Kenya Building Society revived after 13 years of dormancy

Housing Finance headquarters.
Housing Finance headquarters on Koinange Steet, Nairobi. PHOTO/FILE
Mortgage lender Housing Finance has revived its dormant property development arm in a bid to cash in on the lucrative property development market.

The construction subsidiary, known as the Kenya Building Society (KBS), has already embarked on the construction of a residential housing project dubbed Komarock Phase 5A in Nairobi’s Eastlands area.

KBS was a key player in the Kenyan property development market in the 1980s and 1990s before it became dormant for more than a decade until its revival on Wednesday, May 9.

“The investment through the Kenya Building Society is part of the government’s plan to provide adequate and affordable housing in partnership with other stakeholders,” Housing minister Soita Shitanda said during the groundbreaking event at the construction site in Komarock estate.

Housing Finance plans to use the subsidiary, which developed the existing phases of Komarock and Buru Buru estates, to build houses for the mass market.

“We are looking to partner with land owners to construct housing units to meet the rising demand especially from the middle and low income earners in the country,” Housing Finance managing director Frank Ireri said.

Mr Ireri said that the firm’s entry into the property development market will widen it’s products hence positioning the firm to make profit from every stage of the home supply chain while advancing acquisition of mortgages.

Early last year, Housing Finance launched a house construction package targeting land owners where it hires builders to construct homes while the land owners meet the cost in a mortgage-type arrangement.

EDITOR'S NOTE: Read the latest issue of Construction Business Review. Flip through the pages of the paper real-time or download a copy to read offline. Sign up for a FREE subscription to get the paper delivered to your inbox every month.