This archive report was first published on 21 September 2019.
Shelter Afrique has made a remarkable turnaround, reporting a net profit of KSh 7.8 million in the second quarter, a 102% increase from the previous period's loss of KSh 500 million. This significant improvement was attributed to the growth in fees and commissions from new projects, performing loan books, and loan recoveries.
According to the financial results, fee and other income grew by 11% to KSh 80 million, while the liquid ratio position remained stable, maintaining the 15% minimum threshold. Interest income decreased by 19% to KSh 779 million due to reduced loan portfolio, as the organization had not engaged in new lending for the past two and a half years. Conversely, interest expense decreased by 35% due to reduced debt load, and operating expenses decreased by 9% as a result of stringent cost-containment measures.
Shelter Afrique's chairman, Daniel Nghidinua, attributed the turnaround to enhanced corporate governance, robust enterprise risk management, a new management team, a new strategic plan, a new business model, and debt restructuring plans.
Notably, Shelter Afrique had temporarily halted new projects in 2016 to restructure operations and develop new strategies, but resumed full operations at the start of 2019. The organization has since launched new projects, including Richland points, Everest apartments, and Karibu Homes in Kenya, as well as the Ragarama Housing Project in Rwanda.
