![KMRC's Partial Guarantee Scheme to Expand Access to Housing KMRC's Partial Guarantee Scheme to Expand Access to Housing](https://storage.googleapis.com/medialib/fanewsd8001412-6013-429e-aa71-a012e942afc1.webp)
The Kenya Mortgage Refinance Company (KMRC) is implementing a partial guarantee scheme by year-end to mitigate the risks associated with lending to high-risk borrowers. This initiative aims to boost lender confidence and expand access to housing for low-income earners.
KMRC CEO Johnstone Oltetia explained that the scheme will provide a partial guarantee for mortgages extended to high-risk individuals. He also highlighted plans to introduce additional primary mortgage lenders and new products, such as green mortgages, Shariah-compliant mortgages, and developer financing.
A mortgage guarantee ensures that if a borrower defaults, the guarantor (KMRC) will compensate the lender for any losses resulting from property foreclosure, up to a specified amount. This provides lenders with a safety net against the potential risks of high-risk borrowers.
This intervention is expected to encourage lenders to increase mortgage lending to high-risk individuals and communities. By mitigating the risks of default, the scheme aims to make homeownership more accessible for a wider segment of the population.