The affordable housing Sector in Kenya got a boost with the establishment of Kenya Mortgage Refinance Company (KMRC). KMRC offers mortgages at low interest rates through some commercial banks and other financial institutions in Kenya.
KMRC mortgages are extended to individuals earning a monthly income of Ksh 200,000 and below. It’s other major condition is that, the mortgage being granted should be not more that Ksh 10,500,000 and has repayment period of up to 25 years. Anyone who falls outside the thresholds listed above can apply for mortgage at the existing bank’s mortgage interest rates, which is currently (as at August 2024) above 15%pa for most banks.
Some companies have scheme agreements with the banks and their staff enjoy low interest rates on mortgages from as low as 5%pa. Civil servants through Civil servants Mortgage Scheme also enjoy low interest rates of between 3%pa to 7%pa. Another class of borrowers that have the privilege of low interest rates are the banks’ staff who are employed on permanent and Pensionable terms.
Therefore, most of the borrowers who take up the KMRC mortgages are those who do not fall under the above categories and would have otherwise opted for mortgages at the market rates, but thanks to KMRC’s intervention.
For one to be eligible, the property being acquired must be a residential unit for owner occupation or occupation by immediate relatives of the owner. The mortgage is not granted if the property purchased is a commercial property.
The product is a big boost to Kenya’s low levels of home ownership by urban population which is currently at 21.3%. Through KMRC’s initiative, it is expected that more Kenyans will be able to afford to purchase houses hence increasing the percentage of the urban population owning homes as majority of them live in rental homes.
Most of the houses with price range of Ksh 10.5 Million and below are in Nairobi’s satellite towns like Kitengela, Ongata Rongai, Ngong, Ruiru, Kikuyu, Ruai, Utawala, Athi River etc, which comprise of both apartments and standalone (Bungalows & Maisonettes) houses. Within Nairobi City County, one is less likely to get a standalone house within that price range except in some areas in Eastlands, but you can find apartments at that price range in most parts of the county.
At Kagen Properties & Investments Ltd, we have a variety of affordable houses on sale in different areas within Nairobi’s metropolitan area and we assist clients in finding their ideal home and also advise on the best financing options as we walk with you through the entire process until you get the key to your home!
Talk to us today through our contacts 0731 472239, or 0782 772239, and also through our email address info@kagenproperties.com and we will be glad to assist you in your home ownership journey.
