, NAIROBI, Kenya, Jul 8 – The Commercial Bank of Africa has signed a Sh1.5 billion deal with Shelter Afrique for financing of housing projects in Nairobi, Kisumu and Mombasa.
Commercial Bank of Africa Group Managing Director Isaac Awuondo says that this partnership will promote development of real estate in the country and provide decent housing for all.
Awuondo said that the real estate sector remains one of the most vibrant sectors in Kenya’s economy and provision of affordable finance remains paramount.
Shelter Afrique is set to raise Sh8 billion over the next two years for funding projects.
“This financial line will finance a whole range of projects in the pipeline primarily in the three cities we are looking at, we will major in low income and medium income housing,” Business Development and Operations Director Shelter Afrique Femi Adewole told Capital Business.
Adewole said that the partnership is part of their operating model to develop more synergies with pan African banks to leverage more financial resources for affordable housing and unlock the potential for African capital markets for more mortgage loans.
“Shelter Afrique has recently adopted a new capital increase as a first step in positioning the company to raise more funds to meet the ever growing housing demand in Africa,” he said.
Last week Shelter Afrique signed a Sh1.3 billion loan agreement with European Investment Bank to finance the huge potential in the Kenyan market.
“One of our key investments we are looking into is 2,400 low income homes in Mavoko for slum dwellers, we are also working on projects in Kisumu and Mombasa,” he revealed.
He said that financial support from CBA will scale up Shelter Afrique’s operations in the supply of affordable houses.
“What this also means is that we at Shelter Afrique will be able to mobilise resources on a larger scale and optimise on costs,” he said.
Adewole said that they are also keen to work with county governments to offer housing needs for all counties.
“We will partner with other micro -finance institutions, such as Makao Mashinani and Rafiki DTM, to help Kenyans leverage on these financial resources,” he added.