This archive report was first published on 2 July 2020.
On July 2, 2020, Kenya Mortgage Refinance Company (KMRC) welcomed International Finance Corporation and Shelter Afrique as new shareholders, marking a significant milestone in its journey to revolutionize the home loans market in Kenya.
During its first virtual Annual General Meeting (AGM), KMRC announced that it had raised Sh2 billion in capital from its shareholders, including National Treasury, 20 primary mortgage lenders, eight banks, one micro-finance bank, and 11 savings and credit co-operatives.
World Bank private sector arm, IFC, and pan-African mass housing development funder Shelter Afrique each contributed Sh200 million to become shareholders of KMRC.
Acting KMRC Chief Executive Johnstone Oltetia emphasized that the company now has a fully constituted board, tasked with offering long-term finance to local lenders, which will, in turn, oversee the disbursement of mortgages to Kenyans on low-interest terms.
“With the facilitation and support of the board, we are now properly and fully equipped to play our role in revolutionising the home loans market in Kenya, while making homes affordable for as many of wananchi as possible,” he said.
Speaking during the meeting, Mr. Oltetia also confirmed that KMRC has applied for a licence to offer mortgage refinance services.
Acting Chairman Haron Sirima highlighted that the financier had formulated an effective mechanism to roll out financial products that enable local banks to dish out cheaper house loans.
The bank shareholders include KCB Group, Cooperative Bank, DTB, HF Group, NCBA, Absa Kenya, Stanbic, and Credit Bank, among others.
