KCB Bank has invested 500m/-in Tanzania Mortgage Refinance Co. Ltd (TMRC), officially joining as 20th shareholder.

This move positions KCB Bank (T) among the leading banks driving the growth of the mortgage sector by providing innovative financial solutions to local firms and individuals.

By joining TMRC, KCB (T) 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.

Cosmas Kimario, the KCB Group regional businesses director and managing director, KCB Bank (T), stated that the move will boost KCB mortgage portfolio while enhancing accessibility of the service to more customers and clients.

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,” he remarked. 

Through a strategic partnership with TMRC, KCB Bank now has access to up to 10bn/-, representing 20 times its shareholding 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 asserted.

Bank of Tanzania (BoT) reports say that as of September 2024, KCB Bank ranked eighth in the mortgage industry, having 34.1bn/- in mortgage loans disbursed to 175 beneficiaries, representing 4.75 percent of total market value.

By December 2024, the value of mortgage loans extended to customers grew to 34.6bn/-, including the Tsh10 billion TMRC facility which directly benefited 99 out of the 175 customers, the reports indicated.