“Do not wait and buy, you and wait”, is one of the most popular catchphrases used by the senior Kenyans when giving investment advice. This primarily refers to real estate which is the Key investment option for most Kenyans. Real estate is lucrative due to the unique attributes associated with it including the inability to depreciate hence minimal risk. Capital is, however, a key impediment when it comes to real estate investment in Kenya. We, CommercialKe did research on some of the ways in which home buyers or investors can finance their real estate dreams. Here are some of the key means of financing real estate investment


Savings is one of the key sources of real estate financing. This involves putting money aside that can then be used to finance the real estate investment. Fixed deposit bank accounts make it possible for homeowners to save and accumulate enough cash to purchase a property.


A mortgage is a loan acquired for the purchase of property and specific a building. Mortgages are attractive to investors due to the ability to spread the payments over a period of many years with low monthly repayments. The interest rates for Mortgages are also considerably lower as compared to other loan or financing options available in the Kenyan market. The downfall of a mortgage is if you fail to honor the payments, you could potentially lose the property.


Loans is a popular way in which most Kenyan investors obtain capital to finance real estate investment. Loans can easily be obtained from a Bank, Microfinance or Sacco. Sacco loans are becoming even more popular than bank loans since it is easier to access loans without collateral as is the case for most banks. Financial institution loans are however risky as they could easily turn to a lawsuit and they are expensive as compared to other financing options.

Off Plan purchases

Buying real estate investment off plans is also a key tactic to ensure that you get the property cheaper than the market rates.  This works in land buying where you get to buy a plot before the motherland has been officially subdivided.  In property buying, you buy the property before the construction has begun or when the construction is ongoing. This is a risky option as the project could fail or the property could stall hence investors risk losing money. For this option, it is advisable to use developers who have had successful historic experiences on the same.


This method is becoming popular among family members and elites. This is where people come together with a common goal of investing in real estate. In the community, Chamas and social groups are making it possible for people without a common background to come together and invest in property, especially in land buying.