Housing Finance revives construction arm with Komarock estate plan

Housing Finance has revived its property development subsidiary Kenya Building Society which has been dormant for 13 years to help in its re-entry into the lucrative construction sector.

The mortgage lender will use the subsidiary to develop a mixed-use development in Komarock estate in Nairobi consisting 162 residential houses and a commercial centre.

HF says the re-entry into the property development business will be critical in diversifying its revenue streams and cut reliance on interest income from the mortgage loans business.

“Housing Finance intends to raise its involvement on the supply side of residential middle and lower income housing which will in turn create significant lending opportunities for the company,” said Frank Ireri, the HF managing director during the ground breaking for the project in Komarock on Wednesday.

KBS has in the past built the existing phases of Komarock estate and Buru Buru.

Housing Minister Soita Shitanda said that the government was setting up the legal framework that would accelerate the delivery of housing like adoption of cheaper building technologies and establishment of the National Housing Fund to facilitate the development of affordable housing through access to affordable funds.

“The National Housing Development Fund will act as an additional source of funding for housing development in the country as the Bill proposes that five per cent of the annual national budget be allocated to housing,” said Mr Shitanda at the same event.