Kenya Mortgage Refinancing Company (KMRC) will offer home loans to the tune of Sh. 7 billion. This is after the mortgage refinancing firm boosted the fund with a 154.73 per cent jump in the financial year starting July 2021 from the Sh. 2.748 billion it used on the home ownership program in the previous year.
“KMRC is accelerating processing of loans so that participating financial institutions may continue to originate mortgages and, therefore, catalyse applications for home loans,” said chief executive officer Johnson Oltetia. “We are introducing developers to the participating financial institutions so as to create visibility of available eligible properties and encourage uptake of loans for home purchasing.”
KMRC offers loans to banks and saccos for onward lending. It is backed by the government through the National Treasury. In this instance, banks and saccos will take the money from KMRC at a rate of five percent. They will then onward lend at a rate of seven per cent.
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While the Kenya Mortgage Refinancing Company home loans are bound to offer relief to aspiring home owners in the lower earning cadres, Kenyans who earn Sh. 150,000 and above will however continue to take mortgage loans at the current market mortgage rate in Kenya.
Loans from KMRC are capped at Sh. 4 million for Kenyans living in the Nairobi metropolitan area. Kenyans living outside this area get a maximum of Sh. 3 million loan.
