Housing Finance eyes regional market to grow its mortgage portfolio

By James Anyanzwa

Housing Finance (HF) will tap regional markets for opportunities to boost its mortgage portfolio.

Managing Director Frank Ireri said the firm was studying the East African market to establish a strong footing in a region, enjoying robust economic growth.

"Kenya will remain our primary focus due to its relatively large size, and a huge demand for housing, which we expect will be sustained in the long term," he said.

In a statement yesterday, Mr Ireri said, the firm had not set a date for entry into regional markets, but would be looking at collaborations.

He said HF would establish partnerships with property developers and offer mortgage solutions while penetrating the regional markets.

East African economies have over the last few years experienced a tremendous boom in the construction industry.

Government policies in the region have opened up the housing industry to the private sector, which has played a key role in its development.

The East African Customs Union and the Common Market Protocol, which came into effect on July 1, are expected to increase business opportunities for regional firms.

Challenges linger

Ireri, however, noted the region continues to face challenges in matters of land tenure, infrastructure, professional and technical skills, and adequate mortgage finance.

"The major factor inputs into housing production such as serviced land, acceptable building materials, technology, and financing, are in short supply in most countries," he said.

He said majority of the cities in the region do not also have reliable databases available to aid in decision-making. "This is a reality in terms of land registration, status of the real estate market, land requirements for housing and economic activities," said Ireri. HF has successfully positioned itself as the main player in the property value chain under an ambitious property supply strategy.

The strategy targeting developers, land owners, service providers and building materials has led to creation of new business opportunities.