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KCB Targets Informal Sector with Single-Digit Mortgage Solution
KCB Bank Kenya has launched a new mortgage solution aimed at expanding home ownership among MSMEs and workers in the informal sector.
The product offers a single-digit interest rate and targets small business owners, artisans, boda boda operators, gig workers, and digital content creators. These groups often earn consistent income but struggle to access traditional mortgage financing.
Expanding Access to Home Ownership
The facility provides loans ranging from KSh1 million to KSh4 million. Customers can repay over a period of up to 15 years. Applicants must have operated a business for at least two years.
KCB says the product responds to gaps in Kenya’s mortgage market, where access remains limited.
Caroline Wanjeri, Director of Mortgage Business at KCB Bank Kenya, said the solution reflects the realities of Kenya’s workforce.
“Mortgage uptake in Kenya has largely remained within the formally employed segment,” she said. “Yet over 80% of the workforce operates in the informal sector. This solution aims to increase inclusion and unlock home ownership for more Kenyans.”
KCB Targets Informal Sector with Single-Digit Mortgage Solution
Alternative Credit Assessment Model
Unlike traditional mortgages that rely on payslips, the new solution uses alternative data to assess borrowers.
The bank evaluates transactional history, mobile money flows, business records, and savings patterns to determine affordability.
“This approach recognises that Kenya’s economy runs on enterprise,” Wanjeri added. “We are redefining eligibility by focusing on consistent business performance.”
Addressing the Housing Gap
Kenya continues to face a significant housing deficit, driven by rapid urbanisation and limited access to financing. The country’s urban population is growing at an annual rate of about 4.4%.
Affordable housing remains a key pillar under Kenya Vision 2030. However, progress has faced challenges, including high construction costs and limited long-term financing.
KCB says the new mortgage solution aims to unlock access to capital for ordinary Kenyans and support the broader affordable housing agenda.
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