This archive report was first published on 8 August 2019.
Home Afrika Limited, a listed firm, is facing financial struggles and is seeking to raise cash from a strategic investor to accelerate completion of its projects. The firm published its financial statements last week, showing it had fallen deeper into losses for the year ended December 31, 2018.
According to the financial statements, revenues dipped by 59 per cent from Sh263 million in 2017 to Sh109 million in 2018, pushing the firm deeper in the red. The company attributed the decline in revenues to operating costs and weak house sales, which were affected by a slump in the real estate market.
Home Afrika Managing Director Dan Awendo stated that the firm has an interested suitor who has a significant land portfolio and is keen to develop affordable housing on some of the group's existing land bank. The company is optimistic that completion of the Migaa Estate will see the deferred revenue and deposits from sales of plots translate to revenue in the profitability statement shortly.
Home Afrika has also appointed Luke Kinoti as a non-executive director, bringing a wealth of experience in private equity, fund management, real estate, microfinance, and insurance sectors.
Published on August 8, 2019.
