Question 1

What is HFC Limited (Housing Finance)?

Accepted Answer

HFC Limited, formally known as Housing Finance Company Limited, is a commercial bank and mortgage finance institution in Kenya, regulated by the Central Bank of Kenya. As of December 2019, HFC was the second-largest mortgage lender in Kenya with approximately KSh33.7 billion (US$302 million) in mortgage loans outstanding.

The bank operates as a wholly-owned subsidiary of HF Group Limited, a non-operating holding company listed on the Nairobi Securities Exchange under the symbol HFCK. As of December 2020, HFC Limited's total assets were valued at approximately KSh55.4 billion (US$497 million), with shareholders' equity of KSh8.6 billion (US$76.8 million).

Question 2

When was HFC Limited (Housing Finance) founded?

Accepted Answer

HFC Limited was established on November 18, 1965, shortly after Kenya's independence, with the objective of promoting a savings culture and home ownership among Kenyan citizens. The institution was founded with investment from the Commonwealth Development Corporation (CDC), which held up to 60% of shares at one point, and the Government of Kenya, which owned 50% at certain periods.

In 1992, the company became listed on the Nairobi Stock Exchange. The institution adopted the shorter name "Housing Finance Limited" in 2002. In December 2014, the company underwent a significant restructure to comply with the Central Bank of Kenya's Banking Act and Prudential Guidelines, incorporating a new subsidiary called "HFC Limited" to which all banking and mortgage finance operations were transferred.

Question 3

Where is HFC Limited (Housing Finance) headquartered?

Accepted Answer

HFC Limited is headquartered in Rehani House, located at the intersection of Kenyatta Avenue and Koinange Street in Nairobi, Kenya's capital and largest city. The registered office address is Plot No. LR 209/9054, Rehani House, P.O. Box 30088-00100, Nairobi.

The bank's head office can be reached at telephone numbers 0709 438 000 and 0709 438 888, or via the toll-free helpline 0800 721 400.

Question 4

Where does HFC Limited (Housing Finance) operate?

Accepted Answer

HFC Limited operates a network of 22 branches across Kenya, strategically positioned in major urban centers and towns throughout the country. The branch network includes multiple locations in Nairobi (including Rehani, Gill House, Buru Buru, Westlands, Hurlingham, Komarock, River Road, TRM, and Sameer Park branches), as well as branches in key regional centers.

Regional branches include Mombasa, Nakuru, Nyeri, Eldoret, Kisumu, Thika, Meru, Nanyuki, Kitengela, Ongata Rongai, Embu, Naivasha, Machakos, and Kisii. This extensive footprint ensures accessibility for customers across Kenya's diverse geographic and economic regions.

Question 5

What services does HFC Limited (Housing Finance) offer?

Accepted Answer

HFC Limited provides comprehensive banking and mortgage finance services, including mortgage lending for home ownership, commercial and retail banking products, savings and investment accounts, checking accounts (authorized in 2010), personal loans, asset finance, micro-credit loans, and credit facilities. The bank specializes in property finance solutions, offering innovative products such as the "Ezesha" mortgage introduced in 2013, which provided 105% mortgage financing to enable home ownership.

Corporate services include SME banking, commercial banking, trade finance, group banking services, agricultural financing, and specialized lending for small-to-medium enterprises. The bank also operates HF Development and Investment Limited (HFDI) for property development and real-estate investment.

Digital banking services are robust, featuring a mobile banking app available for Android and iOS, USSD banking via the shortcode *618#, WhatsApp banking through HF Whizz service, and online banking platforms providing 24/7 access to accounts, fund transfers, bill payments, and mobile money transfers.

Question 6

What makes HFC Limited (Housing Finance) unique?

Accepted Answer

HFC Limited distinguishes itself as Kenya's historic mortgage specialist with over 55 years of focused expertise in housing finance. The bank pioneered mortgage lending in post-independent Kenya and continues to maintain its position as one of the country's leading mortgage financiers, holding a substantial share of Kenya's mortgage market.

The institution's transformation from a specialized mortgage financier to a full-service commercial bank while maintaining its core mortgage expertise sets it apart. HFC offers integrated property and financial solutions through its parent group's ecosystem, including real estate development, bancassurance services, and mortgage finance under one umbrella.

The bank has demonstrated innovation in product development, notably with its "Nyumba Yangu" savings account designed specifically for aspiring homeowners requiring savings as low as KSh125,000 to start their home ownership journey, and the Ezesha 105% mortgage financing solution.

Question 7

What type of financial institution is HFC Limited (Housing Finance)?

Accepted Answer

HFC Limited is a mortgage finance institution and commercial bank, a dual designation under Kenyan banking regulations. In Kenya's financial sector classification, this means the institution is licensed by the Central Bank of Kenya to conduct both mortgage finance business and full commercial banking operations under the Banking Act (Cap. 488).

This classification allows HFC to operate as a specialized lender focusing on property finance while simultaneously offering the complete range of banking services typical of commercial banks, including deposit-taking, lending, transaction banking, and trade finance. The institution is categorized as a tier-two lender within Kenya's banking sector hierarchy, operating below the largest banks but maintaining significant market presence, particularly in the mortgage segment.

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About HFC Limited (Housing Finance) in Kenya