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Affordable Housing by Government of Kenya
Rank: Veteran Joined: 1/20/2011 Posts: 1,820 Location: Nakuru
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Nothing near the Kilamba city in Angola. I like the straight avenues and straight streets forming right-angle junctions. Uhuru's dream for Nairobi and Mombasa and perhaps Kisumu will only be attained if his government constructs to such scales as Kilamba in Angola. If Kirubi's Centum is doing such a project on a 10,000 acre farm in Vipingo, i don't see any reason why serikali cannot do the same    Dumb money becomes dumb only when it listens to smart money
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Member Joined: 3/16/2019 Posts: 313
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State to offer mortgage at 7pc in SeptemberQuote:Kenyans earning Sh150,000 and below per month are from next month expected to start getting house loans from local banks and saccos at an annual subsidised interest of seven percent or nearly half the prevailing market rates.
KMRC will lend money to financial institutions at an annual interest of five percent, enabling them to write home loans at seven percent—lower than average market rate of 11.95 percent or 42 percent cheaper.
The government owns a 25 percent stake in KMRC, with the rest of the shares held by banks, saccos and microfinance institutions. Its board of directors has been in place since July last year.
A few weeks ago, Shelter Afrique and the International Finance Corporation (IFC), the World Bank’s private financing arm, became the newest shareholders of KMRC. Shelter Afrique paid Sh200 million for its shares.
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Rank: Member Joined: 3/16/2019 Posts: 313
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KMRC Receives License From CBK To Commence Lending BusinessQuote:
The financial institutions that are participating in KMRC and who are also shareholders of the Company include KCB, Cooperative Bank, DTB, HF Group, NCBA, Absa Bank Kenya, Stanbic Bank Kenya and Credit Bank. Kenya Women Microfinance Bank (KWFT) is the sole MFB (Micro Finance Bank) while SACCOs include Kenya Police, Mwalimu National, Safaricom, Ukulima, Bingwa, Imarisha, Unaitas, Imarika, Tower, Stima and Harambee.
The licensing of KMRC and the expected release of long-term funds to participating banks and saccos is timely for the affordable housing finance agenda in Kenya, especially with the Covid-19 pandemic having severely impacted the mortgage market. With reduced household incomes triggering increase in nonperforming loans and liquidity squeeze especially in the Sacco Sector, KMRC is part of the solution to mitigate the effects of the Covid-19 pandemic in the financial market.
KMRC was established two years ago to support the Affordable Housing Pillar of the Government’s Big Four Agenda.
It will actualize this by providing secure, long term finance to PMLs (Primary Mortgage Lenders), who are then supposed to advance the same to individual borrowers.
The idea is to address the shortage of long-term finance in the Kenyan financial market, while addressing the problem of asset maturity mismatch, which is responsible for the high cost and general inaccessibility of home loans to many Kenyans.
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Rank: Member Joined: 3/16/2019 Posts: 313
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kmucheke wrote:State to offer mortgage at 7pc in SeptemberQuote:Kenyans earning Sh150,000 and below per month are from next month expected to start getting house loans from local banks and saccos at an annual subsidised interest of seven percent or nearly half the prevailing market rates.
KMRC will lend money to financial institutions at an annual interest of five percent, enabling them to write home loans at seven percent—lower than average market rate of 11.95 percent or 42 percent cheaper.
The government owns a 25 percent stake in KMRC, with the rest of the shares held by banks, saccos and microfinance institutions. Its board of directors has been in place since July last year.
A few weeks ago, Shelter Afrique and the International Finance Corporation (IFC), the World Bank’s private financing arm, became the newest shareholders of KMRC. Shelter Afrique paid Sh200 million for its shares. State firm caps cheap mortgage at Sh4 millionQuote:Home buyers in Nairobi metropolitan area — which extends to neighbouring Kiambu, Machakos and Kajiado counties — will access a maximum of Sh4 million for mortgages, while the funding for the rest of the country has been capped at Sh3 million.
This means individuals who qualify for the subsidised loans or those earning less than Sh150,000, will have to top up their loans with commercial credit should they seek a home above the Sh4 million.
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Rank: Veteran Joined: 1/10/2015 Posts: 961 Location: Kenya
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Completed. Proverbs 13:11 Dishonest money dwindles away, but whoever gathers money little by little makes it grow.
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Rank: Veteran Joined: 1/3/2014 Posts: 1,063
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kmucheke wrote:State to offer mortgage at 7pc in SeptemberQuote:Kenyans earning Sh150,000 and below per month are from next month expected to start getting house loans from local banks and saccos at an annual subsidised interest of seven percent or nearly half the prevailing market rates.
KMRC will lend money to financial institutions at an annual interest of five percent, enabling them to write home loans at seven percent—lower than average market rate of 11.95 percent or 42 percent cheaper.
The government owns a 25 percent stake in KMRC, with the rest of the shares held by banks, saccos and microfinance institutions. Its board of directors has been in place since July last year.
A few weeks ago, Shelter Afrique and the International Finance Corporation (IFC), the World Bank’s private financing arm, became the newest shareholders of KMRC. Shelter Afrique paid Sh200 million for its shares. Why do they discriminate againist those earning above 150K in Kenya? The mortgage penetration rate is 2.7 % compared to 30% in SA. Why should they punish those earning above 150K by requiring that they pay market rates. There is a reason majority of those earning above 150K are not going for the morgages. Consistency is better than intensity
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Rank: Elder Joined: 9/19/2015 Posts: 2,871 Location: hapo
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PeterReborn wrote:kmucheke wrote:State to offer mortgage at 7pc in SeptemberQuote:Kenyans earning Sh150,000 and below per month are from next month expected to start getting house loans from local banks and saccos at an annual subsidised interest of seven percent or nearly half the prevailing market rates.
KMRC will lend money to financial institutions at an annual interest of five percent, enabling them to write home loans at seven percent—lower than average market rate of 11.95 percent or 42 percent cheaper.
The government owns a 25 percent stake in KMRC, with the rest of the shares held by banks, saccos and microfinance institutions. Its board of directors has been in place since July last year.
A few weeks ago, Shelter Afrique and the International Finance Corporation (IFC), the World Bank’s private financing arm, became the newest shareholders of KMRC. Shelter Afrique paid Sh200 million for its shares. Why do they discriminate againist those earning above 150K in Kenya? The mortgage penetration rate is 2.7 % compared to 30% in SA. Why should they punish those earning above 150K by requiring that they pay market rates. There is a reason majority of those earning above 150K are not going for the morgages. Unless this gov't or the next thinks about Small Businesses, this is another white elephant. The mortgage "owners" are already known...Hii ni another way for thugs to steal. We know that. Why not just call it as it is? Thieves are not good people. Tumeelewana?
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Rank: Member Joined: 3/16/2019 Posts: 313
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KMRC rejects Sh16.5bn mortgage funding bidsQuote:
More than three-quarters of home loans that were submitted for the first phase of refinancing in the State-backed affordable housing plan did not meet the stringent requirements set by the World Bank Group.
Kenya Mortgage Refinance Company (KMRC) has revealed that eight lenders participating in the first phase of the refinancing programme submitted a pool of mortgages amounting to Sh21 billion, but only Sh4.5 billion qualified.
The criteria require lenders applying for concessional funding from KMRC to have at least 80 percent of the mortgages within the affordable housing threshold — up to Sh4 million for property in the Nairobi metropolitan area and Sh3 million elsewhere.
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Rank: Member Joined: 3/16/2019 Posts: 313
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KMRC talks set the stage for mortgage-backed securitiesOne of the major causes of the global financial crises was the securitization of mortgages to bond-like financial structures.
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