HF Group, through its banking subsidiary HFC has entered into a partnership with the Jua Kali Contractors Federation of Kenya (JKCFK) that will see the lender support the federation and its members with access to credit and opportunities for enhanced participation in Kenya’s real estate value chain.
The partnership includes a Ksh.4 billion facility which will finance Jua Kali players in the affordable housing ecosystem
The two parties are expected to create synergies in the real estate market by supporting Jua Kali artisans with value addition for their products and services for increased revenue generation.
The Jua Kali sector has been allocated preferential contracting of doors, windows and other ringfenced items for all affordable housing works by the Government of Kenya, but lack of financing to service the contracts has hindered uptake of this opportunity.
HFC will provide the artisans with working capital in addition to training and capacity building opportunities including idea conceptualization to procurement of products and services, financing, joint market research and exposure to strategic partners.
These trainings will leverage a partnership that the lender has with Strathmore University’s Small Business Development Centers, which will facilitate the training programs.
“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.” said HF Group CEO, Robert Kibaara.
The bank will provide a bouquet of financial solutions structured to suit the needs of all players in the affordable housing ecosystem. This includes financing for contracts in excavation, masonry, joinery, steel works, plumbing and finishings.
“This provides a growth opportunity for the Jua Kali sector to corporatise and be the developers of tomorrow. We also intend for every Jua Kali artisan to have the chance to be a home owner by providing affordable home financing solutions” stated the Principal Secretary, Mr. Charles Hinga.
Through the HFC Ujenzi na Makao programme, the Federation members will access working capital to facilitate works contracted for under the Government of Kenya’s affordable housing project.
The Federation members have been allocated 10 percent of all the Government of Kenya affordable housing units but members have faced challenges accessing financing in order to realize this benefit.
The bank will bridge this gap by providing mortgage financing to enable individual members own decent housing hence giving them dignity and enriching their lives.
