Kenya Mortgage Refinance Company gets Ksh 3.5B boost

Written By: Christine Muchira

The Kenya Mortgage Refinance Company is scheduled to issue an infrastructure bond by October 2021 to raise additional financing for its affordable housing finance objectives.

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The Company also plans to issue Green Bonds to finance climate friendly housing projects.

During the 2021/2022 budget reading, Treasury Cabinet Secretary Ukur Yatani proposed an allocation of Ksh 13.9 billion for the Affordable Housing Programme.

Of the proposed allocation, Ksh 3.5 billion will go to the Kenya Mortgage Refinance Company for enhancement of the company’s capital as well as for on-lending to primary mortgage lenders.

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Ksh 8.2 billion will be used for construction of Affordable Housing Units as well as Ksh 500 million for construction of Social Housing Units.

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Kenya Mortgage Refinance Company is supporting the growth of residential housing market in Kenya by providing long-term funding to the mortgage lenders in order to increase affordability of mortgage loans to Kenyans.

As of December 2020, Kenya Mortgage Refinance Company had refinanced 1,400 affordable housing loans worth Ksh 2.75 billion.

According to Yatani, government is also in the process of streamlining and simplifying the legal and regulatory process governing the housing sector and providing basic infrastructure services to developers.

Nairobi Metropolitan Services

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And to support the Nairobi Metropolitan Services in reversing urban indignity in
Nairobi City County, Ksh 100.0 million has been set aside for the Nairobi Metropolitan Services Improvement Project and Ksh 111.2 million for construction of foot bridges.

Other key allocations to the Housing, Urban Development and Public Works sector includes Ksh 3.5 billion for the Kenya Informal Settlement Improvement
Project-Phase II.

Similarly, Ksh 1.0 billion has been allocated for construction of markets, Ksh 1.0 billion for maintenance of government Pool Houses, Ksh 750 million for the construction of Housing Units for the National Police and Kenya Prison, Ksh 700.0 million for the Kenya Urban Programme.

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Yatani said, Ksh 200.0 million will go to the Africities Summit and Ksh 45.6 million for the construction and completion of stalled government buildings.

In addition, the CS proposed an allocation of Ksh 700.0 million to support the Nairobi Bus Rapid Transport Project to offer an efficient and time saving
public transport.

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