Companies
KMRC revenue jumps greater than two-fold to Sh847m on mortgage uptake
Tuesday March 26 2024
KMRC chief government Johnstone Oltetia. FILE PHOTO | NMG
State-backed mortgage refinancing firm KMRC has posted a 163 % rise in web revenue for the 12 months ended December 2023 to Sh847.7 million from Sh321.3 million beforehand.
The greater than two-fold improve in profitability for the Kenya Mortgage Refinance Company is anchored on larger revenues from lending actions throughout the 12 months.
The firm’s annual revenue has crossed the Sh1 billion mark for the primary time, settling at Sh1.3 billion final 12 months from Sh666.4 million beforehand.
The income development has been achieved on the again of elevated lending with loans and advances to prospects, who comprise monetary establishments akin to business banks and Saccos, hitting Sh8.4 billion final 12 months from Sh6.7 billion beforehand.
Read: KMRC eyes mortgage guarantee facility earlier than the shut of 2024
During the interval, KMRC elevated its borrowings to assist lending by Sh3.8 billion to Sh20.6 billion from Sh16.8 billion within the 12 months to December 2022.
The agency’s money flows improved throughout the 12 months as complete money and money equivalents closed 2023 at Sh11.8 billion from Sh9 billion beforehand.
KMRC performs the function of offering long-term funds to major mortgage lenders to extend the affordability of home loans to Kenyans.
The firm offers concessional, fastened, long-term finance to the first lenders, who embody banks and Saccos, who then on-lend the funds to shoppers as cheap-priced home loans.
Read: KMRC eases access to low cost mortgage for high earners
The authorities holds a 25 % stake in KMRC with banks holding a 44 % share of the corporate. Development finance establishments – the International Finance Corporation (IFC) and Shelter Afrique – maintain 23 % whereas Saccos have an eight % stake.
Lenders making up the banks’ stake within the firm embody KCB, Co-operative, Stanbic, NCBA, Credit Bank, DTB, Absa, Housing Finance and KWFT Bank.
11 Saccos share eight % of the corporate’s stake and embody Stima, Mwalimu, Unaitas and the Kenya Police Sacco.
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