Housing Finance gets nod to establish holding unit

NAIROBI: Housing Finance, an integrated property and financial solutions provider, has announced the establishment of a non-operating holding company, HF Group Limited, following approval by the Central Bank of Kenya (CBK).

This new development will result in the transfer of the mortgage finance business of the company to a new subsidiary, HFC Limited.

HFC Limited is licensed to carry on 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 HF Group subsidiaries. Mr Sam Waweru (formerly Finance and Administration Director) has been appointed as the Managing Director, HFC Limited.

The shareholders of the firm will continue to own the same shares they owned before the re-organisation and these shares will remain listed on the Nairobi Securities Exchange.

Board Chairman Steve Mainda said the new non-operating holding company will give the stimulus to register further growth. "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," he said.

HOLDING STRUCTURE

He said the 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.

He said plans are already underway to embark on a re-branding exercise to support identity of the new group structure.

"The re-branding will be phased over few months and will create a strong brand identity for the group and subsidiaries. The new capability will allow the group to offer banking, financial, property and investment solutions across the value chain. We are no longer a mortgage firm; HF Group presents a financial and property powerhouse," he added.