KMRC Lists KES 3 Billion Sustainability Bond at NSE as Offer Records 313% Oversubscription
The Kenya Mortgage Refinance Company (KMRC) has listed a KES 3 billion Sustainability Bond on the Nairobi Securities Exchange (NSE) following an offer that attracted KES 9.38 billion in applications, an oversubscription rate of 313%.
The listing is the second tranche under KMRC’s approved KES 10.5 billion Medium-Term Note Programme. Its inaugural bond, issued in 2022 at KES 1.4 billion, drew KES 8.5 billion in investor applications, suggesting sustained and growing institutional interest in the company’s housing finance mandate.
Proceeds from the bond will be combined with existing concessional funding and directed toward refinancing green affordable housing projects and social home loans, with a focus on climate-resilient construction and expanding homeownership access for women and low-income households.
KMRC Chief Executive Johnstone Oltetia said the response validated the company’s strategic direction. “Today’s listing affirms the role of capital markets in making homeownership more accessible, affordable, and sustainable. The investor response demonstrates confidence in KMRC’s mandate of promoting affordable home ownership while deepening Kenya’s debt capital markets,” he said.
Since inception, KMRC has refinanced approximately KES 30 billion in mortgages, unlocked 5,811 home loans across 39 counties, and extended mortgage tenors to ease repayment pressure on qualifying borrowers. Its model channels long-term capital to primary mortgage lenders, enabling fixed-rate loans at single-digit interest rates, a structurally rare product in Kenya’s housing finance market.
Board Chairman Dr. Haron Sirima described the listing as evidence that affordable housing can attract market-based capital without sacrificing financial returns. “It demonstrates that affordable housing can be supported through market-based instruments that deliver financial returns alongside measurable social and environmental impact,” he said.
Cabinet Secretary for the National Treasury John Mbadi framed the issuance within Kenya’s broader capital market development agenda. “It signals a decisive shift in how we mobilise capital to finance development priorities, particularly housing. It also affirms that Kenya’s capital markets are deepening, diversifying, and maturing in line with our long-term economic aspirations,” he said.
NCBA acted as Lead Arranger on the transaction. The bank’s Group Managing Director said the deal demonstrated the value of coordinated execution in complex capital market transactions, adding that the listing builds on NCBA’s broader structured finance collaboration with KMRC.
Go to ECONEWS.co.ke for more sustainability news from the African continent and across the world.
Follow us on WhatsApp, Telegram, Twitter, and Facebook, or subscribe to our weekly newsletter to ensure you don’t miss out on any future updates. Send tips to editorial@techtrendsmedia.co.ke
