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CMA approves Kshs10.5 billion bond for Kenya Mortgage Refinance Company

Nairobi, 12 January 2022… As part of its efforts to facilitate funding of affordable housing through the capital markets, the Capital Markets Authority (CMA) has approved the issuance of an unsecured Ksh10.5 billion Medium Term Note (MTN) programme for Kenya Mortgage Refinance Company (KMRC). Affordable housing is a pillar of the Big Four National Government Agenda.

According to the Information Memorandum, KMRC will use the proceeds for on-lending by extending long term loans to primary mortgage lenders to increase availability of affordable housing finance in Kenya. The bonds proceeds will be utilized alongside other concessionary funding at KMRC’s disposal.

The Medium-Term Note Programme will be issued in tranches with the first tranche of Ksh1.4 billion. The notes will also be listed at the Nairobi Securities Exchange (NSE).

The MTN comes on the back of the Ksh3.9 billion Medium Term Note programme for Urban Housing Renewal Development Limited approved by CMA in December 2021, whose proceeds will be used to support an affordable housing project in Nairobi.

The CMA Chief Executive Mr. Wyckliffe Shamiah while announcing the approval of the KMRC MTN programme said; ‘’this is a major milestone which positions the capital markets as a source of funding to support productive economic activities such as delivery of affordable housing, which is one of the pillars of the National Big Four Agenda’’.

One of the constraints of the growth of housing in Kenya is the financing constraint with total mortgages in Kenya at under 30,000 as mortgages remain out of the reach of many Kenyans, while the houses units in the market are also relatively expensive.

Mr. Shamiah also noted the enhanced issuer and investor confidence in the bond market with the recent oversubscription of 245 percent reported for the EABL medium term notes listed at the Nairobi Securities Exchange (NSE) in November 2021. CMA approved an issuance to raise Kshs11 billion, but applications were received for nearly Ksh38 billion.

He added that in the last one year, the Authority has approved the issuance and listing of the Centum Investments Company Plc Kshs4 billion medium-term note, and the Kshs8 billion multicurrency Family Bank medium-term note which recorded an oversubscription of 147 percent.

The oversubscription of the EABL and Family Bank corporate bond issues by 245 percent and 147 percent, respectively, indicates enhanced investor confidence and growing liquidity in the market.




The Capital Markets Authority (CMA) was set up in 1989 as a statutory agency under the Capital Markets Act Cap 485A. It is charged with the prime responsibility of both regulating and developing an orderly, fair and efficient capital markets in Kenya with the view to promoting market integrity and investor confidence. The regulatory functions of the Authority as provided by the Act and the regulations include; Licensing and supervising all the capital market intermediaries; Ensuring compliance with the legal and regulatory framework by all market participants; Regulating public offers of securities, such as equities and bonds & the issuance of other capital market products such as collective investment schemes; Promoting market development through research on new products and services; Reviewing the legal framework to respond to market dynamics; Promoting investor education and public awareness; and Protecting investors’ interest. For more information, please contact: Antony Mwangi, Manager Corporate Affairs & International Relations on This email address is being protected from spambots. You need JavaScript enabled to view it.



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