By Kepha Muiruri For Citizen Digital
According to the exchequer, the allocation is expected to bolster the refinancier role in delivering the affordable housing project.
“The Kenya Mortgage Refinance Company continues to play a leading role in the delivery of affordable housing in Kenya,” Treasury Cabinet Secretary Ukur Yatani said on Thursday.
“I am pleased to note that since September 2020, KMRC has disbursed Ksh.2 billion to seven primary mortgage lenders and is currently processing an additional Ksh.7 billion.”
Disclosures by the company however shows issuances of Ksh.1.3 billion in the 2021 calendar year.
The capital boost is expected to shore up the financing of the company, born out of a public-private partnership.
KMRC has various layers of funding including loans from development partners such as the World Bank and the African Development Bank (AfDB) and commercial loans.
In February, the refinancier raised Ksh.1.4 billion representing the first tranche of Ksh.10.4 billion medium notes (MTN) with the bond listing on the Nairobi Securities Exchange (NSE) on March 14.
KMRC net profit for the year ended December 2021 was up by 155 per cent at Ksh.196.6 million of the back of increased interest income from new disbursements for mortgage loans.
Seven of the financial institutions to receive mortgage financing in the year were Housing Finance, Tower Sacco, Stima Sacco, Unaitas Sacco, Credit Bank, Co-operative Bank and Ukulima Sacco.
At the end of 12 months to December last year, KMRC had an asset base of Ksh.9.8 billion while borrowings stood at Ksh.6.8 billion in the same period.
The mortgage refinancier made its first-ever disbursements to primary lenders in 2021 after being set up by the National Treasury in 2018.
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