Kenya secures funding to boost mortgage finance access to households

Xinhua News Agency | May 17, 2019 at 12:05 PM

NAIROBI, May 17 (Xinhua) -- The African Development Bank (AfDB) has approved a 10 billion shillings (about 100 million U.S. dollars) loan to boost mortgage finance access to lower and middle income households in Kenya.

AfDB said on Friday that the loan will be used to support the establishment of the Kenya Mortgage Refinance Company (KMRC) to aid access to affordable mortgage loans by the households.

"The loan will result in multiplier effects on industries related to the housing sector and creation of jobs in these value chains," the lender said in a statement issued in Nairobi.

KMRC is a non-bank financial institution designed to provide long-term funding and capital market access to local lenders, including commercial banks, and savings and credit cooperative organizations to help consolidate the east African nation's growing domestic mortgage finance market.

The government, through the central bank, is setting up the KMRC as part of initiatives to overhaul and stimulate the demand and supply balance in the housing and mortgage finance market.

According to AfDB, the investment will complement Kenya's Big 4 Agenda on affordable housing national goal, and its plans to develop a self-sustaining affordable mortgage market.

"It will also promote inclusive finance through KMRC, whilst also assisting in creating new employment opportunities," said the bank.