How to Get Financing for a House in Kenya

or Financing has remained to be the major challenge for potential homeowners however this could change.Apart from the common cash method, there are various ways you can finance your home. These include  the following;

Bank financing

Bank financing is the most common type of financing for a house.

In Kenya, different banks lend money to potential homebuyers. However, the percentage rate varies from bank to bank and from the potential of the client to pay back.

To find out about the interest rates read our article on the list of best mortgage lenders in Kenya.


This option involves buying a home through housing societies that partner with investment groups and SACCOs to offer home loans to their members. The advantage of SACCOs is that you can pay less in interest and monthly payments.  Examples of SACCOs include the following;


Crowdfunding  is commonly known as Chama. In a Chamas the members contribute a certain amount of money either weekly or monthly depending on their agreement then the money is then given to one member. And the circle continues. Chamas that are registered  under banks or investment groups are highly considered. You can get financing ranging from Kes. 100,000 – Kes. 250 million up to 10 times your savings.

Using your pension money

The government of Kenya has amended the Retirement Benefits Act (RBA) to allow pension funds to be used as collateral for the purchase of a residential house. You can do this with the help of banks, financial institutions, building societies, microfinance institutions, or the National Housing Corporation.

The Bottom-Line

If you lack enough money to purchase your dream house  you can opt for either of the options discussed above. Please feel free to email us at [email protected] if you have any questions about financing or to share your thoughts in the comment section below.







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