Nairobi, Feb. 2 -- A State-backed mortgage refinancing company has doubled the size of subsidised home loans to Sh8 million due to the rising cost of buying houses.

The Kenya Mortgage Refinancing Company (KMRC) also raised the allocation to 105 percent of the value of the purchased home from 90 percent, reducing the need for upfront payment.

While home prices fell marginally in the quarter to December, the cost of properties in Nairobi, for example, has risen by double digits since 2020 on the back of renewed demand from buyers who had slowed down acquisitions at the peak of Covid-19 economic hardships.

This forced KMRC to double the size of its mortgages that are lent at an average of 9.5 percent-which is lower than the market rate of...