Looking to buy a residential property in Kenya? Discover the top home financing options for real estate buyers in Kenya.
Owning a home in Kenya is a lifelong dream for many individuals and families. But for many aspiring homeowners, one question remains: How do I finance my dream property?
Whether you're buying your first home, investing from the diaspora or upgrading to a new apartment, the right financing can make all the difference. Here are the top real estate financing options in Kenya to help you turn your dream into a concrete address.
Self financing means a homebuyer uses their own savings, income, or liquid assets to acquire a residential property without relying on external loans or credit. This option offers full financial control and eliminates the long-term costs of interest payments.
Self-financing is especially ideal for buyers in the diaspora, business owners, or individuals who have strategically planned for homeownership over time. It also enables faster transaction processes since there’s no loan approval required.
One of the most popular ways to finance a home is through a mortgage loan from a commercial bank or financial institution. These loans typically cover up to 90% of the property value. Most mortgages have an average interest rate of 9.5% per annum. However, real estate firms like Roots Africa have partnered with financial institutions to make mortgages more accessible with interest rates lower than 9.5%. Additionally, repayment period is flexible with up to 25 years.
KMRC is a government-backed initiative that offers affordable housing finance through partner banks and SACCOs. The initiative ensures housing is affordable especially in Satellite Towns for first-time buyers. KMRC has partnered with reputable real estate firms to ensure owning a home is affordable for anyone.
Rent-to-own models are gaining popularity in Kenya, especially among young professionals and middle-income families. These allow tenants to pay rent which contributes toward owning the home over time.
NB: This is ideal for people who can’t afford large deposits or qualify for mortgages.
SACCOs (Savings and Credit Cooperative Organizations) are community-based financial institutions that offer housing development loans at favorable terms. They are SACCO members, informal workers and small business owners. Benefits of SACCOs are: Lower interest rates than traditional banks, Lenient credit requirements and Options for buying land, building, or buying ready-made units
Owning property in Kenya is no longer reserved for the few. With flexible financial options, whether through mortgages , SACCOs or rent-to-own, your path to real estate ownership is more accessible than ever.
At Roots Africa, we help you finance your future. Let us walk with you every step of the way, from choosing the right payment plan to unlocking mortgage approvals.
Visit www.rootsafrica.co.ke to start your home ownership journey today, or message us to schedule a free consultation.
