Case Study 7 (Presentation) | The Transformation of the Housing Finance Company of Kenya

The Housing Finance Group—previously Housing Finance Kenya—underwent a remarkable transformation, from what was once a state-owned mortgage bank in Kenya with a non-performing loan rate of over fifty percent to a fully privatised, commercial bank whose success enables it to offer bonds on the open market. CAHF commissioned a case study of this transformation to add to the growing track record of novel solutions and initiatives, pioneered by policy makers, financiers, developers and households themselves. Housing Finance, which was established jointly by the UK’s CDC and the Kenyan government, found new anchor shareholders, entered new markets through diversification, and sourced additional financing through the issuing of rights and corporate bonds.


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The case of the Housing Finance Group demonstrates the potential for revitalisation of non-performing public and private institutions, and also that mortgage providers may have the opportunity to diversify along the housing finance value chain, providing integrated property, banking and investment solutions. We hope that this case study, and the other case studies in the series, contribute to the development of imaginative solutions by housing finance practitioners across the continent, assisting them in adapting initiatives to manage the vast array of challenges they face daily.

This case study was prepared with the support of FSD Africa

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