Shelter Afrique has injected Ksh. 200 million to fund the establishment of the Kenya Mortgage Refinance Corporation (KMRC) within the country.
According to Shelter Afrique’s Chief Executive Officer (CEO) Andrew Chimphondah the establishment of KMRC will enable Kenyan citizens to acquire reasonably priced houses in metropolitan areas by capitalising on an affordable long term mortgage facility.
“We are encouraged by the formation of the (Kenya) Mortgage Refinance Company that will cushion commercial and microfinance banks as well as savings and credit societies (saccos) engaged in long-term mortgage financing and at a lower cost,” Mr. Chimphondah said in an official statement.
Mr. Chimphondah similarly revealed that the strategy will increase the uptake of mortgages from Kenya’s middle class earners and this will be further aided by the government’s provision of free land to developers as well as funding for off-site infrastructural in line with the the public-private partnership financing model.
“Cost of land constitutes about 40 percent of the total cost of a housing unit and provision of free land means a discount of equal margins on the units already,” said Mr. Chimphondah.
The announcement by Shelter Afrique comes barely a week after the World Bank approved a Ksh. 25 billion loan to help Kenya in realizing its affordable housing pillar of President Uhuru Kenyatta’s Big Four Agenda.
Shelter Afrique which is owned by 44 African governments and the African Development Bank, joins other investors, among them the Kenya government, which pledged to fund the establishment of KMRC. KMRC will be a wholesale company that eases liquidity issues for commercial banks and saccos that disburse affordable home loans to low-income earners.
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