State mortgage financier admits IFC, Shelter Afrique

State-backed home loans financier Kenya Mortgage Refinance Company (KMRC) has admitted International Finance Corporation and Shelter Afrique as shareholders.

The firm also announced it was good to go after picking directors and crafting a financing strategy.

KMRC has so far raised Sh2 billion as capital from shareholders among them National Treasury, 20 primary mortgage lenders, eight banks, one micro-finance bank and 11 savings and credit co-operatives.

A further commitment of Sh35 billion from development partners would fund KMRC’s operations.

During a first virtual AGM, World Bank private sector arm, IFC and pan-African mass housing development funder Shelter Afrique were admitted as shareholders of KMRC after each contributed Sh200 million.

Acting KMRC chief executive Johnstone Oltetia said the firm has a fully constituted board now tasked with offering long-term finance to local lenders that will, in turn, oversee the disbursement of mortgages to Kenyans on low-interest terms.

“With the facilitation and support of the board, we are now properly and fully equipped to play our role in revolutionising the home loans market in Kenya, while making homes affordable for as many of wananchi as possible,” he said.

Speaking during the meeting, Mr Oltetia said the financier has applied for a licence to offer mortgage refinance services.

“From an operational standpoint, I can confirm that everything is now in place for us to start providing long-term finance to participating financial institutions, for onward lending to home loan borrowers at affordable rates when KMRC obtains a licence,” he said.

Acting chairman Haron Sirima said the financier had formulated an effective mechanism to roll out financial products that enable local banks to dish out cheaper house loans.

The bank shareholders include KCB Group #ticker:KCB, Cooperative Bank #ticker:COOP, DTB #ticker:DTK, HF Group #ticker:HFCK, NCBA #ticker:NCBA, Absa Kenya #ticker:ABSA, Stanbic #ticker:SBIC and Credit Bank, Kenya Women Microfinance Bank and saccos including Kenya Police, Mwalimu, Safaricom, Ukulima, Bingwa, Imarisha, Unaitas, Imarika, Tower, Stima and Harambee.