Mortgage provider Housing Finance has revived its dormant construction arm in a bid to cash in on the lucrative property development market.
The subsidiary, known as the Kenya Building Society (KBS), was officially revived on May 9 – ending a 13-year dormancy period.
HF managing director Frank Ireri said they will use KBS to build houses for sale for the mass market in a bid to increase their revenue while advancing acquisition of mortgage loans.
“Building houses for sale will broaden our products thus positioning us to make profit from every step of the home supply chain besides advancing acquisition of home loans,” he said.
KBS has already began construction of a 162 residential housing project dubbed Komarock Phase 5A estate in the Eastlands area of Nairobi.
The decision to revive KBS, which was a major player in the property development market in the 1980s and 1990s, was informed by the super profits property developers are currently making thanks to the big shortfall in homes supply – estimated at 2 million units.
Housing Finance had earlier unveiled a property development package targeting land owners, where it sub-contracts professionals to put up homes while the land owners meet the cost in a mortgage-type arrangement.