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Eight local banks led by KCB Group and Co-op Bank have committed a total of Sh1 billion in Kenya Mortgage Refinance Company (KMRC), a public-private company that will provide long term funding to financial institutions offering housing loans.
The latest KMRC’s shareholding structure seen by Business Daily shows that the upcoming lender has received funding from the National Treasury, the eight banks, 11 saccos, the International Finance Corporation, Shelter Afrique and KWFT (a microfinance firm).
Among the banks, KCB has the largest capital commitment of Sh600 million that will entitle it to a 25.3 percent stake once all the shareholders pay up their capital in full. The country’s biggest bank by assets has already paid Sh325 million and is set to pay the remaining Sh275 million.
KMRC has so far raised Sh1.6 billion from its shareholders but the total capital commitment stands at Sh2.3 billion.
Co-op Bank has provided Sh200 million for which it will get an 8.4 percent stake while the merged NIC/CBA, HF Group, Barclays Bank of Kenya and DTB Group will each receive a 2.1 percent equity for their capital of Sh50 million each.
Stanbic Bank and Credit Bank have invested Sh20 million and Sh10 million in KMRC respectively and will be allotted stakes of 0.8 percent and 0.4 percent. The National Treasury will be single largest shareholder of the institution once it pays up Sh800 million in full, having made an initial payment of Sh325 million.
IFC and Shelter Afrique will each get an 8.4 percent stake for their investment of Sh200 million each. Other shareholders of KMRC include saccos such as Kenya Police, Safaricom, and Mwalimu National.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle