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Kenya Eyes Growth in Affordable Housing  with its State-backed Mortgage Refinancing Company

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The President uhuru Kenyatta when he visited Parkroad Estate in Ngara where the Government is building 1,370 houses.

Kenya’s first mortgage refinancing company that will advance cash to financial institutions enabling them to give affordable loans to account holders or members to buy or build homes was launched on Wednesday.

This is part of President Uhuru Kenyatta’s affordable housing plan, which will advance cash to commercial banks, saccos and mortgage companies on a wholesale basis.

“Housing mortgage finance in Kenya remains below its potential,” said President Kenyatta during KMRC’s launch.

To bridge the current housing deficit, in the country, Kenyata said the Government is making deliberate interventions in the housing sector under the Big 4 Agenda, to make it more responsive to the middle and lower income segments of the population.

“The intervention is based on the recognition that reaching the goal of adequate, safe and affordable housing for all, especially the lower income groups, requires fundamental thinking of the traditional approaches used in the past,” said Kenyatta.

He said they expected that KMRC will increase the number of mortgages to over 60,000 by 2022 from a current 26,000.

Affordability has remained a major impediment to growth in the housing and mortgage markets in the country with only 10.2 percent of the urban population in Kenya being able to afford to finance for home ownership according to the Centre for Affordable Housing Finance.

Housing Finance. Mortgage refinancing works by:

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