The World Bank Implementation Status & Results Report Kenya Affordable Housing Finance Project (P165034) Kenya Affordable Housing Finance Project (P165034) AFRICA | Kenya | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2019 | Seq No: 1 | ARCHIVED on 04-Sep-2019 | ISR38389 | Implementing Agencies: Kenya Mortgage Refinance Company, Kenya National Treasury and Planning, Republic of Kenya, Kenya Ministry of Lands and Physical Planning Key Dates Key Project Dates Bank Approval Date: 30-Apr-2019 Effectiveness Date: Planned Mid Term Review Date: 14-Jul-2021 Actual Mid-Term Review Date: Original Closing Date: 30-Jun-2024 Revised Closing Date: 30-Jun-2024 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The development objective is to expand access to affordable housing finance to targeted beneficiaries Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Support to the Kenya Mortgage Refinance Company:(Cost $252.00 M) Technical Assistance:(Cost $10.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO -- Moderately Satisfactory Overall Implementation Progress (IP) -- Moderately Satisfactory Overall Risk Rating -- Substantial Implementation Status and Key Decisions The loan agreement has not yet been signed due to significant changes in the National Treasury which is the main Government counterpart of the Project. However the operationalisation of the Kenya Mortgage Refinance Company (KMRC) has progressed in the meantime. The regulations for mortgage refinance companies were issued in August 16 and KMRC is shortly submitting its licence application. The National Treasury approved the ops manual in June 2019, and KMRC approved the policies and procedures at the end of July. Under component 2, 5 sets of TORs are ready to commence procurement once the loan is signed. 9/4/2019 Page 1 of 6 The World Bank Implementation Status & Results Report Kenya Affordable Housing Finance Project (P165034) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial -- Substantial Macroeconomic Substantial -- Substantial Sector Strategies and Policies Substantial -- Substantial Technical Design of Project or Program Moderate -- Moderate Institutional Capacity for Implementation and Sustainability Substantial -- Substantial Fiduciary Substantial -- Substantial Environment and Social Moderate -- Moderate Stakeholders Moderate -- Moderate Other -- -- -- Overall Substantial -- Substantial Results PDO Indicators by Objectives / Outcomes Support to the Kenya Mortgage Refinance Company IN00738960 ►Volume of bonds issued by KMRC (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 150,000,000.00 Date 20-Feb-2019 -- 28-Aug-2019 20-Feb-2024 Volume of bonds issued by KMRC (amount in local currency translated in US$). The correct indicator Comments: would be 15 billion KES. IN00738966 ►Number of affordable mortgage / housing loans refinanced by KMRC (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 30,000.00 Date 02-Jan-2019 -- 28-Aug-2019 21-Feb-2024 This indicator monitors the number of affordable housing/mortgage loans refinanced by KMRC (i.e. of an Comments: amount below KES 3 million, or KES 4 million in Nairobi Metropolitan). Further disaggregated data will be collected as needed. Overall Comments PDO 9/4/2019 Page 2 of 6 The World Bank Implementation Status & Results Report Kenya Affordable Housing Finance Project (P165034) implementation has yet to start since the Loan Agreement has not been signed. Intermediate Results Indicators by Components Support to the Kenya Mortgage Refinance Company IN00738967 ►Percentage mortgage / housing loans refinanced by KMRC extended to women (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 40.00 Date 20-Feb-2019 -- 28-Aug-2019 30-Apr-2024 Proportion of housing/mortgage loans submitted as collateral to KMRC that are extended to women or Comments: joint ownership IN00738969 ►Average maturity of new mortgage loans refinanced by KMRC in the year (Years, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 10.00 Date 20-Feb-2019 -- 28-Aug-2019 30-Apr-2024 This indicator tracks the average maturity of new mortgage loans submitted to KMRC as collateral