If you are looking to buy an apartment in Kenya, you have probably wondered what legal document you get as proof of ownership. You might have also come across the term “Sectional Title”, but what does it really mean? How does it affect your rights as a property owner?

A Sectional Title is a form of property ownership where individual units like, apartments or townhouses, are owned privately, while shared spaces such as lifts, parking areas, corridors, staircases and gardens are owned collectively by all the unit owners.

In Kenya, this type of ownership is governed by the Sectional Properties Act, 2020 which aims to streamline property ownership, especially in multi-dwelling buildings.

How Sectional Titles Work in Kenya

Under the Sectional Property Act, a building or complex can be subdivided into sections that can be independently owned. Each unit owner receives a title deed for their section and becomes a member of the management corporation that oversees shared property.

Here’s what you own:

• Your individual unit or apartment
• A proportional share of the common areas

Examples of Sectional Title Properties in Kenya:

• Mixed-use developments (Commercial and residential units)
• Apartment buildings
• Townhouse complexes in gated communities

Benefits of Sectional Title Ownership in Kenya

1. Individual Title Deed

Each unit has its own legal title, registered with the Ministry of Lands. This allows you to sell, lease, or even use the unit as collateral.

2. Shared Maintenance Costs

You only pay the maintenance fees, typically called service charges, based on the size of the unit.

3. Democratic Decision Making

Owners form a management committee or body corporate that makes key decisions regarding the property, giving you a say in how the building is run.

4. Secure Investment

With a registered title, your property rights are legally protected, and the asset can appreciate in value. This is ideal for real estate investors in Kenya.

Responsibilities of Sectional Title Owners

With ownership comes responsibility. As a sectional title owner, you are expected to:

• Pay monthly service charges
• Comply with the rules set by the management
• Attend annual general meetings
• Participate in the maintenance of shared areas.

Why Sectional Title is Popular in Kenya

The growing urban population and demand for affordable housing have made apartment living more popular in cities like Nairobi and Mombasa. Developers are now building more sectional title apartments because:

• They offer affordability
• They come with proper legal documentation
• They appeal to first-time homebuyers and young professionals.
• They are easier to finance through mortgages
• They come with proper legal documentation

 Conclusion: Is Sectional Title Right for You?

If you are considering buying property in Kenya, especially in urban areas, sectional title is a flexible, cost-effective, and secure form of ownership. It provides the independence of owning your own space with the benefits of shared services and community living.

Whether you are a first-time homebuyer, an investor, or simply looking for an apartment with proper documentation, sectional titles offer a solid legal foundation and peace of mind.

For many Kenyans, owning a home is a major milestone; a dream rooted deeply in our cultural and financial aspirations. However, the cost of buying property outright can be overwhelming. This is where mortgages come in. A mortgage offers a structured way to finance homeownership over time. How exactly does it work, and what should you consider before taking one? This beginner’s guide to mortgages in Kenya breaks it all down for you.

What is a Mortgage?

A mortgage is a loan provided by a financial institution (usually a mortgage lender or a bank) to help you buy a home or property. The lender pays for the property upfront, and you repay the amount over a specified period with added interest.

In Kenya, mortgages are secured loans, meaning the property you are buying serves as collateral. If you fail to repay the loan, the bank can repossess and sell the property to recover its money.

Types of Mortgages in Kenya

Kenyan financial institutions offer different types of mortgage products depending on your needs:

1. Owner-Occupier Mortgages

These are for individuals buying a home to live in. Most banks offer flexible repayment periods (up to 25 years), subject to your age and income.

2. Investment Mortgages

Ideal for those buying property to rent out. The expected rental income may influence your loan approval and repayment terms.

3. Equity Release Mortgages

If you already own a property, this option allows you to borrow against its value. It is ideal for renovations, expansion, or other needs.

4. Construction Mortgages

For buyers intending to build rather than buy a ready house. Funds are disbursed in stages as construction progresses.

Mortgage Providers in Kenya

Several institutions offer mortgage services in Kenya, including:

• Kenya Commercial Bank (KCB)
• Co-operative Bank of Kenya
• Absa Bank Kenya
• Stanbic Bank
• NCBA Bank
• HF Group
• Kenya Mortgage Refinance Company (KMRC) - supports lenders with lower-interest long-term financing.

Always compare offers from different institutions, especially interest rates, fees, and terms.

Key Mortgage Terms You Should Know

Understanding the language of mortgages can save you from future surprises. Here are common terms:

• Principal: The original loan amount borrowed.
• Interest: The cost of borrowing the money, usually expressed as an annual percentage rate (APR).
• Down Payment: A percentage of the property price you must pay upfront (typically 10% - 20% in Kenya).
• Tenure: The loan repayment period.
• Amortization: The gradual repayment of the loan through monthly installments that cover both interest and principal.

Steps to Getting a Mortgage in Kenya

1.  Check Your Eligibility

Most banks consider your income, credit history, age, and existing debt levels. You must have a regular source of income (employment or business).

2.  Save for a Deposit

You’ll need at least 10%–20% of the property value. The higher your deposit, the lower your mortgage burden.

3. Get Pre-Approval

A pre-approval helps you know how much a bank can lend you based on your financial status. It also gives you stronger bargaining power with sellers.

4. Choose the Right Property

The property must meet the lender’s valuation standards. Many banks require the property to be free of legal issues and situated in an approved location.

5. Submit Your Application

Prepare documents such as:

• National ID or passport
• KRA PIN
• Bank statements (6–12 months)
• Payslips/business financials
• Property documents (e.g., title deed, sale agreement)

6. Loan Appraisal & Approval

The bank assesses your documents and the property. Once satisfied, they issue an offer letter outlining loan terms.

7. Sign the Offer & Begin Repayment

After signing, the bank processes payment to the seller and you begin making monthly repayments.

How Much Can You Borrow?

Most lenders in Kenya will allow you to borrow up to 90% of the property's value, depending on your income and risk profile. However, the total mortgage repayment should not exceed 40% of your monthly income.

Use a mortgage calculator (available on most bank websites) to estimate how much you can afford.

What Are the Mortgage Interest Rates in Kenya?

Mortgage rates vary depending on the lender, market conditions, and whether the rate is:

• Fixed: Same rate throughout the loan term
• Variable: Fluctuates based on market rates (e.g., CBK base rate)

As of 2025, mortgage rates in Kenya range between 9% and 13% per annum.

Tips Before Taking a Mortgage

• Understand all costs: Include legal fees, valuation fees, stamp duty (4% in urban areas), and insurance.
• Shop around: Compare rates and terms from different banks.
• Have a long-term plan: Make sure you can sustain payments even during hard times.
• Maintain good credit: Lenders prefer borrowers with a clean credit history.

Pros and Cons of Mortgages in Kenya

Pros:

• Allows you to own a home without paying the full amount upfront
• Flexible repayment periods
• Builds property equity over time

Cons:

• Long-term financial commitment
• Interest can nearly double the cost of the property over time.
• Risk of losing the property if you default

Conclusion

Buying a home is a significant step, and taking a mortgage can be the bridge to achieving this goal. With the right knowledge, planning, and discipline, a mortgage can turn your dream of homeownership into a reality.

Whether you're buying your first home in Nairobi, building in Kitengela, or investing in Mombasa, understanding how mortgages in Kenya work puts you on the right path.