The Kenya Mortgage Refinancing Company yesterday through its board formally approved the entry of two new shareholders; the International Finance Corporation (IFC), Pan-African housing financier Shelter Afrique.
The company held its first annual general meeting virtually, in line with current health directives in the country in an event where members of the board approved the new shareholders.
“Today’s AGM is a key and historic milestone for KMRC. With the facilitation and support of the board, we are now properly and fully equipped to play our role in revolutionizing the home loans market in Kenya, while making homes affordable for as many of wananchi as possible,” said KMRC’s Acting Chairman, Dr. Haron Sirima.
KMRC was set up in 2018 as a key component in the realization of the affordable housing plan. The institution will play the role of a lender of last resort for banks, advancing long-term financing at lower rates to primary mortgage lenders, enabling commercial banks to further drive down mortgage rates in the country.
“From an operational standpoint, I can confirm that everything is now in place for us to start providing long-term finance to participating financial institutions, for onward lending to home loan borrowers at affordable rates on KMRC obtains a license,” said the firm’s acting CEO, Johnstone Oltetia.
In his recent national address, National Treasury Cabinet Secretary hinted that KMRC will take the weight of financing the affordable housing agenda, which received an allocation of only Ksh. 6.9 billion in the 2020/2021 financial year.
Other international and financial institutions including six local banks have agreed to pump KES 300 billion into the company to help Kenyans buy affordable homes.