NAIROBI, Kenya, May 25 –The Kenya Mortgage Refinance Company has listed its Sh3 billion green and sustainability-linked bond at the Nairobi Securities Exchange, following an oversubscribed issuance that it says reflects continued investor participation in ESG-labelled debt within Kenya’s capital markets.
The issuance attracted applications worth Sh9.38 billion, translating to a subscription rate of 312.8 per cent, signaling strong demand for instruments tied to environmental and social impact financing even as the domestic market continues to grapple with limited high-yield, low-risk investment options.
The listing follows KMRC’s earlier plan, outlined at launch, to raise Sh3 billion through a green bond aimed at financing climate-aligned and socially inclusive housing.
The issuance is the latest in its Medium-Term Note Programme, which has increasingly positioned the institution within Kenya’s expanding sustainable finance space.
Proceeds from the bond will be blended with concessional funding to refinance eligible green and social housing loans.
These include mortgages for energy-efficient and climate-resilient housing, as well as affordable housing loans targeting low-income households and women borrowers.
The transaction reinforces KMRC’s role as a key channel for long-term housing finance, amid continued structural constraints in the mortgage market, including high construction costs, limited household incomes and a shallow credit market relative to peer economies.
KMRC CEO Johnstone Oltetia said the listing marks a milestone in the development of Kenya’s green finance market and reflects investor confidence in the institution’s direction.
The KRMC Sustainability Bond, according to KMRC’s CEO Johnstone Oltetia, is a strategic landmark issue, being the first of its kind, and the investor response demonstrates a vote of confidence in the company’s strategic direction.
“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 in of promoting affordable home ownership while deepening Kenya’s debt capital markets,” said Oltetia.
Since its establishment, KMRC says it has refinanced over Sh30 billion in home loans and supported more than 5,800 homeowners across 39 counties, with its model designed to extend long-term funding to primary mortgage lenders and enable fixed-rate, lower-cost mortgage products.
However, affordability pressures in the housing sector persist, driven by elevated land prices, construction costs and income constraints that continue to limit mortgage uptake.
KMRC Board Chairman Haron Sirima said the listing reflects confidence in the institution’s governance framework and its role in deepening housing finance.
“This listing reflects growing confidence in KMRC’s mandate, governance, and long-term contribution to Kenya’s housing sector,” said Sirima.
The National Treasury said the transaction aligns with broader efforts to mobilize domestic capital for development priorities, particularly housing.
“The successful issuance and listing of this KES 3 billion Sustainability Note are a national milestone,” said Treasury CS Mbadi.
NCBA Group, which acted as Lead Arranger, said the transaction reflects continued demand for structured and ESG-linked instruments, though issuance activity remains closely tied to market liquidity and investor risk appetite.
