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The Kenya Mortgage Refinance Company (KMRC) has reported Sh108 million in profit after tax in the six months ended June 2022.
Data from the latest financial statements indicate that the State-backed mortgage refinancier saw a 30 per cent increase in net profits from Sh76 million reported at the end of December 2021, which the firm attributed to increased lending.
"Interest income increased by 81 per cent from Sh279 million in June 2021 to Sh504 million in June 2022," said KMRC in the results published yesterday.
"The company earned Sh53 million as interest from loans to primary mortgage lenders (PMLs) and Sh451 million as interest income from investments."
The report further indicated that loans to PMLs went up from Sh1.2 billion as at the end of December 2021 to Sh3.7 billion in the six months ended June 2022.
The latest financial results come four years after KMRC was incorporated as part of the government's bid to create affordable housing units for low-income earners.
The government had pledged to construct 500,000 low-cost houses under the scheme but so far, only 2,475 units have been refinanced and Sh6.9 billion disbursed as at August 30, 2022.
KMRC's total assets recorded a 51 per cent increase from Sh9.8 billion at the end of last year to Sh14.8 billion in June 2022 following additional capitalisation from its shareholders.
Cash flow from operating activities, however, fell 45 per cent in the six months under review from Sh285 million as at the end of December 2021 to Sh154 million as at June this year.
KMRC is 25 per cent owned by the government through the National Treasury, with the IFC and Shelter Afrique taking up another 23 per cent.
Nine commercial lenders; KCB Bank, Stanbic, NCBA, DTB, Absa, Co-Operative Bank, Credit Bank, HFC Bank and KWFT own a 44 per cent shareholding.
The remaining eight per cent is held by 11 Saccos including Stima, Mwalimu, Ukulima, Harambe, Safaricom and Kenya Police Sacco.
Earlier this year, the capital Markets Authority approved the issuance of an unsecured Sh10.5 billion medium term note by KMRC.
The note, which has also been listed at the Nairobi Securities Exchange, will be issued in tranches with the first one at Sh1.4 billion.
KMRC saw its financial assets grow from Sh1.5 billion in December last year to Sh3.8 billion as the firm increased its uptake of government securities.
In 2020, the International Finance Corporation signed a Sh240 billion investment deal for a share in KMRC.
In the last financial year, KMRC received 12 applications and disbursed Sh1.3 billion to seven lenders and Saccos for mortgage financing.
This included Sh550 million to Co-operative Bank, Sh515 million to Housing Finance Company, Sh116 million to Unaitas Sacco, Sh69 million to Stima Sacco and Sh52 million to Credit Bank.
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