Housing Finance overhauls operations to stimulate growth

Housing Finance  today announced the establishment of a non-operating holding company, HF Group limited, following approval by the Central Bank of Kenya (CBK).

This will result in the transfer of the mortgage finance business to a new subsidiary, HFC Limited. HFC Limited is licensed to carry out the business of a mortgage finance as well as banking services under the Banking Act.

Following this approval, the board has appointed Mr Frank Ireri as the Group Managing Director, with responsibility to oversee the HF Group subsidiaries. Mr Sam Waweru (formally Finance and Administration Director) has been appointed as the Managing Director, HFC Limited.

Shareholders of the firm will continue to own the same shares that they owned before the re-organization and these shares will remain listed on the Nairobi Stock Exchange. Mr Steve Mainda, the board chairman, said the new non-operating holding company will give the stimulus to register further growth.

RELATED: HOUSING FINANCE PLANS FIVE HOUSING PROJECTS THIS YEAR

“The re-organisation supported by funds from the recent rights issue, will give the group the impetus to register further growth and optimally deliver on its growth strategy,” said Mr.Mainda.

He said the Group holding structure will allow for the management and oversight of the group from an entity that is better positioned to raise capital and channel it to the group’s entities as appropriate. “This restructuring will also present HF Group with an easier route for acquisition and investment. The non-operating holding company will host the group brand and function as a shared service centre for the subsidiaries,” said Mr Mainda.

Mr. Mainda said that plans are underway to embark on a rebranding to support identity of the new group structure.

The Banking Act permits non-operating holding companies approved and regulated by the CBK to own more than 25% of the equity of banks, financial institutions and mortgage finance companies whilst also investing subsidiaries engaged in other businesses, hence the reorganisation.

NEXT READ: SAFARICOM, GOOGLE LAUNCHED TRAFFIC INFORMATION SERVICE