Housing Finance Company of Kenya

Housing Finance Company Limited (HFC Limited), commonly referred to as Housing Finance, is a commercial bank in Kenya, regulated by the Central Bank of Kenya, the central bank and national banking regulator.[3] HFC is major mortgage lender in Kenya and was the second-largest in the market with KSh33.7 billion (approx. US$302 million) in mortgage loans, as of December 2019. At that time, Kenya Commercial Bank, the largest mortgage lender in the country had KSh64.3 billion (approx. US$577 million) in mortgage loans.[4]

Not to be confused with Housing Finance Group of Kenya.

Housing Finance Company
TypeSubsidiary of HF Group
KN: HFCK
IndustryBanking
Founded18 November 1965 (1965-11-18)
HeadquartersNairobi, Kenya
Key people
Kaushik Manek
Chairman
Peter Oduori
Managing Director[1]
ProductsLoans, Checking, Savings, Investments, Mortgages
RevenueDecreaseAftertax:KSh1,629,681,000 (US$14.6 million) (2020)[2]
Total assetsKSh55.4 billion (US$497 million) (2020)[2]
Number of employees
413 (2020)[2]
Websitehfgroup.co.ke

Overview

Housing Finance Company Limited is a large mortgage finance company, serving the mortgage needs of the Kenyan population. As of December 2020, the company's total assets were valued at KSh55,445,249,000 (approximately US$497 million), with shareholders' equity of KSh8.562 billion (approx. US$76.8 million).[2]

History

The company was established in November 1965, to promote a savings culture and home ownership among the citizens of newly independent Kenya. Major investors in the company included the Commonwealth Development Corporation (CDC), whose shareholding at one time was as high as 60%, and the Government of Kenya, which at one time owned 50% of the company. CDC has since divested from Housing Finance Limited and the Kenyan Government has substantially reduced its shareholding.[5]

In 1992 Housing Finance Company of Kenya became listed on the Nairobi Stock Exchange, where the stock of its holding company (Housing Finance Group of Kenya), trades under the symbol HFCK. The company adopted the shorter name of Housing Finance Limited, in 2002. In 2010, the Central Bank of Kenya, authorized HFL to issue and operate checking accounts; having been authorized to issue and operate savings accounts in the past.[5]

On 30 June 2014, British-American Investments Company (the second largest shareholder in HFCK) at that time, served the Housing Finance's board with a takeover notice to acquire Equity Group Holdings Limited's 24.76 percentage shareholding in the mortgage financier. This move increased Britam's stake in HFCK to 46.08 percent.[6] With the conclusion of that transaction, Equity Group Holdings Limited ended its seven-year investment in Housing Finance.[7][8]

Formation of holding company

In December 2014, HFCK commenced a restructure of its operations. The restructure involved the following:[9] (a) the incorporation of a new wholly owned subsidiary under the name “HFC Limited” (b) the transfer of the company's banking and mortgage finance business to its newly incorporated subsidiary, HFC Limited and (c) the changing of the company's name to “HF Group Limited” and operating as a non-operating holding company. This is in accordance with the CBK Banking Act and Prudential Guidelines.[10]

Ownership

Housing Finance Company of Kenya is a wholly owned subsidiary of Housing Finance Group Limited, a non-operating holding company, whose shares trade on the Nairobi Stock Exchange.[10]

Branch network

The company maintains branches at the following locations:[11]

  1. Rehani Branch – Rehani House, Kenyatta Avenue at Koinange Street, Nairobi
  2. Gill House Branch – Gill House, Moi Avenue, Nairobi
  3. Buru Buru Branch – Epren Centre, Buru Buru, Nairobi
  4. Mombasa Branch – Permanent House, Moi Avenue, Mombasa
  5. Nakuru Branch – AFC Building, Geoffrey Kamau Way, Nakuru
  6. Nyeri Branch – Kimathi Way, Nyeri
  7. Eldoret Branch -KVDA Plaza, Oloo Street at Utalii Street, Eldoret
  8. Kisumu Branch – Tivoli Centre, Court Road, Kisumu
  9. Thika Branch – Uhuru Street, Thika
  10. Meru Branch – Westwind Annex Plaza, Tom Mboya Street, Meru
  11. Kitengela Branch – Red Heron Centre, Kitengela
  12. Ongata Rongai Branch – Maasai Mall, Ongata Rongai
  13. Komarock
  14. Embu Branch
  15. Nanyuki Branch
  16. River Road Branch
  17. TRM Branch
  18. Sameer Park Branch
  19. Naivasha Branch
  20. Machakos Branch
  21. Hurlingham Branch.

Governance

Kaushik Manek, is the chairman of the board of directors at HFCG, the group holding company. Robert Kibaara is the group managing director of Housing Finance Group of Kenya. Peter Oduori, is the managing director and chief executive officer of Housing Finance Company of Kenya, the banking and mortgage subsidiary of the group.[1]

See also

References
  1. Elizabeth Kivuva (22 November 2021). "HF Group appoints credit director Peter Oduori as new MD". Business Daily Africa. Nairobi, Kenya. Retrieved 25 November 2021.
  2. HFGK (6 May 2021). "Annual Report and Financial Statement As Of 31 December 2020" (PDF). Housing Finance Group of Kenya (HFGK). Nairobi, Kenya. Retrieved 25 November 2021.
  3. Central Bank of Kenya (30 June 2016). "Directory of Licenced Commercial Banks And Mortgage Finance Institutions And Non Operating Holding Companies" (PDF). Central Bank of Kenya. Nairobi. Retrieved 25 November 2021.
  4. Victor Juma (22 March 2021). "Britam Holdings to sell HF stake to a big bank". Business Daily Africa. Nairobi, Kenya. Retrieved 25 November 2021.
  5. Peter Muiruri (26 June 2013). "A history of missed opportunities housing Kenyans". The Standard (Kenya). Nairobi, Kenya. Retrieved 25 November 2021.
  6. Britam Holdings (1 July 2014). "Proposed Acquisition by British-American Investments Company (Kenya) Limited of 57,270,000 Ordinary Shares of Housing Finance Company of Kenya Limited owned By Equity Bank Limited under a private transaction" (PDF). British-American Investments Company (Britam Holdings). Nairobi. Retrieved 25 November 2021.
  7. BDA Reporter (30 June 2014). "Equity keeps rivals guessing as it exits Housing Finance". Business Daily Africa. Nairobi, Kenya. Retrieved 25 November 2021.
  8. BDA Reporter (1 July 2014). "Equity sale of HF stake to Britam lifts firms' share prices". Business Daily Africa. Nairobi, Kenya. Retrieved 25 November 2021.
  9. Standard Reporter (4 August 2015). "Housing Finance gets nod to establish holding unit". The Standard (Kenya). Nairobi, Kenya. Retrieved 25 November 2021.
  10. BDA Reporter (12 November 2014). "Mortgage firm Housing Finance set to form holding unit". Business Daily Africa. Nairobi, Kenya. Retrieved 25 November 2021.
  11. HFCK (November 2021). "The Branches of Housing Finance Company of Kenya". Housing Finance Company of Kenya (HFCK). Nairobi, Kenya. Retrieved 25 November 2021.
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