The Kenya Mortgage Refinance Company (KMRC) has announced that the seventh interest payment on its Fixed Rate Medium Term Note Programme – Tranche 1 will be made on 29 August 2025, providing bondholders with a fixed return of 12.5%.
In a notice issued to investors, the state-backed mortgage refinancing firm confirmed that only bondholders listed in the official register as of 15 August 2025 will be eligible for the payout. The announcement underscores KMRC’s continued efforts to strengthen Kenya’s capital markets and provide sustainable financing options in the housing sector.
The Medium-Term Note (MTN) Programme, which carries the International Securities Identification Number KE7000007760, has been a significant fundraising tool for KMRC since its launch. The bond issue has allowed the company to raise long-term capital to support affordable housing loans across the country.
The 12.5% fixed rate return is considered attractive in the current economic environment, where investors are increasingly looking for stable and predictable yields. Analysts say the steady coupon payments have helped to build confidence among institutional and retail investors in Kenya’s nascent corporate bond market.
“By maintaining a regular interest payout, KMRC is signalling reliability and financial strength, both of which are critical in deepening trust among bondholders,” said Tom Wamalwa a Nairobi-based investment analyst.
KMRC, which was established in 2018, operates as a wholesale lender, refinancing mortgage portfolios of primary mortgage lenders such as commercial banks, microfinance institutions, and savings and credit cooperative societies (Saccos). Its mandate is aligned with the government’s Affordable Housing Agenda, one of the pillars of the Big Four development plan.
Fixed income securities like KMRC’s Medium Term Notes have played an increasingly important role in diversifying Kenya’s financial markets. They offer investors a lower-risk alternative to equities, while also providing issuers with a stable source of long-term funding.
Over the years, Kenya’s corporate bond market has faced challenges, including defaults by some issuers and weak investor confidence. However, KMRC’s consistent payments since the inception of its MTN Programme have been seen as a positive signal.
“This interest payment at a fixed rate of 12.5% reinforces the credibility of KMRC’s Medium Term Notes programme and could encourage other corporates to explore the capital markets for funding,” added the analyst.
The proceeds from KMRC’s Medium Term Note Programme are primarily directed toward refinancing mortgage loans to make housing more affordable for Kenyans. By offering long-term liquidity to lenders, the company helps reduce interest rates on mortgages and extend repayment tenors, making home ownership more accessible.
Kenya’s housing deficit is estimated at over 2 million units, with demand growing by at least 200,000 units annually. Yet, supply lags significantly behind, largely due to financing constraints. By tapping into the bond market, KMRC has been able to provide a reliable flow of capital to mortgage lenders.
Affordable housing is not just a government priority; it is a social necessity. Through Medium Term Note Programme, KMRC are not only supporting the financial sector but also directly contributing to reducing Kenya’s housing shortage.
Bondholders who qualify for the August payout will see returns credited based on the number of notes held. For many, the fixed 12.5% return remains a compelling choice in a market where traditional bank deposits often yield lower rates.
Do you have any story or press releases you want to share? Send tips to editor@envestreetfinancial.com
Follow us on Twitter, Facebook, or LinkedIn to ensure you don’t miss out on any