Source – Business Daily
Date – April 30, 2025
Editor’s Note- The Kenya Mortgage Refinance Company (KMRC), Kenya’s first and only mortgage refinance institution, is improving access to affordable housing by offering long-term, fixed-rate loans through banks and saccos, with up to 105% financing that covers both home costs and associated expenses like legal fees and stamp duty. As part of its 2024–2029 strategic plan, KMRC has removed individual loan limits (while capping loans at KES 10.5 million) to better serve low- and middle-income first-time homebuyers. Loans can be used to buy or build homes but are restricted to owner-occupied properties. KMRC vets applications through primary mortgage lenders to ensure eligibility and targets underserved groups like youth and informal workers, accepting alternative proof of income such as mobile money records and business transactions. A new Risk-Sharing Facility (RSF) via the Kenya Mortgage Guarantee Trust helps lenders manage default risk, and the strategic plan also expands participation to all lenders regulated by CBK or Sasra, reinforcing KMRC’s commitment to financial inclusion and sustainability.
