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8 Kenyan banks to invest 1B shillings in mortgage refinance firm

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8 Kenyan banks to invest 1B shillings in mortgage refinance firm

KCB Group PLC and Co-operative Bank of Kenya Ltd. are among eight Kenyan banks that pledged roughly 1 billion shillings combined for stakes at Kenya Mortgage Refinance Co., Business Daily Africa reported.

The firm was set up by the government to support its affordable housing agenda by providing long-term financing to financial institutions that offer home loans.

KCB Group will take a 25.3% stake in KMRC for 600 million shillings, while Co-operative Bank of Kenya has provided 200 million shillings for an 8.4% stake.

The merged entity of NIC Group PLC and Commercial Bank of Africa Ltd., HF Group PLC, Barclays Bank of Kenya Ltd. and Diamond Trust Bank Kenya Ltd. will each get a 2.1% equity for 50 million shillings apiece, while Stanbic Bank Kenya Ltd. and Credit Bank will take stakes of 0.8% and 0.4% for 20 million shillings and 10 million shillings, respectively, according to the Sept. 3 report.

Meanwhile, International Finance Corp., a member of the World Bank Group, and pan-African development institution Company for Habitat and Housing in Africa, also known as Shelter Afrique, will each acquire an 8.4% stake in KMRC for 200 million shillings, Business Daily Africa noted.

As of Sept. 3, US$1 was equivalent to 103.90 Kenyan shillings.