Shelter Afrique extends Sh100m for low income housing
James Mugerwa, the Shelter Afrique chief executive. PHOTO | FILE
What you need to know:
- Mr Mugerwa said many Kenyans are locked out of owning their own homes due to lack of access to cheap credit.
Housing market lender Shelter Afrique announced Thursday it has signed a Sh100 million credit deal with Kenyan financial services firm Molyn Credit for onward lending to low income households.
Shelter Afrique, managing director James Mugerwa said the line of credit, will target to fund low income households with monthly income of less than Sh100,000.
“We have devoted ourselves in the medium to long term to making housing more accessible to all. To achieve this we have to address the demand and need at the lower end of the market where it is most apparent, extending this line to Molyn Credit shows our commitment to doing that,” said Mr Mugerwa after the signing of the deal.
The credit facility to Molyn Credit has a tenure of 7 years.
CHEAP CREDIT
Beneficiaries will under the line of credit have access to individual loans not exceeding Sh2 million.
Mr Mugerwa said many Kenyans are locked out of owning their own homes due to lack of access to cheap credit.
Molyn Credit, chief executive Lydia Nyambura Anyangu, said the deal would see beneficiaries access affordable credit to build their own decent housing.
“We are delighted for the partnership with Shelter Afrique as it will go a long way in enabling Molyn Credit to extend competitive financial services to the lower to middle income persons desiring to acquire or improve affordable homes,” said Ms Anyangu.
The loans to individuals will be used for housing acquisition including the option of building own homes incrementally, she said.
Shelter Afrique recently received an $8.2 million capital injection in equity from its largest shareholder, the African Development.
