Checking for mortgage rates in Kenya? Are you looking to own a home this 2019 through a Mortgage? I know you have been going through real estate listing websites like CommercialKE to check out the property offers. Great, you have already started your journey to owning a home. Well, then this article is written specifically for you.

 Mortgage Definition

Getting a mortgage in Kenya means getting a loan from a financial instruction at an interest in which the property is the security. The mortgage agreement gives you ownership of the property and you can start living in it as soon as the mortgage has been approved and paid to the property owner.  The bank will own the title of the property until the mortgage repayments are complete. We have mortgage in Kenya for diaspora & for the local people.

To be discussed in this article:

  • Mortgage Definition
  • Types of Mortgage
  • Charges Within a mortgage
  • The process of Getting a Mortage loan in Kenya
  • Documents Required during the Mortgage Application
  • Documents From Property Owners
  • Diaspora Mortgage in Kenya
  • Key Mortage Providers and Their Interest Rates

Current Mortgage Rates in Kenya October 2023

Rates are listed from the cheapest mortgage rates in Kenya to the Highest so you can know which are the most affordable rates in Kenya.

  • Standard Chartered Bank Kenya – Mortgage interest rates 12.2%.
  • Citibank Kenya – Mortgage interest rates 12.5%.
  • Commercial Bank of Africa – Mortgage interest rates 12.9%.
  • Kenya Commercial Bank – Mortgage interest rates 13.3%.
  • CFC Stanbic Bank CFC – Mortgage interest rates 14.1%.
  • Barclays Bank Kenya – Mortgage interest rates 14.4%.
  • Diamond Trust Bank – Mortgage interest rates 14.6%.

Type of Mortgages

In Kenya, we have two types of mortgages:

  • Fixed Rate Mortgages

This is where the interest is calculated and is fixed till the end of repayment. The amount which will not be changing during the lifetime of the loan. This kind of mortgage where the interest rate is fixed is usually more expensive to acquire.

  • Adjustable Rate Mortgage

This is one of the most common types of mortgages. The interest rates that are used, keep on changing depending on the market. That means any changes in the credit marketed will be noticed in the repayment rates. The loan payment is done on a reducing balance method. The reason for this is that part of the interest rate risk is transferred to the borrower.

Other Charges Within a Mortgage Loan

Other than the cost of the property, we have other changes which are added to the cost of the property.  These are the key elements which cause the difference in the cost of getting a mortgage between different banks.

  • Mortgage interest rates
  • Negotiation fee 2.5%
  • Ledge Fee charged on a monthly basis
  • Legal fees
  • Valuation fees
  • Commitment fees
  • Stamp duty


The process of Getting a  Mortage loan in Kenya

Below is the process of getting a mortgage in Kenya:

  1. Appraisal and Approval

This is the initial stage where you get to know if you qualify for a mortgage and how much you qualify for. You can send an application to one of the mortgage financiers listed below for a review.  The application will be scored against certain parameters such as income, amount of personal expenses, length of the contract, details of the property, the age of the applicant, your credit score among others. At this process, the application will either be approved or rejected.

  1. Property Search:

After the application has been approved, the next bet process is making sure you have the property that you want to purchase. We have a few recommendations depending on your preferred location.

Search from the top rated real estate agency in Kenya. Click your preferred link below to pick a property of your preference, You have filters on prices, bedrooms, locations, etc.

After picking a property, send a message and an agent will be assigned to you that will help you in viewing the property. The agent will also recommend the best financial institution to get a mortgage for a particular property. In many cases, the developer has already made an agreement with the financial institution to assist in marketing and mortgaging the property. Don’t miss out, contact this agency now.

  1. Processing

After the mortgage loan has been approved, the second phase is processing. This stage will mainly involve you providing the bank with some of the required documentation and details.

Some of the requirements for a mortgage loans have been listed below in this article.

  1. Offer

After you have been qualified, you will proceed to the next stage. This is the stage is where you will be issued with an offer letter. The letter will stipulate the terms and conditions of the mortgage loan. For the phase to be complete you will have to accept the offer terms provided to you by the financial institution.

  1. Perfection of instruments

This is where the lender acquires the property that is being used as collateral. If it is an apartment the lender will get the original certificate, transfers and other relevant documentation. After the lender has acquired the rights to the property, they will register a charge against the title for the sum borrowed.

  1. Payments

The lender then gets the money and either forwards it to the borrower or the seller of the property depending on the agreement signed. The whole process from application to receiving the payment takes on average 90 to 180 days.


