KCB BANK INVESTS TZS 500 MILLION IN TMRC SHAREHOLDING

Dar es Salaam, February 19, 2025 – Tanzania Mortgage Refinance Company Limited (TMRC) is pleased to announce that KCB Tanzania Limited has joined its shareholder base, becoming the 20th shareholder. KCB made an investment of TZS 500 million, finalizing the deal in December 2024.

With this new addition, KCB joins a distinguished group of financial institutions that are already shareholders in TMRC, including CRDB Bank Plc, NMB Bank Plc, National Bank of Commerce Ltd (NBC), TIB Development Ltd, Azania Bank Plc, Exim Bank (T) Ltd, and DCB Commercial Bank Plc. Other shareholders include BancABC Ltd, Bank of Africa (T) Ltd (BOA), First Housing Finance Ltd, Peoples Bank of Zanzibar Ltd (PBZ), I&M Bank (T) Ltd, NCBA Bank Ltd, Mkombozi Commercial Bank Plc, Mwanga Hakika Bank (MHB), and ABSA Bank Tanzania Limited.

In addition to these commercial banks, TMRC's shareholder base also includes the National Housing Corporation (NHC) and international development finance institutions (DFIs) such as Shelter Afrique, an African Development Bank Group housing finance institution, and the International Finance Corporation (IFC), a member of the World Bank Group.

By joining TMRC, KCB Tanzania will gain access to mortgage financing, enabling the bank to enhance its mortgage loan offerings and contribute to the growth of the housing sector in Tanzania.

Speaking during the press event, the KCB Group Regional Businesses Director and Managing Director, KCB Bank Tanzania, Cosmas Kimario stated that the move will boost KCB mortgage portfolio while enhancing accessibility of the service to more Tanzanians.

Over the years, KCB Bank has played a pivotal role in the mortgage sector, offering tailored financing solutions that have empowered many Tanzanians to own homes.

"We are happy to officiate this strategic investment that demonstrates our dedication to enhancing the mortgage industry and ensuring that more Tanzanians can afford housing,” stated.

Through a strategic partnership with TMRC, KCB Bank now has access to up to TZS 10 billion, representing 20 times the equity.

"This collaboration has a profound impact on the mortgage sector in Tanzania. It enables us to direct substantial funding toward affordable mortgage loans, bridging the housing gap and increasing accessibility to home financing," he added.

As of September 2024, KCB Bank ranked 8th in the mortgage industry, according to the Bank of Tanzania (BOT) report, with Sh34.1 billion in mortgage loans disbursed to 175 beneficiaries, representing a 4.75% market share.

By December 2024, the value of mortgage loans extended to customers grew to Tsh34.6 billion including the Tsh10 billion TMRC facility which directly benefited 99 out of the 175 customers.

TMRC CEO, Mr. Oscar Mgaya, speaking at the event, said, "TMRC is very pleased that KCB has joined as the 20th shareholder, as it will help expand the scope of access to housing loans."

About Tanzania Mortgage Refinance Company Limited

Tanzania Mortgage Refinance Company Limited (TMRC) is a Mortgage Liquidity Facility operating in Tanzania. As a specialized financial Institution that provides long-term funding to financial institutions for the purposes of mortgage lending. TMRC is a private sector institution owned by Banks and Non-Bank Institutions with the sole purpose of supporting banks to do mortgage lending by refinancing banks’ mortgage portfolios.

About KCB Tanzania Limited

KCB Bank is a subsidiary of KCB Group that was established in 1997 providing a wide range of commercial services to individuals, SMEs, Islamic banking and corporate clients. KCB Group, is the largest in East Africa, operating in seven countries including Tanzania, Kenya, Uganda, Rwanda, Burundi, South Sudan, Congo DRC and a representative office in Ethiopia.

With a strong presence in Tanzania, KCB Bank operates through 18 branches strategically located in Dar es Salaam, Morogoro, Mwanza, Arusha, Kilimanjaro, Shinyanga, Geita, and Songwe, ensuring service accessibility and convenience to customers.

Services provided by KCB Bank includes account opening, loans, insurance, and digital financial solutions, designed to meet diverse customer needs.

By December 2024, KCB Bank Tanzania recorded an impressive Tsh 1.5 trillion in assets, underscoring our steady growth and unwavering commitment to investing in the country.