KCB Bank has launched a groundbreaking mortgage product targeting Kenya’s informal workforce, a move expected to expand access to affordable housing and reshape the country’s mortgage landscape.
The new facility, offered at a single‑digit interest rate, is tailored for SMEs, artisans, boda boda operators, gig economy players, and digital content creators whose income streams are often irregular but consistent. Historically, these groups have faced barriers in accessing mainstream mortgage financing.
To qualify, applicants must have operated a business for at least two years. Loan amounts will range between KSh 1 million and KSh 4 million, with repayment periods extending up to 15 years.
Speaking at the launch, Carolyne Wanjeri, Director of Mortgage Business at KCB, said the product reflects the bank’s commitment to supporting Kenya’s evolving workforce. “For years, mortgage uptake has been concentrated among formally employed and middle‑to‑high income earners. With more than 80 percent of the workforce in the informal sector, this solution seeks to increase financial inclusion and enable more Kenyans to own homes,” she explained.
Unlike conventional mortgage products that rely heavily on payslips and employer contracts, KCB’s new solution leverages transaction history, mobile money flows, business records, savings patterns, and alternative data to assess affordability and repayment capacity. Wanjeri emphasized that the approach acknowledges Kenya’s entrepreneurial economy, redefining eligibility through consistency in business performance.
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Kenya’s housing challenge remains pressing, with urban growth at 4.4 percent annually and a significant backlog that continues to affect low‑income households. The Vision 2030 Medium Term Plan (MTP III 2018–2022) identified affordable housing as a cornerstone of inclusive growth, but progress has been hindered by limited investment finance, rising construction costs, and diminished affordability across the housing value chain.
Wanjeri noted that the intervention will help ordinary Kenyans achieve dignified home ownership. “By combining alternative credit assessment with financial discipline, we are making mortgage financing accessible to those who have been excluded for too long,” she said.
With mortgage penetration levels at just 3 percent, the product could significantly expand access to financing and support the government’s affordable housing agenda.
By Enock Masaki
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