Affordable housing: Jua Kali sector boosted with Sh.4billion HF Group investment
What you need to know:
- HFC, will offer working capital, training, and capacity-building opportunities to Jua Kali Contractors Federation of Kenya members.
- Bank to offer a diverse array of financial solutions tailored to meet the needs of all players in the affordable housing ecosystem.
The HF Group, a leading banking conglomerate in Kenya, has joined forces with the Jua Kali Contractors Federation of Kenya (JKCFK) to facilitate access to credit and opportunities for the federation's members in the real estate sector.
The partnership aims to create synergies in the market by supporting Jua Kali artisans in adding value to their products and services, ultimately generating increased revenue.
The government of Kenya has granted preferential contracting for doors, windows and other ring-fenced items in affordable housing projects to the Jua Kali sector.
However, artisans have been unable to take full advantage of this opportunity due to a lack of financing.
To address this issue, HF Group's banking subsidiary, HFC, will offer working capital, training, and capacity-building opportunities to JKCFK members.
The training programmes, facilitated through a partnership with Strathmore University's Small Business Development Centers, will cover a range of topics, including idea conceptualization, procurement, financing, and exposure to strategic partners.
HF Group CEO Robert Kibaara emphasized the bank's commitment to the SME sector and its role in empowering lives, eradicating poverty, and promoting economic development.
"Our partnership with the Jua Kali Contractors Federation, dubbed HFC Ujenzi na Makao, provides tailor-made financing solutions to its members and clusters within HFC's lending policy and is a testament to our commitment to living up to our group's purpose: enriching lives," Kibaara said.
The bank will offer a diverse array of financial solutions tailored to meet the needs of all players in the affordable housing ecosystem. These solutions will cover financing for contracts in excavation, masonry, joinery, steel works, plumbing, and finishing.
The Principal Secretary of the State Department for Housing and Urban Development, Mr Charles Hinga, welcomed HFC's support.
"We have provided access to the market for the Jua Kali sector by ring-fencing doors, windows, and other key inputs in the affordable housing supply chain," Hinga said.
Affordable housing project
"This provides a growth opportunity for the Jua Kali sector to corporatize and be the developers of tomorrow. We also intend for every Jua Kali artisan to have the chance to be a homeowner by providing affordable home financing solutions," he said.
Through the HFC Ujenzi na Makao programme, JKCFK members will gain access to working capital, enabling them to undertake contracts under the Government of Kenya's affordable housing project.
Although members have been allocated 10 per cent of all affordable housing units, they have faced challenges in securing financing.
HFC will bridge this gap by providing mortgage financing, allowing individual members to own decent housing, enhancing their dignity, and enriching their lives.
To support this initiative, the bank has allocated Sh4 billion over the next few years to finance key players in the affordable housing ecosystem.