A groundbreaking was held for the construction of a new Komarock estate in Nairobi’s Eastlands area on Wednesday, May 9.
The project dubbed Komarock Phase 5A involves the construction of 162 residential houses and a commercial centre in Komarock at a cost of Sh800 million.
Speaking during the ceremony held at the construction site in Komarock, HF managing director Frank Ireri said his company intends to construct homes for the middle and low income earners who have been overlooked by many property developers.
“We intend to raise our involvement in the supply of residential middle and low income housing, which will in turn create significant mortgage lending opportunities for us,” he said.
The mortgage lender plans to sell the houses at 15 per cent below the market value to pull in low and middle income earners currently faced with high credit costs.
A three-bedroom unit will be sold for at least Sh6.8 million on completion.
Komarock Phase 5A project comes ten months after HF announced that it would revive its property subsidiary, Kenya Building Society, which has been dormant for more than 13 years due to lack of capital.
The project will be funded by the housing finance corporation.
According to Mr Ireri, the decision to revive KBS was informed by the huge profits that property developers are making thanks to the high demand of housing in the country.
KBS was instrumental in the construction of the existing phases of Buru Buru and Komarock estates.