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THE PPT LIBRARY HAMA HOMES and templates

Situation Analysis

Issues for consideration

Housing in Kenya

Shortage

Annual Demand

Annual Supply

Current Mortgage Penetration

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> 2 Million Units Ministry of housing reported backlog in 2011

Yearly annual increase in demand 206,000 units of which 82,000 in urban areas - Finscope survey Centre for Affordable Finance in Africa

Very few private developers in Kenya are investing in medium to large scale developments of 200 units and above for midle to low income segments

Approximately 2.5% of outstanding GDP or about 20,000 units

Construction Industry

Current State – Many disjointed stakeholders

Desired State – One stop shop

Hama Homes

Design

Cost Scheduling

Engineering

Building

Hama Homes Comoditization of Housing

Architectural Drawing Interior Design

Set and Sit Contractors

Stractural Drawings

Quantity Survey Building & Construction

Traditional Financing

Mortgage Finance Requirements

Collateral

Approved Documentation

Availability of Long-term Funding

High Risk Perception

Land Title free of encumbrances Preferably in cities and urban centres

Arch and Stractural Plans by the following authorities: Municipal Council NEMA NCA Public Health Ability for financial institutions to commit funds for lendinf for periods Between 10-25 years

High Interst Rates

Customer Profile

Mostly Occupied between 7am and 6pm Mon – Fri hustling

Owns a piece/lot of land In an urban centre

Monthly Net Household Income > 75K

Has no problem with buying a family care and sees the process as easy, less complicated with low risk

Looks at construction as complicated, labourious, long expensive process

Fears long term financial comitment > 7 years with banks such as mortgage arrangements

Dreams of owing a home/house to live in or hire out for rent

Rents a house for > 15k per month

Our Solution

Okoa Rent!

Objectives

Focus on housing for the low & middle income population by offering a simple financing option

Create a positive perception with regards to formal financing towards construction/home development

Make the bank the leading landlord of choice by promoting Okoa Rent! Our rent to own product

Change

Measures of Success

Co-creation

You work with our design team on the concept of your dream home

Hustle Free

We oversee the project for you at n extra cost

Leverage on our relationships

This delivers affordability

Value Proposition

Value

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3 Reduced construction time

Hustle free

Affordability

Designed to your specification 4

Methodology

Okoa Rent! Financing Process

Client/Member

Bank/SACCO

Hama Homes /Client/Member

Bank/SACCO

Hama Homes

Hama Homes/ Bank/SACCO

Hama Homes/ Client/Member

Application for Okoa Rent!

Loan appraisal process

Concept development, design, costing and approvals

Verification of documentation, approval and issue of undertaking to Hama Homes

Process performance guarantee/Bond to Bank/SACCO

Construction as per Program of Works (POW) Disbursement of funds as per terms of engagement

Completion certificate / Hand over

Timeline

TBA

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Product Portfolio

4 Bedrooms, master ensuit, spacious lounge, open kitchen common bath and Sq + cloak room 144M2

KShs. 4,000,000/-

3 Bedrooms, Lounge, open kitchen and Common bath 87 M2

KShs. 2,500,000/-

Maximum 84 Months Value

2 Bedrooms 60M2

3 Bedrooms 87M2

3 Bedrooms 106M2

4 Bedrooms 125M2

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Installment int excl Net Income

1,800,000/-

2,500,000/-

3,000,000/-

3,500,000/-

21,500/-

30,000/-

36,000/-

42,000/-

75,000/-

125,000/-

175,000/-

200,000/-

BOA Asset Finance