Date: August 8, 2025:
KISUMU, KENYA — The Government of Kenya, through the National Treasury and Economic Planning, has committed €4 million (KES 603 million) to capitalize the Kenya Mortgage Guarantee Trust (KMGT), reinforcing efforts to unlock housing finance for informal-income households.
The announcement was made by Cabinet Secretary Hon. FCPA John Mbadi Ng’ong’o, EGH, during his keynote address at the 4th Kenya Affordable Housing Conference (KAHC) in Kisumu.
This initiative complements a financing milestone by the Kenya Mortgage Refinance Company (KMRC), which, with Treasury support, has mobilized concessional funding which has been blended with domestic bond proceeds to offer single-digit fixed interest rate home loans.
“Sustainable housing finance must move beyond traditional budget allocations,” said CS Mbadi. “We must leverage tools like mortgage-backed securities, bonds, and blended finance to mobilize long-term capital and deepen market liquidity.”
KMGT will serve as a risk-sharing facility, providing partial guarantees to enable lenders to finance informal sector borrowers.
Hon. Mbadi also reaffirmed Treasury’s commitment to enabling policy reforms, including tax incentives and capital market development, to attract private investment into housing.
KMRC has refinanced over 4,600 home loans across 39 counties, valued at approximately Kes. 21.7 billion. Women account for 48.3% of the beneficiaries demonstrating progress in gender-inclusive finance.
KMRC CEO Johnstone Oltetia welcomed Treasury’s support and emphasized the success of blended finance in delivering affordable housing. “By combining concessional loans with bond capital, we’ve enabled lenders to offer affordable mortgages transforming access to housing,” he said.
He also expressed appreciation for the presence and leadership of CS Mbadi, and commended the participation of international guests from Tanzania, Uganda, India, Pakistan, and Malaysia, which he said reflects growing global interest in scalable, sustainable housing solutions.
The Kes. 1.4 billion bond issued in 2022 under KMRC’s Kes. 10.5 billion Medium-Term Note Programme (MTN) was cited as a successful example of leveraging local capital markets to meet housing goals.
CS Mbadi further announced a Kes. 120.2 billion allocation for housing in the FY2025/26 budget, alongside new provisions in the Finance Act 2025, including a KES 360,000 annual tax relief for progressive home construction loans.
He noted that only 2% of Kenyan households hold mortgages, with the majority renting in informal settlements, amid a 4.3% annual urbanization rate underscoring the need for innovative housing finance tools.
“Our journey to inclusive and sustainable housing must be anchored on bold vision, innovative financing, and targeted guarantees that bridge gaps in traditional lending,” he declared.
He concluded by pledging to mobilize more concessional funding for KMRC from development partners to scale refinancing capacity and expand access to home loans.
The two-day Kenya Affordable Housing Conference convened policymakers, financiers, and global experts under the theme: “Revolutionizing Housing Finance: Innovation Meets Sustainability.” Delegates engaged in high-level dialogues towards accelerating affordable housing and housing finance.
CS Mbadi officially opened the final day by calling for sustained collaboration between government, private sector, and development partners.
“Together, we can make dignified shelter a reality for every Kenyan,” he concluded.
About KMRC
The Kenya Mortgage Refinance Company (KMRC) is a non-deposit-taking financial institution established to provide long-term funding to primary mortgage lenders. Its goal is to promote home ownership through affordable home loan products.
About KMGT
The Kenya Mortgage Guarantee Trust (KMGT) is an institution established to provide partial mortgage guarantees for low-income and informal sector borrowers. By reducing credit risk for lenders, KMGT aims to expand housing finance to previously excluded populations.
Media Contact:
Kenya Mortgage Refinance Company (KMRC)
Email: info@kmrc.co.ke
Additional information may be found at www.kmrc.co.ke