Centum Re, KCB roll out fixed-rate mortgages in push to unlock home ownership

Centum Real Estate Managing Director Kenneth Mbae /FILE 

Home buyers purchasing units from Centum Real Estate are set to access long-term fixed-interest mortgages under a new financing partnership with KCB Bank, in a move aimed at easing access to housing and stabilising borrowing costs.

The deal introduces mortgages priced at a fixed interest rate of 8.9 per cent for up to 25 years, offering buyers predictable monthly repayments over the life of the loan.

The two firms say the structure is designed to address long-standing barriers in Kenya’s mortgage market, including high interest rates, short loan tenures, and stringent qualification criteria.

Industry data shows mortgage uptake in Kenya has remained low, with most loans historically issued on variable rates, exposing borrowers to interest rate fluctuations and making long-term financial planning difficult.

Under the new arrangement, buyers of Centum Re homes will access discounted financing, with indicative monthly repayments structured to align with household incomes.

A Sh2.5 million studio apartment will attract monthly payments of about Sh20,809 over 25 years, while a Sh5 million one-bedroom unit will cost approximately Sh41,618 per month. A Sh10 million unit—including buy-and-build options—will require estimated monthly installments of Sh83,236 under the same terms.

Centum Real Estate Managing Director Kenneth Mbae said the partnership seeks to shift home ownership from an aspirational goal to a practical reality by simplifying financing.

“A good home should be more than something people admire from a distance. It should be something they can understand, plan for, and move toward with confidence,” he said.

KCB Bank Director of Mortgage Business Caroline Wanjeri noted that high headline property prices often discourage potential buyers before they explore financing options.

“We want to help customers start with a monthly number they can understand, plan for, and work toward with confidence,” she said.

The partnership reflects a broader push by developers and lenders to stimulate housing demand by making mortgages more accessible and predictable, particularly for salaried workers and the self-employed who have traditionally struggled to meet conventional lending requirements.

The product could help deepen Kenya’s underdeveloped mortgage market by shielding borrowers from rate volatility and improving affordability, potentially unlocking demand in a sector seen as critical to economic growth.