KMRC Chief Executive Johnstone Oltetia. Photo | courtesy.
A backlog in title deed processing and registration is stalling access to over Sh4.2 billion in affordable housing loans, threatening to derail the momentum of Kenya’s flagship homeownership agenda.
The Kenya Mortgage Refinance Company (KMRC) says mortgage approvals under its subsidised lending programme remain trapped in administrative limbo, with prospective homebuyers facing up to six months of delay due to inefficiencies in land registration workflows.
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KMRC Chief Executive Johnstone Oltetia says the bottleneck split between primary mortgage lenders and subsequent handover to KMRC for refinancing undermines the company’s low-cost mortgage model.
KMRC offers long-term funding to banks and SACCOs at a 5 percent interest rate, enabling onward lending to homebuyers at single-digit rates and on 25-year terms, making it one of the most competitive housing finance instruments in the region.
Despite reforms and digitisation efforts by the Ministry of Lands under the Ardhisasa platform, registration delays persist. While Oltetia acknowledges the registration timeline has dropped from 6 months to 3 in some counties, the refinancing process, meant to take just one month, continues to drag out for as long as three.
The inefficiencies particularly affect Nairobi, Mombasa, Murang’a, Isiolo, and Marsabit, where the National Land Information Management System (NLIMS) is being rolled out.
“The titles are already registered with primary lenders. The KMRC registration should be faster. But delays at this stage continue to stall loan disbursements,” Oltetia said.
The Ministry of Lands maintains it exceeded its title issuance target in the last fiscal year, processing over 422,000 titles against a target of 330,000, attributing the performance to increased demand and digital workflows. However, on the ground, mortgage financiers and borrowers paint a different picture.
Corruption also remains a shadow over the land registry, with long-standing complaints of extortion and artificial delays. Sector stakeholders say officers often use bureaucratic hurdles to solicit bribes, with some borrowers allegedly paying “facilitation fees” to accelerate title issuance.
For KMRC, which plans to inject Sh7 billion into the market this year, the stagnation raises concern about pipeline efficiency and return on capital. At a broader level, the delays complicate the government’s plan to unlock affordable housing for low- and middle-income earners.
With the government targeting over 250,000 new homes annually, experts say the success of the initiative hinges not just on financing but on systemic reform of land administration.
“The financing model is strong. But the speed at which buyers can legally secure their homes is just as critical,” said Robert Gitonga, a housing policy analyst.
