State-backed lender to start issuing loans
HOUSING: Kenya Mortgage Refinance Company (KMRC) which offers banks and Saccos cash for onward lending to households is set to start advancing loans at the end of this month.
Johnstone Oltetia, CEO of the Treasury-backed lender, confirmed that shareholders will be given loans at five per cent to enable them advance to their customers at higher rates, though lower compared to 12 per cent of the current market mortgage rates.
“Since inception we have been building financing to meet the market demands of providing loans to partners and customers to enable them to acquire affordable housing at cheap rates. We will announce the first lending by the end of September,” he said.
Speaking during the launch of new mortgage products of Ukulima Sacco at a Nairobi hotel, Oltetia said the institution is keen to join the efforts to reduce the huge housing supply gap and thus enable Kenyans to own homes.
UKulima Sacco chairman Philip Cherono said his institution will be able to lend to Kenyans at affordable interest rates nearly half the current market rates.
“Prospective buyers will qualify for mortgages of up to Sh8 million with a repayment period of up to 20 years. Our intention is to offer a mortgage to over 4,000 members by 2022,” he said.
The Sacco CEO Richard Nyaanga said the newly launched mortgage products will help in quenching the thirst of the majority of Kenyans seeking to own a home.
