The government is considering the use of mobile money transaction records and other alternative financial data to help millions of Kenyans without formal payslips qualify for affordable housing loans.
Housing PS Charles Hinga said traditional mortgage lending has largely favoured salaried workers, excluding traders, farmers, freelancers, small-business owners and other self-employed Kenyans.
Under the proposal, lenders would assess borrowers using mobile money transactions, SACCO savings, rental payment histories, utility bills and business records.
The move is aimed at expanding Kenya’s mortgage market from the current 30,000 loans to one million and ensuring enough buyers for the more than 280,000 affordable housing units currently under construction, valued at about Ksh731.5 billion.
Hinga said the approach would allow lenders to evaluate actual income and spending patterns rather than relying solely on payslips.
The government also plans to strengthen links between the Boma Yangu platform, which has over 1.29 million registered users, and financial institutions to improve access to housing finance.
