KWFT housing model helps 83,000 families as regional lenders eye adoption

NAIROBI, Kenya, September 17, 2026 — Kenya Women Microfinance Bank (KWFT) has provided more than 100,000 housing loans to over 83,000 customers, building a cumulative KES 6.7 billion housing finance portfolio through its innovative Nyumba Smart model targeting low-income households.

The model, which allows families to construct and improve their homes gradually, has recorded a 98 per cent portfolio performance rate, demonstrating the potential of housing microfinance to expand access to decent housing among underserved communities.

Unlike conventional mortgages that often require borrowers to secure substantial financing upfront, Nyumba Smart enables customers to access smaller loans in stages, depending on their construction needs and ability to repay. With an average loan size of KES 70,000, the financing can support the purchase of building materials, foundation work, wall construction, roofing and other home improvements.

KWFT Managing Director and Chief Executive Officer Rose Muyanga said the approach recognises the financial realities of households whose incomes may not allow them to complete construction at once.

“For many women and families, building a decent home is not a one-off investment. It is a journey that takes place over time and in stages as household incomes allow,” Muyanga said.

She added that the bank seeks to provide financing that enables customers to improve their homes without waiting until they can afford the entire construction cost.

Developed to address the housing needs of low-income and underserved households, particularly women, Nyumba Smart was established with technical support from Habitat for Humanity following market research and feasibility studies conducted in 2014. A pilot was launched in November 2014 before the model was rolled out more widely in July 2015.

The initiative has now attracted interest from financial and housing institutions in Tanzania seeking to understand how incremental housing finance can help expand access to decent homes.

A delegation comprising representatives from Tanzania Mortgage Refinance Company (TMRC), Tanzania Institute of Bankers (TIOB), NMB Bank Tanzania and CRDB Bank PLC recently visited Kenya to study KWFT’s experience in developing and delivering housing microfinance solutions.

The delegation was led by TMRC Chief Executive Officer Elibariki Ndosi and Hellen Waigwa, Senior Manager for Housing Finance Systems at Habitat for Humanity International.

Waigwa said housing microfinance presents an opportunity for financial institutions to serve households with modest, informal or irregular incomes that may not qualify for conventional mortgage products.

She noted that KWFT’s experience offers valuable lessons on designing customer-focused financial products and building institutional capacity to deliver sustainable housing finance solutions at scale.

The Nyumba Smart model links loan amounts to customers’ construction requirements and repayment capacity. The process involves assessing household cash flows, determining appropriate financing, disbursing funds, monitoring construction and repayments, and evaluating eligibility for subsequent loans.

Women remain a key target group because many rely on small businesses and informal economic activities that may not meet the income documentation requirements of traditional mortgage lenders.

By using cash-flow assessments and smaller loan amounts, KWFT can consider how customers earn their income and manage repayments when making financing decisions.

During their visit, the Tanzanian delegation also travelled to Machakos County to inspect homes financed through the programme and assess how incremental lending has improved housing conditions at household level.

The growing regional interest in Nyumba Smart highlights the potential of housing microfinance as an alternative to conventional mortgages, particularly for families seeking to build decent homes gradually while working within their available financial resources.