The Kenya Mortgage Refinancing Company continues to accumulate fire power after Pan-African financier Shelter Afrique decided to invest KSh. 200 million into the state owned corporation whose role is to facilitate affordable housing.
The firm’s chief executive Andrew Chimphondah said the funds would enable Kenyans buy houses in urban areas through an affordable long-term mortgage facility.
Other investors including local commercial banks, the government of Kenya, World Bank, Africa Development Bank and private investors have already contributed or expressed intent to financially support the activities of the KMRC.
“We are encouraged by the formation of the (Kenya) Mortgage Refinance Company that will cushion commercial and micro-finance banks as well as savings and credit societies (saccos) engaged in long-term mortgage financing and at a lower cost,” he said.
KMRC will act as a lender of last resort to banks, enabling them to extend long-term loans to potential home buyers at lower interest rates than is currently possible. Far from commercial banking, KMRC will not be involved in the business of mitigating asymmetric information. Rather it’s capacity that of a wholesale lender.
Source; Business Daily