Kenya’s Affordable Housing Mortgage Rates Drop to 10.5%

Kenya’s average mortgage interest rate for affordable housing units has fallen to 10.5%—the lowest in a decade—thanks to the Housing Finance Corporation’s liquidity window and Treasury guarantees. Banks like HF Group, Co-op, and Stanbic now offer 15-year loans for homes under Ksh5 million. The Central Bank’s housing liquidity facility has injected Ksh20 billion into the market. Over 12,000 mortgages were issued in Q1 2024, up from 7,500 in Q1 2023. The government aims to finance 200,000 homes by 2027 under the Bottom-Up Agenda. Property developers report rising uptake in Ruiru, Athi River, and Syokimau.