This archive report was first published on 25 May 2020.
On May 25, 2020, Shelter Afrique, a Pan-African housing development financier, announced that it had restructured loans granted to seven Kenyan home developers worth Sh3.1 billion.
The move exposed the institution to a cash flow loss of Sh85 million, but it aimed to cushion the developers from the adverse impact of Covid-19 that had disrupted construction and slowed down economic activities.
Managing director Andrew Chimphondah said the board resolved to defer repayments until January 2021, giving the developers a 'breathing space'.
According to Chimphondah, the institution had opted to forego its recovery of the principal amount and interest in return for boosting client loyalty during the Covid-19 related hard times.
Shelter Afrique had also made food donations to 2,000 less advantaged families in Machakos.
The Nairobi-based financier, which operates in 44 African countries, had activated online services where applications from housing projects developers are now being scrutinised and approved via its desktop evaluation platform.
Chimphondah said the institution had changed its strategy from funding projects for high- and middle-income earners in favour of large-scale mass-housing projects that benefit low-income earners.
In Kenya, Shelter Afrique had approved eight projects with a total of 6,352 units worth Sh7 billion currently being built in partnership with local developers.
