The International Finance Corporation is set to invest $2 million (Sh202 million) in Kenya Mortgage Refinance Company (KMRC), a public-private company that will provide long term funding to banks and saccos to enable the institutions to expand their mortgage loans, Business Daily Africa has reported.
The global financier becomes the latest to provide funding capital to KMRC in which the Kenyan government will hold a 20 percent stake while the rest of the equity will be spread across local banks, saccos and development finance institutions.
“IFC is looking to invest in straight equity of up to $2 million (Sh202 million) equivalent in common shares of KMRC,” the institution says in its investment disclosures.
IFC did not say what stake it will get for its investment. Other companies that have participated in KMRC’s capital raise include Co-op Bank which invested Sh200 million in the institution.