Mortgage rates in Kenya
Kenya mortgage rates, explained clearly
Your offered mortgage rate depends on the lender’s assessment, product type, income, deposit and security. Published rates are useful starting points, not personal quotes.
Fixed and variable rates are different
KMRC-funded affordable-housing products are fixed for the loan tenure. They should not be described as variable.
For many Kenya-shilling variable-rate loans, the current pricing model is KESONIA plus a lender premium known as K. The lender sets its premium and may apply fees or eligibility criteria.
What KESONIA + K means
KESONIA is a reference rate for variable Kenya-shilling loans. It is not a mortgage quotation on its own: the customer rate is KESONIA plus the lender’s own premium, alongside applicable fees.
Why the lowest advertised rate may not be your rate
- The product may have a property-value, term, income or occupancy requirement.
- The published figure may be a minimum rate, a time-bound campaign, or a fixed-rate affordable-housing product.
- Lenders assess income, existing commitments, credit profile, deposit, security and documentation independently.
Published market context
Central Bank Rate: 8.75% (11 August 2026). KESONIA: 8.7501% (19 August 2026). Average commercial-bank lending rate: 14.38% (June 2026). The latest published mortgage-specific average is 14.9% for 2024; it is not a live quotation.
Official sources
- CBK Residential Mortgage Survey, year ended 31 December 2024
- Kenya Mortgage Refinance Company eligibility criteria
Last reviewed 23 August 2026. Rate details are collected from official public sources; review dates and campaign end dates matter.