Gov't to Launch Mortgage Company to Deliver Low-Cost Houses to Kenyans
The government is on Wednesday set to launch a company whose mandate will be to deliver President Kenyatta's affordable housing project.
Dubbed the Kenya Mortgage Refinancing Company (KMRC), the government-backed entity will advance cash to banks and Saccos for on-lending to Kenyan home buyers.
KMRC will have commercial banks, mortgage companies and the World Bank as its principal shareholders.
Its partners include the National Treasury, seven commercial banks, World Bank and its subsidiary, International Finance Corporation (IFC) and mortgage lender HF Group.
KMRC will advance cash to commercial banks, Saccos and mortgage companies on a wholesale basis to enable them to give cheap loans to home buyers.
Housing Principal Secretary Charles Hinga explains that KMRF will operate as a private sector-driven company.
Its main aim is to develop the primary and secondary mortgage markets through the provision of secure and long-term funding to the mortgage lenders.
The government has set aside an initial Sh1.5 billion to establish the company and then open it up to investors who will pump in more funds.
The company is expected to enable mortgage financiers to issue 50,000 home loans in five years.
Comments (6)
Please NO! The government has no business being in the private business.
I only hope the greedy rich are stopped from extending their dirty hands into these houses. I bet you many of them will play poor to see if they can grab a few and rent them out.
Just to make this clear, I voted for this government for they said they will improve people's live. So far that was just big mouth. Only the mps benefiting at Raiya's expense. This government have failed to fight corruption, they failed to deliver a 200$ laptopts to kids and the same government is promising to deliver a 3 million house to people??, that's impossible given their track records. Mortgage is for profit and should be handled by non government organizations so government managing the mortgage companies it's just stupidity of the highest level. Economist can explain better
Kenyans need income not a government assistance in building their personal houses.
Anyways, this is Kikuyu mentality of depending on government for everything.
Someone in the gova does not understand a governments role in a country. If they do, then I would assume this is another way to embezzle more tax payers money through banks. The 50,000 units target is NOT even achievable given the limited time left before elections.
see the political part of it
ITS BUSINESS AS USUALL.
the projects will not be finished before the next elections so vote for us and we give you houses.The poor kenyans then goes YES YES YES and the game gets on played after the short break,of course they will win the elections,had free laptops,free secondary education and free housing yeah FREE