CBK: Mortgage loans hit Ksh307B as average borrowing rises to Ksh10M
Kenya’s mortgage market grew in 2025, with the value of outstanding home loans rising by 10 per cent to Ksh307.2 billion, even as the number of mortgage loans increased by only 2.5 per cent. The figures are contained in the Central Bank of Kenya (CBK) 2025 Bank Supervision Annual Report, which was posted by the […]
In 2025, the mortgage market in Kenya expanded, with the value of outstanding home loans rising by 10 percent to Ksh307.2 billion, despite a modest 2.5 percent increase in the number of mortgage loans issued. According to the Central Bank of Kenya's (CBK) 2025 Bank Supervision Annual Report, released on September 25, 2026, the value of mortgage loans grew from Ksh279.3 billion in December 2024 to Ksh307.2 billion in the same period of the following year.
The surge in mortgage lending can be attributed to the issuance of new loans throughout the year. The number of mortgage loans increased slightly from 30,016 in December 2024 to 30,762 by December 2025, representing a 746 loan, or 2.5 percent, rise. The average mortgage loan size also climbed from Ksh9 million in 2024 to Ksh10 million in 2025, primarily due to higher-value mortgage loans granted during the year.
The report revealed that the mortgage market remained highly concentrated, with nine institutions accounting for 90.6 percent of lending in December 2025. Seven large banks contributed 77.4 percent of mortgage lending, while two medium-sized banks accounted for 13.2 percent. The report also highlighted that outstanding non-performing mortgage loans increased from Ksh46 billion in 2024 to Ksh50.2 billion in 2025, but the ratio of non-performing mortgage loans to gross mortgage loans decreased slightly to 16.3 percent from 16.5 percent.
CBK's findings were released just days after the regulator fined 33 commercial banks following inspections into compliance with its Risk-Based Credit Pricing Model. The Banking Act or CBK Prudential Guidelines violations resulted in 35 out of Kenya's 38 commercial banks being in non-compliance as of December 31, 2025, compared to 11 banks a year earlier.
The revised pricing model aims to make lending more transparent by tying credit costs to reference rates and borrower risk profiles.
Written by urgent.news from People Daily Kenya's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
