Rafiki signs Sh1.7bn loan deal for housing

Rafiki DTM has signed a $20 million (Sh1.7 billion) financing deal with ResponsAbility Investments AG for onward lending to buyers and builders of affordable housing projects. The deposit-taking micro-finance institution, a subsidiary of Chase Bank, has already received $5 million (Sh425 million) and said the new funds will boost lending to its target market of middle and lower income earners at minimal cost. “This funding will help us realise our growth plan to all counties in the next two years,” said chief executive Daniel Mavindu.

The micro-financier unveiled a housing micro-financing product a month ago aimed at addressing the undersupply of affordable, decent housing in the country. It will also use part of the funds received in this deal to finance agricultural value chains as well as lend to micro, small and medium enterprises (MSMEs) that are interested to boost their working capital.

“One of our growth markets is Africa. We have quadrupled our portfolio here and we still see a lot of potential in this region,” Patrik Huber, the regional manager for ResponsAbility. The global social investment conglomerate said its eyeing long term projects in the region as part of its objectives. ResponsAbility supports micro-finance, SME financing, fair trade and independent media sectors in emerging economies. Its aim is to enable private and institutional investors to earn returns while making a positive social impact.