(KMRC)Kenya Mortgage Refinance Company (KMRC) KSh 3 Billion Bond attracted investors in the fixed income securities market who sent back KSh 9.38 Billion, a 312.8% oversubscription.
KMRC Green Bond, is a Sustainability Debt Instrument that is giving investors a return of 12.2% per annum, paid semi-annually, over an 8-year tenor. The Note is purpose-built to refinance mortgages and expand affordable housing access across Kenya.
KCB served as the Receiving Bank, with the note set to list on the NSE Fixed Income Securities Market on 25th May 2026.
Analysts say Investors trust a housing bond shown by the demand. The 12.2% coupon was attractive relative to current fixed income alternatives, especially from a quasi-sovereign institution with a clear housing mandate and NSE listing pipeline.
In recent years, Kenya has seen significant growth in the number of fund managers, collective investment schemes, pension allocations, and institutional pools of capital. This means demand for credible investment products is growing faster than the supply of quality paper.
So when a well-structured instrument with decent yield, long tenor, and strong developmental backing like Kenya Mortgage Refinance Company Note comes to market, it can easily attract multiple times the target amount.
The oversubscription is, therefore, less about “pricing” and more about strong demand for quality fixed income opportunities in the Kenyan market.
The 8-year old KMRC was set up as a non-deposit taking financial institution under the Companies Act 2015.
The Kenya Mortgage Refinance Company’s mandate is to provide long-term funds to primary mortgage lenders (PMLs) for purposes of increasing availability of affordable home loans to Kenyans.
KMRC provides concessional, fixed, long term finance to the primary lenders who include Banks and Saccos so that they can transfer the same benefits to home owners, making home loans more accessible to especially the moderate to low-income earners.
By increasing the supply of affordable housing finance, KMRC acts as a key lever in the push to increase homeownership in Kenya. Noting that Kenya’s mortgage market remains underpenetrated, relative to the potential demand for home ownership, KMRC recognizes the upside potential and the downside risks of facilitating home ownership to the moderate to low-income earners.
KMRC is regulated by the Central Bank of Kenya (CBK), with the Capital Markets Authority (CMA) providing oversight over its bond issuance operations.
KMRC is funded through debt and equity. In addition to equity, KMRC also received subordinated capital from international development partners through the National Treasury to fund its operations.
The WB approved an IBRD credit of US$ 250 million to support the establishment and operationalization of KMRC. Similarly, the African Development Bank (AfDB) also approved a sovereign loan of US$ 100 million (Euro 90million) to support the Company’s lending operations.
KMRC also issues Corporate Bonds as a source of sustainable funds for its operations. The state-owned firm issued its inaugural MTN of KSh 0.5 billion and raised KSh1.4 billion in the issue’s first tranche in February 2022.
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