Best Home Loan Interest Rates In Kenya

What is a Home Loan Interest Rate?

The Home loan interest rate is the percentage of the principal amount charged by the lender to the borrower for using the principal amount.

Best Home Loan Interest Rates In Kenya

1. ABSA Bank

Mortgage Rate: 14.4% APR*

With the ABSA mortgage, you can buy, build, remortgage or get access to equity release loans. Their mortgage loan terms are up to 25 years, at 90% financing. They also offer fully Shari’ah-compliant mortgages. 

2. CitiBank Kenya

Mortgage Rate: 12.5% APR*

CitiBank offers low-interest and flexible repayment schemes to its customers. As such, they offer custom interest rates according to borrower needs and process applications within a very short time.

3. Diamond Trust Bank

Mortgage Rate: 14.6% APR*

Diamond Trust Bank offer mortgage loans to both employed and self-employed. Offer a maximum loan term of up to 20 years, at 90% of the price or market value, whichever is lower.

4. Housing Finance Company (HFC)

Housing Finance Group (HFC) specializes in offering integrated property financing solutions for interested parties. They offer up to 90% financing of the property price or market value price. Their loan term is up to 20 years for employed individuals or 10 years for SMEs and groups. The mortgage must have a protection cover in case of death or disability, and should also include insurance cover for fire.

5. Kenya Commercial Bank (KCB)

Mortgage Rate: 13.3% APR*

Kenya Commercial Bank (KCB) offers accessible mortgage loans to everyone – employed, self-employed, contract workers, and Kenyans working abroad at flexible repayment terms. They offer a maximum loan term of up to 25 years, at 90% financing for owner-occupied properties 80% for investment properties and 70% for plot purchases.


Mortgage Rate: 12.9% APR*

NCBA offer mortgage loans in all major currencies and calculates their mortgage loan interest on a reducing balance basis. The bank offers a maximum loan term of up to 25 years, at 105% financing of property value with flexible repayment, with no penalty for early repayment.

7. Standard Chartered Bank

Mortgage Rate: 12.5% APR*

Standard Chartered Bank offers loans in different currencies. They can loan up to Ksh 100 Million, at 105% financing for a maximum loan term of up to 25 years. Their facilitation fee is a minimum of Ksh 10,000 or 1% of the loan amount, whichever is higher.

Additionally, they offer loan consolidation and refinancing deals (that allow you to borrow higher loan amounts or use your existing property as collateral).

8. Stanbic Bank

Mortgage Rate: 14.1% APR*

Stanbic Bank offers a maximum loan term of 20 years, at 100% financing for construction and 105% financing for finished properties.

** APR based on my estimates

Which Bank has the cheapest mortgage rates in Kenya?

Standard Chartered Bank Kenya

Standard Chartered offers some of the cheapest mortgage rates in KEnya so far. The interest rates can go as low as 12.2% with an option for the comprehensive 105% mortgage financing solution.

What is the current mortgage rate in Kenya?

Commercial Bank of Africa

Commercial bank of Africa offers an attractive mortgage loan rate that is more affordable than the average mortgage rate in Kenya at 12.9%.

How do you qualify for a mortgage in Kenya?

  1. Completed and signed application form.
  2. Certified copies of last 3 pay slips.
  3. Certified letter from employer stating terms of employment.
  4. Certified copy of ID/passport.
  5. Copy of PIN certificate.
  6. Sale agreement.
  7. Documentary evidence of any other income.

Is mortgage a good idea in Kenya?

It’s expensive

Mortgages in Kenya are expensive. At a 13 percent interest rate, you want to make sure that you limit how much money you take from the bank. Save for a few years first so that you have a good stock of deposit (at least 30 percent) to place as equity for the house at the point you are taking a mortgage.