NAIROBI, Kenya, Apr 30 – KCB Bank has unveiled a single-digit interest rate mortgage product targeting micro, small and medium enterprises (MSMEs) and workers in Kenya’s vast informal economy.
The lender says the move seeks to widen access to home financing beyond salaried employees and reshape mortgage penetration in the country.
The lender is seeking to tap into underserved groups including small business owners, artisans, boda boda operators, gig workers and digital content creators’ segments that have traditionally struggled to secure mortgage financing due to irregular income structures and rigid credit appraisal systems.
The facility will offer loans ranging from Sh1 million to Sh4 million, repayable over up to 15 years, with eligibility pegged on at least two years of business operation.
“With more than 80% of Kenya’s workforce operating in the informal sector, the new mortgage solution seeks to increase financial inclusion, ease the rigid credit assessment mortgage models and enable an increase in homeownership for Kenyans,” said Caroline Wanjeri, Director of Mortgage Business at KCB Bank Kenya.
“By combining alternative credit assessment and financial discipline we are making mortgage financing accessible by redefining eligibility through consistency in business performance as a credible pathway to dignified home ownership.”
The product marks a shift from traditional mortgage models that primarily depend on payslips and formal employment contracts, instead relying on alternative indicators such as mobile money transactions, business records, savings behavior and cash flow patterns to assess repayment ability.
The move comes as Kenya grapples with a persistent housing deficit driven by rapid urbanization, rising construction costs and affordability challenges.
