• About
  • Advertise
  • Privacy & Policy
  • Contact
Kenyan Business Feed
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business
No Result
View All Result
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business
No Result
View All Result
Kenyan Business Feed
No Result
View All Result
Home News

WB approves Sh25bn to boost cheap mortgage

Kenyan Business Feed by Kenyan Business Feed
Share on FacebookShare on Twitter

[ad_1]

GEORGE OMONDI

By GEORGE OMONDI
More by this Author

The World Bank has approved Sh25 billion ($250 million) to help Kenya set up a mortgage refinancing company that will make it easier for banks to access long-term finance for cheaper home loans

The multilateral lender said the cash will enable the country set up the Kenya Mortgage Refinance Corporation (KMRC), to be owned by the State, commercial banks and financial co-operatives.

Once it starts operations in June, the company will raise debt from markets, including mortgage-backed bonds to lend to banks and financial co-operatives using their mortgage loan contracts with customers as security.

Mortgage firms have shied away from writing housing loans mainly due to lack of long-term deposits in the industry to match them.

“Urban housing currently remains unaffordable for most Kenyans due to cost of financing, the short loan tenures and the high cost of properties,” said Felipe Jaramillo, World Bank Kenya Country Director.

“We believe that Kenya’s vibrant private sector offers an excellent opportunity to crowd in privately held skills and resources towards achieving the country’s Big 4 affordable housing goals.”

President Uhuru Kenyatta has said provision of affordable housing is one of his four key priority areas in his second term and aimS at providing 500,000 affordable houses in five years.

The World Bank effectively joins a host of other principal shareholders – mainly commercial banks and deposit taking SACCOs — which have from March confirmed their involvement in the grand project — but are yet to release the cash.

The National Treasury has disbursed Sh200m out of the Sh1.5bn that it pledged for the project while the other principal shareholders yet to release their contribution. A portion of the World Bank’s money will go into equity capital with the rest being used as initial cash reserve. Kenya had just 26,187 mortgage loans valued at Sh22.2 billion in 2017or less than one percent of GDP in the year, compared with about 30 percent of GDP worth of outstanding mortgages in South Africa.

Kenya had just 26,187 mortgage loans valued at Sh22.2 billion in 2017or less than one percent of GDP in the year, compared with about 30 percent of GDP worth of outstanding mortgages in South Africa.



[ad_2]

Source link


Kenyan Business Feed is the top Kenyan Business Blog. We share news from Kenya and across the region. To contact us with any alert, please email us to [email protected]
Kenyan Business Feed

Kenyan Business Feed

Recommended.

Africa should be proactive to cash in on US, China fallout

Africa should be proactive to cash in on US, China fallout

June 9, 2019

Scangroup CEO Bharat’s earnings drops to Sh78m

May 16, 2019

Subscribe.

Trending.

Safaricom warns customers against fake M-Pesa investment schemes circulating online, urging Kenyans to verify all offers through official channels.

Safaricom Warns Customers Against Fake M-Pesa Investment Schemes Circulating on Social Media

September 21, 2025
Tourism CS Rebecca Miano joins Samburu leaders at the Maralal Camel Derby, which draws 30,000 visitors and boosts cultural tourism in northern Kenya.

Maralal Camel Derby Draws 30,000 Visitors as Festival Anchors Samburu on Global Tourism Map

September 28, 2025
Co-operative Bank of Kenya recognized at Global SME Finance Forum 2025 for innovative business banking solutions supporting SMEs across Africa.

Co-op Bank Honored at Global SME Finance Forum 2025 for Advancing SME Finance and Innovation

September 22, 2025
Safaricom Chapa Dimba All-Stars closed their Spain tour with a 4-2 win over SD Huesca, showcasing Kenyan youth football talent on an international stage.

Safaricom Chapa Dimba All-Stars Seal Spain Tour With 4-2 Victory Over SD Huesca

September 21, 2025
Nairobi hosts the first PUBG Mobile Africa Cup Finals, with Safaricom Hook providing 5G power, fan zones, and interactive gaming experiences.

East Africa Crowns First PUBG Mobile Africa Cup Champion as Safaricom Hook Powers Historic Finals

September 21, 2025
Kenyan Business Feed

We focus on news, analysis, and reports about Kenyan business, covering sectors like agriculture, finance, tourism, and technology.

Categories

  • African
  • Agribusiness
  • Courts
  • Education
  • Health
  • Hospitality
  • Manufacturing
  • NetWorths
  • News
  • Reports & Analysis
  • World Business

Popular News

  • First look at the prison where El Chapo may live for the rest of his life

    First look at the prison where El Chapo may live for the rest of his life

    2157 shares
    Share 1040 Tweet 466
  • Sameer Africa CEO Sacked

    1804 shares
    Share 750 Tweet 439

Recent News

Tourism CS Rebecca Miano joins Samburu leaders at the Maralal Camel Derby, which draws 30,000 visitors and boosts cultural tourism in northern Kenya.

Maralal Camel Derby Draws 30,000 Visitors as Festival Anchors Samburu on Global Tourism Map

September 28, 2025
Kenyans to enjoy free entry to all national parks on World Tourism Day as government promotes conservation and domestic tourism.

Free Entry to National Parks Announced for World Tourism Day as Sector Pushes Sustainability Agenda

September 28, 2025
  • Home
  • African
  • News
  • Education
  • Health
  • Reports & Analysis
  • World Business

© 2025 KBF

No Result
View All Result
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business

© 2025 KBF