Absa Bank Kenya, at the recently concluded International Housing Solutions (IHS) Kenya Affordable Housing Conference 2026, introduced a new developer-led home financing solution aimed at making homeownership more accessible while helping address the country's growing housing deficit.

The new mortgage product offers qualifying buyers financing of up to 105% at an interest rate of 8.9% per annum, one of the most competitive rates currently available in the market.

One of the biggest highlights of the new offering is that buyers can secure mortgage financing for select off-plan developments while the project is still under construction.

Traditionally, many Kenyan banks have been reluctant to finance homes that are not yet completed, making it difficult for buyers to take advantage of lower off-plan prices.

This is because a lot of off-plan projects fail to complete the projects on time, and for some, to finish the project at all.

Under the new model, buyers can engage with Absa-approved developers, receive mortgage pre-assessments during construction, and access legal and valuation support as part of the home-buying process.

Related: Your Complete Guide to Buying Your First Home in Kenya

The bank says the solution is designed to create stronger connections between developers and buyers, improving project viability while helping more Kenyans become homeowners.

Kenya currently faces a housing deficit of more than two million units, with annual demand far exceeding supply. Just over 20% of Kenyans living in urban areas own the home they live in.

What Does This Mean for Buyers?

At PrimeVale, we believe this could be a significant development for Kenya's off-plan property market. One of the biggest challenges buyers have faced over the years is securing financing for projects that are still under construction.

This new approach could open up more opportunities for buyers to enter developments at lower prices and spread payments over a longer period.

While Absa has not yet released detailed qualification criteria, we expect the program may have similarities to KMRC-backed affordable housing mortgages. This could potentially mean requirements such as:

  • Kenyan citizenship

  • First-time homeownership status

  • A defined income bracket

  • Maximum property price caps

  • Eligibility limited to approved developments

However, these details have not yet been officially confirmed by Absa.

The 8.9% interest rate is also slightly lower than the 9% rate currently offered under some KMRC-funded mortgage programs, making it an option worth watching for prospective homebuyers.

Related: Affordable Housing in Kenya

As more information becomes available on participating developments and eligibility requirements, the program could become an important tool for buyers looking to purchase quality homes at off-plan prices while accessing affordable mortgage financing.

Check out our mortgage calculator to estimate how much you would pay every month for an 8.9% interest per annum.