Date – April 25, 2025
Editor’s Note – KMRC is advancing its goal of sustainable homeownership by expanding mortgage access to all prudentially regulated financial institutions and focusing on inclusive, research-driven product design. A key priority is serving Kenya’s informal sector, which comprises about 80% of high-risk borrowers due to irregular incomes. In partnership with the Kenya Mortgage Guarantee Trust (KMGT), KMRC is launching a guarantee scheme that covers 40% of loans—higher than in comparable countries—to encourage lending to this group. The scheme targets loans up to KES 6 million and excludes high-income earners, with a detailed eligibility framework underway. To ensure borrower commitment, a 1% guarantee fee will be introduced, and a digital credit assessment tool using mobile money and bank data will support flexible repayment plans. The scheme is set to roll out by the end of Q2, aiming to significantly boost mortgage uptake among previously underserved Kenyans.