Na­tional Hous­ing eyes Trea­sury green light to se­cure more fi­nanc­ing

Business Daily (Kenya) - - MONEY & MARKETS - Kevin Mwanza­tion­ NHC says reval­u­a­tion of its as­sets showed its as­set base stood at Sh20 bil­lion.

The Na­tional Hous­ing Cor­po­ra­tion (NHC) has asked theTrea­sury for per­mis­sion to bor­row funds from ei­ther the Ex­che­quer or ex­ter­nal sources, with its reval­ued as­set base as col­lat­eral.

Chair­man Fran­cis Mun­gai was speak­ing while pre­sent­ing a div­i­dend cheque of Sh23.7 mil­lion to Trea­sury sec­re­tary Henry Rotich Wed­nes­day.

The hous­ing cor­po­ra­tion, which has paid Sh1.4 bil­lion in div­i­dend to the gov­ern­ment since 2004, posted a Sh338.9 mil­lion profit for the 2015/16 fis­cal year.

“Some time in 2003 there was some Sh4.8 bil­lion that was al­lo­cated to NHC, out of which we re­ceived 1.6 bil­lion. We are re­quest­ing for re­lease of the re­main­ing Sh3.18 bil­lion to en­able us achieve our tar­gets,” Mun­gai said at a press brief­ing.

“We are also re­quest­ing you al­low us to bor­row... We be­lieve we can re­vamp our as­sets by go­ing to the mar­ket.”

NHC said a reval­u­a­tion of its as­sets showed its as­set base stood at Sh20 bil­lion. It plans

They can go to a inancier and use their bal­ance sheet to get fund­ing” JAMES MACHARIA | IN­FRA­STRUC­TURE SEC­RE­TARY

to use this fi­nan­cial mus­cles to bor­row from the lo­cal fi­nan­cial mar­ket via a bond.

Last year, the State firm was prepar­ing to is­sue a Sh5 bil­lion bond to boost its house con­struc­tion. It had fixed the is­sue for last June.

“They can go to a fi­nancier and use the bal­ance sheet to get fund­ing,” James Macharia Trans­port, In­fra­struc­ture, Hous­ing and Ur­ban De­vel­op­ment sec­re­tary, sug­gested, adding the State was look­ing to change leg­is­la­tion to al­low pen­sion funds to in­vest more in hous­ing.

Mr Macharia said the gov­ern­ment had re­viewed its five-year hous­ing tar­get from 500,000 to 1 mil­lion. Kenya has a hous­ing deficit of about 1.58 mil­lion units.

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