KMRC disbursed Sh2.75bn for home loans in 2020

By Malachi Motano

The Kenya Mortgage Refinancing Company (KMRC) disbursed Sh2.75 billion in 2020 to participating primary mortgage lenders (PMLs) in its debut lending since it was established.

“That amount was part of Sh4.5 billion mortgage loan portfolios available for immediate refinancing to participating financial institutions. We (KMRC) are drawing down funds from both the World Bank and African Development Bank lines of credit, thus participating financial institutions are encouraged to submit applications for refinancing,” said Chief Executive Officer Johnstone Oltetia.

Since then, the company has partnered with a number of commercial banks and Savings and credit co-operative societies (Saccos) which include Ukulima Sacco, Stima Sacco, Tower Sacco and Kenya National Police Sacco.

Kenya Commercial Bank and Housing Finance Bank and other seven local banks have committed to set aside Sh365 billion worth of mortgages for the Affordable Housing Programme.

Other shareholders that will be refinanced by KMRC include DTB, AbSA, NCBA, Credit Bank and Kenya Women Microfinance Bank (KWFT).

“The refinancing will go a long way in making affordable housing a reality – with part of the funds earmarked for financing the Affordable Housing Programmes like the already completed Park Road Housing Project,” said the CEO.

Moving on, Mr.  Oltetia said KMRC will continue to innovate around fixed long-term financing to participating primary mortgage lenders to speed up growth in the uptake of home loans in Kenya.

“This year (KMRC) is preparing to raise additional funds to support home loans through a bond issue in the third quarter of 2021. With KMRC having no track record in the market, an agreement has been reached with African Development Bank to provide a partial credit guarantee and with further support from World Bank group we expect this bond issue to be successful” added the CEO.

KMRC’s mandate is to provide long term funds to primary mortgage lenders thus Saccos, banks and microfinance banks in order to increase the availability and affordability of home loans to Kenyans.

Its mission is aligned with the affordable housing pillar of governments Big- 4-Agenda. Its support to the affordable housing is mainly on the demand side by providing long term funds to participating financial institutions to on lend to Wananchi (citizen)

Kenya Mortgage Refinancing Company (KMRC) total assets hit Sh 6,309,802,091 in the 2020 financial year compared to Sh2,272,855,309in 2019.

Total Liabilities and Equity rose from Sh2,274855,309, in 2019 to Sh6,309,802,091, where borrowing hit Sh3,725,173,478 as the lease liabilities stood at Sh46,172,905, with no deferred tax liabilities which stood at Sh956,758 in 2019.

Revenue reserves rose from Sh2, 239,471,184 in 2019 to Sh2, 516,688,523, company’s share capital stood at Sh1, 291,000,100 as contribution pending allotment rose to Sh883, 999,900 from Sh683, 999,900 in 2020.

The above data indicate a strong financial position according to the audited financial statements for the year ended December 31, 2020.

It was established in the year 2018 through a public private partnership (PPP) arrangements and incorporated under companies Act 2015 as a non-deposit taking financial institution under the supervisory of Central Bank of Kenya (CBK).

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