How is a Kenya mortgage repayment calculated?

It uses the standard amortising formula M = P·r(1+r)ⁿ / ((1+r)ⁿ−1), where P is the loan amount (price minus deposit), r is the monthly interest rate (annual rate ÷ 12) and n is the number of months (years × 12). Each payment covers interest first, then reduces the balance.

What interest rates do Kenyan mortgages charge?

Kenyan mortgage rates typically range from about 13% to 18% per annum, varying with the lender, whether the rate is fixed or variable, and movements in the Central Bank Rate. Most home loans in Kenya are variable-rate, so repayments can change over the term.

How much deposit do I need in Kenya?

Lenders in Kenya commonly require a deposit of 10% or more for a first home, giving a loan-to-value ratio up to about 90%. A larger deposit lowers the LTV, can secure a better rate, and reduces total interest over the life of the loan.

What is the loan-to-value ratio?

Loan-to-value (LTV) is the loan amount divided by the property price, shown as a percentage. A 90% LTV means you are borrowing 90% of the price and putting down a 10% deposit. Lower LTVs are less risky for lenders and often attract better terms.

Does this calculator store my data?

No. All figures are computed locally in your browser and nothing is uploaded, so your details stay private.

Kenya Mortgage Calculator

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This Kenya mortgage calculator turns a property price, deposit, rate and term into a monthly repayment, the total interest you will pay, your loan-to-value ratio, and a yearly amortisation summary — the way a Kenyan bank works out a home loan.

How it works

The loan amount is the price minus your deposit. The monthly repayment uses the standard amortising-loan formula:

M = P · r(1+r)ⁿ ⁄ ((1+r)ⁿ − 1)

where P is the loan amount, r is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the number of months (years × 12). Each payment is split: the interest portion is the current balance × r, and the rest reduces the principal. The loan-to-value ratio is the loan divided by the price — Kenyan lenders typically allow up to about 90% for a first home.

Example

A KES 8,000,000 home with a 10% deposit (KES 800,000) leaves a KES 7,200,000 loan. At 14% p.a. over 25 years the monthly repayment is about KES 86,700, and total interest over the term is roughly KES 18.8 million.

Tips

A larger deposit lowers your LTV, can win a better rate, and cuts total interest sharply.
Most Kenyan mortgages are variable-rate — repayments move with the Central Bank Rate.
A shorter term raises the monthly payment but saves a large amount of interest overall.