Mortgage: rates in East Africa 2025 Guide.

 

Mortgage rates in East Africa in 2025 vary by country and lender, with most commercial rates in Kenya falling between 12% and 15%, while some lenders offer lower rates below 10% through government-backed programs. In Uganda, rates can be as low as 16.5% for local currency loans or 9% for USD loans. Across the region, high interest rates remain a challenge, but some initiatives aim to improve access to more affordable, long-term financing.

Kenya

• Commercial rates: Most commercial mortgages range from 12% to 15%.
• Government-backed rates: Lenders that partner with the Kenya Mortgage Refinance Company (KMRC) offer lower, fixed rates that are below 10%.

Uganda

• Local currency: Stanbic Bank Uganda offers rates as low as 16.5% for Ugandan Shilling (UGX) loans.
• USD currency: For USD-denominated loans, rates can be as low as 9%.
• Other rates: UNFCU lists fixed rates as low as 7.99%–8.99%.

Regional trends

• High interest rates generally hinder access to long-term mortgage financing in much of Africa.
• The Stanbic Bank Uganda offering is noted as one of the more flexible and affordable on the market.
• Initiatives like the KMRC in Kenya are working to provide more affordable options and support the housing market.