Housing financier, Shelter Afrique and Karibu homes yesterday held the launch of 288 affordable housing units in Athi River. The project which is the second phase of the Riverview Estate housing project in Athi River, cost the developer KSh. 355 million to put up.
“We have a shared vision with Karibu Homes of providing affordable housing to the lower end of the market. With Karibu Homes, we are working with a trusted partner, our partnership has demonstrated the capacity available for delivery of affordable homes in Kenya. We have financed the development of the 569 affordable units which have been delivered in the two Phases. We are eager to replicate the model of delivery elsewhere,” said Shelter Afrique Chairman Daniel Nghidinua
Shelter Afrique and Karibu Homes have explored joint venture partnerships since 2015, that have seen the duo develop 569 houses worth of KSh. 667 million since 2015. The estimated 1.5 million units notwithstanding, Shelter Afrique Managing Director Andrew Chimphondah expressed belief that there is capacity to meet demand for housing in the country.
The project feeds into the governments Big Four Housing agenda, which has seen developer interest spiked as other investors adopt a wait and see attitude. According to Karibu Homes Founder Parktel and Managing Director Mr Ravi Kohli, sourcing for cheaper project financing remains a challenge to most developers, especially those in the low-cost housing segment.
“When you are raising construction finance for a project of this scale the local banking sector does not look beyond three or four years of construction loan. We are happy that Shelter Afrique saw potential in Karibu Homes and has been very instrumental in proving the construction loan at very competitive terms,” Kohli said.