Kenya Mortgage Refinance Company (KMRC) has listed its KES 3 billion sustainability bond on the Nairobi Securities Exchange (NSE) after the issue attracted applications worth KES 9.38 billion, representing an oversubscription rate of 312.8%, the company said in a media release dated May 25, 2025.

The listing is KMRC’s second tranche under its approved KES 10.5 billion Medium-Term Note (MTN) Programme. KMRC said its inaugural KES 1.4 billion issuance in 2022 attracted applications worth KES 8.5 billion.

KMRC said proceeds from the sustainability bond will be blended with its existing concessional funds and deployed towards refinancing eligible green affordable home loans and eligible social home loans. The company said the green segment targets climate-resilient and environmentally sustainable housing, while the social segment supports inclusive access to homeownership, including for women and low-income households.

“Today’s listing affirms the role of capital markets in making homeownership more accessible, affordable, and sustainable,” said Johnstone Oltetia, KMRC Chief Executive Officer and Managing Director, in the release. He added that the investor response “demonstrates confidence in KMRC’s mandate in of promoting affordable home ownership while deepening Kenya’s debt capital markets.”

The transaction comes as Kenya’s capital markets continue to see renewed activity in corporate and development-linked debt, with issuers seeking longer-term funding amid tight credit conditions and elevated borrowing costs. For the housing market, KMRC’s model of providing liquidity to lenders aims to support longer-tenor mortgages and stable pricing, particularly for qualifying segments targeted under affordable housing efforts.

KMRC said it has refinanced over KES 30 billion in home loans since inception, supported more than 5,800 homeowners, expanded its reach across 39 counties, and advanced inclusive homeownership, with “nearly half” of refinanced loans benefiting women. The company attributed its role to addressing “structural constraints of liquidity and affordability” that have historically limited mortgage market depth.

By providing long-term liquidity to primary mortgage lenders, KMRC said it supports fixed-rate, single-digit home loans with longer repayment periods, which it said can reduce monthly repayment burdens for qualifying borrowers.

KMRC board chair Haron Sirima said the listing demonstrates how capital markets instruments can finance development outcomes. “This listing reflects growing confidence in KMRC’s mandate, governance, and long-term contribution to Kenya’s housing sector,” Sirima said. “It demonstrates that affordable housing can be supported through market-based instruments that deliver financial returns alongside measurable social and environmental impact.”

National Treasury and Economic Planning Cabinet Secretary John Mbadi described the issuance and listing as a national milestone. “It signals a decisive shift in how we mobilize capital to finance development priorities, particularly housing,” Mbadi said, adding that it affirms Kenya’s capital markets are “deepening, diversifying, and maturing,” according to the release.

NCBA Group Managing Director John Gachora, speaking at the listing, said the bank acted as Lead Arranger for the transaction. “As Lead Arranger, NCBA is proud to have supported KMRC in structuring and bringing this transaction to market, mobilizing long-term funding for Kenya’s affordable housing sector,” Gachora said.

KMRC said it is licensed by the Central Bank of Kenya as a financial institution and by the Capital Markets Authority as an issuer of securities to the public. Its shareholders include the National Treasury (25.3%), Development Finance Institutions (22.9%), commercial banks (44.4%), and SACCOs (7.5%). The company said its mandate is to promote homeownership through refinancing delivered via banks and SACCOs, with loans offered at single-digit fixed rates and repayment periods of up to 25 years.

Market watchers will be monitoring how quickly KMRC deploys the new funds into refinancing pipelines and whether the sustainability-labelled structure attracts repeat participation from institutional investors in future tranches under the KES 10.5 billion programme.

Safaricom PLC (NSE: SCOM) on Thursday announced financial results for the year ended March 31, 2026, reporting Group service revenue of KES 414.1 billion and net income of KES 100 billion, as it maintained growth in Kenya while scaling its Ethiopia operations.

In a press release dated May 7, 2026, the telecoms and mobile money operator said it will pay a total dividend of KES 80.1 billion, equivalent to KES 2 per share, comprising an interim dividend of KES 0.85 per share and a proposed final dividend of KES 1.15 per share, subject to shareholder approval. Safaricom said the total dividend represents a 66.7% increase from the previous year.

The company said customer numbers across the Group reached 71.6 million during the period, reflecting operations in Kenya and Ethiopia.

Safaricom’s results matter for Kenya’s business landscape because the company is one of the Nairobi Securities Exchange’s most heavily traded counters and a major contributor to corporate tax receipts and household income through dividends. The operator is also a key channel for digital payments and credit through M-PESA, which underpins significant volumes of retail transactions and small business cashflows.

Peter Ndegwa, Group Chief Executive Officer, Safaricom PLC, said performance in Kenya helped offset headwinds in Ethiopia. “We delivered strong performance, with acceleration in the second half, surpassing Group guidance with outstanding Kenya performance offsetting the impact of currency reforms and the timing of market repair actions in Ethiopia,” Ndegwa said.

In Kenya, Safaricom said service revenue grew by 10% to KES 400.8 billion, while earnings before interest and tax (EBIT) rose 15.3% to KES 182.3 billion.

Adil Khawaja, Chairman, Safaricom PLC, said the Group maintained profitability while continuing investment in Ethiopia. “We have sustained strong growth in service revenue, driven by double digit growth in Kenya and accelerated growth in Ethiopia, while maintaining profitability despite continued investment in Ethiopia,” Khawaja said. He added that the company was “beginning to see the benefits of scale in Ethiopia, with improving commercial momentum and narrowing start up costs.”

Safaricom said Ethiopia contributed 12.5% of the Group’s service revenue growth during the year. The company reported that subscriber numbers in Ethiopia rose to 13.6 million, with network coverage reaching 60% of the population supported by 3,504 sites. Safaricom also reported that service revenue in Ethiopia grew 86.6% to KES 14.1 billion.

Mobile data revenue rose 18.3% to KES 92.9 billion, while M-PESA revenue increased 13.4% to KES 182.7 billion, according to the company. Safaricom said M-PESA in Kenya had 41 million active customers during the year under review.

The performance underscores continued consumer demand for mobile broadband and the centrality of mobile money to Kenya’s payments ecosystem. For investors, the announced dividend implies sustained cash generation, although the final payout remains subject to approval. For the wider market, Safaricom’s Ethiopia trajectory remains a key variable in the Group’s medium-term profitability as the operator balances capital expenditure, regulatory changes and currency considerations in the new market.

Dilip Pal, Group Chief Finance and Innovation Officer, Safaricom PLC, said the company will continue investing in capacity and systems while moving into the next year of its strategy. “We continue to invest in our network and IT systems to support capacity upgrades and user experience. Ethiopia's performance shows reduced losses relative to the previous period, greatly boosting Group performance,” Pal said.

Safaricom said it would move into the second year of its Vision 2030 strategy, with the proposed final dividend expected to be tabled for shareholder approval in line with company and regulatory requirements.