Browsing: Kenya Mortgage Refinance Company (KMRC)

Kenya has unveiled a mortgage refining facility-Kenya Mortgage Refinance Company (KMRC), a short in the arm in President Uhuru Kenyatta’s affordable housing scheme under the Big Four Agenda. KMRC will provide long-term funds to primary mortgage lenders in order to increase the availability and affordability of mortgage loans to Kenyans. It will help address the housing deficit in Kenya which currently stands at 150,000 units annually on an annual demand of 200,000.

Kenya has unveiled a mortgage refining facility-Kenya Mortgage Refinance Company (KMRC), a short in the arm in President Uhuru Kenyatta’s affordable housing scheme under the Big Four Agenda.

KMRC is a non- deposit taking financial institution under the supervision of the Central Bank of Kenya (CBK).

The company was incorporated on April 19, 2018 with the single purpose of providing long-term funds to primary mortgage lenders (banks, micro finance banks and saccos) in order to increase the availability and affordability of mortgage loans to Kenyans.

READ:Mortgages more unaffordable as Kenya house prices increase in 2018

KMRC shareholders and funding

The company was established as a private public investment with majority ownership by the private sector at 80 per cent and government 20 per cent. Its current shareholders comprise: the national treasury and planning; eight (8) commercial banks; eleven (11) deposit taking Savings and Credit Co-operatives (Saccos) and one (1) …

The World Bank has approved a USD250 million International Bank for Reconstruction and Development (IBRD) loan to support housing projects in Kenya. The Kenya Affordable Housing Finance Project (KAHFP) will support the establishment and operationalization of the Kenya Mortgage Refinance Corporation (KMRC), a largely private sector-owned and non-deposit taking financial institution under the supervision of the Central Bank of Kenya.

The government expects private sector to contribute 60% of the development

International property developers are angling themselves to tap into the housing projects in Kenya’s Big Four Agenda, a boost to President Uhuru Kenyatta’s ambition to deliver 500,000 units by 2022.

This came out at the sixth East Africa Property Investment Summit (EAPI) held in Nairobi this week, where the government called on the private sector to support the projects, assuring them of offtake.

An offtake assurance or agreement is a commitment between a producer and a buyer to purchase or sell portions of the producer’s future production.

“We want to assure the developers that whatever they build, we will buy,” Charles Hinga, Kenya’s Principal Secretary -State Department of Housing and Urban Development.

He spoke during the event  which saw Nairobi host some of the largest international and regional developers and financial investors such as USA’s Echostone housing, South Africa’s …