Mwalimu National Sacco, one of the country’s largest and oldest cooperative societies, on Thursday, January 12 officially unveiled the Mwalimu National Sacco Affordable Housing Mortgage Scheme. The scheme will allow teachers to access home loans at comparatively affordable rates.
The new affordable housing scheme is supported by the government through the Kenya Mortgage Refinance Company (KMRC). Aimed at increasing home ownership rates in the country, the KMRC provides funds to primary mortgage lenders including banks, saccos and microfinance institutions for onward lending.
Mwalimu Sacco draws its membership from teachers and TSC staff across the country, making it one of the largest saccos by membership and asset base. Its assets are currently valued at over Ksh62.6 billion shillings. The sacco has in its ranks over 116,000 members.
Labour and cooperative societies CS Simon Chelugui was among government officials present at the launch of the scheme on January 12. He pledged to work closely with saccos including Mwalimu to deliver on affordable housing.
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Chelugui lauded the role of the KMRC in driving making home ownership more affordable in the country. The KMRC was established in 2018. It is considered one of the key pillars of the affordable housing program rolled out by former President Uhuru Kenyatta.
“By increasing the supply of affordable housing finance, KMRC is a key lever in the push to increase home ownership in Kenya,” he stated.
Besides lending to other financial institutions for onward lending in form of mortgages, KMRC buys good mortgages from other lenders to make more money available to financial institutions for onward lending to eligible homeowners.
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