NAIROBI, Kenya, Jan 12- Kenya Mortgage Refinance Company (KMRC) has received Capital Markets Authority’s (CMA) approval to issue a Medium-Term Note Program, through which it seeks to raise up to Kes10.5 billion in various tranches.
The cash raised from the issuance, whose first tranche is Kes 1.4 billion will be disbursed to participating primary mortgage lenders (PMLs), for onward lending to mortgagers.
This is the first time the Kenya Mortgage Refinance Company is issuing a Medium-Term Note Programme to raise long-term capital, in its quest to reduce mortgage interest rates and lengthen repayment tenors, thus, make housing affordable and improving the viability of home loans as a pathway to homeownership for Kenyans.
Hitherto, and since it started operations in 2019, KMRC has relied exclusively on concessional loans from the World Bank and African Development Bank (AfDB), the continental Development Finance Institution (DFI), for such funds.
“This is an important milestone for KMRC as it aims to blend and diversify its sources of funds. Through this issuance, KMRC seeks to build its profile as a regular issuer of bonds in the Kenyan Capital Market. as we work to raise more long-term capital, thereby re-financing more home loans and making them affordable and accessible for Kenyans,” Said KMRC CEO Johnstone Oltetia.
