KMRC and Kenya’s affordable mortgage explained: the 2026 guide
Kenya Mortgage Refinance Company (KMRC) is the government-backed institution behind the country’s lower-rate Affordable Housing Programme mortgages. Here is the honest 2026 guide on what KMRC actually does, who qualifies and which banks offer KMRC-backed products.
Kenya Mortgage Refinance Company (KMRC) is the government-backed institution behind the country’s lower-rate Affordable Housing Programme mortgages. Misunderstood by most borrowers and sometimes confused with a separate bank. Here is the honest 2026 guide on what KMRC actually does and how to access KMRC-backed mortgages.
What KMRC is
- A central refinancing company that provides long-term funding to commercial banks and SACCOs at below-market rates
- Backed by the National Treasury, World Bank and African Development Bank
- Does not lend directly to consumers; lending is through partner banks and SACCOs
KMRC-backed mortgage rates
- Typically 9.5 to 11.5 percent fixed for the lower-tier (versus 13 to 16 percent variable on commercial mortgages)
- Tenure: up to 25 years
- Loan size cap: KES 10.5m for Nairobi metro at the time of writing (verify with the lender)
Eligibility
- First-time home buyer
- Income within the affordable housing band (verify the current threshold)
- Property within KMRC-eligible price cap
- KRA tax compliance
- Standard mortgage diligence (employment, DSR, CRB)
Partner banks and SACCOs
- KCB, Stanbic, NCBA, Co-op, Equity, HFC, Family Bank, ABSA among the commercial banks
- Mwalimu SACCO, Stima SACCO, Imarisha SACCO and several others
- Apply to one of these institutions, not to KMRC directly
Trade-offs
- Property price cap restricts eligibility to lower mid-market stock; premium suburbs out of scope
- Process can be slower while lender confirms KMRC eligibility
- Documentation is more rigorous
KMRC is one of the more meaningful property finance innovations of the last decade in Kenya. Most first-time buyers do not know it exists.
How Goldstay handles it
For first-time buyer clients we check KMRC eligibility before settling on a commercial mortgage path. Read also our pieces on first-time home buyer Kenya and Boma Yangu.
The Goldstay Legal Desk covers Kenyan and Ghanaian property law, title diligence, sale agreements, stamp duty, succession and the regulatory environment that property owners and investors encounter. Pieces are written in collaboration with our advocate partners.
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