A Comprehensive Guide to Banks and Microfinance Institutions Offering Mortgage Services in Kenya

The dream of homeownership is a significant milestone for many Kenyans, and finding the right mortgage provider is a critical step in this journey. With Kenya’s real estate market growing rapidly, banks and microfinance institutions have stepped up to offer various mortgage products to suit different financial needs. Whether you’re looking to purchase your first home, invest in property, or refinance an existing mortgage, understanding the available options is essential.

In this guide, we’ll explore all the major banks and microfinance institutions offering mortgage services in Kenya, helping you make an informed decision about where to secure your home financing.


1. Kenya Commercial Bank (KCB)

KCB is one of the leading mortgage providers in Kenya, offering a range of mortgage products tailored to different customer needs. Their mortgage services include home loans for first-time buyers, home improvement loans, and refinancing options.

  • Types of mortgages offered:
    • KCB Home Loan: For individuals looking to buy a residential home.
    • KCB Plot Loan: For purchasing land to develop later.
    • KCB Mortgage Plus: Offers additional financing for home improvement or expansion.
    • Interest Rates: Competitive and subject to Central Bank of Kenya (CBK) rates.

KCB also provides mortgages for the Kenyan diaspora, making it easier for those abroad to invest in property back home.


2. Housing Finance Corporation (HFC)

HFC is another major player in the Kenyan mortgage market, with a long history of providing home loans. As a subsidiary of HF Group, HFC has positioned itself as a specialist in real estate financing, offering both conventional and Islamic mortgages.

  • Types of mortgages offered:
    • Home Loans: For first-time buyers and home improvement.
    • Plot Loans: For the purchase of undeveloped land.
    • Construction Loans: For financing the construction of a new home.
    • Sharia-compliant mortgages: Islamic mortgage products for Muslim customers.
    • Interest Rates: Competitive with flexible repayment periods.

HFC also offers loans for individuals looking to build rental properties as an investment.


3. Stanbic Bank

Stanbic Bank is known for its flexible mortgage offerings and personalized customer service. They provide a variety of mortgage products for individuals and corporate clients, making it an attractive option for homebuyers.

  • Types of mortgages offered:
    • Home Purchase Loans: For individuals looking to buy residential properties.
    • Construction Loans: For financing the building of new homes.
    • Home Improvement Loans: For renovations and home upgrades.
    • Interest Rates: Fixed and variable rates available, depending on the product.

Stanbic Bank also offers mortgage solutions for the Kenyan diaspora, allowing individuals abroad to invest in property in Kenya.


4. Co-operative Bank

Co-operative Bank offers a wide range of mortgage products, with a focus on flexibility and affordability. Whether you’re looking to buy a home, build one, or purchase land, Co-op Bank provides tailor-made solutions to meet various customer needs.

  • Types of mortgages offered:
    • Home Purchase Loan: For those looking to buy completed houses.
    • Construction Loan: For customers who want to build homes.
    • Plot Loan: To buy land for future development.
    • Diaspora Mortgages: For Kenyans living abroad looking to invest in property back home.
    • Interest Rates: Vary depending on the product and repayment period.

Co-operative Bank offers flexible repayment terms, making it an excellent option for first-time homebuyers.


5. Absa Bank Kenya

Absa Bank is a prominent player in Kenya’s mortgage industry, offering a wide range of mortgage products aimed at different segments of the market. With its extensive branch network and competitive interest rates, Absa has become a go-to option for many homebuyers.

  • Types of mortgages offered:
    • Home Loan: For purchasing residential property.
    • Construction Loan: For building a home.
    • Equity Release: For accessing cash by borrowing against the value of an already-owned property.
    • Diaspora Mortgages: Tailored products for Kenyans living abroad.
    • Interest Rates: Flexible, with both fixed and variable options.

Absa also offers personalized mortgage solutions for high-net-worth individuals and those looking to invest in high-end properties.


6. NCBA Bank

NCBA Bank provides mortgage products designed to meet the needs of individuals and businesses looking to buy or develop property. With competitive interest rates and flexible repayment terms, NCBA is a popular choice for many homebuyers.

