Kenya Mortgage Refinance Company(KMRC), a state-owned mortgage outfit that offers affordable facilities to other lenders, has floated a KSh 3Billion Green Bond, the second tranche and part of its KSh 10.5 Billion Medium-Term Note programme.
This latest offer provides investors with another opportunity to access the fixed income market exposure within Kenya’s housing finance ecosystem.
The Bond has a minimum subscription of KSh 100,000. The coupon rate has not been disclosed yet and will be provided in the official pricing supplement. The rate will be market driven at issuance and is projected by analysts at above or below the previous 12.5% levels depending on the prevailing interest rate environment and Treasury Bill yields; Investor demand for the issue and overall liquidity market conditions.
According to analysts at Ketu Capital, the KMRC Green Bond remain structurally attractive for income focused investors but participation decisions will be guided by yield relative to prevailing Government Securities and risk-adjusted returns.
A Public Notice by KMRC states that proceeds from the Bond subscription will be allocated to refinancing eligible Green Home Loans and Social Home Loans as defined in the KMRC Sustainable Finance Framework dated March 2026. Bond proceeds will be utilized alongside other concessionary funding at the state-owned mortgage firm’s disposal.
A green bond is a debt instrument issued to finance or refinance of assets that deliver clear environmental and/or social benefits.
Kenya Mortgage Refinance Company Green Bond Application Window
The Offer opens on April 28th 2026 and closes on May 12th 2026 while results announcement and allotment will take place on May 15th 2026.
All successful applications have been informed that the settlement date is May 21st 2026, same as the issue date will crediting of the CDS accounts is May 22nd 2026. Listing and Commencement of Trading of the KMRC Green Bonds on the Nairobi Securities Exchange(NSE) will be on May 25th 2026.
The lead arranger and placing agent for the KMRC Green Bond is NCBA Investment Bank, Receiving Bank is KCB Kenya Limited while the Paying, Registrar and Fiscal Agent is C&R Group.
Mboya, Wangongu& Waiyaki Advocates is the legal counsel, Ropat Trust Company is the Notes Trustee while Grant Thornton LLP are the reporting accountants.
Scheduled redemption dates is annually beginning November 19th 2026, the Bond having a Weighted Average Life of 5.11 years and 8 years amortizing.
The Kenya Mortgage Refinance Company, a non-deposit taking financial institution, was established in 2018 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 make home loans more accessible to especially the moderate to low-income earners in the country.
By increasing the supply of affordable housing finance, KMRC acts as a key lever in the push to increase homeownership in Kenya.
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.
Kenya Mortgage Refinance Company Ownership Structure
Kenya Mortgage Refinance Company is owned 43.8% by Banks, Development Finance Institutions(DFIs) at 22.9%, Microfinance Companies-0.6%, SACCOs-7.5% and the Kenya Government 25.3%.
Savings and Credit Cooperatives that own part of KMRC include Stima, Imarisha, Apstar, Tower, Mwalimu, Unaitas, Bingwa, Kenya National Police SACCO, Qona and Imarika. Banks in the KMRC ownership structure include KCB, Coop Group, Stanbic, NCBA, Credit Bank, Diamond Trust Bank, Housing Finance Company and Kenya Women Finance Trust(KWFT) Bank.
Development Partners include International Finance Corporation and Shelter Afrique.
The World Bank is the international financial institution providing Kenya Mortgage Refinance Company with financing, technical assistance, and policy support for development projects, including housing and climate resilience.
At the end of the 2025 financial year, KMRC Net profit declined to KSh 1.002 billion from KSh 1.322 billion in 2024, while the mortgage refinancer’s balance sheet size grew to KSh 43.2 billion from KSh 32.3 billion in 2024.
Participating Banks and SACCOs borrowed an additional KSh 7.7 Billion from the KMRC in 2025, raising total lending to KSh 19.6 Billion as institutions tapped the low interest rate to expand affordable mortgage financing in Kenya.
The refinancing has so far supported more than 5000 mortgages and boosted access for middle and low income earners and helped grow KMRC’s share of Kenya’s mortgage market, with nearly half of the financed loans going to women and an increasing role played by SACCOs in the affordable housing finance sector.
As at the end of the 2025 financial year ended 31st December, KMRC had refinanced KSh 25.4 billion (Net. KSh 19.58 billion) translating to 5,148 mortgages through 18 primary lenders (banks and SACCOs). These mortgages are spread across 39 counties. The full set of accounts is available in the Company’s website www.kmrc.co.ke.
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