income.
• A copy of your identity document/ passport / Marriage Certificate for joint applications
• Copy of directors Kenya Revenue Authority PIN certificate & Company PIN
• Certified copies of 12 months bank statements
• CR1, CR2, CR12, Certificate of Incorporation, 3 years annual returns.
• Current Practicing License/ Certificate – if in business
• Copy of Title if available
• Draft Sale agreement if available or offer letter
• Photos of property

How long does mortgage approval take in Kenya?

Once you have provided all the required documents and any additional information requested, the bank typically takes 5 working days to review your application. If the application is approved, the bank prepares an offer letter for your sign-off. Once you sign and return the offer letter, the bank instructs its approved valuers to conduct a valuation of the property. The valuation report is usually received within approximately two (2) weeks. If the valuation aligns with the approved loan amount, the bank proceeds to security perfection. The bank then instructs its approved lawyers to register the title documents. At this stage, the lawyer will contact you to guide you through the legal process and facilitate payment of all required government levies, including stamp duty. Upon registration of the charge, the lawyer submits the charged title documents to the bank, which will reflect both your name and the bank’s name. Thereafter, the bank disburses payment to the developer or seller within 14 working days.

Can I repay my mortgage early without penalties?

Yes. Most banks allow you to make lump-sum payments or fully settle your mortgage at any time without incurring early repayment penalties.

What upfront costs should I expect?

• Bank’s processing fees;
  1.5% of the approved loan amount for KES affordable housing options and foreign currency (FCY) mortgages
  • Plus 20% excise duty on the bank’s processing fees
• Government stamp duty
  Up to 4% of the property value
• Legal fees (for a lawyer from the bank’s approved panel)
  Approximately 5% of the loan amount
• Property valuation fees
  Calculated based on the property value

What are diaspora mortgage requirements in Kenya?

Diaspora applicants must provide proof of foreign income, certified bank statements, employment contracts, and sometimes higher deposits. Some banks require payments in foreign currency.

Are Islamic (Sharia-compliant) mortgages available in Kenya?

Yes. Islamic mortgage products are available through select banks. Instead of charging interest, the bank purchases the property and sells it to you at a profit margin agreed upfront.

Is it better to buy property with cash or a mortgage?

Buying with cash avoids interest costs and speeds up transactions. However, a mortgage allows you to preserve liquidity and invest your capital elsewhere. The best option depends on your financial goals.

Can I refinance my mortgage in Kenya?

Yes. Refinancing allows you to transfer your mortgage to another bank offering better interest rates or terms. This can reduce monthly repayments or shorten your loan tenure.