In a significant development for Kenya’s housing sector, Shelter Afrique Development Bank (ShafDB) and CPF Group have signed a Memorandum of Understanding (MOU) aimed at significantly scaling up the development of large-scale affordable housing projects across the country. This strategic partnership, formalized in Nairobi, promises to enhance Shelter Afrique’s mission to provide decent and affordable housing across Africa while addressing Kenya’s acute housing needs.
The MOU was signed by Dr. Hosea Kili, Managing Director of CPF Group, and Mr. Christopher Chege, Head of Credit and Operations at Shelter Afrique Development Bank, representing Managing Director Thierno-Habib Hann. This collaboration marks a pivotal moment for both institutions, as they join forces to tackle the housing deficit in Kenya, which stands at approximately 2 million units. The high urbanization rate of 4.4%, significantly above the global average of 2.1%, exacerbates this deficit, highlighting the urgent need for innovative and scalable solutions.
Chege emphasized the strategic importance of the partnership, stating, “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 collaboration is designed to address various facets of the affordable housing value chain, from supply and demand to financing and technical support.
One of the key outcomes of the MOU is the establishment of a Housing Solutions Fund for Kenya. This fund will play a crucial role in addressing the challenges faced on both the supply and demand sides of affordable housing. By creating a platform for co-financing and joint management, the fund aims to mobilize resources and provide targeted interventions that will facilitate the delivery of affordable housing units.
Dr. Kili of CPF Group expressed enthusiasm about the partnership, stating, “We are excited to partner with Shelter Afrique Development and leverage each institution’s strength 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 services design and finding innovative funding solutions for our current and future projects.”
Kenya’s housing deficit has become a critical issue, with the government aiming to tackle this challenge through the Bottom-Up Economic Transformation Agenda (BETA). This ambitious plan targets the delivery of 250,000 housing units per year, a substantial increase from the current 50,000 annual deliveries. The collaboration between Shelter Afrique and CPF Group is expected to support this goal by providing the necessary infrastructure, financing, and expertise to meet the growing demand for affordable housing.
The partnership also highlights the broader impact of the initiative on the African continent. Shelter Afrique Development Bank, as a leading Pan-African institution, is committed to advancing housing and urban development across Africa. By joining forces with CPF Group, Shelter Afrique aims to deepen its impact on the affordable housing value chain, addressing both the supply and demand aspects more effectively.
The establishment of the Housing Solutions Fund represents a significant step towards resolving Kenya’s housing crisis. The fund will offer a robust platform for financing and managing affordable housing projects, leveraging the strengths of both Shelter Afrique and CPF Group. This joint effort is expected to not only alleviate the immediate housing deficit but also contribute to the long-term development of sustainable and affordable housing solutions across Kenya and potentially other African countries.
In conclusion, the partnership between Shelter Afrique Development Bank and CPF Group marks a transformative moment for Kenya’s housing sector. With a clear focus on enhancing the delivery of affordable housing and addressing the underlying challenges of supply and demand, this collaboration is poised to make a significant impact on Kenya’s urban development and contribute to the broader goals of sustainable housing in Africa.
