KMRC To Help Address Kenya’s Housing Deficit
The Kenya Mortgage Refinancing Company (KMRC), an initiative of the National Treasury and the World Bank, is expected to help address Kenya’s housing deficit by extending the range of qualifying mortgage borrowers which will, in turn, lead to the growth of homeownership rate and a vibrant mortgage market.
KMRC’s main objective according to report dubbed ‘Kenya Mortgage Refinancing Company Update’ is to grow Kenya’s mortgage market by providing long-term funding to primary mortgage lenders.
The initiative aims to support the affordable housing agenda by increasing the availability and affordability of housing finance, thus boosting home ownership.
The Kenyan mortgage market still lags behind, with a mortgage to GDP ratio of 3.1 percent in 2016, significantly lower than more mature markets like South Africa, and the United States of America.
To help bridge the funding gap in the housing finance market, there is a need for better systems encompassing alternative sources of long-term financing, improved land and property registration, an expansive credit bureau coverage, and an efficient legal system