Budget 2021/22 Coverage: Govt allocates Kenya Mortgage Refinance Company  Ksh 3.5B boost

Budget 2021/22 Coverage: Govt allocates Kenya Mortgage Refinance Company Ksh 3.5B boost

BY KORIR JUMA,NAIROBI,10TH JUNE,2021-The Kenya Mortgage Refinance Company is scheduled to issue an infrastructure bond by October 2021 to raise additional financing for its affordable housing finance objectives.

The Company also plans to issue Green Bonds to finance climate friendly housing projects.

During the 2021/2022 budget reading, Treasury Cabinet Secretary Ukur Yatani proposed an allocation of Ksh 13.9 billion for the Affordable Housing Programme.

Of the proposed allocation, Ksh 3.5 billion will go to the Kenya Mortgage Refinance Company for enhancement of the company’s capital as well as for on-lending to primary mortgage lenders.

Ksh 8.2 billion will be used for construction of Affordable Housing Units as well as Ksh 500 million for construction of Social Housing Units.

Kenya Mortgage Refinance Company is supporting the growth of residential housing market in Kenya by providing long-term funding to the mortgage lenders in order to increase affordability of mortgage loans to Kenyans.

As of December 2020, Kenya Mortgage Refinance Company had refinanced 1,400 affordable housing loans worth Ksh 2.75 billion.

According to Yatani, government is also in the process of streamlining and simplifying the legal and regulatory process governing the housing sector and providing basic infrastructure services to developers.

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