Kenya 💰 KES Last updated2026-05-28

Home loan Calculator Kenya

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Quick answer (Kenya)

A KSh 8,000,000 home loan at 15.5% over a 20-year term works out to a monthly payment of about Ksh 108,310, with total interest of Ksh 17,994,509 over the full term.

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Mortgage Calculator

USD

Home Value

LTV 80% · No PMI ✓

Loan Amount

Interest Rate

Term

Total Monthly

$121,644

PITI

Principal + Interest

$108,310

69% goes to interest

Total Interest

$17,994,509

over 20 years

Monthly Breakdown

Principal & Interest$108,310

Property Tax (1.1%/yr)$9,167

Homeowner's Insurance (0.5%/yr)$4,167

Total Monthly$121,644

Principal vs Interest Split

31% principal

69% interest

✨ Live recalculation·Includes P&I, property tax, insurance. Estimates only — consult a licensed lender for exact rates.

Reviewed by

Aisha Rahman, CFP®, MBA LinkedIn ↗

CFP® with 12+ years in mortgage & retirement planning.

Local context

Home loans in Kenya

Typical loan

Ksh 8,000,000

in Kenya

Typical rate

15.5% p.a.

prime borrower, 2026

Typical term

20 years

most common

Market overview

Kenyan mortgages are dominated by KCB Bank Kenya (the largest), HF Group (formerly Housing Finance), Standard Chartered Kenya, Stanbic Bank, Co-operative Bank, and Absa Kenya. The mortgage market is the largest in East Africa but still small relative to GDP — total stock around KES 250 billion. CBK policy rate sits at 11.25% (early 2026) after cuts from 13% in 2024. The Kenya Mortgage Refinance Company (KMRC) provides longer-term wholesale funding to participating banks, supporting more attractive end-borrower rates.

Why 15.5% is the typical rate

15.5% reflects a typical fixed-rate mortgage for a salaried Kenyan borrower at 80% LTV in early 2026. KMRC-refinanced mortgages can price 100-200 bps below standard rates for qualifying affordable-housing tier (loans under KES 8 million for primary residence, income tiers met). HF Group and KCB are the primary KMRC participating banks.

Tax & regulatory notes

Mortgage interest is partially deductible from Kenyan personal income tax up to KES 360,000/year for owner-occupied homes (~$2,700). Stamp duty is 4% of property value in urban areas (2% rural). Capital Gains Tax of 15% applies on property disposal (raised from 5% in 2023). The Affordable Housing Program (a 1.5% income tax surcharge introduced 2024) channels funds to government-backed housing schemes through the National Housing Development Fund.

🧮 Worked example

A KSh 8,000,000 home loan at 15.5% over a 20-year term

Loan amount

Ksh 8,000,000

Annual interest rate

15.5%

Term

20 years (240 months)

Monthly payment

Ksh 108,310

Total interest paid

Ksh 17,994,509

Total paid (principal + interest)

Ksh 25,994,509

❓ FAQ (Kenya)

Common questions in Kenya.

Affordable Housing Program — what is the 1.5% tax for?

The 2024 Affordable Housing Program introduced a 1.5% mandatory housing levy on Kenyan gross monthly income (matched by 1.5% employer contribution), administered through the Kenya Revenue Authority. Funds are channeled to the National Housing Development Fund which finances government-affiliated affordable housing projects. Eligible contributors gain access to subsidized housing units (KES 1-4 million purchase) and AHP-funded mortgages at 9-10% fixed rates. The levy has been politically controversial but has survived multiple court challenges.

KMRC refinanced mortgages — how do I get one?

Kenya Mortgage Refinance Company (KMRC) was established in 2018 to provide long-term wholesale funding to mortgage lenders, addressing the structural mismatch between short-term Kenyan bank deposits and long-tenor mortgages. KMRC-refinanced mortgages typically price 100-200 bps below standard rates and feature longer fixed periods (5-10 years). To qualify, you apply through a participating bank (HF Group, KCB, NCBA, Co-operative) and the loan must meet KMRC criteria: under KES 8M, primary residence, income tiers, location in approved zones.

Can Kenyan diaspora buy property in Kenya?

Yes — Kenyan diaspora is a major buyer segment, particularly Kenyans in US, UK, and South Africa. Most major banks (KCB, HF Group, Stanbic, Equity Bank) offer Diaspora Home Loans with documentation handled remotely. LTV typically 70-80% (similar to residents), rate within 50 bps of resident rates. M-Pesa integration allows diaspora to receive rental income from Kenyan properties directly to overseas bank accounts via cross-border M-Pesa-WorldRemit-Wise rails.

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