KCB Bank has launched a new mortgage financing solution aimed at expanding home ownership opportunities for Kenyans working in the informal sector and micro, small and medium enterprises.
The product targets groups that have traditionally struggled to access mortgage financing due to irregular income patterns and limited formal employment documentation. These include SMEs, artisans, boda boda operators, gig economy workers, digital content creators and other informal sector earners whose income may not come through conventional payslips.
Under the facility, customers can access mortgage loans ranging from KSh1 million to KSh4 million, with a repayment period of up to 15 years. To qualify, an applicant must have operated a business for at least two years.
Speaking during the launch, KCB Bank Kenya Director of Mortgage Business, Caroline Wanjeri, said the product is designed to respond to changes in Kenya’s workforce and broaden access to housing finance.
“For years, Kenya’s mortgage uptake has been concentrated among formally employed and middle to high income earners, a scenario that has kept the mortgage penetration levels at around 3%. 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,” Wanjeri said.
Unlike conventional mortgage products that rely heavily on formal payslips and employer contracts, KCB said the new solution will assess applicants using alternative data. This may include transactional history, mobile money flows, business records, savings patterns and other indicators of financial consistency.
Wanjeri said the product recognises the role of enterprise in Kenya’s economy and seeks to use business performance as a pathway to mortgage eligibility.
“This solution acknowledges that Kenya’s economy runs on enterprise. 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,” she added.
The launch comes at a time when Kenya continues to face a significant housing deficit, driven in part by rapid urbanisation. The high cost of construction, limited long-term financing and reduced affordability have continued to constrain access to home ownership, particularly for low-income households.
KCB said the new mortgage product is part of efforts to unlock long-term capital for ordinary Kenyans and support the country’s affordable housing agenda.