The mortgage provider Housing Finance has put up for sale several high end homes in an attempt to recover funds. The houses up for auction are estimated to have a market value of KSh2 billion. The move is an attempt to reduce losses for the company that posted KSh598 million net loss in the last financial year.
Some of the properties on auction include a KSh300 commercial building and a KSh260 million hotel property. The firm’s CEO pointed out that not all properties on sale are due to non-payment of loans. Some real estate owners asked the mortgage company to sell the properties on their behalf.
Housing Finance has recorded a significant growth in the value of non-performing loans to reach KSh13 billion as of March 2019 up from KSh8.5 billion in March 2018. The mortgage firm is one of the many businesses in Kenya that have posted declining financial performance.
The dip in performance can be partly attributed to the slowdown in the real estate industry.
Housing Finance CEO Robert Kibaara revealed that the company is moving away from high-end properties and focusing on affordable housing where there is a great demand.
