The Kenya Mortgage Refinance Company (KMRC) has so far advanced Sh2.76 billion in credit to mortgage lenders, accounting for about seven per cent of the fund’s total capital pool.
KCB #ticker:KCB accounts for the bulk of the lending at Sh2.12 billion, followed by HF #ticker:HFCK at Sh515 million. Others include Stima Sacco (Sh69million), Tower Sacco (Sh30 million) and Bingwa Sacco (Sh27 million).
KMRC chief executive Johnstone Oltetia told the Business Daily that the company is also reviewing a pipeline of 337 mortgages worth Sh979 million from a number of lenders.
"KMRC has refinanced 1,427 mortgages worth Sh2.76 billion. Primary mortgage lenders have started rolling out creation of new eligible mortgages in order to present the same to KMRC for re-financing," said Mr Oltetia.
The Treasury-backed lender offers banks and saccos cash for onward lending to home buyers.
Prospective home buyers who qualify for loans under the KMRC framework access up to Sh4 million for property in Nairobi metropolitan area and Sh3 million elsewhere with a repayment period of up to 20 years.
KMRC lends to banks and financial cooperatives at an annual interest of five per cent, enabling them to write home loans at rates lower than the average market rate of 11.94 per cent.
KMRC had mobilised nearly Sh40 billion, including Sh2.2 billion in equity capital, Sh25 billion committed by the World Bank and Sh10 billion from African Development Bank (AfDB).
Mr Oltetia said the World Bank credit line currently stands at Sh19 billion and AfDB’s at Sh8 billion.