Property developer Centum Real Estate (Centum Re) is counting on discounted fixed mortgage rates of 8.9 percent to boost sales of its housing units to buyers.
Centum Re has entered into a partnership with KCB Bank Kenya to allow its customers to tap into mortgages, which will be fixed for the loan period of up to 25 years.
The 8.9 percent fixed rate is lower than the average pricing of between 11 and 15 percent charged by commercial banks as of March 2026. Centum Re said the deal with KCB aims to cut costs for both the salaried and the self-employed.
“A good home should be more than something people admire from a distance. It should be something they can understand, plan for and move toward with confidence. That is the spirit behind this partnership,” said Kenneth Mbae, managing director at Centum Re.
“By connecting quality homes with a more predictable financing path, we want to help more customers see ownership as something they can realistically work toward.”
The fixed rate means customers who take up the deal will be cushioned from a potential rise in servicing costs, as is the case with mortgages offered on variable interest rate terms.
Central Bank of Kenya data shows that about 85.9 percent of mortgage loans were at variable interest rates in 2024, as compared to 88.4 percent in 2023, exposing the majority of borrowers to the movements in interest rates.
“We want to help customers start with a monthly number they can understand, plan for and work toward with confidence,” said Caroline Wanjeri, KCB Bank director of mortgage business.
Speaking at the signing ceremony, KCB Bank Director of Mortgage Business Caroline Wanjeri noted that too many people end their dreams of home ownership at the headline price of a house (millions), viewing it as being out of reach.
“We want to help customers start with a monthly number they can understand, plan for and work toward with confidence,” said Ms Wanjeri.
