KCB Home Loan Eligibility, Features, Repayment, and More

John Murigi
By John Murigi - Karimakos Bank Loans

Did you know that only 26,504 individuals have mortgages in a country of about 23 million adults? 

Most people live in rental houses! Others are relying on government housing programs. Worse, others don’t have a plan at all!

Don’t be like most people!

Unlike the common perception people think, the few people living in their own houses didn’t finance them entirely. Most approached banks for mortgages and applied for loans. More often than not, the landlord you’re paying rent to probably financed the rental you’re living in now with a loan.

One of Kenya’s most reputable building or house-buying loan options is the KCB Bank Home loan. Whether you want to buy land or build a residential or commercial building, the KCB Bank home loan comes very resourceful.

But who is this loan best for? Who can apply, what are the requirements, and what’s the application process? I’ve prepared this guide to answer these questions and provide more insights into the loan’s benefits.

A Brief Overview of KCB Bank

Kenya Commercial Bank’s history dates back to the late eighteenth century. The bank’s inception goes back to 1896 as the National Bank of India. Its first branch in Kenya was Mombasa, owing to the thriving trade and The Imperial British East Africa Company.

The name Kenya Commercial Bank (KCB) was born in July 1970. The then government signed a deal to become a 60% shareholder, giving birth to its new name.

KCB Bank Kenya Limited was founded in 2015 and later registered as KCB Group Plc in 2016. The group is a non-operating holding company, oversees all KCB regional units, and owns all associate companies of the bank. Some of the associate companies of the bank include KCB Insurance Agency, KCB Capital, and KCB Foundation, amongst other companies.

Overview of KCB Home Loans

For the longest time, KCB had been acquiring buildings and developing houses. In 1988 KCB bank offered its first Initial Public Offering (IPO) on a new Runda estate. The bank developed the estates with the staff pension fund and later sold the houses.

This love to settle Kenyan families inspired the birth of this loan.

KCB Bank launched the KCB Home Loan to build a long-lasting solution for its customers and staff. The loan helps buy or build homes, develop rental properties, or buy land and plots. In addition to residential properties, the loan also helps you purchase and develop commercial properties.

KCB Home Loan Eligibility Criteria

You can get a KCB Home Loan as an employee, a partner, self-employed, a company, or a contractor. However, each must meet a set of requirements in their category. Here’s a breakdown:

Employed Persons

To get a home loan as an employee, you must meet the minimum requirements, which include opening a mortgage account with a minimum balance of Ksh. 10,000. In addition, your entire salary shouldn’t be servicing the mortgage. At least a third of your basic salary must be left for your living expenses. 

Also, the bank needs a sale agreement signed by you and the seller in the presence of a lawyer. The KCB bank requires the title of the property you’re purchasing to have a minimum lease term of 35 years or more. 

Other necessities that you might need include:

  • Pay slips for the last three months.
  • Employment status letter from the employer.
  • A bank statement for the last six months 
  • National ID and KRA Pin certificate.
  • Three Passport size photographs.

Self-Employed Persons & Partnerships

Like all other loans, self-employed persons must provide their KRA Pin Certificate, a bank statement for the last 12 months, and a Certificate of Registration and Trading License. In addition, you need to provide partnership deeds for your business.

Additional requirements include:

  • Audited books of accounts
  • Income tax returns
  • Tenancy agreements and schedules for rented properties

Limited Companies & Investment Groups

The Bank also offers KCB Home loans to companies and Chamas. The companies must provide their certificate of incorporation, memorandum & articles of Association, the company’s KRA Pin certificate, and Tax Compliance Certificate.

In addition, you must provide the minutes showing the directors’ resolution to take the loan and the company’s audited books of account.


Another category of people that KCB Home Loans target include contractors or individuals who want to construct commercial or residential houses. 

Contractors applying for KCB home loans must provide approved building plans and structural drawings, NCA certificates, and NEMA approval.

