Kenyan bank to construct low cost houses

Spire Bank is set to construct low cost houses in Kenya as part of its strategic plan to tap into the Kenyan market.

Tim Gitonga, the bank’s Chief Executive said that the planned investment will be made on a 35-acre piece of land located in Juja in collaboration with Mwalimu Asset Managers.

The bank which was previously known as Equatorial Commercial Bank was acquired by Mwalimu Teachers Sacco who has already invested Sh1 billion capital at the beginning of the year.

Gitonga says the bank in partnership with Mwalimu Asset Managers is doing a research to establish the total cost of low cost houses in Kenya scheduled to start in 2017.

In addition to low cost housing, the bank also plans to focus on Small and Medium Enterprises planning to invest a total of Sh5 billion on this class this year.

This plan is aimed at increasing the company’s SME portfolio from the current 45 percent of its business to 65 percent in the coming two years.

He added that the real issue regarding the cost of credit emanates from the escalating Non Performing Loans.

In regards to regional expansion, the bank plans to first invest in marketing and strengthening their brand in the Kenyan market for the coming five years but eyes Ethiopia.

“We are also open to discussions on mergers and Investments from international firms seeking to invest in the country, adequate capital is always welcome,” Gitonga pointed out commenting on the consolidation wave the banking sector is currently experiencing.

The firm is a medium-sized financial company in Kenya, mainly serving clients from the corporate sectors, small and medium enterprises as well as individuals.

The bank has set its targets on achieving Tier 2 status within the coming four years.

As at December 2013, the firm’s total assets stood at around Sh15.5 billion, with shareholders’ equity valued at about Sh1.371 billion.

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