HF Group PLC, a multi-dimensional financial services provider, is considering an intra-group reorganization of the business to strengthen the business operations.
In a cautionary announcement to investors, the transaction will involve the transfer of the business, various investments and transfer of liabilities of HF Development and Investment Limited to HFC Limited.
HF Development and Investment Limited undertake real estate development and HFC Limited is licensed to carry out the business of mortgage finance as well as banking services under the Banking Act.
“HF Group Plc has commenced the process of executing an internal corporate restructuring… The aim of the proposed transaction is to strengthen the Group’s core activities in line with the Group’s strategic direction,” said Robert Kibaara, Group Chief Executive in the announcement.
An intra-group reorganisation involves the transfer of group company share capital or group assets between two or more companies in the same corporate group.
The Group is listed on the Nairobi Securities Exchange (NSE) and has four operational subsidiaries which include HFC Limited, HF Development and Investment Limited, First Permanent (East Africa) Limited, HF Insurance Agency Limited and HF Foundation Limited.
HF Group has set an ambitious target to turn around performance and accelerate growth to profitability anchored on three structural service areas – building a digital bank, expansion into new banking segments and maintaining dominance in mortgage finance.
The Group’s business turnaround strategy includes diversification to full-service banking while leveraging digital transformation to enhance operational efficiency, customer experience, and accessibility.
HF is one of the lenders that have invested in the Kenya Mortgage Refinance Company (KMRC), which is set to unlock funds for lending to developers and buyers. This is poised to accelerate the affordability of housing in line with the Housing Pillar of the Government’s Big Four Agenda.