Frequently Asked Questions

Most banks in Kenya require a minimum deposit of 10% of the property's value. Some banks may require 15-20% for self-employed applicants or lower-value properties (under KES 3 million). First-time home buyers sometimes qualify for special programs with lower deposits — ask your bank directly.

With a KES 100,000 monthly salary, banks typically allow monthly repayments of 30-40% (KES 30,000-40,000). Over 20 years at 14% interest, you could borrow approximately KES 2.5-3.5 million. Use our mortgage calculator for a personalized estimate.

It's very difficult. Most banks require a minimum monthly income of KES 50,000-70,000 for mortgage consideration. With KES 30,000, you would likely qualify for a very small loan (under KES 800,000). Consider:

• Increasing your deposit
• Applying with a co-borrower or spouse
• Looking into SACCO housing loans which have lower requirements

Yes, some banks accept land titles as collateral (called "land equity"). Requirements:

• Land must be freehold or long-term leasehold
• Have clear, clean title (no disputes)
• Be valued by the bank's approved valuer

This can reduce or eliminate your cash deposit requirement. KCB, Equity, and Co-op Bank offer land equity mortgage products.

Mortgage rates in Kenya currently range from 13.5% to 14.5% depending on the bank:

• KCB & HF Group: 13.5%
• Co-op Bank: 13.75%
• Equity & I&M: 14.0%
• Absa: 13.99%
• Stanbic & DTB: 14.25%
• NCBA & Sidian: 14.5%

Rates change frequently — check our comparison table for the most current rates.

Fixed rate: Payment stays the same for a set period (1-5 years). Predictable but usually starts higher.

Variable rate: Fluctuates with market rates. Can drop (saving you money) but can also rise.

Recommendation: First-time buyers often prefer fixed rates for predictability. If you expect rates to drop or plan to repay quickly, variable may save you money.

No. The advertised rate (e.g., 13.5%) is the interest rate only. You'll also pay:

• Processing fees (1-2%)
• Valuation fees
• Legal fees
• Insurance

Always ask for the Annual Percentage Rate (APR), which includes most fees and gives you a true comparison between banks.

Yes! Many banks have flexibility, especially for:

• Existing customers with good banking history
• Large down payments (20% or more)
• Strong credit scores (no CRB defaults)
• High-income earners
• Using a competing bank's offer as leverage

Even a 0.5% reduction can save you hundreds of thousands over the loan term.

Initial approval: 2-4 weeks

Full process (including valuation and legal): 4-8 weeks total

Delays often occur at the government land registry step (stamp duty and title transfer), which can take 2-4 weeks on its own.

For salaried employees:

• National ID or passport
• KRA PIN certificate
• Last 3-6 months' payslips
• Last 6-12 months' bank statements
• Employment letter (confirmed position)
• CRB credit report

For self-employed: Add business registration, 2 years of audited accounts, and business bank statements.

Download our complete mortgage checklist →

Yes, most banks offer mortgage pre-approval. This tells you exactly how much you can borrow before you start house hunting.

Benefits: Makes you a more serious buyer (sellers prefer pre-approved buyers)

Validity: Usually 3-6 months

Cost: Nothing or a small fee (KES 1,000-5,000)

Yes, most major banks have diaspora mortgage products. Requirements include:

• Proof of income in foreign currency
• Valid work permit/residence visa in your country
• Often higher deposit (15-20%)
• Ability to make payments via SWIFT transfers

Banks like KCB, Equity, and Co-op have dedicated diaspora desks.

It's very difficult but not impossible. Most banks will reject applicants with negative CRB listings. You may need to:

• Clear any defaults in full
• Wait for the listing to expire (typically 5-7 years)
• Approach specialized lenders who accept higher deposits (30-40%) and charge higher interest rates (16-18%)
• Apply with a clean co-borrower

Yes, but requirements are stricter. You'll need:

• 2+ years of business financials (audited accounts)
• Higher deposit (typically 20-30% vs 10% for salaried)
• Business bank statements (12-24 months)
• Business registration documents

Some banks (like Equity and Co-op) have specific products for self-employed borrowers.

Minimum age: 18 years (with stable income)

Maximum age: The loan must be fully repaid before retirement age (typically 65 years).

So a 55-year-old would qualify for a 10-year mortgage maximum, not 25 years.

Beyond the deposit and monthly payments, budget for:

• Valuation fee: KES 15,000-30,000
• Legal fees: 1-2% of property value
• Stamp duty: 2-4% of property value (county-dependent)
• Processing fee: 1-2% of loan amount
• Insurance: Mortgage protection + property fire insurance (approx. 0.5% of loan/year)
• Land rates & utilities: Ongoing annual costs

Total extras: 5-10% of property price

Check your contract. Many banks charge an early repayment penalty of 2-5% of the outstanding balance if you repay within the first 3-5 years. After that period, penalties often reduce or disappear.

Tip: Ask about this before signing — some banks offer penalty-free products with slightly higher rates.

• 1-30 days late: Late payment fee (usually 3-5% of the missed payment)
• 30-90 days late: Bank sends default notices, reports to CRB (hurts your credit score)
• 90+ days late: Bank can begin repossession (foreclosure) proceedings — this takes 6-12 months in Kenya

Always contact your bank immediately if you anticipate missing a payment. They may offer payment holidays or restructure the loan.

Yes. Under Kenyan law, banks have the right to repossess and sell your property to recover the outstanding loan amount. The process requires court involvement (unless you signed an irrevocable power of attorney).

You have the right to notice and can challenge the repossession in court, but this is stressful and expensive. Avoid default at all costs.

Mortgage protection life insurance is a mandatory insurance that pays off your outstanding mortgage balance if you:

• Die (full payout clears the loan)
• Become permanently disabled
• Are diagnosed with a terminal illness

Why it's required: Banks need to ensure the loan will be repaid even if something happens to you. The cost is typically 0.2-0.5% of the outstanding loan amount per year, added to your monthly payment.

Tip: You can often choose your own insurance provider instead of using the bank's recommended one — compare prices to save money.