The Kenya Mortgage Refinance Company (KMRC), an initiative by the National Treasury and the World Bank whose aim is to provide secure long-term funding to mortgage lenders has raised 1.2 billion shillings in equity capital from eight Kenyan commercial banks.
The eight banks were led by Kenya Commercial Bank (KCB) Group, which has committed 600 million in equity capital for a 25.3 percent stake.
The other banks include Co-operative Bank who have committed 200 million shillings for an 8.4 percent stake, NIC Group, HF Group, Barclays Bank of Kenya and Diamond Trust Bank Kenya have each committed 50 million shillings of equity capital for a 2.1 percent stake.
Stanbic Bank and Credit Bank have invested 20 million and 10 million shillings in equity capital for a stake of 0.8 and 0.4percent, respectively.
Other investors in KMRC are the National Treasury who have committed 800 million for an implied stake of 33.5 percent.
IFC and Shelter Afrique have invested 200 million each for an 8.4 percent stake each.
Other shareholders of KMRC include Saccos such as Kenya Police, Safaricom, and Mwalimu National Sacco.
KMRC has so far raised 1.6 billion shillings from its shareholders, with a total capital commitment of 2.4 billion shillings.
The World Bank in April 2019 approved a 26 billion shillings (USD 250 million) credit facility to support the initiative, while the African Development Bank (AfDB) approved a further 10.4 billion shillings (USD 100 million) credit facility to support the program.
KMRC is also expected to issue bonds to expand the pool of funds available to lend out.
As of May 2019, KMRC had mobilized 37.2 billion shillings, meeting the minimum core capital requirement of at least 1.0 billion shillings for operation according to the Central Bank of Kenya (Mortgage Refinance Companies) Regulations 2019.