Prioritizing debt is the single most overlooked step when Nairobi’s upmarket buyers apply for a Ksh 100M–Ksh 500M+ mortgage. You can earn Ksh 8M net per month, have a spotless business track record, and still get rejected — or offered a fraction of what you need — simply because your CRB report shows the wrong debts eating your Debt Service Ratio (DSR).
In 2025, Kenyan banks (KCB, Stanbic, Absa, NCBA, Co-op) strictly enforce a maximum 40% DSR for prime mortgages. Hit 50% and you’re instantly downgraded or declined. The fastest way to drop your DSR from 70% to 30%? Strategic prioritizing debt — clearing high-impact loans first.
Here are the exact 6 loans to target (in order) before you even think of stepping into a bank manager’s office for that Lavington, Karen, Runda, Westlands, Kitisuru or Muthaiga dream home.
1. Mobile Loans & Digital Credit (M-Shwari, Fuliza, KCB M-Pesa, Branch, Tala)
These tiny Ksh 5,000–Ksh 150,000 loans destroy your borrowing power. Why they hurt most:
- Reported daily to CRB
- Count as “unsecured revolving credit” — the worst category for DSR
- Even one overdue Fuliza of Ksh 800 can flag you as high-risk
Real case: A Westlands buyer earning Ksh 4.2M monthly was offered only Ksh 38M instead of Ksh 140M because 11 active mobile loans pushed his DSR to 68%. Cleared them in 48 hours → approval jumped to Ksh 128M.
2. Credit-Card Balances
Banks view credit-card debt as the second-worst offender. Rule of thumb: Any balance above 30% of your limit tanks your score. Pay down (or fully clear) all Visa/Mastercard balances before applying. Stanbic and Absa automatically add 100% of your credit limit into DSR calculations if utilisation is high.
3. Personal Unsecured Bank Loans
The Ksh 2M–Ksh 8M “salary loans” you took for school fees or a Range Rover? They sit on your report for years and count fully against your DSR. Clear the newest and highest-interest ones first — they weigh heaviest.
4. Car Loans & Logbook Loans
A Ksh 12M Range Rover loan at 18% interest can block Ksh 45M+ in mortgage capacity. If the car is almost paid off, finish it. If it’s new, consider selling and downgrading temporarily — many Karen buyers do exactly this to free up borrowing power.
5. Buy-Now-Pay-Later Schemes (Lipia Pole Pole, Aspira, Flexpay)
Furniture, phones, solar — every single instalment appears on CRB. These are treated like personal loans and add up fast. Clear anything under Ksh 500K remaining; the DSR relief is instant.
6. HELB Loan (Yes, Seriously)
Higher Education Loans Board debt still shows on CRB and counts toward DSR. A Ksh 380,000 outstanding HELB balance recently cost a Gigiri diplomat Ksh 42M in mortgage approval. Paid it off in one lump sum → full amount restored.
Quick DSR Impact Table – Before vs. After Prioritizing Debt
| Debt Type | Monthly Instalment | DSR Impact (Typical) | Action Priority |
|---|---|---|---|
| Mobile & digital loans | Ksh 18,000 | 12–18% | #1 Clear 100% |
| Credit cards (high util.) | Ksh 45,000 | 8–12% | #2 Clear 100% |
| Personal unsecured loans | Ksh 120,000 | 10–15% | #3 Pay down |
| Car/logbook loans | Ksh 180,000 | 8–10% | #4 Finish or sell |
| BNPL schemes | Ksh 22,000 | 3–6% | #5 Clear all |
| HELB | Ksh 5,000 | 1–3% | #6 Lump sum |
Total DSR reduction after clearing all six: 40–65% → instantly mortgage-eligible.
Bonus Moves That Speed Things Up Even More
- Request CRB clearance certificate 14 days after final payments (banks now accept it)
- Get employer letter confirming no salary deductions for loans
- Use a lump-sum bonus or diaspora remittance — banks love one-off clearances
- Work with a mortgage broker who can pre-clear your file before formal application
The Bottom Line
Prioritizing debt isn’t glamorous, but it’s the difference between buying that Ksh 285M Kitisuru 5-bedroom mansion this year… or waiting another 3–5 years while you “chip away” randomly.
Clear in the order above and you can drop your DSR by 30–50 percentage points in under 60 days.
Ready to finally secure the mortgage you deserve for your dream home in Nairobi’s upmarket? Contact Realty Boris today — we’ll connect you with our in-house mortgage specialists who will review your CRB, show you exactly which debts to kill first, and fast-track your approval with zero cost to you.
