HF Group to spend Sh7.9bn in regional expansion plan

By: JAMES KARIUKI

HF Group will spend Sh7.9 billion to take its mortgage and banking services to East and Central Africa.

Group Chairman Steve Mainda said this is aimed at enhancing returns to its shareholders while playing a major role in providing affordable homes under its one-stop shop model where clients will access banking, mortgage, property development and insurance services under one roof.

Speaking when he addressed the 50th anniversary celebrations at Inter-Continental Hotel in Nairobi, Mr Mainda said plans were at an advanced stage to launch a mobile based online platform which will also herald a range of innovative products for tech-savvy Kenyans.

“To usher in the new year, we shall launch the HFC mobile app, Master card and online banking to give our clients unfettered access to their bank accounts and also enable them transact all commercial activities on the go,” said Mr Mainda.

MORE SUBSIDIARIES

The chairman said that were also plans to establish more subsidiaries to drive its housing development market to high and low income groups.

HF Group had earlier hinted on its plans to launch an affordable prefabricated technology company to complement its ongoing social programme.

It has established a skills development centre in Komarock where it is putting up a Sh10.5 billion property that comprises of 1,272 housing units targeting the high income groups.

HF Group, said Mr Mainda, enjoyed a strong capital base especially after it successful rights issue that raised Sh3.5 billion while the rest of the money for the planned expansion was sourced from its internal sources.

He said that its assets had grown to Sh9.9 billion while customer deposits stood at Sh8.4 billion adding that this is expected to triple once it hits the 40-branch mark in the next three years.

To create the next wave of growth, HFC plans to focus on its core mortgage lending and banking efforts on the under-penetrated, upper middle income and affluent market segments.

HF Group is now owned largely by the public, the government and Britam, a diversified financial services group.

SOURCE: DAILY NATION