How to get a Plot Loan in Kenya – The Ultimate Guide in 2024

Whether employed or self-employed, you can purchase a plot with a loan. Land prices in various urban areas of Kenya appreciate very fast. If you wait to save up cash, the prices of the plots you desire will keep increasing. To help you start, here is an article on how to get a plot loan in Kenya.  

How to Obtain a Plot Loan in Kenya via Banks

The leading asset financing solution in Kenya is commercial banks. Kenya boasts over twenty-eight local commercial banks and fourteen international banks. Some banks provide plot loans and other asset financing solutions. Other banks do not have these services. 

Thus, the first thing to consider when searching for a plot loan is whether your bank has these services. If you find that your bank has a plot loan product, check if you qualify for it. Other factors your bank might consider are:

Types of Land Ownership

Banks hardly provide loans for buying agricultural freehold properties or ancestral pieces of land. Often, they shy away from extending plot loans to those buying from individuals. Instead, banks prefer deals from reputable realtors and incorporated organizations. 

Also Read: How To Get Equiloan From Equity Bank Easily


No bank will ignore how you paid your loans in the past. For your bank to give you a plot loan, it must measure your creditworthiness based on your current credit rating. It is rare for a commercial bank to offer plot loans to people with bad credit. 

Most banks will contact the credit bureaus to know your CRB status. They will also consider your current income streams. Based on these, they will determine if you deserve their plot loan products. And if you qualify, they may still not provide the maximum loan limit. 

How to Get a Plot Loan in Kenya from Your Bank

Banks have a process of purchasing lands with their loan monies. When taking out personal loans, banks add money to your account once they approve your documents. On the other hand, many banks take you through a series of steps when offering a plot loan.

Here are the steps for getting a plot loan in Kenya:

Step One: Your Bank will Request the Title Deed

Your preferred bank will ask you to provide the Title Deed of the land you are buying. Then, it will use its means to conduct land search and establish the actual property owner. This is perfect because your bank can prevent you from buying a plot with many owners. 

Many Kenyans have encountered this from unscrupulous land sellers.

Also Read: The Cost Of Starting A Fruit Vending Business In Kenya 

Step Two: Conduct a Land Valuation

If the title deed is genuine, your bank will evaluate the value of the plot. Banks often do this to prevent you from buying an overvalued plot with a loan. Its professionals will do the land valuation and find the actual land price. 

Step Three: Paying for the Plot

Your bank will buy the plot after evaluating the land value and agreeing on the best price. Some banks will have you accept their loan offer first. If you agree, they will deposit the money in your account. Others will pay the seller directly.

Note: The bank and the company selling your plot incur some charges throughout these steps. Talk to them to know the cost burden you should bear.

Whose Name Should Appear on the Title Deed? 

Various banks have unique terms and conditions when providing plot loans. However, most banks will generally include their name and the borrower’s name in the title deed. 

A few will add only their name. Your title deed will serve as the collateral for the plot loan. Once you repay the plot loan fully, your bank will transfer the title to your name. 

Requirements for Obtaining a Plot Loan from Banks in Kenya

Now that you know how to get a plot loan in Kenya, the next thing is to apply for a loan. All the same, banks have different requirements for employed and non-employed loan applicants. 

Employed Plot Loan Borrowers

If you are employed, ensure you have the following things when visiting your favorite bank:

  • KRA PIN certificate
  • Your payment slips for the past three months
  • Your bank statements for the last six months
  • Bring a letter from your employers.
  • Get a Creditworthy guarantor
  • Ensure your account is valid and active.

Self-employed Plot Loan Borrowers

Not having a job should not stop you from learning how to get a plot loan in Kenya. If you have the following requirements, your bank will tackle the rest: 

  • An identification card or passport
  • KRA Pin 
  • Audited financial records for the past 36 months 
  • Retrieve your bank statements for the last twelve months 
  • Have a valid and active bank account with your bank.


Can you get a loan to purchase land in Kenya?

You can get a loan to purchase land in Kenya from the many commercial banks in the country. If you are buying a plot from a real estate company, your odds of getting a loan are higher. Approach banks like Equity Bank Kenya Ltd, Family Bank, Gulf African Bank, National Bank of Kenya, Stanbic Bank, etc. 

Can one take out a loan with a title deed?

You can take out a loan with a title deed in Kenya. Most Kenyan banks ask for a title deed to conduct a property search in the Ministry of Lands. When taking out a plot loan, banks will check the title deed of the property seller. After the land purchase, they will use it as collateral. So, ask your bank if it requires a title deed before extending its plot loan product. 

Is it wise to apply for a plot loan in Kenya? 

If your job or business is stable, you can risk getting a bank loan to buy a plot. Most Kenyans who have plots got them this way. If your bank has attractive loan terms, borrow a loan and purchase the plot you desire.