The government has signed a deal with Shelter Afrique to help the Pan-African housing developer to sell apartments and maisonettes worth Sh1.55 billion to senior civil servants.
The agreement will help Shelter Afrique, in which Kenya had the single largest stake of 18.59 percent as of December 2022 disclosures, move the units that have remained unsold for years in some cases.
The properties include those located at Athi River’s Everest Park, Nakuru Meadows, Kisumu’s Translake Estate, Serene Valley in Rironi, KMA Mtwapa and Pine City in Machakos.
The units are priced from Sh2.65 million to Sh19 million and are being offered to Members of Parliament, judicial officers, employees of State corporations and constitutional commissions who can apply for government-backed financing.
“Officers will finance the purchase of the houses through either their respective housing mortgage schemes where applicable or through own financing,” Mr Charles Hinga, Principal Secretary of the State Department for Housing and Urban Development, wrote in a letter dated February 14, 2024.
“Independent public mortgage schemes can reserve houses for their staff through the State Department in liaison with Shelter Afrique,” added Mr Hinga who is a board member of the property developer representing Kenya.
Mr Hinga said the government has facilitated additional financing for the “purchase of affordable housing” through Kenya Mortgage Refinance Company (KMRC) and its partner banks and saccos.
“KMRC has been set up to support the affordable housing buyers by providing long-term fixed rate funding at single digit interest rates thereby increasing the availability and affordability of mortgage loans,” said Mr Hinga.
The deal could help Shelter Afrique dispose of houses that have not found buyers, with poor sales attributed to the tough economic environment including high interest rates and competition from other developers.