Documents Required during the Mortgage Application

General Documents Required During Mortgage Application

  • Copy of Title: Of Security. (Minimum free lease term – 45 years)
  • For Outright purchase: Sales agreement or offer letter from the seller
  • Valuation report: Of Security ( Valuation fees payable by applicant)
  • Ground Rent & Rates: Latest Receipts confirming payments to the City Council
  • Life insurance: Insurance Quotation and medical exam for applications above 20M
  • Standing order/Direct Debit instructions or Employer’s Irrevocable Check-off letter
  • If the applicant is applying jointly with a spouse, provide a copy of the marriage certificate
  • Landlords using the rental income for Mortgage: Rental assessment report

Employed Persons –Document Requirements During Mortgage Application

  1. ID/Passport Copy
  2. KRA Pin Copy
  3. 3 Months’ pay slips – Originals or Certified copies
  4. 6 Months’ Salary Bank statements – Originals or Certified copies
  5. Letter from employer stating: Position/ Length of service/ Retirement age/ Income/Employment terms, (permanent or contract details) & Eligibility of house or owner occupier allowance.

Self-Employed Persons – Requirements During Mortgage Application

  1. ID & KRA Pin Copy
  2. Business registration certificate
  3. 3 years books of accounts
  4. 1-year bank statements – Originals or Bank Certified copies
  5. Business profile – a brief history, nature and operation of the business
  • For partnerships – Certified copy of Partnership deed
  • For Landlords – Rental Schedules of rental income

Investment Groups- Requirements During Mortgage Application

  1. ID/Passport Copy – Directors (s)
  2. KRA Pin Copy – Directors (s)
  3. KRA Pin Copy – Company
  4. Members source of income:
  • Employed: 3 months payslips, 3 months bank statements, a letter from employer
  • Self Employed: 6 months bank statement, business registration certificate, brief business history, nature and operation of the business
  • Company: MemArts, Cert of Inc, 1-year bank statement, brief business history, nature and operation of the business
  1. Copy of Investment Group’s Constitution
  2. Certified copy of the certificate of incorporation
  3. Memorandum and Articles of Association
  4. 1-year bank statements – Originals or Bank Certified copies
  5. Copy of the latest change of directors – By Register of Companies
  6. Board/Director’s resolution authorizing the borrowing for that property

Companies- Requirements During Mortgage Application

  1. ID/Passport Copy – Directors (s)
  2. KRA Pin Copy – Directors (s)
  3. KRA Pin Copy – Company
  4. Audited accounts for last three (3) years ( If borrowing over 20M)
  5. 1-year bank statements – Originals or Bank Certified copies
  6. Business profile – a brief history, nature and operation of the business
  7. Certified copy of the certificate of incorporation
  8. Certified copy of the latest change of directors if any.
  9. Memorandum and Articles of Association.
  10. Board/Director’s resolution authorizing borrowing

For Diaspora Clients ( Only Employed ) Requirement During Mortgage Application


  1. Confirmation of residential address documents; utility bill, international DL e.t.c
  2. Work permit/residential Visa
  3. Foreign CRB report

Documents From Property Owners

Different documents that you should request from property owners when applying for a mortgage

Borrowing against for your own property

  1. Original title-deed/ certificate of lease
  2. Rates clearance certificate
  3. Land rent clearance certificate
  4. Rental schedule for income properties

Borrowing to buy a house or land

  1. Copy of title deed/ certificate of lease
  2. Rates clearance certificate
  3. Letter of offer/sale agreement
  4. Land rent clearance certificate

Borrowing to construct/develop

  1. Original title deed/ certificate of lease
  2. Rates clearance certificate
  3. Land rent clearance certificate
  4. Approved drawings
  5. Bill of quantities
  6. Project proposal giving feasibility analysis and cash flow projections in case of investment property

Borrowing to buy from a developer

  1. Letter of offer from the developer
  2. The developer to furnish the bank with the following:
  3. Completion certificate
  4. Title deed/lease certificate
  5. Insurance certificate
  6. Approved drawings

Diaspora Mortgage in Kenya

If you are working in the Diaspora, you know it is a good thing to invest back home. Many banks have designed mortgages that are suited for Diaspora. Most providers offer Diaspora Mortgages with a repayment period of up to 15 years. The amount financed varies from 70% – 90% of the purchase price. In most cases, the loan is limited up to 100M.

Available Mortgage financing options in Kenya include

  • Purchase of a fully developed property which could be an apartment or a house.
  • Plot or land purchases
  • Construction finance
  • Mortgage take-over
  • Renovations
  • Equity release on developed properties
  • Top-up loan
  • Joint Mortgage