KMRC plans to issue Green Bonds with proceeds channeled towards financing climate friendly affordable housing.

Nairobi, July 01, 2022 – The Kenya Mortgage Refinance Company (KMRC) has reported strong financial results for the year ended December 31, 2021, posting a 181% increase in profit before tax from Kes 102 million in 2020 to Kes 285 million in 2021. The Company recorded Kes 197 million profit after tax in 2021 which was a 155% upturn compared to the previous year, with a 19% Return on Equity to shareholders.

This follows the Company’s accelerated lending activities in 2021, being the first year of its full operation, coupled with strong growth in investment income. The Company’s shareholders were impressed by the positive strides KMRC has made since its licensing by the Central Bank of Kenya in September 2020.

“We are delighted to report the Company’s impressive performance for the year under review. This is very encouraging considering that it has all been attained in just a little over a year of licensing by the CBK. We expect sustained positive performance that is anchored on robust business strategy with a mission to deliver affordable housing to wananchi,” said KMRC’s Chairman, Dr. Haron Sirima at the Company’s third Annual General Meeting (AGM), held virtually, on June 30^th, 2022.

CEO Johnstone Oltetia disclosed that as at end May 2022, the Company had disbursed an additional Kes. 2.57 billion and is currently working on a pipeline of Kes. 5.2 billion. “The Company had disbursed Kes. 1.3 billion to seven institutions by end 2021,” he affirmed.

In his FY 2022/23 Budget Speech the National Treasury and Planning CS Amb. Ukur Yatani reiterated the important role KMRC is playing in delivery of affordable housing in Kenya. “Building on the gains and to ensure success of the Affordable Housing initiative, I have proposed an allocation of Kes 27.7 billion for the Affordable Housing Programme,” said CS. Yatani. The proposed allocation included among others, Kes 12.4 billion to KMRC.

KMRC issued Kenya’s first mortgage refinance bond of Kes 1.4 billion which is expected to increase its operations to refinance more home loans. This successful issuance under the Medium Term Note Program has an important developmental impact on the capital market as sustainable source of funding for affordable housing in Kenya. Going forward, KMRC plans to issue Green Bonds with proceeds channeled towards financing climate friendly affordable housing.

“We are keen to issue Green Bonds in the near term in line with the Kenya Green Bonds Program to encourage development of affordable green housing in Kenya. In fact, we are on course to carry out capacity building initiatives that are expected to enrich the Company’s internal and external stakeholders’ expertise in this area and at the same time ensure regulatory compliance,” said Dr. Sirima.

About KMRC

Established in April 2018 as a Public-Private Partnership (PPP), under the supervision of the Central Bank of Kenya (CBK), Kenya Mortgage Refinance Company’s role is to provide long-term funds to primary mortgage lenders (Banks, Micro Finance Banks and Saccos) in order to increase the availability of affordable home loans to Kenyans by providing low interest, fixed rate, long term finance to mortgage financiers so that they can transfer the same benefits to individual borrowers, making home loans more accessible and affordable for Kenyans. A wholesale institution, KMRC also aims at contributing to the growth of Kenyan capital markets through the issuance of corporate bonds as a source of sustainable long-term fund, assisting in the standardization of mortgage practices in Kenya through enhanced capacity building to member institutions on the origination of mortgages and contributing to the growth of the mortgage market in Kenya through support to Primary Mortgage Lenders.

Additional information may be found at www.kmrc.co.ke

Media Contacts

KMRC Corporate Communications

Irene Kadima, Ikadima@kmrc.co.ke | 254 111 022 407 | +254 111 022 400 |+254 725 854 607