Housing Finance Company of Kenya
Encyclopedia
Housing Finance Company of Kenya, whose official name is Housing Finance Company Limited, but is also known as Housing Finance (HF), is a mortgage
finance provider in Kenya
. The company is the only mortgage company regulated by the Central Bank of Kenya
, the national banking regulator.
n population. , the company's gross mortgage loan portifolio stood at over US$212 million, representing approximately 35% of all mortgages in Kenya
, by value. Shares of the stock
of Housing Finance are listed on the Nairobi Stock Exchange
(NSE), where they trade under the symbol HOUS. On 25 October 2010, the company's market capitalization was estimated at over US$845 million.
. 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.
of Housing Finance Company of Kenya, are listed on the Nairobi Stock Exchange
. The major shareholders in the mortgage company are listed in the table below:
{| style="font-size:95%;"
|-
| width="80%" align="center" | Housing Finance Limited Stock Ownership
|- valign="top"
|
{| class="wikitable sortable" style="margin-left:auto;margin-right:auto"
! style="width:2em;" |Rank !!Name of Owner!!Percentage Ownership
|-
|1||Public||60.80
|-
|2||Equity Bank Group
||24.90
|-
|3||British American Investment Company Limited (BAICL)||07.50
|-
|4||National Social Security Fund of Kenya
(NSSF)||06.80
|-
|5||Government of Kenya||03.70
|-
| ||Total||100.00
|-
|}
. Frank Ireri is the Managing Director of Housing Finance.
Mortgage loan
A mortgage loan is a loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which secures the loan...
finance provider in Kenya
Kenya
Kenya , officially known as the Republic of Kenya, is a country in East Africa that lies on the equator, with the Indian Ocean to its south-east...
. The company is the only mortgage company regulated by the Central Bank of Kenya
Central Bank of Kenya
The Central Bank of Kenya is Kenya's central bank. The bank is located in Nairobi. The current governor of the bank is Professor Njuguna Ndungu whose appointment took effect from March 4, 2007...
, the national banking regulator.
Overview
Housing Finance Limited is a large mortgage finance company, serving the mortgage needs of the KenyaKenya
Kenya , officially known as the Republic of Kenya, is a country in East Africa that lies on the equator, with the Indian Ocean to its south-east...
n population. , the company's gross mortgage loan portifolio stood at over US$212 million, representing approximately 35% of all mortgages in Kenya
Kenya
Kenya , officially known as the Republic of Kenya, is a country in East Africa that lies on the equator, with the Indian Ocean to its south-east...
, by value. Shares of the stock
Stock
The capital stock of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors...
of Housing Finance are listed on the Nairobi Stock Exchange
Nairobi Stock Exchange
The Nairobi Securities Exchange is the principal stock exchange of Kenya. It began in 1954 as an overseas stock exchange while Kenya was still a British colony with permission of the London Stock Exchange. The NSE is a member of the African Stock Exchanges Association...
(NSE), where they trade under the symbol HOUS. On 25 October 2010, the company's market capitalization was estimated at over US$845 million.
History
The company was established in November 1965, to promote a savings culture and home ownership among the citizens on newly independent KenyaKenya
Kenya , officially known as the Republic of Kenya, is a country in East Africa that lies on the equator, with the Indian Ocean to its south-east...
. Major investors in the company included the Commonwealth Development Corporation
Commonwealth Development Corporation
The Commonwealth Development Corporation, now known as CDC Group plc, is a British development organisation owned by the UK Government...
(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
Nairobi Stock Exchange
The Nairobi Securities Exchange is the principal stock exchange of Kenya. It began in 1954 as an overseas stock exchange while Kenya was still a British colony with permission of the London Stock Exchange. The NSE is a member of the African Stock Exchanges Association...
, 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
Central Bank of Kenya
The Central Bank of Kenya is Kenya's central bank. The bank is located in Nairobi. The current governor of the bank is Professor Njuguna Ndungu whose appointment took effect from March 4, 2007...
, authorized HFL to issue and operate checking accounts; having been authorized to issue and operate savings accounts in the past.
Ownership
, the shares of stockStock
The capital stock of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors...
of Housing Finance Company of Kenya, are listed on the Nairobi Stock Exchange
Nairobi Stock Exchange
The Nairobi Securities Exchange is the principal stock exchange of Kenya. It began in 1954 as an overseas stock exchange while Kenya was still a British colony with permission of the London Stock Exchange. The NSE is a member of the African Stock Exchanges Association...
