- Construction loans are disbursed in four phases, 25% of the loan at a time – subject to architect’s certificate and relationship manager report.
- Building plans must be approved.
- Bill of quantities (BQs) must be drawn by independent and qualified quantity surveyor.
- Construction site must be urban property intended for residential use.
- Both pre and post-construction evaluation fees are applicable.
- Stage valuations are done throughout the construction process.
- Up to 100% of the construction costs if a plot is already owned
- Up to 80% for buying and building – with a maximum 20-year payback period
- Fixed-price contract for amount above KES10m
- 9-month moratorium during construction after which repayment starts
- Interest paid only on the amount drawn
Costs | Percentage of mortgage amount (aproximate) |
Transfer stamp duty | 4% of home value / 2% for upcountry |
Stamp duty on charge | 0.1% |
Negotiation fees | 1% to 2% |
Legal fees | 1.2% |
Fire insurance | 0.125% |
Home loan protection cover | 0.3% |
Valuation fees | 0.25% of value of property |
There are also costs involved for on-site visits that are variable depending on the location of your property. Insurance and protection costs are annual. |
Are you interested in applying for a construction loan?
Fill out the form below and we will contact you to get started
Need more help?
Call us on:
+254 (20) 3900000 (Landline)
+254 (722) 130120 (Mobile)
+254 (732) 130120 (Mobile)
Chat to Abby on WhatsApp:
+254 710 130000
Email us:
absa.kenya@absa.africa