This is a 69 percent drop from the previous year, as the self-imposed new lending moratorium persists.
Pan-African mortgage financier Shelter Afrique disbursed $4.77 million (Sh485.7 million) in loans to five Kenyan entities last year, a 69 percent drop from the previous year, as the self-imposed new lending moratorium persists.
The lender’s latest annual report shows disbursed loans to Kenya were the highest even though there was a significant decline from Sh1.52 billion received the previous year.
Nakuru Meadow Development Ltd received Sh147 million while Everest Park Ltd got Sh124.6 million.
Other beneficiaries were Spring Green Properties LLP (Sh101 million), Karibu Homes Parktel Ltd (Sh80 million) and Edenvale Developments (Sh32.1 million).
This portfolio comprised projects whose implementation and disbursement started before 2018.
There were no new loan approvals last year due to financial constraints and concentration on collections. The last time Shelter Afrique approved a new loan was September 2016.
“Few projects became distressed and at high risk. Avoiding increasing the company’s exposure on them, their loan balance was cancelled or put on standby for further due diligence. These are CMB, Richland and Karibu Homes,” said the firm in the annual report.
Loans to these Kenyan entities formed 69 percent of last year’s total Sh702.3 million disbursements with Rwanda getting Sh140 million while Swaziland got Sh45.3 million. Pan African Housing Fund got Sh33 million.
Last year’s total disbursed amount was exceptionally lower than the $51.4 million (Sh5.2 billion) and $27.5 million (Sh2.79 billion) recorded for 2016 and 2017 respectively.
Shelter Afrique’s lending to Kenyan firms has not come without problems. It booked a net loss of Sh4.5 million from Everest Park, a joint venture it has with Everest Limited since 2011.
The first phase of the project was completed and sold in 2013.
However, there have been complaints with respect to the structural quality on some blocks on the property and Shelter Afrique estimates that repairs could cost Sh14.5 million.
It is also still holding for sale 11 apartments in Eden Beach Resort & Spa in Mombasa and vacant land in Athi River.
The company acquired the properties in 2015 as part of loan settlement.
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