Kenya ups stake in Shelter Afrique with Sh1b injection

Shelter Afrique CEO Andrew Chimphondah and Mugure Njendu President Architectural Association of Kenya launching Status of the built environment report in Nairobi on Feb 2, 2021.[Jonah Onyango,Standard]

Kenya has acquired an additional stake in the Pan African housing development financier Shelter Afrique - solidifying its position as the largest shareholder.

This is after Treasury injected Sh984.4 million ($9.2 million) into the firm.

Kenya’s stake in the firm stands at 18.72 per cent, ahead of Nigeria 13.71 per cent and African Development Bank 13.25 per cent. Shelter Afrique Chief Executive Andrew Chimphondah lauded Kenya for its financial and diplomatic support that has aided the company’s turnaround plan.

He thanked Treasury Cabinet Secretary Ukur Yatani for honouring the payment, despite  Covid-19. “We are grateful to the Kenya government for its continued support and the importance it has placed on affordable housing,” he said.

“We also recognise the role played by the immediate former President of the Shelter Afrique General Assembly, Cabinet Secretary for Infrastructure, Housing James Macharia for his role and leadership as the chairperson of the 39th Annual General Meeting.”

The shareholding of Shelter Afrique comprises 44 African countries, African Development Bank and African Reinsurance Corporation.

The firm has also received additional capital from Mali $2.062 million (Sh222.48 million), Rwanda $1.1million (Sh118.8 million), Uganda $80,000 (Sh8.64 million), Togo $58,000 (Sh6.3 million), Swaziland ($32,000 (Sh3.5 million), Ivory Coast $57,000 (Sh6.2 million), and Democratic Republic of Congo $500,000 (Sh54 million), bringing the total additional capital receipts to $18.02 million (Sh1.94 billion) within the last six months of 2021.

Between 2013 and 2017, Shelter Afrique shareholders signed up to recapitalise the company through additional equity subscriptions.

The financier received $9.8 million (Sh1.05 billion in 2019 with Kenya leading the contributions with Sh342.4 million and an additional pledge of Sh2.878 billion it made at the 39th Annual General Meeting held in Nairobi last year.

Kenya’s recent contribution brings the cash received in the last few years to $92 million (Sh10 billion).