HF Group, through its banking subsidiary HFC has partnered with the Jua Kali Contractors Federation of Kenya (JKCFK) to ease credit access and provide opportunities for Jua Kali artisans in real estate value chain.
The lender has put in Sh4 billion for the next few years to finance players in the affordable housing ecosystem, pointing towards enhanced participation in the country's real estate space.
The deals seeks to create synergies in the real estate market by supporting the artisans with value addition for their products and services for increased revenue generation.
According to HF Group CEO, Robert Kibaara, the deal will come in handy for the Jua Kali sector which was allocated the preferential contracting of doors, windows and other ring-fenced items for all affordable housing works.
"We noted that lack of financing to service the contracts has hindered uptake of this opportunity by the artisans, and therefore, through this partnership, we will provide the artisans with working capital in addition to training and capacity building opportunities," Kibaara said.
"These will include idea conceptualisation to procurement of products and services, financing, joint market research and exposure to strategic partners."
The financial solutions include, financing for contracts in excavation, masonry, joinery, steel works, plumbing and finishings.
Dubbed 'HFC Ujenzi na Makao', the product will seek to suit the needs of all players in the affordable housing ecosystem, Kibaara added in part.
The Principal Secretary State Department for Housing and Urban Development Charles Hinga, welcomed the deal terming it essential in bolstering Jua Kali's capacity to deliver in the supply chain.
"We have provided access to market for the sector by contracting them to provide ring-fencing doors, windows and other key inputs in the affordable housing supply chain. This deal will provide a growth opportunity for the sector to corporatise and be the developers of tomorrow," Hinga said.
He added that the government is further intending to have every Jua Kali artisan to have the chance to be a home owner by providing affordable home financing solutions.
Registered artisans under the programme will be able to access working capital to facilitate works contracted for under the affordable housing project.
The Federation members have also been allocated 10 per cent of all the affordable housing units.
Through the programme, the lender will also provide mortgage financing to enable individual members own decent housing hence giving them dignity and enriching their lives.
