Housing Finance has announced plans to launch five key housing projects within the second half of the financial year to bolter earnings. The company revealed this as it announced a marginal 2% growth in half year profit to Ksh485.14 million from Ksh474.44 the previous year.
Housing Finance, through its building subsidiary, Kenya Building Society (KBS) is set to commence development of Komarock Phase 5C consisting of 1,272 apartments; Precious Gardens phase 2 with 144 housing units as well as develop 240 apartments along Kamiti Road and 1,100 residential apartments along Thika Road. KBS plans to develop site and service for l,024 plots along Ruiru-Kiganjo Road.
KBS is currently developing a mall in Komarock and finalising the development of Kahawa Downs consisting of 220- 2 and 3 bedroom apartments units. Managing Director Frank Ireri said the KBS projects will be phased. “The group’s strategy is to phase all developments so that income is consistent each financial year. In the next two quarters, we expect good contribution from Kenya Building Society ongoing projects,” said Mr Ireri.
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He said Komarock phase 5B and Kmall are expected to be completed and sold this year, and thus will contribute to profitability in the fourth quarter. Mr Ireri said transformation into a full banking service offering will increase customer base and support delivery of a broader range of products and services.
“Our target is to open a maximum of 40 new branches by 2018 in major cities, emerging property hotspots and near KBS sites. It will lower our cost of deposits which will ultimately help reduce HF’s overall cost of funding,” said Mr Ireri.
During the period under review, Customer deposits increased by 35% to Ksh37.43 billion up from Ksh27.66 billion. Loans and advances increased by 29% to Ksh49.98 billion up from Ksh38.80 billion.
HF will offer shareholders Ksh0.65 shilling as interim dividend for 2015, a drop from Ksh0.75 dividend last year, which it attributes to the additional 116 million shares introduced during the year through a rights issue.
HF is currently undergoing a reorganisation to strengthen its long-term value, which will be supported by a rebranding. The firm, which is also celebrating its 50th anniversary, has embarked on its Vision 2020 strategic plan and has brought on board multinational management consulting firm, McKinsey to support the firm’s growth plans.
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