Kenya has acquired an additional 3.9 percent stake in Shelter Afrique for Sh1 billion, deepening its position as top shareholder in the Pan-African housing financier.
The extra capital injection of Sh995.6 million ($9.2 million) has moved Kenya’s shareholding to 18.72 percent from the 14.82 percent it held in December.
Shelter Afrique chief executive Andrew Chimphondah said Kenya’s support had been key to turning around the firm, which last year posted the first profit in six years.
Kenya has acquired an additional 3.9 percent stake in Shelter Afrique for Sh1 billion, deepening its position as top shareholder in the Pan-African housing financier.
The extra capital injection of Sh995.6 million ($9.2 million) has moved Kenya’s shareholding to 18.72 percent from the 14.82 percent it held in December.
Shelter Afrique chief executive Andrew Chimphondah said Kenya’s support had been key to turning around the firm, which last year posted the first profit in six years.
“We are grateful to the Kenya government for its continued support and the importance it has placed on affordable housing,” he said.
“Even with the Covid-19 pandemic, Kenya has shown willingness to sustain its support for Shelter Afrique by honouring its pledge. This is a vote of confidence by Kenya in the strength of the company.”
Kenya’s shareholding dwarfs that of Nigeria and Africa Development Bank, which now own 13.71 percent and 13.25 percent, respectively.
Shelter Afrique, last year, returned a net profit of Sh199.6 million $1.85 million from a net loss of Sh136 million ($1.26 million) in the previous year.
Kenya’s recent contribution brings the total amount given to Shelter Afrique as additional capital in the last few years to Sh9.92 billion ($92 million).
The stake in Shelter Afrique looks set to rise faster should Kenya honour its pledge of adding the firm Sh1.82 billion ($16.9 million) in capital payment before the close of the year.
Shelter Afrique has since inception financed 114 projects in Kenya and approved financing worth Sh24.3 billion ($225 million).
The company recently invested Sh215.8 million as equity in the Kenya Mortgage Refinance Company that seeks to bring down the cost of mortgages in the country.
Seven other countries have also given Shelter Afrique additional capital, bringing the fresh capital received by the firm in the last six months to Sh1.94 billion ($18.02 million.)
Mali contributed $2.06 million followed by Rwanda ($1.1 million), Uganda ($0.08 million), Togo ($0.58 million), Swaziland ($0.32 million), Ivory Coast ($0.57 million), and Democratic Republic of Congo ($0.5 million).
Shelter Afrique is owned by 44 African countries and two development institutions—African Development Bank and African Reinsurance Corporation.
The firm in in 2013 and 2017 signed up deals with shareholders to recapitalise the company through additional equity.
Shelter Afrique received $9.8 million (Sh1.06 billion) in 2019 with Kenya leading the contributions with $3.2 million (Sh345.3 million).
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