East African Development Bank (EADB) has signed a Kshs620 million credit facility with integrated financial services provider, Housing Finance
The credit facility will be used to finance the construction of Kahawa Downs development Estate in Kahawa, Kiambu County.
Housing Finance has entered into a joint venture partnership with a land owner to develop the 220 housing units targeting the middle income market.
Housing Finance, Managing Director, Mr. Frank Ireri, said the credit facility was in line with an agreement signed between the two organizations to jointly co-finance large scale projects.
“This project is our first project since signing a partnership agreement to undertake joint co-financing of large scale projects,” said Mr Ireri.
EADB Director General, Ms. Vivienne Yeda said the growth of the middle class, which currently is estimated at 45% of the population, rapid urbanization and the emergence of growth centres around County Governments, presented a real business opportunity for both the private and public sectors in provision of housing to meet the growing demand. She noted that urban population increased from 5.4 million in 1999 to an estimated 14.24 million in 2012 and is projected to increase to 17.64 million in 2017.
“Investing in this sector will create jobs and can help tackle the mushrooming of unplanned and informal settlements in and around urban areas,” said Ms. Yeda.
EADB has invested more than $90 million in the construction sector in the last few years underscoring its commitment to the development of adequate housing and shelter for the populations of its Member States.
Kahawa Downs development Estate is the second joint venture project between Housing Finance through its wholly owned Subsidiary Kenya Building Society (KBS) and a land owner.
The firm has embraced the concept of Joint ventures to further raise its involvement in the supply of affordable housing units.
Housing Finance has established partnerships, collaborations and joint ventures with persons with huge tracts of land where the company can develop substantial number of housing units to meet current demand.
The supply strategy is projected to accelerate Housing Finance presence as a major supplier of affordable housing; spearheading appropriate product development for the informal sector and middle to low income earners.
The mortgage firm in 2010 signed a co-financing agreement with Shelter-Afrique, a regional housing finance and development institution involved in financing housing and related infrastructure development in Africa.
Housing Finance has diversified its funding sources to reduce reliance on expensive short-term deposits.
For over forty eight years, Housing Finance has been “turning dreams into homes” for thousands of Kenyan families and housing developers. Mainly by providing easy access to mortgage finance and by enabling our clients to save money as they build, buy and own their homes.
Housing Finance has managed to maintain substantial market share and remains the dominant industry leader based on mortgage loans value and number of mortgage customers.
At HF, our mission is to remain the leading integrated solutions enabler for the property industry. We offer innovative products and services, delivered all-under one roof by exceptionally committed people to enhance shareholder value. Our business is anchored on multiplatform solutions across the property value-chain as suppliers and financiers that offer unique solutions to all while being environmentally responsible.
The East African Development Bank (EADB) was established in 1967 under the treaty of the then East African Cooperation. Its mandate was to provide financial and related assistance to enterprises in the member States which, by their activities, were expected to make a positive contribution to socio-economic development in the region.
The Bank was re-established under its own Charter in 1980.
Under the Charter, the Bank’s role and mandate were reviewed and its operational scope expanded to include a broad range of financial services in the Member States with an overriding objective of strengthening socio-economic development and regional integration.
EADB is today owned by the four Member States of Kenya, Uganda, Tanzania and Rwanda as well as other development and commercial financial institutions. Being an organ of the EAC and its partnership with EAC institutions has accorded it a platform to play a catalysing role in regional integration through provision of development finance. The ensuing prospects conform to the Bank’s envisaged stable outlook.