For many Kenyans, having your own home is more than just a roof over your head — it’s a major milestone of personal growth and financial stability. But let’s be honest, getting a mortgage here can feel like wading through mud. Complicated terms, hidden costs, endless paperwork — it’s enough to make anyone’s head spin.
So, here’s a straightforward guide to help you understand the mortgage process in Kenya, step by step. By the end, you’ll know exactly what to expect, how much it might cost, and who plays what role along the way. Hopefully, you’ll be better prepared to chase that dream of owning your own house.
Phase 1: Before You Even Apply – Get Your House in Order
1. Know What You Can Afford
Before you start eyeing houses on Property24 or talking to agents, sit down and do the math. Kenyan banks look closely at your debt-to-income (DTI) ratio. Generally, your total monthly debt payments (including the mortgage you want) shouldn’t gobble up more than 40-50% of your net income.
| Description | Amount (KES) |
|---|---|
| Your Net Monthly Income | 150,000 |
| Max Allowed DTI (50%) | x 0.50 |
| Max Monthly Debt | 75,000 |
| Less Current Loans | (20,000) |
| Affordable Mortgage Payment | 55,000 |
2. Check Your CRB Report
In Kenya, your CRB report is like your financial ID. If it’s dirty, no bank will touch you. So pull your report from Metropol, TransUnion or Creditinfo. If there are issues, pay them off and get a clearance certificate.
3. Save Up for the Deposit & Other Costs
A mortgage won’t cover everything. Most banks need you to cough up at least 10-20% of the property value upfront. Plus, set aside another 5-10% for costs like legal fees, stamp duty, and insurance. Don’t let these extras catch you by surprise.
4. Get Your Papers Ready
This is Kenya — paperwork matters. Having your documents ready will speed things up big time.
| Document | Salaried | Self-Employed |
|---|---|---|
| National ID / Passport | ✅ | ✅ |
| KRA PIN Certificate | ✅ | ✅ |
| Recent Payslips | ✅ | ❌ |
| Letter from Employer | ✅ | ❌ |
| Bank Statements (6-12 months) | ✅ | ✅ |
| Audited Accounts (2-3 years) | ❌ | ✅ |
| Business Reg Certs | ❌ | ✅ |
Phase 2: Choosing Your Lender & Property
With your finances in order, start talking to banks or SACCOs. SACCOs often give sweeter rates to their members. Don’t just look at the interest rate — compare things like loan tenure, processing fees, insurance costs and required deposits.
| Feature | Lender A | Lender B |
|---|---|---|
| Interest Rate Type | ||
| Interest Rate (%) | ||
| Max Tenure (Years) | ||
| Required Deposit | ||
| Processing Fee | ||
| Annual Insurance |
When you find a house you love, make sure your Offer to Purchase includes a “subject to financing” clause. That way if your loan doesn’t get approved, you can back out without losing your deposit.
Phase 3 & 4: The Application & Legal Process
Truth is, getting the bank’s okay is only half the hustle. The longer bit is the conveyancing — transferring the title into your name and registering the bank’s interest.
| Phase | What Happens | How Long | Who’s Involved |
|---|---|---|---|
| Pre-Application | Budget, save, CRB check, docs ready | 3-12+ months | You |
| Application & Approval | Submit docs, valuation, due diligence | 2-4 weeks | You, Bank, Valuer |
| Conveyancing | Sale Agreement, stamp duty, title transfer | 90-120+ days | Lawyers, Lands Office |
| Completion | Bank pays seller, you get keys | 1-2 weeks | You, Seller, Lawyers |
The Real Costs of a Mortgage in Kenya
Budget for these extra costs, so you’re not caught off guard.
| Fee | Estimate | Who You Pay |
|---|---|---|
| Your Lawyer | ~1-1.5% of property | Chosen lawyer |
| Bank’s Lawyer | ~1% of loan | Bank’s lawyer |
| Valuation Fee | ~0.25-0.5% | Valuer |
| Stamp Duty (Transfer) | 4% (urban) / 2% (rural) | KRA |
| Stamp Duty (Charge) | 0.1% of loan | KRA |
| Insurance | Varies | Through bank |
Quick FAQs
Minimum salary for a mortgage?
Most lenders look for at least KES 100,000-150,000 net, but your DTI ratio and clean CRB are bigger factors.
How long does the process take?
Roughly 3-6 months from applying to moving in.
Can I get a mortgage while working abroad?
Yes, many banks have diaspora mortgage packages. Just be ready for more paperwork.
What if I miss payments?
The bank will try to restructure, but if you keep defaulting, they can auction your home. Always talk to your bank early if trouble hits.
Can I use my NSSF for a mortgage?
Yes, you can now tap into your NSSF savings to help buy a house under the affordable housing scheme.
Final Word
Getting a mortgage in Kenya isn’t a walk in Uhuru Park — but with some planning, it’s very doable. Do your homework, stay patient, and soon you’ll be unlocking the door to your very own place.