News

 

Nairobi, February 5, 2019

 

The National Treasury is contributing to the Affordable Housing Pillar of the BIG 4 Agenda by supporting the establishment of a liquidity facility (Kenya Mortgage Refinance Company) in order to increase access to liquidity and longer-term funds for Banks and SACCOs to lend towards residential mortgages in Kenya. In order to operationalize the company’s lending operations, a draft Master Refinance Agreement (MRA) was drafted. The MRA is a framework legal document that sets the general terms of engagement between KMRC and primary mortgage lenders in relation to refinancing of mortgages.

 


To ensure all the participating institutions are conversant with the content of the MRA and to allow greater consultation on the document, KMRC organized a sensitization workshop which was facilitated by the Transaction Adviser (NIC Capital & Moboya Wangongu & Wayiaki Advocates) at Hotel Intercontinental, Nairobi Kenya Mortgage Refinance Company (“KMRC”) was incorporated in April 2018 as a Limited company under the Companies Act with the mandate to provide secure long-term funding to primary mortgage lenders (Banks & Saccos) in order to increase availability and affordability of
mortgage loans to Kenyans. As a wholesale financial institution KMRC would issue bonds in the capital markets, and with the proceeds, extend long term loans to financial institutions secured against mortgages so that they can extend the tenor of their housing loans to end borrowers. KMRC will be regulated by the Central Bank of Kenya as a non-deposit taking financial institution.

 

 

Johnstone Oltetia, Interim KMRC CEO addressing participants during the Draft Master Reference Agreement sensitization workshop at a Nairobi hotel.