HF Group, a Nairobi listed mortgage lender has begun the process of seeking strategic investors to acquire a stake in the firm. The aim of the proposed transaction is to strengthen the Group’s capital in line with its strategic direction.
According to Robert Kibaara, the Group’s CEO, the process is still ongoing and that no formal transaction has been concretized.
According to the HF Group’s financial statements for the period ended 31st December 2021, the Group made a net loss of KSh 1.7 Billion compared to a net loss of KSh 137 Million in 2019.
The firm’s half-year loss for 2021 stood at KSh 263.9 Million compared to a net loss of KSh 295.5 Million at the end of 30th June 2020,
The HF Group was registered as a non – operating holding company (under the Banking Act Cap.488), regulated by the Central Bank of Kenya (CBK) in August 2015. The holding company oversees the operations of the Group subsidiaries, which include HFC, HF Insurance Agency, HF Development and Investment (HFDI) and the HF Foundation.
The HF Group structure was set up to enhance corporate governance, provide oversight in the management of the subsidiaries and ensure optimal growth at both Group and subsidiary levels.
HF GROUP SUBSIDIARIES
The HF Group is listed on the Nairobi Securities Exchange (NSE), and has four operational subsidiaries; HFC Limited – licensed to carry out the business of mortgage finance as well as banking services under the Banking Act.
HF Development and Investment Limited – (formerly known as Kenya Building Society Limited) undertakes real estate development. HF Insurance Agency Limited – Bancassurance solutions and HF Foundation Limited – The Group’s social investment arm.
During the 2020 period, the Board gave approval for additional capital in the form of debt from the Group’skey shareholder, Britam Holdings Plc which was received on 1st February 2021.
This capital of KShs. 1 billion, is set to power business growth and specifically the diversification into full-service banking.
Whilst the Group’s overall financial performance was side-tracked by the pandemic, the full-service bank proposition has taken off; SME and Personal banking business units have been set up and are already making a contribution to the business. During the period deposits grew by KSh3 billion and customer numbers by 25 per cent.
There is speculation that Equity Bank was in talks to acquire the mortgage firm but Equity MD has dismissed this as mere speculation of the media.
The mortgage business is dominated by KCB Group, Equity and Stanbic Bank.
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