Need Finances? This is How to Finance your Mjengo

Need Finances? This is How to Finance your Mjengo

Need Finances? This is How to Finance your Mjengo
Need Finances? This is How to Finance your Mjengo

Owning land is largely the first step many Kenyans take when desiring to own a home. At times, financing construction of your dream home can be full of uncertainties especially if you are doing it for the first time.

There are various ways in which you can explore to finance construction of a house.

Building in an eighth acre Plot – Example

It is estimated that the building a standard 3-bedroom house ranges from 3M and above. However, the cost may differ depending with the location, materials used, finishing etc.

Reuben Kimani, CEO of Username Investments shares 6 ways in which you can finance your construction in Kenya


In a nutshell, this involves putting money aside over a period of time to finance construction of your dream home.

To easily achieve this, an aspiring home owner can leverage on compounding interest over a long period of time to achieve an amount such as 3M.

Sacco Loan

According to data from World Bank, as at 2019 Sacco’s were providing approximately 90% of the total housing finances in Kenya. This is due to their low interest rates and the loan amount one can take.

As an aspiring home owner you can join a genuine Sacco, save for a period of time and take a loan. Some Sacco’s have a multiplier of 3 to 4 times your savings.

To get a loan of around 3M will require you to have savings of 1M to qualify for a loan of 3M which can have a repayment period of up to 6 years.

Accumulate savings of such amount takes efforts and consistency. You can start as early as now.

Bank Loans/ Construction Loans

This is another way to finance your dream home. Often, it is offered by banks. This type of funding is sent to the individual building or the person in charge of the construction depending with the stages of construction.

Majority of the banks finance offer between 70 – 100% of the total cost. In this case financing a 3-bedroom house will be partly or fully catered for by your bank.

Investment Groups Funded by Financial Institutions

There are a number of banks in Kenya that form Chamas and invite individuals and other chamas to make contributions towards this pool of funds.

If you wish to buy a property as an individual or a group to build a house, you can borrow up to 10 times from the same pool at an interest.

Women have mostly been using this method to invest in real estate properties and especially land.

The repayment period can go up to 6 years. For example, if you need 3M you will only need to have saved Ksh 300,000.


This is a type of funding that is secured against the property. The interest rate tends to be lower and the repayment period longer.

Rent to Own option

This majorly applies when one is buying an existing home. Basically the buyer pays a certain deposit e.g. 20% and the rest split over a period of up to 20 years.

This goes until you clear the whole amount. Later and they assume full ownership of the house.

This is another way to finance home ownership.

If you have a property in Kenya, you can consider using the above financing methods for your construction.


You can also watch a YouTube Video as the CEO of Username Investments shares on the How to Finance Your Mjengo | Project Financing Methods

Do you have any questions regarding financing your dream home? Share on the comments section.

Need Finances? This is How to Finance your Mjengo

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