This archive report was first published on 1 July 2020.
July 1, 2020
The Kenya Mortgage Refinance Company (KMRC), a public-private partnership formed by the government to make home loans affordable in Kenya, has welcomed two new shareholders in the midst of the COVID-19 pandemic.
During its first Annual General Meeting (AGM), held virtually due to government restrictions, KMRC's board formally approved the entry of International Finance Corporation (IFC), the private sector arm of the World Bank, and Shelter Afrique, a pan-African housing and real estate development financier.
These new shareholders join existing shareholders, including the National Treasury and 20 Primary Mortgage Lenders (PMLs), eight banks, one Micro Finance Bank (MFB), and 11 Savings and Credit Cooperatives (SACCOs).
The bank shareholders include KCB Group, Cooperative Bank, DTB, HF Group, NCBA, Absa Kenya, Stanbic, and Credit Bank. Kenya Women Microfinance Bank (KWFT) is the sole MFB shareholder, while SACCO shareholders include Kenya Police, Mwalimu National, Safaricom, Ukulima, Bingwa, Imarisha, Unaitas, Imarika, Tower, Stima, and Harambee.
"Today's AGM is a key and historic milestone for KMRC," said Dr. Haron Sirima, Acting Chairman and representative of the National Treasury on the board. "With the facilitation and support of the board, we are now properly and fully equipped to play our role in revolutionizing the home loans market in Kenya, while making homes affordable for as many Kenyans as possible."
Acting CEO Johnstone Oltetia added, "From an operational standpoint, I can confirm that everything is now in place for us to start providing long-term finance to participating financial institutions, for onward lending to home loan borrowers at affordable rates once KMRC obtains a license."
Established two years ago, KMRC aims to support the Affordable Housing Pillar of President Uhuru Kenyatta's Agenda Four development blueprint by providing secure, long-term finance to Primary Mortgage Lenders (PMLs), who then advance the same to individual borrowers.
The initiative seeks to address the shortage of long-term finance in the Kenyan financial market, as well as the problem of asset maturity mismatch, which contributes to the high cost and inaccessibility of home loans to many Kenyans.
CS Ukur Yatani noted that KMRC had already raised Sh2 billion capital from its shareholders, while the National Treasury had mobilized Sh35 billion from development partners for its operations.
