Knowledge base

AfDB to Guarantee Kenya’s Mortgage Refinancier Bond

Kenya Mortgage Refinance Company (KMRC) has worked out an arrangement with the African Development Bank (AfDB) where it (KMRC) expects to issue its debut bond in 2021 and piggy back on AfDB’s triple A credit rating with a stable outlook in the debut cash call.

This is owing to KMRC’s absence of a track record due to its novelty in the market thus partnership with AfDB is expected to enhance KMRC’s credit in the bond issuance. See full PDF article below. Available with permission.

Source – Business Daily (Nation Media Group) Newspaper

October 23, 2020

KMRC CEO Featured in the Management Magazine

KMRC CEO Johnstone Oltetia was featured in the September 2020 issue Management Magazine where he highlights the organization’s progress and practical strategies that can be employed to further develop the housing finance sector in Kenya. He also identifies the best investment opportunities, which lay in developing affordable housing projects to reduce the huge deficit.

Access the full PDF article below. Available with permission.

Management Magazine
September 2020

The Impact of Sustainability on Buildings and Homes.

Eco. Green. Environmentally friendly. These are all words we hear and try to digest but often do not understand their mean ing. It’s even harder when you relate it to your home or workplace, but what is all the fuss really about? Well, to put it simply, the earth is dying due to our misuse of resources and with extensive pollution, it is time we start thinking differently about the houses we want to build, and the structures we are currently living in.

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Buy or Rent Which is The Best Option.

A common argument for buying through mortgage is ”why would you pay monthly rent to a landlord instead of building equity in a home for yourself?”

The real estate market in Kenya seems to be going through a tough phase. Experts have been predicting that the market is going to burst with no specific so far. In 2018, the government focused on the big four Agenda and one of the key pillars was affordable housing. According to the world bank 2 million housing units. That would suggest plenty  of opportunities for investments into real estate. According to Cynthia Ilako, a business analyst for a leading daily publication, property prices of both rental and commercial properties seems to be dropping. Most investors would prefer to put up buildings that are likely to have better profits and quicker returns.

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Affordable Housing Hinges On Alternative Building Technology

As construction costs soar in cities, Real estate companies and governments should focus more on alternative building technology to deliver mass housing faster,

In the recent years, property I companies have become ubiquitous in this country. Consequently, media houses are awash with bait and switch advertisements for real estate properties. The country has become an arena of cut-throat competition for real estate companies; each trying to get a share of the pie of the burgeoning demand, for example, of affordable housing. Kenya’s annual population growth rate is approximated at 2.2 per cent while, on the other hand, global average stands at 1.2 per cent. According to Plan International, 5 million people are migrating to urban areas every year in developing countries.

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The Mirage of Affordable Housing.

Affordable housing remains a mirage of low income category house holds and the salaried class in Kenya owing to spiral land prices and  demand and supply and income mismatch

That housing in Kenya is a T headache is not in doubt. According to the World Bank, there is a deficit of 2 million Kenyans who require access to low income housing. One of the reasons that housing is a challenge comes with the cost. For instance, according to the 2019 Kenya Real Estate Market report, the prices for land on which real estate will be built on, is expensive. As an example, land in upmarket estates such as Muthaiga, Lavington and Nyari goes for as high as KSh176.1 million, KSh237 million and KSh105.6 million, respectively per acre.

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Climate Change Risks to Real Estate Investment

Real estate developers are increasingly becoming aware of climate risks and are factoring the effects of climate change into real estate investments.

Traditional analysis of risks related with investment in properties and real estate industry has been con fined to architectural and financial risks for a long time. The fear of failure to re coup capital invested, or interests on loan remaining higher than incomes from the property have been the key center of focus when it came to real estate risk prediction and management. This was when the days were good in terms of predicting nature but things are not the same now for real estate owners and developers. Be under water of under the weather for them has long been metaphorical, only signifying tough times, when property debt exceeds property value, or expenses exceed income. But the term has now coined a new meaning for developers and investors alike: Real estate property could actually be under the weather because of climate change.

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Is Kenya’s Affordable Housing Built on Quick Sand?

Affordable housing in Kenya is behind schedule but projections indicate the sector will shape up in 2020.

Where are the 500,000 affordable houses which the Jubilee government promised in 2017? This is the question many Kenyans are asking, two years to the end of President Uhuru Kenyatta’s second term. As the coin try slowly slithers into an electioneering period ahead of the 2022 elections, this is one issue that will for sure dominate political debate as the housing sector grapples with a high demand for cheap quality houses, against low supply. Whichever way you look at it, the affordable housing project is offline. Just what was the plan, what went wrong and what has been done so far?

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Ukulima Sacco Mortgage Launch

Source – Standard Digital (Standard Media Group Plc)
September 2nd, 2020
KMRC to start lending to shareholders, customers end of September
 

Editor’s Note – Ukulima Sacco launched its new mortgage product in partnership with the Kenya Mortgage Refinance Company (KMRC) on September 1st, 2020 during the institution’s Collaboration Briefing with the Board of Directors at the Society’s premises in Nairobi.

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