Sharp Daily
No Result
View All Result
Friday, June 27, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home News

KMRC increases loan access for middle-class buyers

Christine Akinyi by Christine Akinyi
February 16, 2024
in News
Reading Time: 2 mins read

The Kenya Mortgage Refinance Company (KMRC) has announced a significant adjustment to its loan eligibility criteria in an effort to ease the financial strain on middle-income earners aspiring to become homeowners.

Effective December 2023, individuals earning up to KES 200,000 per month are now eligible to apply for KMRC loans, a notable increase from the previous threshold of KES 150,000.

The decision to revise the income limit comes against the backdrop of rising living expenses, which have diminished the purchasing power of potential homebuyers across Kenya.

Chief Executive Officer of KMRC, Johnstone Oltetia, emphasized that the adjustment was a response to the prevailing economic challenges, particularly the adverse effects of inflation on consumers’ disposable incomes.

RELATEDPOSTS

No Content Available

This initiative by KMRC marks a significant victory for the middle class, offering them access to affordable mortgage solutions at a time when traditional commercial banks are raising lending rates in response to adjustments made to the benchmark lending rate by the Central Bank of Kenya.

KMRC-backed loans, featuring an average interest rate of 9.5%, have played a crucial role in bridging the gap between escalating property prices and the financial capacities of potential homebuyers. Additionally, KMRC has revised its mortgage cap to KES 10.5 million to align with the increasing costs of housing and construction.

Funded by the World Bank and the African Development Bank through the Treasury, KMRC operates at a fixed interest rate of 4.5%, facilitating the onward lending of funds to participating mortgage lenders at a 5% interest rate.

This strategic financial model ensures that primary mortgage lenders, including banks and savings and credit cooperatives (saccos), offer mortgages to homebuyers at rates below 10.0%, with flexible repayment periods of up to 25 years.

Notably, standard mortgages offered by commercial banks currently carry interest rates of up to 21.0%, underscoring the significance of KMRC’s role in providing more accessible and affordable housing finance options to Kenyan citizens.

In 2023, KMRC disbursed mortgages totaling KES 2.4 billion, with an average loan size of KES 3.1 million. These funds were channeled through reputable financial institutions such as Stanbic Bank Kenya, NCBA Bank Kenya, and various reputable saccos, including Safaricom Sacco, Unaitas Sacco, Ukulima Sacco, and Stima Sacco.

The expansion of KMRC’s services and the adjustment of income thresholds represent pivotal steps in the government’s broader strategy to promote homeownership and address the housing deficit in Kenya.

By providing more affordable mortgages compared to traditional commercial banks, KMRC is playing a crucial role in transforming the aspiration of homeownership into reality for the burgeoning middle class.

In the face of economic challenges and rising living costs, KMRC’s dedication to facilitating access to affordable housing finance solutions underscores its pivotal contribution to driving inclusive economic growth and fostering social development across Kenya.

Previous Post

Kenya lifts avocado exports ban

Next Post

Kenya named the haven for low-quality textiles, study reveals

Christine Akinyi

Christine Akinyi

Related Posts

News

Private vs Public Pension Funds in Kenya

June 27, 2025
Investments

Investor shift to long term bonds drives oversubscription in CBK’s reopened auction

June 19, 2025
News

The real price of Israel – Iran Conflict for Kenya.

June 19, 2025
Economy

Resilient but strained: Kenyan firms speak out in May 2025 CEO survey.

June 19, 2025
News

Co-op Bank posts KES 6.9 billion profit in Q1’2025

May 16, 2025
Agriculture And Economy
News

Lets get Kenya out of FATF list

May 9, 2025

LATEST STORIES

Private vs Public Pension Funds in Kenya

June 27, 2025

The mechanics of currency manipulation

June 27, 2025

Understanding how to access your pension savings in Kenya.

June 27, 2025

What happened to president Ruto’s economic dream?

June 27, 2025

Opinion: Populism feeds votes, not growth

June 27, 2025

Competitive advantages of small businesses

June 26, 2025

Opinion: Invest in sports for national prosperity

June 26, 2025

Ethiopia’s access to Eritrean ports is a game-changer for trade

June 26, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024