You earn in dollars or pounds, but the house you want is in Nairobi or Nakuru. Diaspora mortgages exist for exactly this situation , and the paperwork rewards preparation.
How do diaspora mortgages work in Kenya?
Kenyan banks and mortgage finance companies lend to non-resident Kenyans against property in Kenya, with terms set by each lender. Income earned abroad is assessed, the property is charged as security, and disbursement usually follows valuation and perfection of the charge. Products differ between lenders and change over time, so confirm current requirements directly with the bank rather than relying on second-hand summaries. Some lenders also take account of expected rental income from the Kenyan property when assessing affordability. A relative in Kenya can help with viewings and paperwork logistics, but the loan is yours, and the bank will hold you to it.
What do lenders typically ask for?
- Proof of income abroad , employment letters, payslips and several months of bank statements.
- KRA PIN and evidence of tax compliance, which can be verified through the Kenya Revenue Authority.
- Valuation of the property by the lender’s appointed valuer.
- Identification documents and, where someone will sign for you, a properly authenticated power of attorney.
- Life or property insurance where the lender requires it.
What should you check before signing?
Understand whether the interest rate is fixed or variable and what that means over a long term; the full set of charges , arrangement, valuation, legal and insurance; the consequences of missed payments; and whether early repayment attracts costs. The charge documents create serious obligations over your property, so they deserve careful review , our banking and securities practice reviews such documents. If you cannot travel for completion, arrange the power of attorney early so it does not delay registration, and involve our real estate and conveyancing team in the purchase alongside the financing.
Keep copies of everything and ask the advocate acting on the purchase to coordinate timelines with the bank’s lawyers , many delays come from documents moving between continents out of sequence.
For guidance on your specific situation, contact CS Advocates LLP , call, WhatsApp, or book a confidential consultation at our Westlands, Nairobi office.