The four-fold increase in Kenya Mortgage Refinancing Company's loans book to Sh6.8 billion points to the rising popularity of its product among potential homeowners who access it via primary lenders.
The State-backed financier has also diversified its source of capital, including a Sh1.4 billion corporate bond last year, to ensure increased funding in a bid to meet its goal.
Doubling of the size of the subsidised home loan in Nairobi, which has the most applicants, to Sh8 million is another plus for the company established in 2018.
The challenge now remains access to affordable land and accompanying infrastructure such as roads, water, electricity and easy ownership documentation.
Ultimately reducing the number of people in informal settlements will boil down to four fundamentals —lowering the cost of setting up a home, easy terms of access to mortgages, friendly State policies and a flexible repayment period.
Financial institutions and property developers should also play their role in the affordable housing sector.
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