NAIROBI, Kenya, Mar 26 – Pan-African Housing Financier Shelter Afrique and Karibu Homes have completed the second phase of the housing project at Riverview Estate, in Athi River.
The 285 units developed by Karibu Homes in the second phase of the project, was funded by Shelter Afrique at a cost of Sh355 million bringing the total number of units funded by the housing financier to 569, including phase one of Riverview Estate.
“We have a shared vision with Karibu Homes of providing affordable housing to the lower end of the market. With Karibu Homes, we are working with a trusted partner, our partnership has demonstrated the capacity available for delivery of affordable homes in Kenya. We have financed the development of the 569 affordable units which have been delivered in the two Phases. We are eager to replicate the model of delivery elsewhere,” said Shelter Afrique Chairman Daniel Nghidinua.
Speaking at the launch ceremony, Karibu Homes Parktel Founder and Managing Director Ravi Kohli said sourcing for cheaper project financing remains a challenge to most developers, especially those in the low-cost housing segment.
“When you are raising construction finance for a project of this scale the local banking sector does not look beyond 3 or 4 years of construction loan. We are happy that Shelter Afrique saw potential in Karibu Homes and has been very instrumental in proving the construction loan at very competitive terms,” Kohli said.
Shelter Afrique Managing Director & CEO Andrew Chimphondah said the task of closing the deficit of affordable housing in Africa was a big one and one that requires innovative approach to provision of housing that addresses the needs of the majority of the population.
“Shelter Afrique chose to work with Karibu Homes for the simple reason that for us to address a crisis, we need to be doing things at scale. We need to be focusing on the lower end of the market and that’s why we are very passionate to continue with the partnership we have with Karibu Homes. Some of the houses they are building are below Sh3 million, which starts to talk to the focus in proving access to the lower end in terms of low-income housing,” Chimphondah said.
Housing shortage in Kenya is estimated to be between 150,000 and 200,000 units in urban areas and more than 300,000 units in rural areas yearly.
“The Kenyan government has responded to this reality with the Big Four Agenda and we as a key player have responded with a new strategy anchored on the delivery of large-scale housing,” Chimphondah said.