NAIROBI, Kenya, Aug 20-Pan African housing and habitat development financier Shelter Afrique has extended a Sh395 million development loan to Stima Investment.
The loan from Shelter Afrique will be used to support Stima Investments ongoing Syokimau gated community housing development project dubbed Stima Village.
Speaking when he confirmed the loan, Shelter Afrique Managing Director Alassane Ba said that the funds are earmarked to co-finance the development of Stima Village, a housing development comprising of a total of 156 housing units.
In recent months, Stima Sacco Chairman Sigilai Kirui and General Manager Nelson Irungu announced they were pursuing an aggressive membership recruitment campaign to boost their resources.
Stima Investments partnership with Shelter Afrique comes on the back drop of a strategic corporate undertaking to change its capital mobilization strategy by incorporating the use of both debt and Equity instruments to finance its operations.
The Stima Village project, Ba disclosed, is one of Shelter Afrique’s major middle level investments geared at raising Kenya’s housing supply capacity.
“At Shelter Afrique, we are actively extending support to such projects as Stima Village as part of our corporate commitment to boost supply of affordable housing units for Kenya’s growing middle class among other social classes,” Ba explained.
“To support the development of the real estate sector in Africa, Shelter Afrique has raised its focus to offer a host of unique products and services relevant to a wide range of industry stakeholders covering products such as Construction, trade and equity finance among others,” he added.
In the ongoing Stima Village development, Shelter Afrique is stepping in to fund the development of 76 maisonettes, 40 three bedroom and 36 four bedroom units.
Stima Investment is a company registered under the Co-operative Societies Act, whose main mandate is to carry out investment activities using member’s funds.
Stima Investment Co-operative (SIC) was formed in the year 2005 to bridge constraints earlier experienced by Stima Sacco members.
The main contention was that upon leaving the Society, the member does not enjoy the benefits of the building yet he/she contributed towards the building.
In view of this, the Board of Stima Sacco approved formation of another Co-operative, which will have its own members and carry out investment functions only.
Stima Investment counts a rich pool of more than 4,000 members drawn from energy sector players such as Kenya Power, Kenya Electricity Generating Company, Kenya Electricity Transmission Company, Rural Electrification Authority and STIMA SACCO among others.