  • Types of mortgages offered:
    • Home Purchase Loan: For those buying residential properties.
    • Construction Loans: For building new homes.
    • Refinancing Options: For customers looking to switch their existing mortgage.
    • Diaspora Mortgages: For Kenyans living abroad.
    • Interest Rates: Vary based on the product and borrower’s financial profile.

NCBA is known for its focus on customer service and personalized mortgage solutions.


7. Equity Bank

Equity Bank is another major player in the mortgage market, known for its customer-centric approach and wide range of mortgage products. Equity’s focus is on affordability, making it easier for more Kenyans to become homeowners.

  • Types of mortgages offered:
    • Home Purchase Loan: For buying new or existing homes.
    • Construction Loans: For individuals or developers looking to build homes.
    • Equity Release: For accessing funds by borrowing against an existing property.
    • Interest Rates: Flexible, with competitive rates based on the CBK guidelines.

Equity Bank is committed to offering mortgage solutions that cater to different income brackets, including low-income earners.


8. Standard Chartered Bank Kenya

Standard Chartered Bank is known for its global expertise in financial services, including mortgages. Their mortgage products are designed to offer flexibility and long-term financial stability for customers.

  • Types of mortgages offered:
    • Home Purchase Loan: For buying residential property.
    • Buy-to-Let Mortgage: For individuals looking to invest in rental properties.
    • Equity Release: For accessing funds tied up in existing properties.
    • Interest Rates: Vary, with both fixed and variable options available.

Standard Chartered also offers a range of services for investors and high-net-worth individuals interested in the property market.


9. Family Bank

Family Bank is another institution offering mortgage services, focusing on providing affordable housing solutions to its clients. Their mortgage products are aimed at making homeownership accessible to a broader population.

  • Types of mortgages offered:
    • Home Purchase Loans: For buying residential properties.
    • Construction Loans: For building homes.
    • Equity Release: For customers looking to borrow against the value of an existing home.
    • Interest Rates: Competitive rates, with flexible repayment plans.

Family Bank is particularly popular among first-time homebuyers due to its focus on affordability.


10. Gulf African Bank

As a leading Islamic bank in Kenya, Gulf African Bank provides Sharia-compliant mortgage solutions for customers seeking Islamic financing options. The bank offers a range of mortgage products designed to meet the needs of Muslim customers.

  • Types of mortgages offered:
    • Sharia-compliant Home Financing: Based on the diminishing Musharaka model, where the bank and customer share ownership of the property.
    • Construction Loans: For building homes.
    • Plot Financing: For purchasing land.
    • Interest Rates: Structured in compliance with Islamic banking principles (profit rates rather than interest).

Gulf African Bank is ideal for customers looking for ethical financing options that align with their faith.


11. Microfinance Institutions Offering Mortgages in Kenya

In addition to traditional banks, several microfinance institutions (MFIs) also offer mortgage services in Kenya, providing more accessible financing options for low- to middle-income earners.

Housing Finance Kenya (HF Group)

HF Group, traditionally a mortgage financier, is now licensed as a microfinance bank, offering affordable housing finance solutions to individuals and groups. HF Microfinance targets those who might not qualify for traditional bank loans but still wish to own a home.

  • Types of mortgages offered:
    • Home Loans: For individuals looking to purchase homes.
    • Group Loans: For savings groups (chamas) interested in buying property collectively.
    • Interest Rates: Competitive rates with flexible terms.

KWFT (Kenya Women Microfinance Bank)

KWFT is one of the largest microfinance institutions in Kenya, offering mortgage services specifically designed for women. KWFT helps women access affordable loans for homeownership and property development.

  • Types of mortgages offered:
    • Home Loans: For purchasing or improving residential properties.
    • Land Purchase Loans: For buying land for future development.
    • Construction Loans: For building homes.
    • Interest Rates: Competitive and tailored for women borrowers.

Conclusion

Kenya’s mortgage market has grown significantly over the years, with numerous banks and microfinance institutions stepping in to provide home financing solutions for individuals and investors. Whether you’re looking for a traditional home loan, Islamic financing, or affordable options from microfinance institutions, there are plenty of choices to suit your financial needs.

Before choosing a mortgage provider, it’s essential to compare interest rates, repayment terms, and eligibility criteria to find the best option for your situation. Attending property exhibitions like the Kenya Homes Expo is also a great way to interact with mortgage

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