KCB Bank Tanzania Invests TZS 500 Million in TMRC

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KCB Bank Tanzania has invested TZS 500 million in the Tanzania Mortgage Refinance Company Limited (TMRC), officially becoming a shareholder in a strategic move to strengthen the mortgage sector in Tanzania.

Speaking at a press conference in Dar es Salaam, KCB Group Regional Business Director and Managing Director of KCB Bank Tanzania, Mr. Cosmas Kimario, emphasized the bank’s commitment to facilitating homeownership through innovative financial solutions.

“For many years, KCB Bank Tanzania has been a trusted partner in the mortgage sector, offering financial solutions that enable Tanzanians to own homes. Through this investment, we are further strengthening our commitment to supporting the housing sector by providing sustainable solutions and expanding opportunities for home purchase and construction in the country.” Mr. Kimario stated.

With this investment, KCB Bank Tanzania will now have the capacity to borrow up to TZS 10 billion, twenty times its investment, enabling the provision of long-term financing solutions to customers.

This is expected to translate into competitive mortgage rates and improved access to housing finance, further encouraging Tanzanians to take advantage of homeownership opportunities.

TMRC’s Growth and Market Impact

The investment further aligns with TMRC’s mission of providing long-term funding to financial institutions for mortgage lending, making homeownership more accessible and affordable.

TMRC operates as a secondary market lender, refinancing mortgages issued by banks and primary mortgage lenders rather than lending directly to individuals.

Since its establishment in 2010, TMRC has played a vital role in the expansion of Tanzania’s mortgage market.

Initially founded with capital from the World Bank and support from the Bank of Tanzania, the institution has since attracted major commercial banks, non-bank financial institutions, pension funds, and insurance companies as shareholders.

This diverse shareholder base has strengthened TMRC’s capital position and enhanced its ability to support long-term mortgage financing.

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TMRC has also expanded its operational scope by introducing a pre-financing facility, allowing banks to fund housing construction before property sales, further stimulating real estate development in Tanzania.

As the mortgage market continues to grow, TMRC remains a crucial partner in ensuring financial institutions have the resources to offer accessible mortgage solutions.