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. 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.

Buying through Goldstay’s sourcing means this is checked before you are asked to commit.