Shelter Afrique Development Bank (ShafDB), a prominent Pan-African institution dedicated to housing and urban infrastructure development, has announced a significant partnership with CPF Group to advance affordable housing initiatives in Kenya. This strategic alliance aims to address Kenya’s pressing housing deficit by leveraging both organizations’ expertise and resources.
The Memorandum of Understanding (MOU) was signed in Nairobi by CPF Group’s Managing Director, Dr. Hosea Kili, and ShafDB’s Head of Credit and Operations, Mr. Christopher Chege, on behalf of the bank’s Managing Director, Mr. Thierno-Habib Hann. The agreement highlights a commitment to enhancing affordable housing across Kenya through a collaborative approach.
The MOU outlines a comprehensive strategy to tackle the affordable housing value chain. The partnership will facilitate co-financing for housing projects and establish a Housing Solutions Fund specifically for Kenya. This Fund will focus on both the supply and demand aspects of affordable housing, providing essential capital and technical support to manage and expand housing projects effectively.
Mr. Chege emphasized the significance 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.”
Shelter Afrique Development Bank (ShafDB) Head of Credit and Operations, Mr. Christopher Chege (second left) and CPF Group Managing Director, Dr. Hosea Kili (second right) exchange documents after signing a memorandum of Understanding to scale up the development of large-scale affordable housing projects in Kenya. With them are ShafDB Chief Business Officer Mr. Gibson Mapfidza (l) and CPF Group Executive Advisor Mr. Geoffrey Odundo (r). The agreement seeks to provide a platform for intervention across the affordable housing value chain.
Dr. Kili echoed the sentiment, expressing enthusiasm about the collaboration. “We are excited to partner with Shelter Afrique Development and leverage each institution’s strengths to 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 faces a substantial housing deficit, currently estimated at 2 million units, exacerbated by rapid population growth and urbanization. With an urban growth rate of 4.4 percent significantly higher than the global average of 2.1 percent, the demand for affordable housing is acute. Approximately 29 percent of Kenya’s population resides in urban areas, intensifying the need for effective housing solutions.
In response to this challenge, the Kenyan government has launched the Bottom-up Economic Transformation Agenda (BETA), which aims to increase housing production to 250,000 units annually, up from the current 50,000 units.
Mr. Chege underscored the importance of the partnership in addressing Kenya’s housing crisis, stating, “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. We believe our partnership with CPF Group will deepen our impact on Kenya’s and, by extension, Africa’s affordable housing value chain.”
The collaboration between ShafDB and CPF Group represents a significant step forward in addressing Kenya’s housing needs and is expected to foster innovative solutions and expanded project capabilities in the affordable housing sector.