Mortgage Rates in Kenya 2026: KMRC, Bank and SACCO Loans

The cheapest home loans in Kenya are the KMRC-backed ones: 6 of the products below are KMRC loans priced from 8% to 9.5% a year. An ordinary bank mortgage costs more. Absa, for example, prints 13.33% a year, reducing balance for its standard mortgage. For comparison, CBK's average lending rate across all bank loans was 14.40% in September 2026.

Mortgage rates by lender

Lender	Product	Rate	Max loan	Max term	KMRC	Source
Apstar SACCO (SACCO)	Makao Halisi (gross monthly income KSh 200,000 or less) Members only. Purchase or construction of an owner-occupied home. Collateral required. Apstar says both Makao loans follow KMRC refinancing rules.	8.0% a year	KSh 8.0 million	20 years	KMRC-backed	Lender page read 2026-10-25
Absa Bank Kenya (Bank)	Affordable Home Loan (KMRC-funded) Purchase or construction. Up to 105% financing. Also open to Kenyans abroad.	from 9% a year, fixed	KSh 10.5 million	25 years	KMRC-backed	Lender page read 2026-10-25
Stima SACCO (SACCO)	KMRC Mortgage (salaried, first-time homeowners) Members with 6 months of contributions. Repayment capped at two thirds of basic pay. 1.5% loan insurance fund and seed loan.	9%, reducing balance	KSh 10.5 million	25 years	KMRC-backed	Lender page read 2026-10-25
Kenya Police SACCO (SACCO)	Home loan Processing fee KSh 1,000. The borrower pays legal fees, stamp duty and valuation.	9% a year	KSh 15 million	20 years	Not stated	Lender page read 2026-10-25
Standard Chartered Kenya (Bank)	KMRC mortgage loan Purchase and construction mortgages. Standard Chartered says the rate is fixed.	9.5% a year, fixed	KSh 10.5 million	25 years	KMRC-backed	Lender page read 2026-10-25
Stima SACCO (SACCO)	KMRC Mortgage (business or rental income) In business for more than 3 years, 12 months of contributions, maximum age 60.	9.5%, reducing balance	KSh 10.5 million	20 years	KMRC-backed	Lender page read 2026-10-25
Apstar SACCO (SACCO)	Makao Bora (gross monthly income above KSh 200,000) Members only. Purchase or construction of an owner-occupied home. Collateral required. Apstar says both Makao loans follow KMRC refinancing rules.	9.5% a year	KSh 10.5 million	20 years	KMRC-backed	Lender page read 2026-10-25
Absa Bank Kenya (Bank)	Mortgage loan (standard) Up to 110% of property value. Business home loans up to 90% over 20 years.	13.33% a year, reducing balance	Based on affordability	25 years	Not KMRC	Lender page read 2026-10-25
Stima SACCO (SACCO)	Makaazi Poa house purchase or construction Micro mortgage. Up to KSh 4 million over 5 to 10 years; above that, up to 12 years. Processing fee 0.75% plus excise duty, and 0.75% to the insurance fund.	14%, reducing balance	KSh 15 million	Up to 12 years (144 months), by amount	Not KMRC	Lender page read 2026-10-25

How KMRC-backed mortgages work

KMRC, the Kenya Mortgage Refinance Company, describes itself as a non-deposit-taking financial institution supervised by the Central Bank of Kenya. It was set up to give long-term funds to primary mortgage lenders, meaning banks and SACCOs, so that they can offer cheaper and longer home loans. You never borrow from KMRC itself. You borrow from the bank or SACCO, which refinances the loan with KMRC.

That is why KMRC loans come with conditions the lender sets to meet KMRC's rules: a maximum loan of KSh 10.5 million at Absa, Standard Chartered and Stima SACCO, owner-occupied homes only at Apstar SACCO, and first-time homeowners only for Stima SACCO's salaried product. KMRC keeps a list of its partner lenders on its website, with a link to each one's mortgage page. That list is the quickest way to find a KMRC lender near you.

What a KSh 5 million mortgage costs a month

Our arithmetic, on a reducing balance over 20 years, before insurance, legal fees and valuation:

At 8%: about KSh 41,822 a month, or KSh 10,037,281 over the full term.
At 9.5%: about KSh 46,607 a month, or KSh 11,185,574 over the full term.
At 13.33%: about KSh 59,758 a month, or KSh 14,341,959 over the full term.

Put in your own price, deposit and rate in the mortgage calculator.

Costs on top of the rate

The lenders' own pages list some of the extra costs. Ask for all of them in writing:

Kenya Police SACCO lists a KSh 1,000 processing fee, valuation from KSh 20,000, stamp duty on the charge of 0.1% of the loan, and loan protection insurance of 0.35% of the loan a year.
Stima SACCO charges 1.5% for its loan insurance fund and seed loan on the KMRC products.
Absa lists valuation fees of 0.25% of property value on its equity release loan.
Buying, not building? Stamp duty on the transfer applies. See property transfer stamp duty or the stamp duty calculator.

Lenders not in the table

KCB, NCBA, Co-operative Bank, HFC and many SACCOs offer mortgages, some of them KMRC-backed. Their pages either did not print a rate when we read them or did not load. We will add them once a rate appears on the lender's own page. Until then, ask the lender for the rate, the APR and all fees for your loan amount.

Frequently asked questions

What is the lowest mortgage rate in Kenya?

Of the products we could confirm on lenders' own pages on 25 October 2026, the lowest is Apstar SACCO Makao Halisi (gross monthly income KSh 200,000 or less) at 8.0% a year. Several KMRC-backed loans sit at 9% to 9.5%.

What is a KMRC mortgage?

KMRC, the Kenya Mortgage Refinance Company, does not lend to you directly. It gives long-term funds to banks and SACCOs, which then lend to home buyers. A KMRC mortgage is a home loan from one of those lenders funded this way, usually at a lower fixed rate and a lower maximum amount.

Can I get a KMRC loan directly from KMRC?

No. You apply through a participating bank or SACCO. KMRC publishes the list of its partner lenders on its website, with a link to each lender.

How much is the monthly repayment on a KSh 5 million mortgage?

At 9.5% over 20 years, about KSh 46,607 a month, before insurance and fees. At 13.33% it is about KSh 59,758. Try your own figures in the mortgage calculator.

Are these rates fixed?

Absa and Standard Chartered say their KMRC loans are fixed. The SACCO pages give the rate on a reducing balance or per year without saying fixed or variable, so ask the SACCO before you sign.

Sources

Apstar SACCO, mortgage page, read 2026-10-25.
Absa Bank Kenya, mortgage page, read 2026-10-25.
Stima SACCO, mortgage page, read 2026-10-25.
Kenya Police SACCO, mortgage page, read 2026-10-25.
Standard Chartered Kenya, mortgage page, read 2026-10-25.
KMRC, Primary Mortgage Lenders, read 25 October 2026.
KMRC, Frequently Asked Questions, read 25 October 2026.
Central Bank of Kenya, Commercial Banks Weighted Average Rates.