. The major shareholders in the mortgage company are listed in the table below:
{| style="font-size:95%;"
|-
| width="80%" align="center" | Housing Finance Limited Stock Ownership
|- valign="top"
|
{| class="wikitable sortable" style="margin-left:auto;margin-right:auto"
! style="width:2em;" |Rank !!Name of Owner!!Percentage Ownership
|-
|1||Public||60.80
|-
|2||Equity Bank Group
Equity Bank Group
Equity Bank Group, is a financial services organization in East Africa. The Group's headquarters are located in Nairobi, Kenya, with subsidiaries in Kenya, Uganda, and South Sudan...
||24.90
|-
|3||British American Investment Company Limited (BAICL)||07.50
|-
|4||National Social Security Fund of Kenya
Kenya
Kenya , officially known as the Republic of Kenya, is a country in East Africa that lies on the equator, with the Indian Ocean to its south-east...
(NSSF)||06.80
|-
|5||Government of Kenya||03.70
|-
| ||Total||100.00
|-
|}
Branch network
The company maintains branches at the following locations:- Main Branch - Rehani House, Kenyatta Avenue, NairobiNairobiNairobi is the capital and largest city of Kenya. The city and its surrounding area also forms the Nairobi County. The name "Nairobi" comes from the Maasai phrase Enkare Nyirobi, which translates to "the place of cool waters". However, it is popularly known as the "Green City in the Sun" and is...
- Moi Avenue Branch - Gill House, Moi Avenue, NairobiNairobiNairobi is the capital and largest city of Kenya. The city and its surrounding area also forms the Nairobi County. The name "Nairobi" comes from the Maasai phrase Enkare Nyirobi, which translates to "the place of cool waters". However, it is popularly known as the "Green City in the Sun" and is...
- Kenyatta Market Branch - Maserah House, Kenyatta Market, NairobiNairobiNairobi is the capital and largest city of Kenya. The city and its surrounding area also forms the Nairobi County. The name "Nairobi" comes from the Maasai phrase Enkare Nyirobi, which translates to "the place of cool waters". However, it is popularly known as the "Green City in the Sun" and is...
- Buru Buru Branch - Epren Centre, Buru Buru, NairobiNairobiNairobi is the capital and largest city of Kenya. The city and its surrounding area also forms the Nairobi County. The name "Nairobi" comes from the Maasai phrase Enkare Nyirobi, which translates to "the place of cool waters". However, it is popularly known as the "Green City in the Sun" and is...
- Mombasa Branch - Permanent House, Moi Avenue, MombasaMombasaMombasa is the second-largest city in Kenya. Lying next to the Indian Ocean, it has a major port and an international airport. The city also serves as the centre of the coastal tourism industry....
- Nakuru Branch - AFC Building, Geoffrey Kamau Way, NakuruNakuruNakuru, the provincial capital of Kenya's Rift Valley province, with roughly 300,000 inhabitants, and currently the fourth largest urban centre in the country, lies about 1850 m above sea level...
- Nyeri Branch - Meghirutshi Building, Kimathi Way, NyeriNyeriNyeri is a town in situated in the Central Highlands of Kenya Kenya, which was the administrative headquarters of the country's former Central Province...
- Eldoret Branch - KVDA Plaza, Oloo Street, EldoretEldoretEldoret is a town in western Kenya and the administrative centre of Uasin Gishu District of Rift Valley Province. Lying south of the Cherangani Hills, the local elevation varies from about 2100 metres above sea level at the airport to more than 2700 metres in nearby areas...
- Kisumu Branch - Tivoli Centre, Court Road, KisumuKisumuKisumu is a port city in western Kenya at , with a population of 355,024 . It is the third largest city in Kenya, the principal city of western Kenya, the immediate former capital of Nyanza Province and the headquarters of Kisumu County. It has a municipal charter but no city charter...
- Thika Branch - Uhuru Street, ThikaThikaThika is an industrial town in Central Province, Kenya, lying on the A2 road 40 km north east of Nairobi, near the confluence of Thika River & Chania River. Thika has a population of 200,000and is growing rapidly, as is the entire greater Nairobi area...
Governance
Steve Mainda, one of the non-executive directors, is the Chairman of the Board of DirectorsBoard of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...
. Frank Ireri is the Managing Director of Housing Finance.