Shelter Afrique Development Bank (ShafDB) has taken a significant step forward in addressing Kenya’s affordable housing crisis by signing a Memorandum of Understanding (MOU) with the CPF Group. This strategic partnership is aimed at scaling up the development of large-scale affordable housing projects across Kenya, addressing the burgeoning need for affordable living spaces in the country.
The agreement was formalized in Nairobi, with CPF Group Managing Director Dr. Hosea Kili and Shelter Afrique Development Bank’s Head of Credit and Operations, Mr. Christopher Chege, signing on behalf of ShafDB’s Managing Director, Thierno-Habib Hann. The collaboration underscores Shelter Afrique’s commitment to providing decent and affordable housing across its member states through innovative public-private partnerships.
Christopher Chege highlighted the significance of this alliance in a press statement, noting, “As a company, our overriding strategy is the provision of affordable housing across our member states through public-private partnerships. This strategic partnership with CPF Group will be key in expanding our projects in Kenya.”
The MOU establishes a platform for interventions across the affordable housing value chain by creating a robust partnership in affordable housing delivery through co-financing. A central component of the agreement is the establishment of a Housing Solutions Fund for Kenya, aimed at addressing both the supply and demand sides of the affordable housing market. ShafDB and CPF Group will jointly manage this fund, offering capital raising and technical support to ensure its effective operation.
Dr. Hosea Kili expressed his optimism about the partnership, stating, “We are excited to partner with Shelter Afrique Development and leverage each institution’s strengths as we jointly address the perennial problem of decent and affordable housing in Kenya. This partnership opens up opportunities for collaboration in many areas, including product and service design and finding innovative funding solutions for our current and future projects.”
Kenya faces a daunting housing deficit of 2 million units, a number that could escalate due to the country’s high population growth and an urbanization rate of 4.4%, well above the global average of 2.1%. Currently, 29% of Kenya’s population of 50.6 million resides in urban areas. The Kenyan government, recognizing the critical need for housing solutions, has implemented the Bottom-up Economic Transformation Agenda (BETA), aiming to deliver 250,000 housing units annually, a significant increase from the current 50,000 annual deliveries.
The partnership between Shelter Afrique Development Bank and CPF Group is positioned as a critical response to this housing crisis. “It is against this background that Shelter Afrique Development Bank and the CPF Group are joining forces through the Collaboration Agreement to scale up affordable housing delivery,” Chege reiterated. “We believe our partnership with CPF Group will deepen our impact on Kenya’s and by extension, Africa’s affordable housing value chain, from both the supply and demand side.”
Shelter Afrique Development Bank, a leading Pan-African institution, has been at the forefront of financing and advancing housing, urban, and related infrastructure development across the African continent. This partnership with CPF Group is expected to enhance the bank’s ability to deliver on its mandate by providing innovative, affordable housing solutions to meet the diverse needs of the Kenyan population.
In conclusion, the MOU between Shelter Afrique Development Bank and CPF Group represents a strategic move towards addressing Kenya’s housing deficit and improving the living standards of its citizens. By combining resources and expertise, the partnership aims to create sustainable, affordable housing solutions that will benefit current and future generations in Kenya and potentially across Africa. This collaboration not only addresses immediate housing needs but also contributes to the broader economic and social development of the region.
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