(Ecofin Agency) - Shelter Afrique invested Ksh200 million ($2 million) in Kenya Mortgage Refinance Corporation (KMRC) whose mission is to increase the offer of affordable housing in the country.

“We are encouraged by the formation of the (Kenya) Mortgage Refinance Company that will cushion commercial and microfinance banks as well as savings and credit societies (saccos) engaged in long-term mortgage financing and at a lower cost,” said Andrew Chimphondah (photo), chief executive of Shelter Afrique, according to Business Daily.

Kenya Mortgage Refinance Corporation has the World Bank, Kenya and more than 20 local commercial banks as its shareholders. It may also raise funds on financial markets to refinance banks which will use clients’ mortgage loan contracts as guarantee.  

Currently, Kenya has a housing deficit of 200,000 units per year. This deficit, which should cross the cap of 300,000 units by 2020, prompted the president Uhuru Kenyatta to make affordable housing one of the four priorities of his second term.