Housing Finance Company of Kenya (Housing Finance), a mortgage finance provider, is reportedly planning to set up a banking subsidiary named HFC Bank in 2015, subject to Central Bank of Kenya approval.
"We were looking for KES3.5bn ($37.5m) but we got KES9bn ($96.3m) which we want to use for the expansion and the establishment of new subsidiaries. The one we are going to have soon is the HFC Bank, subject to the CBK approval," Housing Finance managing director Frank Ireri was quoted as saying by the news portal The Star.
The new core banking system will expand the firm’s current banking function that focuses on mortgage financing by enabling it to roll out additional products to retail, corporate and small and medium enterprises customers.
The subsidiary will be opened through the establishment of a holding company that will oversee the project, reported the news publication.