KCB Group has become the eighth lender to get funds amounting to Sh1.8 billion for refinancing home loans under the state-backed plan which seeks to increase house ownership largely amongst workers earning less than Sh150,000 a month.
https://www.businessdail...cheap-mortgages-3870196

The Kenya Mortgage Refinancing Company (KMRC) said it has disbursed the funds to the country’s largest home loans financier by market share after several months of due diligence on mortgages to be funded.

“The KCB mortgage portfolio was very large [and], therefore, the security registration process took long,” KMRC said in an emailed response to Business Daily.

The amount tapped by KCB from KMRC is the largest to a single financier for on-ward lending to homeowners and is 38.46 percent more than Sh1.34 billion advanced to seven lenders — three banks and four saccos — last year.
Co-op Bank, which accounted for 5.6 percent of the residential mortgages market last year, tapped what was previously the highest amount from KMRC at Sh550 million, followed by HFC Ltd (Sh515 million).

Others were Unaitas Sacco (Sh116 million), Stima Sacco (Sh69 million), Credit Bank (Sh52 million), Tower Sacco (Sh30 million) and Ukulima Sacco (Sh12 million).

The KMRC funding covered 574 loans priced at an average interest of 9.5 percent, putting the average mortgage size at Sh2.34 million.

KCB was amongst the first lenders to apply for funds from KMRC after it sought Sh2.1 billion early last year.

Interest on KMRC loan to borrowers is capped at 9.5%

TMB inside. Additional USD 1.5B in new assets from TMB plus increase of 110 more branches, total branch count across the group to now stand at 462 across EAC

In terms of price, they were always going to pay a premium as compared to what Equity paid. Equity had the benefit of the pandemic jitters sweetening the deal. TMB was the best they could get in that market, the only better option is Rawbank.
TMB offers a good starting ground in terms of reach all over the country, good tech in place, solid mass market customer base of almost 3 million accounts (Equity BCDC 1.2m) and a 10% market share (3rd in the market).
In the short term, it will be very expensive (acquisition + capital injection) but if things remain peaceful in DRC, there is proper money to be made.

Purchase at 1.49 of Book Value seems abit pricey when Kenyan banks are trading at 0.6 book value.

3.5B procurement deals in quick succession.

It's a good move,time will reveal.
The elections overhang is what is keeping share prices depressed.

Possibly touching KES 50 is the new reality

On Friday KES 42.5 printed, so KES 43 is a given.. Let's see how tomorrow plays out coz H2 announcement Thursday next week should further energize it

A high of 44 printed,it closed the day at lower end of 42