Housing Finance Company of Kenya

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Housing Finance Company of Kenya
Type Public company
NSE: HOUS
Industry Mortgage Banking
Founded 1965
Headquarters Nairobi, Kenya
Key people Steve Mainda
Chairman
Frank Ireri
Managing Director
Products Loans, Checking, Savings, Investments, Mortgages
Revenue IncreaseAftertax:US$11.7+ million (KES:995.2 million) (2013)[1]
Total assets US$548.4 million (KES:47.4 billion) (2013)
Website Homepage

Housing Finance Company of Kenya (HFCK), commonly referred to as Housing Finance, is a mortgage finance provider in Kenya, the largest economy in East Africa. The company is the only mortgage company regulated by the Central Bank of Kenya, the central bank and national banking regulator.[2]

Overview[edit]

Housing Finance Limited is a large mortgage finance company, serving the mortgage needs of the Kenyan population. As of December 2013, the company's total assets were valued at approximately US$548.4 million (KES:47.4 billion), with shareholders' equity of about US$67.8 million (KES:5.86 billion).[3] At that time, the institution was ranked number 17, by assets, out of the 43 licensed banks and mortgage finance companies in Kenya, then.[4] Shares of the stock of Housing Finance are listed on the Nairobi Stock Exchange (NSE), where they trade under the symbol HOUS.

History[edit]

The company was established in November 1965, to promote a savings culture and home ownership among the citizens of newly independent Kenya. Major investors in the company included the Commonwealth Development Corporation (CDC), whose shareholding at one time was as high as 60%, and the Government of Kenya, which at one time owned 50% of the company. CDC has since divested from Housing Finance Limited and the Kenyan Government has substantially reduced its shareholding.

In 1992 Housing Finance Company of Kenya became listed on the Nairobi Stock Exchange, where it trades under the symbol HOUS. The company adopted the shorter name of Housing Finance Limited, in 2002. In 2010, the Central Bank of Kenya, authorized HFL to issue and operate checking accounts; having been authorized to issue and operate savings accounts in the past.[5]

On June 30, 2014, British-American Investments Company (the second largest shareholder in HFCK) served the Housing Finance's board with a takeover notice to acquire Equity Bank Group's 24.76% shareholding in the mortgage financier. A move that would increase Britam's stake to 46.08%[6] and see Equity Bank Group end its seven-year investment in Housing Finance.[7][8]

Ownership[edit]

As of December 2013, the major shareholders in the stock of the mortgage company were as listed in the table below:[9]

Housing Finance Limited Stock Ownership
Rank Name of Owner Percentage Ownership
1 Equity Bank Group 24.78
2 Equity Nominees Limited A/C 00104 11.11
3 British American Insurance Company 8.84
4 National Social Security Fund 6.80
5 Government of Kenya 3.68
6 Equity Nominees Limited A/C 001102 2.27
7 CFC Stanbic Nominees Ltd A/C NR1030833 1.76
8 Mehul Patel & Praksha Patel 1.42
9 Jubilee Insurance Company of Kenya Limited 1.09
10 Kestrel Capital Nominees Limited 0.79
11 Institutional and Individual Investors on the NSE 38.50
Total 100.00

Note:[10]

  • Equity Bank Group is the largest direct shareholder in HFCK.[9] British-American Investments Company (Britam) has a 10.1% stake in Equity Bank group. This gives Britam 2.50% indirect control in HFCK.
  • Equity Nominees Limited A/C 00104 & 00110 are held on behalf of Britam.
  • British American Insurance Company is a wholly owned subsidiary of Britam.
  • By virtue of Indirect control, Britam had a 23.82% stake in HFCK as at December 31, 2013.

Branch network[edit]

The company maintains branches at the following locations:[11]

  1. Rehani Branch - Rehani House, Kenyatta Avenue at Koinange Street, Nairobi
  2. Gill House Branch - Gill House, Moi Avenue, Nairobi
  3. Maserah House Branch - Maserah House, Kenyatta Market, Nairobi
  4. Buru Buru Branch - Epren Centre, Buru Buru, Nairobi
  5. Mombasa Branch - Permanent House, Moi Avenue, Mombasa
  6. Nakuru Branch - AFC Building, Geoffrey Kamau Way, Nakuru
  7. Nyeri Branch - Kimathi Way, Nyeri
  8. Eldoret Branch -KVDA Plaza, Oloo Street at Utalii Street, Eldoret
  9. Kisumu Branch - Tivoli Centre, Court Road, Kisumu
  10. Thika Branch - Uhuru Street, Thika
  11. Meru Branch - Westwind Annex Plaza, Tom Mboya Street, Meru
  12. Kitengela Branch - Red Heron Centre, Kitengela
  13. Ongata Rongai Branch - Maasai Mall, Ongata Rongai
  14. Nyali Branch - Nyali Centre, Links Road, Nyali.

Governance[edit]

Steve Mainda, one of the non-executive directors, is the Chairman of the board of directors. Frank Ireri is the managing director of Housing Finance.[12]

See also[edit]

References[edit]

  1. ^ Ngigi, George (19 February 2014). "Housing Finance Posts 33.9% Growth In Net Profit". Business Daily Africa (Nairobi). Retrieved 7 August 2014. 
  2. ^ CBK, . "Directory of Commercial Banks And Mortgage Finance Companies" (PDF). Central Bank of Kenya (CBK). Retrieved 7 August 2014. 
  3. ^ HFCK, . (March 2014). "Audited 31 December 2013 Annual Report And Financial Statements" (PDF). Housing Finance Company of Kenya (HFCK). Retrieved 7 August 2014. 
  4. ^ Bankelele, . (28 April 2014). "Kenya Bank Rankings By Assets In 2013". Bankelele.Co.Ke. Retrieved 7 August 2014. 
  5. ^ Muiruri, Peter (26 June 2013). "A History of Missed Opportunities Housing Kenyans". The Standard (Nairobi). Retrieved 7 August 2014. 
  6. ^ "Proposed Acquisition by British-American Investments Company (Kenya) Limited of 57,270,000 Ordinary Shares of Housing Finance Company of Kenya Limited owned By Equity Bank Limited onder a private transaction". Rich Management <www.rich.co.ke>. British-American Investments Company Limited. July 1, 2014. Retrieved November 12, 2014. 
  7. ^ Equity keeps rivals guessing as it exits Housing Finance
  8. ^ Equity sale of HF stake to Britam lifts firms’ share prices
  9. ^ a b "Audited 31 December 2013 Annual Report And Financial Statements: Major Shareholders" (PDF). Housing Finance Company of Kenya (HFCK). December 31, 2013. Retrieved August 7, 2014. 
  10. ^ "Proposed Acquisition by British-American Investments Company (Kenya) Limited of 57,270,000 Ordinary Shares of Housing Finance Company of Kenya Limited owned By Equity Bank Limited onder a private transaction". Rich Management <www.rich.co.ke>. British-American Investments Company Limited. July 1, 2014. Retrieved November 12, 2014. 
  11. ^ HFCK, . "The Branches of Housing Finance Company of Kenya". Housing Finance Company of Kenya (HFCK). Retrieved 7 August 2014. 
  12. ^ People, . "Key People At Housing Finance Company of Kenya Limited". Thomson Reuters. Retrieved 7 August 2014. 

External links[edit]