HF Group yesterday signed an agreement with Britam Holdings in a deal that will see the lender receive Sh1 billion tier 2 capital to boost growth.

The injection of funds which is part of HF Group’s broader strategy to power growth and cement its place as a full-service bank will also boost the firm’s capital base on the back of Covid-19 pandemic shocks.

HF Group Chief Executive Robert Kibaara says the funds are set to accelerate the bank’s operations by boosting Small and medium-sized enterprises (SMEs) through onward lending.

He said the capital will also allow HF Group excite its mortgage arm by intensifying end user mortgage finance specifically to the affordable housing segment.

“The investment comes on the back of a turnaround strategy that is poised to see the business transform into a full-service bank,” he said.

Kibaara said the cash injection will boost the bank’s mission of empowering entrepreneurs through trade financing, working capital and other short term facilities to spur the sector.

HF Group has diversified into new business segments such as SME banking, Diaspora Banking and Personal Banking and over that period, customer deposits have grown by Sh3.8 billion while interest expense has reduced by Sh1 billion.

Customer numbers have grown by 25 per cent on the back of a robust digital banking platform and diversified product offering.

Financial inclusion

Speaking during the event, outgoing Britam Holdings Chief Executive Dr Benson Wairegi said: “Our support will allow the bank to grow its full-service banking offering, deepen penetration of banking services and promote financial inclusion for all.”

This will be a boost to HF Group’s strategy on end-user financing for affordable housing and creating opportunities for Kenyans in the middle-income bracket to own homes.

The lender has signed agreements with the National Government to finance buyers of Park Road affordable housing projects and private sector developers, including real estate developer Tecnofin Limited, which is developing 1,562 affordable housing units in Pangani, Nairobi.