HF to Speed Up Komarock Projects to Boost Profit

MORTGAGE lender Housing Finance has said it will fast-track completion of a residential estate and shopping mall it is constructing at Nairobi’s Komarock Estate to boost profit this year.

HF whose half-year profit rose by a modest 2.25 per cent to Sh485.14 million, according to financial results released yesterday, announced it will also start construction of five commercial and residential projects before end of the year.

HF managing director Frank Ireri said the company was on course to complete Komarock phase 5B and Kmall to improve sales and increase profitability in the fourth quarter.

The company, through its subsidiary the Kenya Building Society, is also finalising the development of Kahawa Downs estate consisting of 220 units of two-and three-bedroom apartments.

KBS is also set to start development of Komarock phase 5C, consisting of 1,272 apartments and Precious Gardens phase 2 consisting of 144 houses, 240 apartments along Kamiti Road and 1,100 residential apartments along Thika Road.

KBS also plans to develop and service l,024 plots along Ruiru-Kiganjo Road for sale.

“The group’s strategy is to phase all developments so that income is consistent each financial year. In the next two quarters, we expect good contributions from Kenya Building Society’s ongoing projects,” Ireri said.

During the first half of the year, HF’s customer deposits increased by 35 per cent to Sh37.43 billion from Sh27.66 billion. Loans and advances issued were higher by 29 per cent to Sh49.98 billion from Sh38.8 billion during the first half 2014.

Gross non-performing loans and advances increased marginally to Sh4.15 billion from Sh3.87 billion in 2014.

HF has also announced plans to seek a loan in foreign currency to use for on-lending due to high demand in the market. Ireri said there is growing need for credit denominated in foreign currency for a number of its projects.