Capital Markets
Authority, director, market regulations, Daniel Warutere, KMRC CEO &
Managing Director, Johnstone Oltetia, Treasury Cabinet Secretary John Mbadi and
KMRC Board Chair Haron Sirima and NCBA Group MD John Gachora. /HANDOUTThe Kenya Mortgage Refinance Company (KMRC) has listed a Sh3 billion Sustainability Bond on the Nairobi Securities Exchange after investors warmed up to the listing.
Investors submitted bids worth Sh9.38 billion, more than three times the amount that was on offer.
A sustainability bond is a type of fundraising tool where investors lend money to an institution for projects that create social and environmental benefits.
In KMRC’s case, the funds will support affordable and environmentally friendly housing projects.
The listing marks the second issuance under KMRC’s Sh10.5 billion Medium-Term Note Programme.
In 2022, the company raised Sh1.4 billion in its first bond sale, which also attracted strong investor interest.
Speaking during the listing ceremony, KMRC chief executive officer Johnstone Oltetia described the bond as a major milestone for Kenya’s housing finance market.
“Today’s listing affirms the role of capital markets in making homeownership more accessible, affordable, and sustainable. The investor response demonstrates confidence in KMRC’s mandate of promoting affordable home ownership while deepening Kenya’s debt capital markets,” said Oltetia.
He said the strong demand from investors shows confidence in KMRC’s mission to make home ownership more affordable and accessible to more Kenyans.
According to KMRC, proceeds from the bond will be combined with concessional funding and used to refinance green affordable housing loans for climate-friendly homes and social housing loans aimed at supporting women and low-income earners.
Cabinet Secretary for the National Treasury and Economic Planning, John Mbadi, said the successful bond issuance demonstrates Kenya’s progress in attracting long-term financing for development projects.
He added that the transaction, arranged by NCBA Group, reflects the growing maturity and diversification of Kenya’s capital markets.
NCBA Group managing director John Gachora said the successful listing shows the importance of strong partnerships and technical expertise in delivering large capital market transactions.
He noted that NCBA supported KMRC in structuring and executing the deal to help mobilise long-term funding for Kenya’s affordable housing sector.
Since its launch, the institution says it has refinanced more than Sh30 billion in home loans, supported over 5,800 homeowners, expanded operations to 39 counties and increased access to home ownership for women, who account for nearly half of the refinanced loans.
KMRC works by providing long-term funds to banks and SACCOs, enabling them to offer fixed-rate home loans at lower interest rates and with repayment periods of up to 25 years.
