Updated 31 October 2026
Harambee DT Sacco’s mortgage scheme has two products: the Harambee Home Loan for buying a house outright and the Harambee Jenga Loan for building one. Both charge a fixed 8% a year on loans of up to 10 years and 9% on longer loans, lend from KSh 500,000 up to KSh 10.5 million in Nairobi (KSh 6 million in other towns), and need a deposit of at least 10%. Employed members can repay over up to 25 years or until retirement. The terms below come from the Sacco’s Home Loan and Jenga Loan pages, checked on October 31, 2026.
Harambee Home Loan vs Jenga Loan at a glance
| Feature | Home Loan (purchase) | Jenga Loan (construction) |
|---|---|---|
| Loan to value | Up to 105% of purchase price or market value, whichever is lower | Up to 105% of construction cost or projected market value, whichever is lower |
| Your contribution | At least 10% of purchase price | At least 10% of construction cost |
| Fixed interest | 8% p.a. (10 years or less); 9% p.a. (over 10 years) | Same |
| Maximum period | Employed: 25 years or to retirement. Self-employed: 15 years or to insurable age | Same |
| Loan amount | KSh 500,000 to KSh 10.5m (Nairobi) / KSh 6m (other towns) | Same |
| Processing fee | 1% of approved amount, paid on accepting the offer | Same |
| Closing costs | About 9% of purchase price | About 9% of construction cost |
| Early repayment | Allowed, no penalty | Allowed, no penalty |
| Insurance | Mortgage Protection Policy and domestic package | Mortgage protection, domestic package, Contractor’s All Risk and WIBA cover |
| Principal holiday | Not available | Interest-only during construction; full repayments after completion |
Why the rate matters
A fixed 8% is well below most bank mortgages in Kenya. It matches the single-digit band of Kenya Mortgage Refinance Company-backed loans, and the KSh 10.5 million Nairobi cap is the same as the KMRC limit covered in our KMRC mortgage guide. Because the rate is fixed, your instalment does not rise when the Central Bank raises rates.
Here is a worked example using our own amortisation estimate, not a Sacco quote. A KSh 5 million loan at 9% over 20 years costs about KSh 45,000 a month. The same loan at 8% over 10 years costs about KSh 60,700 a month but saves more than KSh 3.5 million in total interest.
Budget for more than the 10% deposit
The Sacco puts closing costs at about 9% of the price. That covers costs such as stamp duty, legal fees and valuation. On a KSh 5 million house you would need roughly KSh 500,000 for the deposit plus about KSh 450,000 for closing costs. Add the 1% processing fee (KSh 50,000) and the insurance premiums. The 105% loan-to-value cap means the loan can sometimes cover part of these costs, depending on the valuation.
How to apply for a Harambee Sacco mortgage
- Become a member of Harambee DT Sacco if you are not one already.
- Choose the property, or get building plans and a bill of quantities for a Jenga loan.
- Visit any Harambee Sacco branch (FOSA branch for Jenga) and fill in the mortgage application form.
- Pay your 10% contribution and the processing fee when you accept the letter of offer.
- Take out the required insurance covers before the money is paid out.
To compare these terms with banks, see our guide on how to get a mortgage in Kenya. Harambee’s other loans, including the Shamba land loan, are listed in our Harambee Sacco loan chart.
Frequently asked questions
What is the Harambee Sacco mortgage interest rate?
8% a year fixed for loans of 10 years or less and 9% a year fixed for longer loans.
How much can I borrow?
KSh 500,000 to KSh 10.5 million for homes in Nairobi and up to KSh 6 million in other towns.
Can self-employed members get a Harambee home loan?
Yes, but the maximum term is 15 years or until insurable age, compared with 25 years for employed members.
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