HFC

Housing Finance Company of

Kenya Limited (HFC) is one of Kenya's leading commercial banks, known for its excellence in mortgage lending and commitment to financial inclusion. As a subsidiary of HF Group PLC, HFC is committed to driving homeownership and economic development in Kenya through a diverse range of financial products, an extensive branch network and digital services. Its brand mission is to promote a culture of savings and homeownership, helping customers realize their dreams of home ownership, while providing financial support to small and medium-sized businesses and low-income groups.

HFC

is a private commercial bank established in November 1965 and initially jointly owned by the UK-based Commonwealth Development Corporation (CDC, 60%) and the Kenyan government (GoK, 40%). The headquarters are located at Rehani House, Koinange Street, Nairobi, Kenya, with geographical coordinates of 1°17'06.4" S and 36°49'10.0" E. HFC is a wholly owned subsidiary of HF Group PLC, which has been listed on the Nairobi Stock Exchange (NSE) since 1992. The shareholder structure has changed over time, with the CDC exiting in 2007 and institutions such as Equity and Britam acquiring shares, with Britam holding 47.2% of the shares as of 2015 and the rest held by the public and other investors.

HFC's services cover the whole of Kenya, with about 170 branches in major cities such as Nairobi, Mombasa, Nakuru, etc. The bank provides convenient cash withdrawals through the 1Link ATM network, enhancing financial accessibility for customers in urban and remote areas. HFC is regulated by the Central Bank of Kenya (CBK) [www.centralbank.go.keand is supervised by the Financial Sector Conduct Authority (FSCA) for its market conduct. The bank participates in the Kenya Deposit Insurance Corporation (KDIC) scheme, which protects customer deposits up to Ksh100,000 (approximately US$800). No significant compliance issues have been identified recently, indicating operational stability.

Financial

HealthHFC is in a strong financial position and is part of HF Group PLC, which reported a net profit of Ksh 388 million in 2023, up 46% year-on-year, demonstrating strong profitability. As of December 2020, HFC's total assets were Ksh 55,445 million (approximately US$497 million) and shareholders' equity was Ksh 8,562 million (approximately US$76.8 million). In 2015, HFC had a mortgage balance of Ksh 17 billion, customer deposits of Ksh 17 billion, corporate liabilities of Ksh 39 billion, and assets grew from Ksh 23 billion in 2006 to Ksh 45 billion in 2015. The non-performing loan ratio (NPL) improved from 66 per cent in the mid-1990s to 24 per cent in December 2006, indicating improved risk management capabilities.

Deposits &

LoansDepositsHFC

offers a wide range of deposit products to meet the needs of individual and corporate customers:

- Current Account: Launched in 2012 to support day-to-day transactions.

- Savings Accounts: Offer competitive interest rates to encourage savings, and the exact interest rate needs to be checked through your bank.

Loan

HFC has mortgage loans as its core business, supplemented by a variety of financing products:

- Commercial loans: provide financing to small and medium-sized enterprises to support business expansion.

- Microcredit: Targeting low-income groups to meet the needs of microfinance.

- Solar Water Heating System Loans: Supporting sustainable energy projects.

- Flexible repayment options: Deferred or adjusted repayment plans are available to meet the individual needs of customers.

List of common fees

fee structure of HFCs is not disclosed in detail in the public information and may include the following common fees:

- Account Management Fee: Some accounts may be exempt from monthly or annual fees, depending on the bank.

- Transfer fees: Domestic transfers may be free or lower, while cross-border transfers may be more expensive.

- Overdraft fees: A percentage of overdraft fees may apply.

- ATM Interbank Withdrawal Fees: Withdrawals made through non-HFC ATMs may incur fees.

Digital Service

ExperienceHFC provides digital services to enhance the customer experience:

- APP & Online Banking:

- Mobile Banking App: Supports real-time transfers, bill payments, account management, and ATM/branch locating.

- Core features: real-time transfers, bill payments, account management, ATM/branch locating.

- Technological innovation: 2001-2006 Invested in the Equinox technology platform with the introduction of ATM cards.

Quality of Customer

ServiceHFC is committed to providing high-quality customer service:

- Service Channels: 24/7 phone support, email, and online contact form available

- Complaint Handling: The bank is committed to responding quickly to customer needs, and the specific complaint rate and resolution time are not disclosed.

- Multi-language support: English and Kiswahili are supported, suitable for local and cross-border customers.

Security measures

of funds

Customer deposits are secured by the Kenya Deposit Insurance Corporation (KDIC) up to a maximum of Ksh 100,000. HFC uses standard anti-fraud technologies such as real-time transaction monitoring to ensure the safety of funds.

Market Position & Accolades

HFC is the second largest mortgage provider in Kenya with a mortgage balance of Ksh 33.7 billion in 2019 and a market share of approximately 28% (2014 data). HF Group PLC reported a net profit of Ksh 388 million in 2023, up 46% year-on-year, demonstrating its solid position in the Kenyan banking sector. Although its market share declined from 43% in 2006 to 28% in 2014, HFC remains a key player in the Kenyan mortgage market.

Summary

Housing Finance Corporation (Kenya) Limited (HFC) is a long-established private commercial bank that occupies an important position in the Kenyan banking sector with its leading position in the mortgage sector and diversified financial services. As a subsidiary of HF Group PLC, HFC provides mortgages, business loans, microcredit, savings accounts and insurance services to drive financial inclusion and home ownership. The bank enhances the customer experience through the Equinox technology platform and mobile banking app, and its solid financial performance, extensive branch network and commitment to sustainability make it a trusted financial partner in Kenya, despite some undisclosed information.

The Company has branches in the following locations:

1. Rehani Branch – Rehani House, Kenyatta Avenue at Koinange Street, Nairobi

2. Gill House Branch – Gill House, Moi Avenue, Nairobi

3. Buru Buru Branch – Epren Centre, Buru Buru, Nairobi

4. Mombasa Branch – Permanent House, Moi Avenue, Mombasa

5. Nakuru Branch – AFC Building, Geoffrey Kamau Way, Nakuru

6. Nyeri Branch – Kimathi Way, Nyeri

7. Eldoret Branch - KVDA Plaza, Oloo Street at Utalii Street, Eldoret

8. Kisumu Branch – Tivoli Centre, Court Road, Kisumu

9. Thika Branch – Thika Uhuru Street, Thika

10. Meru Branch – Westwind Annex Plaza, Tom Mboya Street, Meru

11. Kitengela Branch – Red Heron Centre , Kitengela

12. Ongata Rongai Branch – Maasai Mall, Ongata Rongai

13. Comarokenbu

14. Branch

,

15. South Newquay Branch

16. , River Branch

17. TRM Branch

,

18. Sameer Park Branch,

19. Naivasha Branch

20. , Machakos Branch

21. , Herlingham Branch.