President Kenyatta backs KMRC’s affordable housing journey

President Kenyatta backs KMRC’s affordable housing journey

President Uhuru Kenyatta has hailed the affordable housing’s positive direction
in Kenya’s transformative social-economic journey.

Addressing the nation from Parliament on his Seventh State of the Nation
Address, President Uhuru welcomed the incorporation and capitalization of the
Kenya Mortgage Refinancing Company (KMRC) as a key cog of his affordable
housing pillar under the Big Four agenda.

“This Corporation, will improve mortgage affordability, increase the number of
qualifying borrowers, and result in the expansion of the primary mortgage
market and home ownership in Kenya while also deepening the capital markets
through large-scale medium to long-term refinance options,” he said.
The incorporation of the KMRC, started two years ago, with the Kenyan
government forming a public-private partnership (PPP) firm to drive the
affordable housing finance in Kenya.

Recently, KMRC received its license from the Central Bank of Kenya (CBK), to
commence its core business of providing fixed long-term financing to
participating banks, microfinance banks and Sacco’s for onward lending to
borrowers seeking long-term home loans at affordable rates – following its
satisfaction of the required legal, regulatory and operational conditions set by
the bank.

According to KMRC’s CEO Johnstone Oltetia: “KMRC’s incorporation was
successfully vetted by the CBK and passed the fit and probity requirement. Our
first strategic plan 2020-2024 now sets our priorities to provide long term funds,
catalyzing growth in the uptake of home loans in Kenya as a pathway to home
ownership in the short to medium term.”

KMRC supports the Affordable Housing Pillar of the Government’s Big Four
Agenda by providing secure, long term finance to PMLs, who are then supposed
to advance the same to individual borrowers. The idea is to address the shortage
of long-term finance in the Kenyan financial market, while addressing the
problem of asset maturity mismatch, which is responsible for the high cost and
general inaccessibility of home loans to many Kenyans

 

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