- The Institution of Engineers of Kenya

Report
Provision of Housing(services) in the
Counties: HF & ENGINEERS.
IEK Conference @ KICC on
The Role of Engineering Practitioners in the
Implementation of the Constitution]
May 9th 2012
 Paper presented by
 Eng. ISAAC T. INANGA, Projects credit
Manager.
 For & on behalf of
 Mr. FRANK M. IRERI, MD
 HOUSING FINANCE
AGENDA
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About Housing Finance
Our core Business
Housing Shortages in Counties-Siaya as An Example – Effective
Demand(need)
Structure of Devolution
HF’s Sale Centers-Growing Distribution for a National
Devolved Interface
Opportunities in Devolution
Conclusion/HF proposition
Property Solutions Provider With A Unique 46 years
in both the Housing and Banking Sectors in Kenya
Incorporation of the Company
The founding investors were
the Commonwealth
Development Corporation and
the Government of Kenya with
respective shareholdings of
60% and 40% in the Company
1965
1970
The
Housing Finance gets
listed on the NSE, with
CDC and GoK retaining a
shareholding of 30.4%
each and Kenyan
individual and institutional
investors taking up the
balance of 39.2%
1992
company rebrands its
trading name to Housing Finance
and welcomes anchor investors
CDC sells off its stake
Housing Finance successfully
raises Kshs 2.4 billion by way of a
Rights issue
Bond Issue – raised Kshs 7.5
billion
1999
2002 -2011
GoK reduces its stake in the company
to 7.3%, with Kenyan individuals and
institutional investors increasing their
stake to 62.3%
GoK increases its stake in the
company to 50.0%, becoming
an equal shareholder with CDC
Housing Finance also has two subsidiaries that are instrumental to its operations
namely Kenya Building Society Limited (KBSL) and First Permanent (E.A) Limited
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BOARD OF DIRECTORS
Mr. Steve Mainda, EBS - Chairman
Prof. Shem Migot-Adholla
Mr. Benson Wairegi
5
Mr. David Ansell
Mr. Arthur Odera
Mr. Peter Munga
Mr. Frank Ireri – Managing Director
6
Our Core Business Areas
 Government Housing Solutions/scheme
Construction
Financing
Infrastructure financing
Project Finance to Developers
Makao Building solutions
Residential Housing ( Middle and Lower Income Housing
Units)
Housing Supply
Office Space
Commercial and Trading Properties
 Civil servants schemes
 Home Owners Mortgage
Mortgage Financing
Solutions
 Home Freedom Mortgage
 Cyclical Mortgage

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Employer Sponsored Schemes
Our Core Business Areas
Housing Development Bond
Investment Products
Fixed Term Deposits
Call Accounts
Current Accounts
 1st HOP Account
Crossover Account
Savings Products
Daraja Account
Treasure Account – WELCOME TO OUR
STAND OUTSIDE FOR MORE DETAILS.
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Star Newspaper March 14th 2012
An Example of How Counties(govt,univ,collge
etc) Will Face Challenges in Housing-DEMAND
Housing Finance & Engineers
 -We only and always lend against a security
(no unsecured loans)
 Securities are buildings that have to be valued
to determine LTV
 There CAN NEVER (???) BE A BUILDING
without an Engineers involvement – we
always use registered and professional
Engineers
 We thus need each other (HF/Engs) to provide
shelter at the counties.
Kenya’s 47 Counties
CURRENT BRANCH NETWORK
PROPOSED BRANCH NETWORK:
20 BRANCHES AND 100 SALES
CENTERS ALL OVER KENYA.
Sample HF Loan Portfolio by Geography
COUNTY
1
2
3
4
5
6
7
8
9
10
TOTAL
LOAN
BALANCE
%
No of
Account
s
%
NAIROBI
14,905,734,684
67.02%
KIAMBU
2,009,839,048
9.04%
382
8.25%
MOMBASA
1,840,570,654
8.28%
458
9.89%
KAJIADO
1,197,727,589
5.39%
332
7.17%
MACHAKOS
607,248,579
2.73%
186
4.02%
NAKURU
500,877,951
2.25%
152
3.28%
UASIN GISHU
278,312,621
1.25%
93
2.01%
KISUMU
229,768,458
1.03%
66
1.42%
NYERI
133,670,600
0.60%
45
0.97%
84,781,758
0.38%
7
0.15%
TRANS NZOIA
2776 59.93%
Nairobi
3,138
Kakamega
1,661
Bungoma
1,631
Kiambu
1,623
Nakuru
1,603
Meru
1,356
Kisii
1,152
Kilif i
1,110
Machakos
1,099
Migori
1,029
Mandera
1,026
Kitui
1,013
Kisumu
969
Homa Bay
964
Muranga
943
Mombasa
939
Uasin Gishu
894
Makueni
885
Turkana
855
Narok
851
Siaya
842
Trans-Nzoia
819
Kericho
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Kenya’s Top 23 Counties
By Population (demand)Will The Institute Place
Chapters in Every Region
to Provide Services?
758
500
1,000
1,500
2,000
2,500
3,000
3,500
Alternative Building Technology in the
Counties-FOR SPEEDY ROLLOUT.

Kikambala (MBSA county) Housing Estate by
(ELSEK), Kikambala 309 Bungalows
Examples of Alternative Technology
Police and Prisons in Kenya
 Universities - Presbyterian Church of East
Africa (PCEA) University

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Opportunities in Devolution
Public Private Partnerships (PPPs)
 Servicing the National Government in Counties
 Land Banks –owned by Individual/counties
 Manufacturing Building Materials Locally – value
additions at the counties.
 To serve you better::::::___
 The HF Current Account that Centralizes Property
and Real Estate Transactions in Kenya

HF PROPOSITION
COUNTIES ARE A REALITY AND THE
FUTURE
 ALL CITIZENS HAVE A RIGHT TO
SERVICES –HOUSING IN PARTICULAR
 ENGINEERS & HF ARE OBLIGATED
PROFFESSIONALLY (and now by law)
TO PROVIDE A BASIC NEED –
SHELTER
 TOGETHER LETS TAKE KENYA AHEAD.

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Thank You

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