The Kenya Mortgage Refinance Company (KMRC) approved International Finance Corporation(IFC) and Shelter Afrique as shareholders.
KMRC is a public-private partnership (PPP) firm formed by the government to make home loans affordable in the country.
The two were admitted during the first virtual Annual General Meeting after each contributed KSh200 million.
KMRC disclosed to have raised KSh2 billion as capital from shareholders.
Other shareholders include the National Treasury, and 20 Primary Mortgage Lenders (PMLs), eight commercial banks, one Micro Finance Bank, and 11 Savings and Credit Cooperatives.
The Banking sector is represented by KCB Group, Co-operative Bank, Diamond Trust Bank HF Group, NCBA, Absa Kenya, Stanbic, and Credit Bank.
Kenya Women Microfinance Bank (KWFT) is the sole Micro Finance Bank shareholder.
SACCOs include Kenya Police, Mwalimu National, Safaricom, Ukulima, Bingwa, Imarisha, Unaitas, Imarika, Tower, Stima, and Harambee Sacco.
“From an operational standpoint, I can confirm that everything is now in place for us to start providing long-term finance to participating financial institutions, for onward lending to home loan borrowers at affordable rates once KMRC obtains a license,” said KMRC Acting CEO Johnstone Oltetia.
The National Treasury said once operational, MRCs will help to meet the projected 500,000 houses in five years as well as make it easier for banks to access long-term finance for home loans.
According to Treasury, mortgage affordability would increase the number of qualifying borrowers and result in the expansion of the primary mortgage market and homeownership in Kenya while deepening the capital markets.
KMRC is a limited liability company incorporated under the Companies Act created as a non-bank financial institution that is restricted to providing long-term funding and capital market access to mortgage lenders and issuing bonds to investors.
The company is regulated and supervised by the Central Bank of Kenya (CBK) with CMA providing oversight over its bond issuance operations.
