Transcript - The Institution of Engineers of Kenya
Provision of Housing(services) in the Counties: HF & ENGINEERS.
IEK Conference @ KICC on The Role of Engineering Practitioners in the Implementation of the Constitution] May 9th 2012
Paper presented by Eng. ISAAC T. INANGA, Projects credit Manager.
For & on behalf of Mr. FRANK M. IRERI, MD HOUSING FINANCE
AGENDA
About Housing Finance Our core Business Housing Shortages in Counties-Siaya as An Example – Effective Demand(need) Structure of Devolution HF’s Sale Centers-Growing Distribution for a National Devolved Interface Opportunities in Devolution Conclusion/HF proposition
Property Solutions Provider With A Unique 46 years in both the Housing and Banking Sectors in Kenya
Incorporation of the Company
The founding investors were the Commonwealth Development Corporation and the Government of Kenya with respective shareholdings of 60% and 40% in the Company
Housing Finance gets listed on the NSE, with CDC and GoK retaining a shareholding of 30.4% each and Kenyan individual and institutional investors taking up the balance of 39.2%
The company rebrands its trading name to Housing Finance and welcomes anchor investors
CDC sells off its stake
Housing Finance successfully raises Kshs 2.4 billion by way of a Rights issue
Bond Issue – raised Kshs 7.5
billion 1965 1970 1992 1999 2002 -2011 GoK increases its stake in the company to 50.0%, becoming an equal shareholder with CDC GoK reduces its stake in the company to 7.3%, with Kenyan individuals and institutional investors increasing their stake to 62.3% Housing Finance also has two subsidiaries that are instrumental to its operations namely Kenya Building Society Limited (KBSL) and First Permanent (E.A) Limited
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BOARD OF DIRECTORS
Mr. Steve Mainda, EBS - Chairman Prof. Shem Migot-Adholla Mr. Benson Wairegi
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Mr. David Ansell Mr. Arthur Odera Mr. Peter Munga Mr. Frank Ireri – Managing Director
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Our Core Business Areas
Construction Financing
Government Housing Solutions/scheme Infrastructure financing Project Finance to Developers Makao Building solutions
Housing Supply Mortgage Financing Solutions
Residential Housing ( Middle and Lower Income Housing Units) Office Space Commercial and Trading Properties Civil servants schemes Home Owners Mortgage Home Freedom Mortgage Cyclical Mortgage Employer Sponsored Schemes
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Our Core Business Areas
Housing Development Bond Fixed Term Deposits
Investment Products
Call Accounts Current Accounts 1 st HOP Account Crossover Account
Savings Products
Daraja Account Treasure Account – WELCOME TO OUR STAND OUTSIDE FOR MORE DETAILS.
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Star Newspaper March 14
th
2012 An Example of How Counties(govt,univ,collge etc) Will Face Challenges in Housing-DEMAND EXISTS!
Housing Finance & Engineers
-We only and always lend against a security (no unsecured loans) Securities are buildings that have to be valued to determine LTV There CAN NEVER (???) BE A BUILDING without an Engineers involvement – we always use registered and professional Engineers We thus need each other (HF/Engs) to provide shelter at the counties.
PROPOSED BRANCH NETWORK: 20 BRANCHES AND 100 SALES CENTERS ALL OVER KENYA.
1 2 3 4 5 6 7 8 9 10 Sample HF Loan Portfolio by Geography COUNTY NAIROBI KIAMBU MOMBASA KAJIADO MACHAKOS NAKURU UASIN GISHU KISUMU NYERI TRANS NZOIA TOTAL LOAN BALANCE 14,905,734,684 2,009,839,048 1,840,570,654 1,197,727,589 607,248,579 500,877,951 278,312,621 229,768,458 133,670,600 84,781,758 % 67.02% No of Account s % 2776 59.93% 9.04% 8.28% 382 458 8.25% 9.89% 5.39% 2.73% 2.25% 1.25% 1.03% 0.60% 332 186 152 93 66 45 7.17% 4.02% 3.28% 2.01% 1.42% 0.97% 0.38% 7 0.15%
Nairobi Kakamega Bungoma Kiambu Nakuru Meru Kisii Kilif i Machakos Migori Mandera Kitui Kisumu Homa Bay Muranga Mombasa Uasin Gishu Makueni Turkana Narok Siaya Trans-Nzoia Kericho 500 3,138 1,661 1,631 1,623 1,603 964 943 939 894 885 855 851 842 819 758 1,152 1,356 1,110 1,099 1,029 1,026 1,013 969
Kenya’s Top 23 Counties By Population (demand) Will The Institute Place Chapters in Every Region to Provide Services?
1,000 1,500 2,000 2,500 3,000 3,500
Alternative Building Technology in the Counties-FOR SPEEDY ROLLOUT.
Kikambala (MBSA county) Housing Estate by (ELSEK), Kikambala 309 Bungalows
Examples of Alternative Technology
Police and Prisons in Kenya Universities - Presbyterian Church of East Africa (PCEA) University
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Opportunities in Devolution
Public Private Partnerships (PPPs) Servicing the National Government in Counties Land Banks –owned by Individual/counties Manufacturing Building Materials Locally – value additions at the counties.
To serve you better::::::___ The HF Current Account that Centralizes Property and Real Estate Transactions in Kenya
HF PROPOSITION
COUNTIES ARE A REALITY AND THE FUTURE ALL CITIZENS HAVE A RIGHT TO SERVICES –HOUSING IN PARTICULAR ENGINEERS & HF ARE OBLIGATED PROFFESSIONALLY (and now by law) TO PROVIDE A BASIC NEED – SHELTER TOGETHER LETS TAKE KENYA AHEAD.
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Thank You