How to Finance an Apartment in Nairobi: Mortgages, SACCOs & More
Introduction
How to finance an apartment in Nairobi is a common question for buyers and investors in 2025. With rising property prices, most people require financing solutions such as mortgages, SACCO loans, or flexible off-plan payment plans. This guide by Sarabi Realty explores the different financing options available and how to choose the best one for your situation.
Why Financing Matters
- Affordability – Financing spreads the cost over time.
- Accessibility – Allows buyers to invest without full upfront cash.
- Flexibility – Different products cater to different income levels.
Financing Options in Nairobi
1. Mortgages
Mortgages remain the most popular financing tool.
- Offered by banks and supported by the Kenya Mortgage Refinance Company (KMRC).
- Terms range from 10 to 20 years.
- Interest rates vary but are gradually becoming more affordable.
2. SACCO Loans
Savings and Credit Cooperative Organizations (SACCOs) are a trusted option.
- Lower interest rates compared to banks.
- Favorable repayment terms for members.
- Require consistent savings contributions.
3. Off-Plan Payment Plans
Off-plan apartments allow buyers to pay in installments during construction.
- Lower entry costs.
- Flexible monthly or quarterly payments.
- Best when buying from reputable developers.
4. Employer Housing Schemes
Some employers offer partnerships with banks or developers.
- Salary deductions make repayment manageable.
- Often linked with specific projects.
5. Personal Loans and Investments
For smaller units, buyers may use personal savings or loans.
- Works best for studios or budget apartments.
- Faster ownership without long-term obligations.
Costs to Keep in Mind
When planning how to finance an apartment in Nairobi, budget for:
- Stamp Duty – 4% in urban areas (Kenya Revenue Authority).
- Legal Fees – Advocate charges for contracts and transfers.
- Valuation Fees – Required for mortgage and registration processes.
Tips for Choosing the Right Financing Option
- Compare interest rates across banks and SACCOs.
- Match repayment terms to your income stability.
- Avoid over-borrowing beyond your budget.
- Always involve a licensed advocate in the process.
Related Properties
Explore affordable listings on our apartments for sale in Kilimani, Lavington apartments for sale, and houses for sale in Nairobi.
FAQs on How to Finance an Apartment in Nairobi
What is the best way to finance an apartment in Nairobi?
Mortgages and SACCO loans are the most common and reliable options.
Are mortgages affordable in Kenya in 2025?
Yes. With KMRC support, mortgage rates are becoming more accessible.
Can foreigners finance apartments in Nairobi?
Yes. Some banks offer mortgage products for diaspora and foreign investors.
Is buying off-plan a safe way to finance an apartment?
Yes, but only with reputable developers and proper legal guidance.
What upfront costs should I prepare for when financing?
Stamp duty, legal fees, and valuation charges.
Final Thoughts
Learning how to finance an apartment in Nairobi helps buyers plan effectively and invest with confidence. Whether through mortgages, SACCOs, or flexible off-plan plans, financing options in 2025 make home ownership more accessible. Partner with Sarabi Realty Group for expert guidance and verified listings.