Kenya Mortgage Refinance Company (KMRC) profit after tax fell 2.7% to KSh 544.3 million in the first half of 2025, down from KSh 559.4 million for the same period in 2024.
- •The dip came as interest expense rose by nearly a quarter, reflecting increased borrowing costs.
- •Net interest income slipped 2.9% to KSh 927.2 million, despite a 6.8% rise in interest income to KSh 1.58 billion.
- •On the cost side, operating and administrative expenses edged up 5.9% to KSh 148.9 million, while depreciation and amortisation dropped sharply to KSh 2.5 million from KSh 16.7 million.
| Metric | H1 2025 | H1 2024 | YoY % |
|---|---|---|---|
| Interest Income | 1.58Bn | 1.48Bn | 6.8% |
| Interest Expense | -650.0Mn | -521.7Mn | 24.5% |
| Net Interest Income | 927.2Mn | 954.8Mn | -2.9% |
| Operating & Admin Expenses | -148.9Mn | -140.6Mn | 5.9% |
| Depreciation & Amortisation | -2.5Mn | -16.7Mn | -85.1% |
| Net Movement in ECL | -1.8Mn | -1.6Mn | 10.0% |
| Total Expenses | -149.6Mn | -155.6Mn | -3.9% |
| Profit Before Tax (PBT) | 777.6Mn | 799.2Mn | -2.7% |
| Profit After Tax (PAT) | 544.3Mn | 559.4Mn | -2.7% |
| Cash & Cash Equivalents | 16.15Bn | 14.86Bn | 8.7% |
| Total Assets | 40.95Bn | 32.32Bn | 26.7% |
| Total Liabilities | 35.34Bn | 27.48Bn | 28.5% |
| Shareholders’ Equity (Capital) | 5.62Bn | 4.84Bn | 16.1% |
Balance Sheet Expansion
Despite the profit decline, the company’s balance sheet expanded.
- •Total assets rose 26.7% to KSh 40.95 billion, driven by a 58% surge in loans and advances.
- •Total liabilities increased 28.5% to KSh 35.34 billion, while shareholders’ equity rose 16.1% to KSh 5.62 billion, reflecting retained earnings growth.
- •The company remains well capitalised, with strong capital adequacy ratios far above regulatory minimums.
KMRC’s performance reflects its growing presence in Kenya’s mortgage refinancing market, where it plays a crucial role in extending affordable housing finance to participating lenders. While earnings faced pressure from higher funding costs, the company’s expanding asset base and strong equity position highlight continued growth momentum.
