HF Group has partnered with the Jua Kali Contractors Federation of Kenya (JKCFK) to provide financing and support to artisans in the real estate value chain. The aim of the partnership is to boost participation in Kenya’s affordable housing ecosystem by providing artisans with working capital, training, and capacity building opportunities. The lack of financing has hindered the uptake of affordable housing contracts by artisans in the Jua Kali sector, leading HF Group to commit Sh4 billion over the next few years to finance players in the sector.
The partnership will create synergies in the real estate market by providing value addition for the artisans’ products and services. Financing solutions will include working capital for contracts in excavation, masonry, joinery, steel works, plumbing, and finishings. The product is named ‘HFC Ujenzi na Makao’, and will cater to the needs of all players in the affordable housing ecosystem.
Registered artisans under the program will be able to access working capital to facilitate contracted works for the affordable housing project. The Federation members have also been allocated 10% of all affordable housing units, and the lender will provide mortgage financing to enable individual members to own decent housing.
The Principal Secretary State Department for Housing and Urban Development has welcomed the deal, recognizing it as a growth opportunity for the sector to corporatize and be the developers of tomorrow. The government is also intending to provide affordable home financing solutions to every Jua Kali artisan, providing 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.