Getting a Mortgage in Kenya (Simple Guide)

💡 Quick Answer:

A mortgage is a loan used to buy property, where the bank pays for the house and you repay the loan in monthly installments over several years.

In Kenya, mortgages are offered by banks and financial institutions regulated by the Central Bank of Kenya.

You want to buy a house worth:

💰 KSh 8,000,000

Instead of paying the full amount upfront, a bank provides most of the money through a mortgage.

You then repay the loan monthly over 10–25 years.

A mortgage usually follows a simple structure.

Step | What Happens

1 | You apply for a mortgage loan

2 | The bank assesses your income and credit

3 | You pay a deposit

4 | The bank finances the remaining amount

5 | You repay the loan monthly with interest

The property itself acts as security for the loan.

Most banks require a deposit before approving a mortgage.

Typical deposits range from:

Property Price | 10–20% Deposit

KSh 5,000,000 | KSh 500,000 – KSh 1,000,000

KSh 10,000,000 | KSh 1,000,000 – KSh 2,000,000

A larger deposit may reduce monthly payments.

Several banks in Kenya offer mortgages.

Examples include:

Each bank offers different interest rates and repayment terms.

Explore Kenya Real Estate data on Serrari to compare property values and yields before choosing a property.

You will usually need to provide:

The bank reviews your financial position before approval.

Before releasing funds, the bank will:

This protects both the borrower and the lender.

Mortgage payments include:

Example:

Loan Amount | Monthly Payment (Example)

KSh 5,000,000 | KSh 50,000 – KSh 60,000

The exact amount depends on interest rate and loan duration.

Feature | Typical Range

Loan term | 10–25 years

Interest rate | Around 10–14%

Deposit | 10–20%

Rates may vary depending on market conditions.

Mortgages allow people to:

Many homeowners use mortgages to finance property purchases.

For the numbers behind property returns, read calculating rental income and returns.

Before taking a mortgage, consider:

❌ interest costs over time ❌ ability to maintain monthly payments ❌ additional property expenses

Proper financial planning is important.

Example

Imagine buying a house worth:

💰 KSh 6,000,000

You pay a 20% deposit (KSh 1,200,000).

The bank finances the remaining KSh 4,800,000, which you repay monthly.

Yes, but lenders may require additional financial documentation.

The bank may repossess the property used as security.

Some lenders allow early repayment, sometimes with conditions.

Mortgages provide a way for individuals to purchase property without paying the full amount upfront.

Understanding deposit requirements, loan terms, and repayment obligations is essential before taking a mortgage.

Before committing to a mortgage, also read buy land or build in Kenya? to compare options.

Make sure you have done a full title deed check — see how to verify land ownership in Kenya.

Speak to a Serrari advisor for personalised mortgage and property investment guidance.

Compare mortgage interest rates from different banks before choosing a lender.