Kenya Mortgage Refinance Company (KMRC) has been given a green light by the Central Bank of Kenya to start lending to banks that will later lend to Kenyans who want to own homes.
Kenya Mortgage Refinance Company is a public-private partnership (PPP) firm formed by the Government to drive the affordable housing finance in Kenya.
President Uhuru Kenyatta hopes to construct at least 500,000 affordable houses for Kenyans before he leaves office in 2022. The program under the Big 4 Agenda is already underway.
Major shareholders in the company are KCB, Cooperative Bank, DTB, HF Group, NCBA, Absa Bank Kenya, Stanbic Bank Kenya, and Credit Bank.
Kenya Women Microfinance Bank (KWFT) is the sole MFB (Micro Finance Bank) while SACCOs include Kenya Police, Mwalimu National, Safaricom, Ukulima, Bingwa, Imarisha, Unaitas, Imarika, Tower, Stima, and Harambee are also members.
“This license not only marks historic new dawn in affordable housing finance in Kenya, but it also illustrates the legal, structural and strategic foundations that we have been putting in place since inception for a fit for-purpose mortgage refinance company,” KMRC Chief Executive Officer Johnson Oltetia said.
KMRC was incorporated under the Companies Act, with a required minimum paid-up capital of 1 billion shillings. Its board of directors, comprising of six non-executive and one executive director; significant shareholders’ and senior officers have been successfully vetted by the CBK and passed the fit and probity requirement.
‘The Central Bank of Kenya (CBK) announces the licensing of the Kenya Mortgage Refinance Company Plc (KMRC) as the first mortgage refinance company in Kenya. The license has been granted pursuant to the CBK (Mortgage Refinance Companies) Regulations, 2019 after KMRC’s fulfillment of the stipulated licensing requirements,” said CBK.
The company has finalized setting up its internal policies and procedures, onboarded a highly competent management team, implemented a robust ICT system, and secured physical premises from where to run its day to day operations.