|Stima Sacco housing project|
Shelter Afrique is courting housing Saccos across the country; as it engages new ways to provide affordable housing to Kenyans.
Addressing a group of Housing Saccos at a Nairobi hotel, Shelter Afrique’s Director of Business Development and Operations Femi Adewole said the company was keen on keying into the schemes and solving the challenges of housing being faced by member of various saccos.
Most co-operatives he noted have acquired landed properties which have been allocated to their members, what members need now is not land but a decent home, unfortunately most members cannot afford the lump sum to build on their allocated land.
“We have entered into deals with some saccos to finance development of decent but affordable housing for their members,” said Adewole.
Another challenge is that loan facility and proper land documentation are usually a slow process; hence members may not get the requested facility from commercial banks to develop houses and their lands.
“There is also the issue of interest volatilities with commercial bank. We all recall the aftermath of the 2012 interest volatility which saw the interest rates on bank loans rise to as high as 25percent. Shelter Afrique is able to offer a fairly stable interest regime because our sources of funding are different from those of commercial banks,” said Adewole.
In the year 2012, Shelter Afrique extended a Ksh395 million development loan to Stima Investment to construct Stima Village – a 156 housing units project in Syokimau.
In the ongoing Stima Village development, Shelter Afrique is stepping in to fund the development of 76 maisonettes, forty 40 three-bed roomed and 36 four bed roomed units.
In 2011, Shelter Afrique signed a Ksh560 million loan agreement with the Kenya Medical Association (KMA) Housing Co-operative Ltd to provide financing for its housing project.
The KMA project is a comprehensive mixed user development comprising of 157 units consisting of 3-5 bedrooms of different types between 160 sq meters to 227 sq meters. The project is located in Mavoko, 1.1KM off Mombasa Road.
The Stima Village project and KMA Housing Project, Adewole disclosed, are some of Shelter Afrique’s major middle level investments geared at raising Kenya’s housing supply capacity.
The company has also partnered with Microfinance institutions to provide incremental financing for those willing to improve their housing.
In February this year, Shelter Afrique signed a Sh100 million low cost housing financing deal with Rafiki Microfinance Bank which will be extended to individuals seeking to own decent homes.
Under this program, Rafiki Microfinance Bank will disburse loans as low as Sh 20, 000 for home improvement, going up to Ksh5 million for mortgages in any across the country.