Connect with us

Hi, what are you looking for?

Capital Business
Capital Business


Kenyan mortgage firm profit grows

NAIROBI, Kenya, Nov 16- Mortgage company Housing Finance (HF) Group has posted a 56 percent growth in its after tax profit to Sh139 million for the third quarter of the year.

HF Managing Director Frank Ireri attributed the growth to product innovation, loan disbursements, lower cost of funds and lower non-performing loans.

“These solid results were achieved based on a very clear strategy that is working well and has huge potential. In addition, we continue to focus on product innovation, customer service, credit risk management and cost control,” said Mr Ireri.

Loans and advances increased by 33 percent to Sh13 billion while the interest income increased to Sh1.2 billion up from Sh932 million during the corresponding period last year.

HF’s Net Non Performing Loans portfolio dropped to Sh801 million from Sh892 million during the corresponding period last year.

Mr Ireri said the firm was banking on innovation to break into new markets in a bid to ensure the provision of affordable housing for the majority of Kenyans.

Only about 35,000 housing units are developed every year in urban areas against a total demand of150,000 units.

The group has taken various initiatives in its quest to bridge this gap and recently launched a pension backed mortgage solution that allows potential home owners to use up to 60 percent of their accumulated pension benefits as additional collateral for the mortgage loans.

Housing Finance has also diversified into commercial property financing to grow revenues and has set up a unit which finances a range of property types including office space, retail shopping centers, industrial usage, hospitality and educational use.

Advertisement. Scroll to continue reading.

The financier expects demand to grow in the youth market; in urban areas and in the informal sector which employs 78 percent of the population.

Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...