Updated 31 October 2026
The Kenya Mortgage Refinance Company (KMRC) does not lend to home buyers directly; it gives banks, saccos and microfinance banks cheap long-term funds so they can offer fixed, single-digit-rate mortgages of up to KSh10.5 million over up to 25 years. Under KMRC’s loan eligibility criteria (effective July 1, 2025), the rate is “currently at single digit (below 10%) and fixed for the tenure of the loan.” Standard Chartered, for example, advertises KMRC mortgages at 9.5% a year.
KMRC mortgage rules at a glance
| Criterion | KMRC rule |
|---|---|
| Who can borrow | Kenyan citizens over 18, salaried or self-employed, with verifiable income |
| Loan purpose | Buy a new or existing home, or build one; owner-occupied (or occupied by close relatives) |
| Maximum loan | KSh10.5 million |
| Property value | Open market value not above KSh15 million |
| Loan-to-value | Up to 105% where the lender has insurance or cash-cover safeguards |
| Term | Up to 25 years, ending before retirement/insurable age |
| Rate | Single digit, fixed for the whole loan |
| Repayment limit | Monthly instalment not above two-thirds of gross monthly income |
| Title | Clean title; freehold, or leasehold with at least 40 years left (or 20 years at loan maturity) |
| Insurance | Property insurance at full value and life cover on the balance |
What KMRC will not refinance
- Re-mortgages or takeovers of existing mortgages.
- Unsecured loans used to buy a home and later converted to mortgages.
- Properties that fail KMRC’s environmental and social guidelines.
How much would you repay?
At 9.5% fixed, using a standard amortisation formula:
| Loan | Term | Monthly repayment (approx.) |
|---|---|---|
| KSh3m | 20 years | KSh27,964 |
| KSh5m | 20 years | KSh46,607 |
| KSh10.5m | 25 years | KSh91,738 |
These exclude insurance and fees. Your lender’s rate may differ, so ask for a written quote.
How to get a KMRC-backed mortgage
- Choose a participating lender (banks such as Standard Chartered and Stanbic, plus some saccos and microfinance banks) and ask for their KMRC product.
- Get pre-qualified: the lender checks income, CRB status and the two-thirds affordability limit.
- Pick a property worth no more than KSh15 million with a clean title.
- The lender arranges an independent valuation and legal work.
- Pay closing costs: valuation, legal fees, processing and stamp duty.
- After you have paid on time, the lender can refinance the loan with KMRC; your fixed rate stays the same.
Our step-by-step guide on how to get a mortgage in Kenya compares lenders and requirements. If you are buying an affordable housing unit, also see Boma Yangu vs the Affordable Housing Programme. Mortgage interest also qualifies for tax relief; see KRA mortgage interest relief.
KMRC mortgage vs an ordinary bank mortgage
| Feature | KMRC-backed mortgage | Ordinary bank mortgage |
|---|---|---|
| Interest rate | Fixed, single digit | Usually variable, linked to the bank’s base rate |
| Rate risk | Instalment stays the same for the whole term | Instalment can rise when CBK raises rates |
| Loan size | Up to KSh10.5m, homes up to KSh15m | Larger loans possible |
| Property type | Owner-occupied homes only | Can include investment and buy-to-let property |
| Refinancing an existing mortgage | Not eligible | Possible through a buy-off |
The main advantage is certainty: with a fixed rate, a rise in market interest rates does not raise your instalment. The trade-off is that KMRC loans are limited to modest, owner-occupied homes, so buyers of more expensive houses or rental property need an ordinary mortgage.
Tips to improve your chances
- Clear any CRB listing before you apply.
- Keep your total debt repayments well below two-thirds of gross pay; lenders also stress-test your income.
- Self-employed applicants should have at least a year or two of bank or M-Pesa statements and filed tax returns.
- Save for closing costs, which can add several percent of the price.
How KMRC raises money
KMRC is funded by shareholders, including the government and lenders, development finance institutions, and bonds sold on the capital markets. It holds the mortgages pledged by lenders as security, requiring pledged loans worth 120% of what it lends.
FAQ
What is the KMRC interest rate?
KMRC says rates are single digit (below 10%) and fixed for the loan’s life; Standard Chartered advertises 9.5%.
What is the KMRC loan limit?
KSh10.5 million, for homes worth up to KSh15 million.
Can I apply to KMRC directly?
No. You apply through a participating bank, sacco or microfinance bank.
Updated October 2026.
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