Kenya Mortgage Refinance Company PLC has listed its KSh3 billion Sustainability Bond on the Nairobi Securities Exchange (NSE) after attracting investor applications worth KSh9.38 billion, representing an oversubscription rate of 312.8 per cent.
The listing, announced on May 25, 2026, marks the second successful tranche under KMRC’s approved KSh10.5 billion Medium-Term Note Programme and underscores growing investor confidence in Kenya’s affordable housing and sustainable finance agenda.
The latest issuance follows KMRC’s inaugural KSh1.4 billion bond issued in 2022, which also recorded strong investor interest after attracting KSh8.5 billion in applications.
Funds to Support Green and Affordable Housing
KMRC said proceeds from the Sustainability Bond will be blended with concessional financing and used to refinance green affordable housing loans as well as social home loans.
According to the company, the financing will support climate-resilient and environmentally sustainable housing projects while also expanding access to homeownership among low-income earners and women borrowers.
KMRC Says Listing Strengthens Affordable Housing Agenda
KMRC’s CEO & Managing Director, Johnstone Oltetia, described the Sustainability Bond as a landmark transaction and the first of its kind in Kenya’s housing finance market.
He said the strong investor response demonstrates confidence in KMRC’s strategic direction and the growing role of capital markets in financing affordable housing.
“Today’s listing affirms the role of capital markets in making homeownership more accessible, affordable, and sustainable. The investor response demonstrates confidence in KMRC’s mandate of promoting affordable home ownership while deepening Kenya’s debt capital markets,” said Oltetia.
KMRC Expands Housing Finance Access Across Kenya
Since its establishment, KMRC has played a key role in addressing long-standing liquidity and affordability challenges within Kenya’s mortgage market.
The company revealed that it has so far refinanced more than KSh30 billion in home loans and supported over 5,800 homeowners across 39 counties.
KMRC also stated that nearly half of the refinanced loans have benefited women borrowers, reinforcing efforts to advance inclusive homeownership.
Through the provision of long-term liquidity to primary mortgage lenders, the institution supports fixed-rate, single-digit mortgages with longer repayment periods aimed at reducing monthly repayment burdens for borrowers.
Haron Sirima said the successful listing demonstrates how capital market instruments can be used to finance national development priorities while delivering measurable social and environmental impact.
“This listing reflects growing confidence in KMRC’s mandate, governance, and long-term contribution to Kenya’s housing sector,” Sirima said.
He added that the transaction proves affordable housing can be financed through market-based solutions that generate both financial returns and developmental outcomes.
Treasury Hails Bond as National Milestone
Treasury Cabinet Secretary John Mbadi described the successful issuance and listing of the Sustainability Bond as a major milestone for Kenya’s capital markets and housing sector.
According to Mbadi, the transaction signals a shift toward innovative approaches to mobilising long-term capital for development financing.
“The successful issuance and listing of this KES 3 billion Sustainability Note is a national milestone. It signals a decisive shift in how we mobilise capital to finance development priorities, particularly housing. It also affirms that Kenya’s capital markets are deepening, diversifying, and maturing in line with our long-term economic aspirations,” said Hon. Mbadi.
The Treasury Cabinet Secretary further noted that the transaction reflects the continued growth, diversification, and maturity of Kenya’s capital markets.
NCBA Played Lead Role in Structuring the Bond
NCBA Group served as Lead Arranger for the transaction and helped structure the bond issuance. The bank said the successful listing highlights the value of strong partnerships and technical expertise in delivering complex capital market transactions. NCBA Group Managing Director, speaking at the listing, said
“The successful listing of KMRC’s Sustainability Bond reflects the strength of long-standing partnerships and the importance of execution expertise in delivering complex capital market transactions. As Lead Arranger, NCBA is proud to have supported KMRC in structuring and bringing this transaction to market, mobilising long-term funding for Kenya’s affordable housing sector. This builds on our continued collaboration with KMRC across multiple structured finance transactions, said Gossip
Gossip added that the NCBA Corporate and Investment Banking teams remain focused on supporting impactful and sustainable financing solutions in Kenya’s growing capital markets.