KCB Bank Kenya has launched a mortgage financing product aimed at expanding home ownership access for micro, small and medium enterprises (MSMEs) and workers in Kenya’s informal economy, the lender said in a press release dated April 29, 2026.

The bank said the product offers a single-digit interest rate and is designed for borrowers such as artisans, boda boda operators, gig economy workers and digital content creators, whose income streams may be irregular but can be evidenced through transaction patterns. The facility targets applicants who have operated a business for at least two years.

According to KCB, the mortgage loans will range from KES 1 million to KES 4 million, with a maximum repayment period of 15 years.

The announcement comes amid persistent constraints in Kenya’s housing market, where formal mortgage access has historically been limited to salaried borrowers and higher-income segments. KCB linked the new product to the country’s affordable housing agenda, while pointing to structural barriers such as credit assessment models that rely on formal employment documentation.

Speaking during the launch, Caroline Wanjeri, Director of Mortgage Business at KCB Bank Kenya, said mortgage uptake has remained concentrated among formally employed Kenyans. “For years, Kenya’s mortgage uptake has been concentrated among formally employed and middle to high income earners, a scenario that has kept the mortgage penetration levels at around 3%,” Wanjeri said.

Wanjeri added that the target market is significant given the structure of Kenya’s labour market. “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,” she said.

KCB said the product will use non-traditional data points to assess affordability, rather than the conventional reliance on payslips and employer contracts. The bank said it will consider transactional history, mobile money flows, business records, savings patterns and other alternative data to determine repayment capacity.

“This solution acknowledges that Kenya’s economy runs on enterprise. 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,” Wanjeri said.

The move highlights a broader push by lenders to design credit products for borrowers outside formal payroll systems, as competition intensifies in retail banking and as digitised transaction trails make underwriting more data-driven. For Kenya’s banking sector, such models could deepen mortgage penetration if risks are properly priced and borrowers are supported to maintain stable repayment behaviour.

KCB cited housing demand pressures as part of the backdrop for the product’s launch, pointing to an annual urban growth rate of 4.4% and a housing backlog affecting low-income households. The bank also referenced Kenya’s Vision 2030 Third Medium Term Plan (MTP III) 2018–2022, which identifies affordable housing as a pillar for inclusive growth.

However, KCB noted that progress has been constrained by limited investment finance into housing, rising construction costs and affordability challenges along the housing value chain. The bank described the new product as an intervention intended to improve access to longer-term credit for prospective homeowners.

Going forward, the scale of uptake will likely depend on how quickly the bank can operationalise alternative credit scoring across customer segments and how the product is aligned with property supply in the targeted price bands. KCB did not disclose expected disbursement volumes or portfolio targets in the press release.