The Most Affordable Mortgage Rates and Top Providers in Kenya


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Owning your own home is a dream within your reach and a mortgage is an empowering resource that can help you get there. Kenya has many mortgage service providers out there offering quite competitive market rates that can be tailored to meet your needs.

What are the most affordable mortgage rates in Kenya, and who are the top mortgage providers?

Mortgage Rates

Before we delve deeper into this, let’s first understand what a mortgage is and what mortgage rates are.

A mortgage is a legal agreement in which a lender lends money at interest (mortgage rate) in exchange for taking the title of a debtor’s property, with the condition the title will be transferred to the borrower upon completion of payment of the debt. Therefore, the mortgage rate is the rate of interest charged on this debt (mortgage). It is determined by the lender and can either be fixed or variable.

Types of Mortgages Rates

Generally, there are two types of mortgage rates: Fixed or variable.

A. Fixed Mortgage Rates. These rates stay the same for the entire term of the mortgage. Considered the safest, though more expensive overall than variable mortgage rates. With fixed mortgage rates, you risk locking yourself in with a higher rate, when market rates fall.

B. Variable Mortgage Rates. Also known as adjustable or floating rate, fluctuate with a benchmark/prevailing interest rate. Though risky, variable mortgage rates tend to be cheaper. Note, that this is based on historical estimates. Therefore, cannot be used to extrapolate any future estimates.

Factors that Affect Your Interest Rate

A lending institution will provide a borrower with a mortgage rate based on the following things:

A. Credit Profile. A good credit profile will enable you to secure a better rate.

B. Bigger Downpayment. A bigger downpayment is the surest way to get a better interest rate and the costs associated with reducing your borrower risk factor evaporate if you can manage at least 20%.

C. Debt-to-Income Ratio. Based on your overall debt-to-income ratio. The more debt you take on, the risker you appear to be to lending providers and therefore, attract higher interest rates.

D. Cash Reserve. How much cash do you have set aside for any eventualities? Should you have trouble making payments, do you have any cash to cover the mortgage payments?

E. Loan-to-Value Ratio (LVR). LVR is used when accessing investment properties. It is computed by dividing the loan amount by the value of the property. An LVR higher than 80% or more, is considered risky. Hence, you may need to pay for mortgage insurance. That is why in most instances, to purchase an investment property, lenders will require a higher down payment.

The Cheapest Mortgage Rates In Kenya

As of September 2020, Kenya Mortgage Refinance Company (KMRC) started lending to financial institutions at an annual interest of 5%, enabling them to write home loans to 7% (or well below prevailing interest rates), for Kenyans earning below Ksh.150,000, borrowing funds of up to Ksh 8 Million (may vary).

Nothing beats this rate, it’s the cheapest mortgage rate in Kenya and that is why it is the only rate we shall quote here.

At this rate, as a borrower, borrowing for instance Ksh 5 million, you’ll have a repayment period of up to 20 years and repayment of Ksh38,764 for 240 months. It is a major saving compared to what is offered in the market currently under prevailing market rates.

Types of Mortage Loans

Since one product doesn’t fit all, financial institutions have come up with various mortgage loans to cater to various needs.

The most common types of mortgage loans offered in Kenya are:

A. Owner-Occupied Residential Mortgage Loan, designed for borrowers who wish to buy a home to live in.

B. Investment Residential Mortgage Loan, designed for borrowers seeking to purchase an investment property to rent/lease out.

C. Construction Mortgage Loan, designed for borrowers seeking to build their property. The contractor or professional overseeing the construction is sent the borrowed funds.

E. Equity Mortgage Loan, designed for borrowers seeking to access funds locked in home equity. You can use the funds borrowed for other purposes since the property is used merely as security for the funds borrowed.

Learn More: How to Make Money in Real Estate

How to Find the Cheapest Mortgage Rates in Kenya

To find and secure the cheapest mortgage rates for you, you’ll consider doing the following:

Saving up for a Downpayment

A higher deposit rate will guarantee you a significantly lower mortgage rate as it lowers the amount you’ll need to borrow and thereby increase your negotiating power on the interest rate. As a borrower and investor, for the health of your personal finances, you’ll need to weigh whether you are better off reducing your monthly mortgage repayment with a higher upfront deposit or earning a return in some other form of investment.

Is the trade-off worth it?