Apart from approvals and certifications, the bank may also request priced bills of quantities for the building and profiles for the architect, contractor, and quantity surveyor.

What’s the Loan Application Process?

KCB loan application involves several steps that include:

  • Gathering necessary documents
  • Calculating affordability
  • Submitting the application form
  • Document verification and assessment
  • Evaluation by the bank
  • Finalising loan terms

Check our comprehensive KCB loan application process guide to learn more about the ins and outs. 

I’d also love to recommend visiting the bank and inquiring about all the requirements. More often than not, the bank may advise you further on the details of each requirement.

Loan Rates and Fees

KCB Home loan is subject to rates and fees, including an overall 12.3% p.a interest rate, an appraisal fee of 2.5% of the loan amount, and a monthly ledger fee of Ksh. 350. 

Other external application fees include legal fees, stamp duty, valuation fees, insurance to cover life and property, and a stamp duty of 0.1% of the loan amount.

The KCB Home loan rates and fees may vary slightly if you apply for a mortgage plus loan. 

A mortgage plus is a package for existing mortgage customers who want to top up their loans. The mortgage plus loan attracts a negotiating fee of 2.5% of the loan amount and a stamp duty of 4% of the cost of the property.

What Are the Benefits of KCB Home Loans

  • KCB Home loans have a flexible repayment period of up to 25 years.
  • Customers can borrow anything from Ksh. 500,000 to construct or purchase a home.
  • The access loan is 90% for owner occupiers, 80% for rentals and income-generating properties, and 70% for plot purchasing.
  • It’s easily accessible to salaried employees, companies, contractors, and self-employed individuals. 
  • You can top up your KCB Home loan through the mortgage plus package and pay within the remaining time.

Repayment and Default

Your loan repayment schedule will likely mature within a month or two after the loan is approved. 

KCB Home Loan Repayment Options

During the loan application process, the bank offers you repayment options. You have the option to pay the loan fully or partially in installments. Paying the amount in full is often not an option for most loanees in Kenya; therefore, they opt for partial payments.

Partial payments are distributed within the period of repayment. The bank explains whether the loan’s monthly repayment amount is reducing interest or evenly distributed. 

Whether interest is even or otherwise, your monthly contribution can exceed the monthly contribution but should not be lower than the agreed amount. Otherwise, you will be defaulting on the loan.

Consequences of Default

You should never plan to default on a loan. Defaulters mess up their credit scores and destroy their reputation with the bank. 

The first consequence of late loan payment, depending on your scheduled repayment, attracts fines for late payment fees. A KCB Home loan’s late repayment penalty is 5% p.a, calculated on the remaining loan amount after the due date.

After defaulting for several consecutive months, you face possible foreclosure. To avoid escalation of issues, you should contact the bank for loan renegotiations and other possible resolutions. 

Otherwise, depending on the agreement during the loan application process, the bank reserves the right to reclaim the property on default.

How Can You Apply for a KCB Home Loan?

You can apply for a KCB Home loan by visiting any of the over 200 KCB bank branches. In addition, you can check out the KCB bank website or email, or call customer support.


KCB Home Loan is one of the best homeownership loan options for contractors, ambitious homeowners, employees, and self-employed individuals. The loan option offers flexible repayment periods and easy access to even existing mortgage loanees.

You can learn more about KCB Home loans by visiting the bank website or the branch closest to you. Optionally, you can comment or share your questions below for more guidance.

Check out our guide on the KCB loan application process to get started. We’ve made it comprehensive to ensure it’s your only guide. 

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By John Murigi Karimakos
I'm a passionate writer with a keen interest in technology and finances. With a love for words and a deep understanding of the digital world, I strive to bring complex concepts to life through my writing. Whether it's exploring the latest tech innovations or demystifying financial strategies, I aim to empower and inspire my readers. Join me on this captivating journey where technology and finances intertwine, as we unravel the intricacies of the modern world.
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