HOUSING

Shelter Afrique invests in mortgage refinancing firm

In Summary

•The Kenya Mortgage Refinance Company is an implementing arm of government’s affordable housing plan.

•Housing developers build expensive houses which lack affordability and this explains the reason why there are only 24,000 active mortgages in Kenya.

Shelter Afrique Chief Executive Officer Andrew Chimphondah
Shelter Afrique Chief Executive Officer Andrew Chimphondah
Image: ENOS TECHE

Shelter Afrique has invested $2million (Sh200 million) in the Kenya Mortgage Refinance Company to support the development of affordable housing.

The Kenya Mortgage Refinance Company is an implementing arm of government’s affordable housing plan aimed at developing the mortgage markets through long-term funding to the mortgage lenders.

“Many Kenyans would like to own houses but do not have access to affordable finance,” Shelter Afrique Chief Executive Officer Andrew Chimphondah said.

Chimphondah supported the setting up the refinance company which provides long term lending to commercial banks, microfinance banks and Saccos for lensing to home eligible applicants for a longer period at at a lower cost.

Housing developers build expensive houses a factor that explains the reason why there are only 24,000 active mortgages in Kenya.

Chimphondah hailed the government’s efforts to provide free land to developers and for undertaking to provide infrastructure conducive for housing development, under its affordable housing plan.

Affordable housing is part of President Uhuru Kenyatta’s Big Four Agenda, this has seen the government set an annual target of 500,000 low-cost housing units to meet 200,000 annual deficit.