Superior Homes, HF Group Sign Deal to Boost Mortgage Access in Kenya

Superior Homes Kenya (SHK) and HF Group have signed an asset financing deal targeting Kenyans who are willing to buy homes but face financing hurdles.

Inside the Memorandum of Understanding (MoU) between the two, HFC Kenya, a subsidiary of HF Group, will provide low-interest mortgage financing at 9.5%.

The agreement also promises concessional loans with a 20-year repayment term, along with faster approval timelines to simplify the home acquisition journey for buyers.

“By combining Superior Homes’ expertise in master-planned communities with HF Group’s innovative financing solutions, we are empowering more Kenyans to achieve their dream of homeownership while contributing to sustainable urban development.,” said Superior Homes Managing Director, Ian Henderson.

Mortgage Rates in Kenya

The rate is one of the most competitive ones in the market, with Superior Homes targeting middle and upper-middle-income earners.

Stanbic Bank is one of the lending institutions in the country which offers mortgage rate below 10%.

It offers a long-term repayment period of up to 25 years at a 9.5% annual rate with a facility fee of 1.5% of the loan amount.

NCBA Bank also has the mortgage rate of between 9.5% to 9.9%.

Also Read: Kenyans to Access Superior Homes at 105% After Deal with KCB Bank

In 2023, the average mortgage interest rate in Kenya was 14.3%, according to the Kenya Mortgage Refinance Company (KMRC). This rate rose from 12.3% in 2022.

Data from the Central Bank of Kenya (CBK) shows that throughout 2024, commercial banks’ average lending rates stayed stubbornly above 16%, peaking towards the year-end as banks priced in elevated risk and the high Central Bank Rate (CBR).

HFC deal is expected to stimulate uptake of structured mortgages, addressing a longstanding financing gap in Kenya’s housing market.

Both firms have committed to supporting developments that go beyond housing units to include critical infrastructure and social amenities—aligning with Kenya’s Urban Areas and Cities Act which emphasizes structured urban growth.

HF Group has been a key player in mortgage financing for decades, with the partnership forming part of its strategy to deepen its footprint among end buyers.

“We are happy to collaborate with partners such as Superior Homes who create long-term, sustainable communities. Being founder members of KMRS enables us to offer mortgage financing to end buyers at rates that are below 10%, fixed for a period of up to 15 to 20 years,” said HFC Managing Director Peter Mugeni.

Mortgage Types in Kenya

There are two primary types of mortgages in Kenya based on the rate paid on the loan:

Floating rate mortgage: Also known as a variable or adjustable-rate mortgage, this type fluctuates based on market rates. The mortgage rate changes with the market, potentially offering cheaper rates but carrying more risk compared to fixed rates.

Fixed-rate mortgage: This mortgage type has a constant interest rate throughout the loan term. While generally safer and offering predictable payments, it can often be more expensive compared to variable rates, with a risk of being locked into a higher rate if interest rates fall significantly.

Kenya’s real estate sector has long struggled with challenges such as expensive financing and slow uptake of mortgage products, with HFC and Superior Homes anchoring their hope on the 9.5% rate, which targets middle and upper-middle-income earners.