The Kenya Mortgage Refinance Company (KMRC) has announced the issuance of its second tranche under the KSh 10.5 billion Medium-Term Note Program, marking a continued effort to mobilize long-term funding for Kenya’s housing finance sector.
According to a notice published on April 28, 2026, the Capital Markets Authority (CMA) approved the program on January 10, 2022, under Section 30(A) of the Capital Markets Act.
“Kenya Mortgage Refinance Company PLC (KMRC) hereby announces that the Capital Markets Authority (CMA), in exercise of its powers under Section 30(A) of the Capital Markets Act (Chapter 485 of the Laws of Kenya), on 10th January 2022, granted approval to KMRC to offer up to KES 10,500,000,000 under the Medium-Term Note Program,” read part of the notice.
KMRC stated that the second tranche is being issued in line with the Base Information Memorandum dated January 10, 2022, and a Supplementary Information Memorandum dated April 28, 2026.
The issuance comprises Sustainability Fixed Rate Notes with a total offer of up to KSh3 billion.
KMRC Announces Issuance of Second Tranche Under Medium-Term Note Program
According to KMRC, 100 percent of the net proceeds from the issuance will be used to refinance Eligible Green Home Loans and Eligible Social Home Loans as defined under its Sustainable Finance Framework dated March 2026.
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The company said the funds will be used alongside other concessionary financing to support its mandate of expanding access to affordable housing finance in Kenya.
KMRC further argued that the Sustainability Fixed Rate Notes are structured as direct, unconditional, unsubordinated, and unsecured obligations ranking equally with other similar obligations of the issuer, subject to applicable financial covenants.
Furthermore, the notes carry several key financial terms that define their structure and repayment profile.
These include a fixed interest rate arrangement, an 8-year amortizing tenor with a weighted average life of 5.11 years, and annual amortization repayments at par.
As part of this repayment schedule, redemption will begin on November 19, 2026, and continue annually until the final maturity date, providing a predictable cash flow for investors.
Additionally, the instruments will be issued in dematerialized form, enhancing efficiency and security in trading and settlement, and each note will have a minimum denomination of KSh100,000, with increments in multiples of the same.
Listing of the Second Tranche
The company said the listing increases transparency and accessibility for institutional and retail investors and strengthens activity in the country’s capital markets.
KMRC noted that the issuance is non-syndicated and will follow a clear, structured timeline culminating in its official listing and trading on the NSE.
Meanwhile, regarding the transaction schedule, the offer is set to open on April 28, 2026, allowing investors to begin subscribing to the notes.
This will be followed by the closing of the offer on May 12, 2026, after which the results announcement and allotment will be conducted on May 15, 2026.
Settlement and the official issue date are set for May 21, 2026, with the credit default swap (CDS) taking place on May 22, 2026.
Further, KMRC stated that the process will conclude with the listing and commencement of trading on the NSE on May 25, 2026, marking the transition of the issuance into the secondary market.
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How the Issuance Process Will Take Place
To support the process, KMRC has appointed NCBA Investment Bank Limited as the lead arranger and placing agent.
At the same time, Cygnum Capital serves as the financial advisor, providing strategic and financial guidance throughout the transaction to ensure its successful execution.
Further, C&R Group has been engaged as the Paying, Registrar and Fiscal Agent, responsible for managing key administrative and payment functions related to the notes, as KCB Bank Kenya acts as the receiving bank, handling investor funds during the subscription process.
Ropat Trust Company Limited will then serve as the note trustee, safeguarding the interests of investors and ensuring compliance with the terms of the issuance.
