Shelter Afrique pledges to support Uhuru's housing plan
Shelter Afrique managing director Femi Adewole speaks during a media briefing at the firm's offices in Nairobi on February 21, 2017. He has said the firm will assist the government build affordable houses. PHOTO | DIANA NGILA | NATION MEDIA GROUP
What you need to know:
- The Jubilee government has said it will reduce the cost of mortgages and cut the cost of construction.
Pan-African home financier Shelter Afrique has committed to help the government realise one of its big four pillars — affordable housing.
Managing director Femi Adewole said a private-public partnership approach is crucial in such a project to provide solutions to housing problems.
The government has been exploring alternative sources of housing finance to address constraints in accessing funding and management models aimed at reducing risks to allow lower prices for homes.
This comes at a time Shelter Afrique is implementing a new strategy aimed at aligning itself with current demands in providing affordable housing.
“We arrived at the new 2018-2022 strategy after months of wide consultations with our shareholders, the board, staff and our partners. It was a holistic process,” Mr Adewole said.
He added: “This was because the board and management realised something very insightful; our position last year presented us with an opportunity to redefine ourselves, to retool our processes and to find innovative ways to address the African housing challenge.”
In the plan to have an estimated 500,000 Kenyans own houses in the next five years, the Jubilee government has said it will reduce the cost of mortgages and cut the cost of construction through the use of innovative technologies and materials.
The public-private partnership deal works in such a way that a firm funds development of a project to be paid upon completion.
According to the World Bank, the government is targeting the supply of 200,000 housing units annually for all income levels, though "the production of housing units is currently at less than 50,000 units annually".
