Key features of the mortgage product:

• The mortgage offers loans ranging from Sh1 million to Sh4 million, repayable over up to 15 years.
• Eligibility requires at least two years of business operation.
• The product aims to increase financial inclusion by easing rigid credit assessment models.
• It uses alternative indicators, such as mobile money transactions and business records, for credit assessment.

Over 80% of Kenya’s workforce operates in the informal sector. Many of these individuals struggle to secure traditional mortgage financing. Caroline Wanjeri, a spokesperson for KCB Bank, highlighted the importance of this new solution.

Wanjeri stated, “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.”

This move comes as Kenya faces a persistent housing deficit driven by rapid urbanization and rising construction costs. The initiative is expected to tap into underserved groups who have traditionally found it difficult to access home loans.

Wanjeri added, “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.” KCB Bank is positioning itself as a leader in addressing housing challenges in the country.

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