in a Comments: specific year. It is an indicator of flow, not stock. It will provide an indication of how successful KMRC is in lengthening mortgage loan tenors. IN00738970 ►Percentage of Project beneficiaries who feel project activities reflected their needs (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 80.00 Date 22-Feb-2019 -- 28-Aug-2019 30-Apr-2024 Percentage of project beneficiaries surveyed by KMRC and primary mortgage lenders who feels that Comments: project's activities reflected their needs IN00738971 ►Volume of mortgage lending (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 2,230,000,000.00 -- 2,230,000,000.00 3,160,000,000.00 Date 31-Dec-2017 -- 31-Dec-2017 30-Apr-2024 Volume of mortgage lending in the Kenyan market. End target assumes a growth of 6% every year, above Comments: inflation but moderate due to the interest rate cap. In 2017, growth was 1.5 percent (2017 was the year when the cap was in force for a full year). IN00738972 ►Percentage of Non-Performing Loans in the residential mortgage sector (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target 9/4/2019 Page 3 of 6 The World Bank Implementation Status & Results Report Kenya Affordable Housing Finance Project (P165034) Value 12.20 -- 12.20 6.00 Date 31-Dec-2017 -- 31-Dec-2017 30-Apr-2024 Comments: NPLs to gross mortgage loans in the residential mortgage sector (overall sector) IN00738973 ►Volume of affordable housing and mortgage loans refinanced by KMRC (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 225,000,000.00 Date 02-Jan-2019 -- 28-Aug-2019 22-Feb-2024 Volume of affordable housing and mortgage loans in KES translated in USD, cumulative. Indicator in KES Comments: in final year would be KES 23 billion. Technical Assistance IN00738968 ►Four strategies/studies/roadmaps completed and adopted by MLPP (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 4.00 Date 20-Feb-2019 -- 28-Aug-2019 23-Feb-2024 Four studies and advice designed to improve the quality of the foundations of the MLPP's computerization of property registration are completed and adopted by MLPP. Indicative timeframe: Year 1: Land Comments: Information Management System (LIMS) and Roadmap. Year 2: Land sector strategic assessment. Year 3: Business Process mapping. Year 4: Public information and sensitization program on land laws. Overall Comments IR The Project has not yet started implementation because the Loan Agreement is yet to be signed. The CBK 2018 Bank supervision report has not yet been released so data on mortgage lending and NPL in the mortgage sector is not yet available. Disbursement Linked Indicators IN00738974 ►DLI 1 The Project Implementing Entity is legally established, has the required regulatory capital and approvals to start operations (Amount(USD), Process, 10,000,000.00, 0.00%) Baseline Actual (Previous) Actual (Current) February 2022 Value 0.00 -- 0.00 -- Date -- -- 28-Aug-2019 -- Comments: The capital was paid in January 2019. The approval for KMRC to start operating is still pending. IN00738975 ►DLI 2 The Borrower has provided Tier 2 Capital to the Project Implementing Entity (Amount(USD), Output, 10,000,000.00, 0.00%) 9/4/2019 Page 4 of 6 The World Bank Implementation Status & Results Report Kenya Affordable Housing Finance Project (P165034) Baseline Actual (Previous) Actual (Current) February 2022 Value 0.00 -- 0.00 -- Date -- -- 28-Aug-2019 -- IN00738976 ►DLI 3 The Borrower has provided additional Tier 2 Capital to the Project Implementing Entity (Amount(USD), Outcome, 30,000,000.00, 0.00%) Baseline Actual (Previous) Actual (Current) February 2022 Value 0.00 -- 0.00 -- Date -- -- 28-Aug-2019 -- Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed Not P165034 IBRD-89580 USD 250.00 250.00 0.00 0.00 250.00 0% Effective Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date Not P165034 IBRD-89580 30-Apr-2019 -- -- 30-Jun-2024 30-Jun-2024 Effective Cumulative Disbursements 9/4/2019 Page 5 of 6 The World Bank Implementation Status & Results Report Kenya Affordable Housing Finance Project (P165034) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 9/4/2019 Page 6 of 6