KISUMU, Kenya, August 8 –The Government of Kenya, through the National Treasury and Economic Planning, has announced a significant investment of Sh603.1 million to capitalize the Kenya Mortgage Guarantee Trust (KMGT).
This move aims to unlock housing finance for underserved populations, particularly those in the informal sector.
Cabinet Secretary for the National Treasury and Economic Planning, (CS) John Mbadi, made the announcement during his keynote address at the 4th Kenya Affordable Housing Conference (KAHC) in Kisumu.
The conference brought together policymakers, lenders, developers, and international experts to discuss innovative solutions for affordable housing finance.
The Kenya Mortgage Refinance Company (KMRC) has also achieved a major milestone, mobilizing $300 million in concessional funding from the World Bank and African Development Bank (AfDB).
These funds will be used to offer refinanced mortgages at single-digit interest rates, making homeownership more accessible to Kenyans.
CS Mbadi emphasized the need for sustainable housing finance solutions that go beyond traditional budgetary allocations.
“We must leverage tools like mortgage-backed securities (MBS), bonds, and blended finance to mobilize long-term capital, deepen market liquidity, and enhance inclusivity in housing,” he said.
The KMGT will provide partial risk cover to lenders, enabling them to extend credit to informal and irregular income earners. This move is expected to increase access to housing finance for thousands of Kenyans who are currently excluded from formal finance.
KMRC has already refinanced over 4,600 home loans across 39 counties, valued at approximately Sh21.7 billion.
Notably, 48.3 percent of these beneficiaries are women, demonstrating Kenya’s commitment to gender-inclusive finance.
The conference highlighted the importance of collaboration between government, private sector players, and international development institutions in achieving affordable housing goals.
CS Mbadi called for continued partnership to make dignified shelter a reality for every Kenyan.
The 4th Kenya Affordable Housing Conference was themed “Revolutionizing Housing Finance: Innovation Meets Sustainability.”
The two-day event facilitated cross-border dialogue on regulatory reform, financial inclusion, and scalable housing models.
