Three directors of the mortgage finance company, HF Group, are set to step down from the board on 28th May 2021 according to a notice sent by HF Group to investors. The three directors are; Ms Gladys Karuri, Dr Kaushik Manek, and Mr Adan Mohammed.
The lender is in the middle of a turnaround strategy that involves moving away from real estate as a core income stream, given the sectors’ performance which has left the company exposed to high defaults and Non-performing loans. The bank is also moving towards new channels of growth in retail and SME lending and strengthening its focus in personal, diaspora, and institutional banking.
HF Group was one of the companies severely affected by the covid19 pandemic. Some of the factors that led to the firm’s greatest loss were; limited credit supply in the real estate sector, low uptake of properties, and a steep jump in bad loans, as per the group’s financial report.
The company says that regardless of the ongoing decline of the real estate sector, it has beefed up its recovery of outstanding mortgage loans.
Earlier this year, Housing Finance Group received a Ksh 1 billion Capital Injection from its majority shareholder Britam Holdings to back its diversification, moving towards a full-service offering.
Housing Finance CEO said the company will commit a majority of the fresh funds to extend credit to retail and SME players, terming the investment as a vote of confidence.
“The investment comes on the back of a turnaround strategy that is poised to see the business transform into a full-service bank. This is a major vote of confidence informed by the results already being witnessed through our business transformation initiatives.” said CEO Robert Kibaara.
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Housing Finance Announces Board Changes
