The Kenya Mortgage Refinance Company PLC (KMRC) has formally listed its Ksh. 3 billion Sustainability Bond on the Nairobi Securities Exchange (NSE).
The issuance drew an overwhelming response from the market, pulling in applications worth Ksh. 9.38 billion, a staggering 312.8% oversubscription rate.
This milestone represents the second successful tranche under KMRC’s approved KES 10.5 billion Medium-Term Note Programme, building on their debut Ksh. 1.4 billion issuance in 2022 (which itself attracted Ksh. 8.5 billion).
Bond numbers at a glance
| Metric | Details |
| Target Issuance | Ksh. 3.00 Billion |
| Total Bids Received | Ksh. 9.38 Billion |
| Subscription Rate | 312.8% |
| Program Context | Tranche 2 of Ksh. 10.5B Medium-Term Note Programme |
Where the capital is going
Proceeds from this sustainability bond will be blended with KMRC’s existing concessional funds to power two critical areas of the housing sector:
- Green Affordable Home Loans: Funding eco-friendly, climate-resilient, and environmentally sustainable housing projects.
- Social Home Loans: Driving inclusive homeownership by expanding credit access to low-income households and women borrowers.
Mr. Johnstone Oltetia, CEO & Managing Director, KMRC said “Today’s listing affirms the role of capital markets in making homeownership more accessible, affordable, and sustainable. This strategic, first-of-its-kind issue demonstrates deep investor confidence in KMRC’s mandate and our strategic direction to deepen Kenya’s debt capital markets.”
NCBA Group Managing Director (Lead Arranger) added that “As Lead Arranger, NCBA is proud to have supported KMRC in structuring and bringing this transaction to market… Our integrated Corporate and Investment Banking teams bring strong technical expertise and market insight, reinforcing our role as a trusted advisor in delivering impactful, sustainable financing solutions.”
By injecting long-term liquidity into primary mortgage lenders, KMRC enables fixed-rate, single-digit home loans with extended repayment periods (up to 25 years), drastically reducing the monthly financial burden on homebuyers.
To date, KMRC has fundamentally shifted Kenya’s housing finance ecosystem:
- Ksh. 30+ Billion in home loans refinanced.
- 5,800+ homeowners directly supported.
- 39 Counties reached across the nation.
- Nearly 50% of all refinanced loans have directly benefited women.
Kenya’s corporate bond market has experienced a significant resurgence, with the total value of outstanding corporate debt climbing by 37 percent to reach Ksh. 96.4 billion by the end of 2025.
This momentum has effectively broken a multi-year issuance drought and is heavily anchored by massively oversubscribed medium-term note (MTN) programs from companies such as East African Breweries Limited (EABL), Safaricom’s green bond and the recent I&M bond.