The Kenya Mortgage Refinance Company PLC (KMRC) has announced a fresh KSh 3 billion bond issuance aimed at expanding access to affordable housing finance and strengthening Kenya’s growing real estate sector. The sustainability-linked bond is expected to channel more liquidity into mortgage lending, creating new opportunities for buyers searching for Houses for Sale in Nairobi Kenya, Homes for Sale in Kenya, and affordable residential property financing solutions.
The bond issuance marks KMRC’s first major capital markets fundraising initiative in four years and forms part of its KSh 10.5 billion Medium-Term Note (MTN) programme. The offer officially opened on April 28, 2026, and will close on May 12, with the securities expected to list on the Nairobi Securities Exchange (NSE) Fixed Income Securities Market on May 25.
Investors can participate with a minimum investment of KSh 100,000, allowing both institutional and retail investors to access the offering.
KMRC Targets Growth in Kenya’s Housing Market
The eight-year amortising bond, structured with a weighted average life of 5.11 years, represents the second tranche under the MTN programme approved by the Capital Markets Authority in 2022.
Funds raised through the issue will primarily refinance green and social housing mortgages under KMRC’s Sustainable Finance Framework launched in March 2026. The initiative is expected to support the continued growth of Kenya’s housing market, particularly demand for Affordable Homes in Nairobi, Real Estate Investment in Kenya, and environmentally sustainable housing developments.
KMRC plans to combine proceeds from the bond with concessional financing sourced from international development finance institutions to further lower mortgage financing costs.
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Affordable Home Ownership Driving Market Demand
Kenya’s property market has experienced rising interest in affordable home ownership, fueled by urban population growth, infrastructure expansion, and increasing demand for mortgage-backed housing.
The refinancing programme is expected to benefit commercial banks and SACCOs by enabling them to offer longer-term and lower-cost mortgages to Kenyans looking for Property for Sale in Nairobi, Apartments for Sale in Kenya, and middle-income housing units.
KMRC previously raised KSh 1.4 billion during its inaugural 2022 bond issue, attracting investor applications worth KSh 8.1 billion — an impressive 480% oversubscription. The strong investor appetite highlighted growing confidence in Kenya’s housing finance market.
Lower Interest Rates Create Better Lending Conditions
The company postponed a planned 2024 issuance due to elevated interest rates, which threatened affordability targets within the housing sector. However, the environment has since improved following aggressive monetary easing by the Central Bank of Kenya.
Over the past 16 months, the CBK has reduced its benchmark lending rate by 250 basis points to 8.75%, creating more favorable conditions for mortgage lending and refinancing.
Industry analysts believe lower financing costs could stimulate demand for Luxury Homes for Sale in Nairobi Kenya, Residential Property Investment in Kenya, and new housing developments targeting first-time buyers.
Although the coupon rate for the current bond has not yet been publicly disclosed, KMRC is reportedly pursuing tax-exempt status for the notes. If approved, the tax advantage could enable the company to issue debt at single-digit interest rates, further reducing borrowing costs for homeowners.
KMRC Mortgage Portfolio Expands Rapidly
KMRC’s mortgage refinancing portfolio grew significantly in 2025. The company’s loan book expanded to KSh 19.6 billion by the end of the year, compared to KSh 11.9 billion recorded in 2024.
To date, KMRC has refinanced more than 4,600 mortgages valued at approximately KSh 21.7 billion across 39 counties in Kenya. This growth reflects increasing uptake of formal housing finance and sustained demand for Mortgage Financing in Kenya and affordable residential developments.
Despite the rapid expansion, declining market interest rates caused the company’s net interest income to fall from KSh 2.2 billion to KSh 1.7 billion.
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Kenya’s Sustainable Bond Market Continues to Expand
The new issuance becomes Kenya’s third major sustainability-linked bond following Acorn Holdings’ KSh 4.3 billion green bond launched in 2019 and Safaricom’s KSh 40 billion sustainability bond issued in November 2025.
Safaricom’s bond attracted strong investor demand after pricing at 10.4% and achieving a 177% oversubscription rate, reinforcing confidence in sustainable investment products across East Africa.
Financial institutions supporting the KMRC bond transaction include NCBA Investment Bank as Lead Arranger and Placing Agent, Cygnum Capital as Financial Advisor, KCB Kenya as Receiving Bank, and Ropat Trust Company as Note Trustee.
The fundraising is expected to play a major role in deepening Kenya’s mortgage market while accelerating access to Modern Homes for Sale in Kenya, Affordable Housing Projects in Nairobi, and long-term property financing solutions for aspiring homeowners.
