NAIVASHA, Kenya – Kenya aims to create a mortgage market that is inclusive by forming alliances along the housing value chain. This will necessitate a fundamental rethinking of how lenders determine mortgage eligibility, including the use of alternative data to evaluate the creditworthiness of borrowers without traditional payslips or official income records, such as mobile money transactions, SACCO savings, rental payment histories, utility payments, and business transactions.
Principal Secretary for Housing and Urban Development Charles Hinga stated that over 280,000 housing units are presently being built in Kenya, with a contract value of about KSh731.5 billion and sustaining over 640,000 direct and indirect jobs. By December, more than 45,000 units are anticipated to be finished at an estimated KSh52 billion.
But Hinga said the number of homes built should not be the ultimate measure of success.
“Ownership is not a single door. It should be a corridor with several doors, each opening onto the same outcome,” Hinga said.
The comments, made during the opening of the 5th Kenya Affordable Housing Conference (KAHC) in Naivasha on Thursday, August 20, 2026, put the spotlight on what is emerging as one of the biggest tests facing Kenya’s housing programme: who will finance the buyers as more units enter the market?
Rethinking who qualifies for a mortgage
Traditional mortgage lending has generally favoured borrowers with regular salaries, formal employment records and predictable monthly incomes.
Yet this leaves a large part of Kenya’s working population, including traders, small-business owners, farmers, freelancers and other self-employed people facing greater difficulty demonstrating their ability to repay a long-term housing loan.
Hinga called for the development of a standardised affordable housing mortgage, with common requirements covering eligibility, underwriting, documentation, valuation and servicing. Such standardisation, he said, could make it easier for mortgages to be pooled and refinanced and eventually attract more long-term domestic institutional capital into housing.
He also proposed a common affordability framework that recognises how non-salaried Kenyans actually earn and spend, including the use of mobile-money records, SACCO savings, rental histories, utility payments and business transactions in determining creditworthiness.
With more than 1.29 million Kenyans registered on Boma Yangu, Hinga said the platform could also be integrated with lenders so that prospective homeowners can move more seamlessly from registration and prequalification to allocation, financing and eventually acquisition of title.
“The goal is to move Kenya from approximately 30,000 mortgages towards one million by building not only houses but also the market that places Kenyans inside them,” he said.
Banks say financing must follow the entire housing journey
Financial institutions, meanwhile, say expanding mortgage access cannot be addressed separately from the cost of developing homes.
Remarks by KCB Kenya Director of Mortgage Business Caroline Wanjeri, delivered on her behalf by George Laboso, Senior Manager, Affordable Housing at KCB Bank, pointed to constrained investment finance, rising construction costs and the limited supply of serviced land as pressures that ultimately affect what homebuyers pay.
KCB said the role of financial institutions is consequently evolving beyond simply financing a completed house.
“We are looking at the entire housing journey while seeking to make these solutions more accessible and responsive to evolving customer needs,” Wanjeri said in the remarks delivered by Laboso.
The bank also called for greater use of alternative building materials to lower construction costs, alongside housing developments that incorporate energy efficiency, sustainable materials and climate-resilient infrastructure.
According to KCB, affordability should also take into account whether developments are connected to transport, water, sanitation and other essential services; costs that have a direct bearing on what households ultimately spend to live in their homes.
The challenge extends beyond Kenya. Shelter Afrique Development Bank managing director and CEO Thierno-Habib Hann said conventional housing finance models often assume formal employment, reliable land records, long-term funding and mature financial markets – conditions that do not reflect the realities of many African economies.
With more than 80 per cent of Africa’s workforce earning within the informal economy, Hann argued that housing finance needs to be designed around how people actually earn, save and live.
He called for a combination of blended finance, alternative underwriting, capital-market instruments, green housing finance and digital solutions to expand the pool of people who can access homes.
From houses built to homeowners created
KMRC Chief Executive Officer and Managing Director Johnstone Oltetia said the industry must now confront the two sides of Kenya’s housing equation simultaneously: increasing the supply of affordable homes while widening access to finance.
“This year’s theme speaks to both the scale of the challenge and the promise before us: to close the twin gaps that constrain access at scale,” Oltetia said.
He challenged lenders, policymakers, developers and other players to focus on practical solutions that translate housing commitments into actual ownership.
“Let this be the conference where we stop measuring housing by what we plan and start measuring it by what we deliver,” Oltetia said.
The discussion comes as Kenya grapples with a broader question about the next phase of its affordable housing programme: whether the financial system can expand quickly enough to create buyers for the homes now being built.
The two-day KAHC 2026, themed “Scaling the Base: Unlocking Inclusive and Sustainable Housing Solutions”, has brought together policymakers, lenders, SACCOs, developers, development finance institutions and housing specialists from Kenya and other markets to examine that challenge.
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