Housing Finance Group PLC, a multi-dimensional financial services provider, has received a cash injection of Ksh1 billion from Britam Holdings, to strengthen the Group’s core activities.
“The investment comes on the back of a formidable turnaround strategy that is poised to see the business transform into a full-service bank,” HF’s chief executive Robert Kibaara said in a statement.
“This is indeed a major vote of confidence informed by the results already being witnessed through our business transformation initiatives.”
“The capital will also boost HF Group’s strategy focusing on end-user financing for affordable housing and create opportunities for Kenyans in the middle-income bracket to own homes,” HF said in a statement.
“The group has signed agreements with the National Government to finance buyers of Park Road affordable housing projects and private sector developers, including real estate developer Tecnofin Limited, which is developing 1,562 affordable housing units in Pangani.”
Housing Finance reported posted Ksh 730.2 million loss after tax in its Q3 2020 financial results compared to Ksh.84.6 million Q3 2019 (-763%) due to depleted operating income streams with both interest and noninterest income plunging.
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 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.