Rate Shop

Consider talking to multiple lenders. Take your time to explore all your options and rates that are offered out there. Do not simply settle for the rate that your bank provider offers you. A mortgage isn’t something you can get on a whim, it’s a long-term commitment that requires careful consideration. Therefore, it will only benefit you to get the best deal in the market.

Understand the Product’s Intricacies

Seek to get an in-depth understanding of the product you are about to purchase by asking every single question you may have about it. Chief of which, you’ll need to know and understand mortgage rates market trends in Kenya. Where are we now with regards to interest rates and what are the future expectations? With this information, you’ll be able to gauge which mortgage product is best for you.

Interest rates in Kenya are set depending on the amount intended to be borrowed and the duration. Be sure to ask as many questions as possible about the rate you are signing up for to mitigate any future shocks on interest rate variations that may occur in the future.

Assess Your Financial Capability

Before talking with any provider assess your financial capability. You can talk to an expert or perform your estimates. Assess which type of property you want to buy based on its monthly or annual cost. Can you handle it?

Top Mortgage Companies In Kenya

There are several mortgage providers in Kenya.

The Annual Percentage Rates (APR) quoted below are solely based on my estimates, and therefore to get the most accurate and recent rate, contact the service provider of your choice and get the latest rate.

Thus, in no particular order, here are the top five (5) mortgage providers, their mortgage rates and some of the features of the mortgages they offer:

1. ABSA Bank

Mortgage Rate: 14.4% APR*

With the ABSA mortgage, you can buy, build, remortgage or get access to equity release loans. Their mortgage loan terms are up to 25 years, at 90% financing. They also offer fully Shari’ah-compliant mortgages. 

2. CitiBank Kenya

Mortgage Rate: 12.5% APR*

CitiBank offers low-interest and flexible repayment schemes to its customers. As such, they offer custom interest rates according to borrower needs and process applications within a very short time.

3. Diamond Trust Bank

Mortgage Rate: 14.6% APR*

Diamond Trust Bank offer mortgage loans to both employed and self-employed. Offer a maximum loan term of up to 20 years, at 90% of the price or market value, whichever is lower.

4. Housing Finance Company (HFC)

Housing Finance Group (HFC) specialises in offering integrated property financing solutions for interested parties. They offer up to 90% financing of the property price or market value price. Their loan term is up to 20 years for employed individuals or 10 years for SMEs and groups. The mortgage must have a protection cover in case of death or disability, and should also include insurance cover for fire.

5. Kenya Commercial Bank (KCB)

Mortgage Rate: 13.3% APR*

Kenya Commercial Bank (KCB) offers accessible mortgage loans to everyone – employed, self-employed, contract workers and Kenyans working abroad at flexible repayment terms. They offer a maximum loan term of up to 25 years, at 90% financing for owner-occupied properties and 80% for investment properties and 70% for plot purchases.


Mortgage Rate: 12.9% APR*

NCBA offer mortgage loans in all major currencies and are calculate their mortgage loan interest on a reducing balance basis. The bank offers a maximum loan term of up to 25 years, at 105% financing of property value with flexible repayment, with no penalty for early repayment.

7. Standard Chartered Bank

Mortgage Rate: 12.5% APR*

Standard Chartered Bank offers loans in different currencies. They can loan up to Ksh 100 Million, at 105% financing for a maximum loan term of up to 25 years. Their facilitation fee is a minimum of Ksh 10,000 or 1% of the loan amount, whichever is higher.

Additionally, they offer loan consolidation and refinancing deals (that allow you to borrow higher loan amounts or use your existing property as collateral).

8. Stanbic Bank

Mortgage Rate: 14.1% APR*

Stanbic Bank offers a maximum loan term of 20 years, at 100% financing for construction and 105% financing for finished properties.

** APR based on my estimates


Keep in mind the key factors mentioned above while approaching any mortgage service provider. Carefully examine the terms and conditions or the fine print on your contract. Carefully look over the interest rate offered and the type of interest rate. Also, access the impact of duration and the monthly payments you are required to make.

Therefore, if you are looking to take a mortgage this year, there is a product out there for you. Take the time to get options for the cheapest mortgage rates in Kenya, with the best terms possible.

Image credits: Top by Kindel Media from Pexels

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Irene Makanga
Irene has an MBA in Finance and is an avid businesswoman, passionate about financial literacy.


  1. Hi there! Your website’s content on mortgage rates is top-notch. Your blogs are a testament to your expertise in the field. I’m thrilled to have found your website and can’t wait to consume more of your insightful content. Keep up the brilliant work!


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