Only 4% of Kenyans Can Afford Homes Worth Sh10 Million or More — New Study Exposes
A picture that displays a house prototype-mostly used in architecture and structural engineering
A new study has revealed the stark reality of Kenya’s housing market — only 4% of the population can afford to buy homes valued at Sh10 million or more.
The joint research by Zamara, the Centre for Affordable Housing Finance in Africa (CAHF), and Financial Sector Deepening (FSD) Kenya shows that just 4 percent of pension scheme members have sufficient income to qualify for such mortgages.
According to the report, out of 145,205 pension contributors, only 6,146 individuals meet the income requirements for high-value home loans. This finding echoes data from the Central Bank of Kenya (CBK), which reveals that the average mortgage size has climbed to Sh9 million, up from Sh6.9 million in 2013 and Sh7.5 million in 2014.
Rising Costs and Limited Access
The study attributes the growth in average mortgage size to surging property prices and high upfront fees, both of which have made homeownership increasingly unattainable for many Kenyans.
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While the cost of housing continues to rise, most citizens’ incomes have remained relatively stagnant. As a result, a significant portion of the population depends on short-term or informal borrowing, which is ill-suited for financing long-term investments like housing.
CBK data shows that taking out a Sh9 million mortgage with an 11-year repayment period at 14.9 percent interest would require monthly payments of about Sh140,000. To qualify for such a loan, one would need a monthly income exceeding Sh420,000 — an amount far beyond the reach of the average Kenyan worker. In fact, over 85 percent of Kenyans earn less than Sh100,000 per month, making it virtually impossible for them to access formal housing loans.
Income vs. Housing Reality
“High interest rates, low income levels, and strict loan eligibility criteria have pushed most households to rely on expensive personal loans or informal financing methods,” the report notes. Such borrowing options are not sustainable for home construction or purchase, leading to continued inequality in access to housing.
Despite there being 3.4 million formally employed Kenyans, the banking sector has issued only 30,016 active mortgages, underscoring how disconnected the housing finance system is from the realities of household earnings. This mismatch between average incomes and property costs remains one of the biggest barriers to mortgage growth and homeownership in the country.
Affordable Housing
The survey also highlights a potential solution through the government’s Affordable Housing Programme. Nearly 25 percent of respondents could afford homes priced around Sh3 million, provided they access loans at lower interest rates. Under the Kenya Mortgage Refinance Company (KMRC) scheme, households earning Sh100,000 per month can qualify for a Sh3.4 million mortgage at 9.5 percent interest over 25 years — enough to buy a typical affordable housing unit.
This suggests that while the dream of owning high-end homes remains out of reach for most Kenyans, affordable housing initiatives could offer a practical pathway for middle- and lower-income earners to own decent homes.
The Bigger Picture
The study reinforces a critical message: homeownership in Kenya remains a privilege of the few. With property prices far outpacing wage growth and mortgage terms remaining stringent, the majority of citizens are effectively locked out of the formal housing market.
Experts emphasize the need for policy interventions to lower interest rates, expand access to affordable financing, and promote income growth. Without such measures, Kenya’s vision of inclusive housing will remain a distant goal — with millions of hardworking citizens continuing to rent rather than own their homes.
