KWFT Housing Loans Reach 83,000 Families as Loan Book Hits KSh6.7 Billion

Kenya Women Microfinance Bank (KWFT) has disbursed more than 100,000 housing loans worth a cumulative KSh6.7 billion, helping over 83,000 customers finance the construction and improvement of their homes.

The bank said its housing finance portfolio has recorded a 98 per cent performance rate, with the average loan standing at approximately KSh70,000.

The figures highlight the role of housing microfinance in expanding access to decent housing among low-income households that may struggle to qualify for conventional mortgages.

Through its Nyumba Smart model, KWFT allows customers to borrow money in stages depending on their construction needs and ability to repay.

The financing covers different phases of construction, including purchasing building materials, laying foundations, putting up walls, roofing and completing homes.

Unlike traditional mortgages, which often require borrowers to secure substantial financing upfront, the model allows families to build gradually as their incomes permit.

KWFT Managing Director and Chief Executive Officer Rose Muyanga said the approach recognises the financial realities facing many households.

“For many women and families, building a decent home is not a one-off investment. It is a journey that takes place over time and in stages as household incomes allow,” Muyanga said.

She added that the bank seeks to enable customers to improve their homes without waiting until they can afford the entire construction cost.

The model was developed with technical support from Habitat for Humanity following market research and feasibility studies in 2014. A pilot was launched in November that year before the wider rollout in July 2015.

The bank's approach has attracted interest from financial and housing institutions in Tanzania, whose representatives recently visited Kenya to study the model.

The delegation included officials from Tanzania Mortgage Refinance Company, Tanzania Institute of Bankers, NMB Bank Tanzania and CRDB Bank PLC.

The officials also visited Machakos to assess homes financed through the programme and examine how incremental lending has improved housing conditions.

The growing interest signals the potential of housing microfinance as an alternative for households that cannot access conventional mortgage products.