Shelter Afrique has announced that it will restructure loans for seven Kenyan real estate developers.
The restructuring will see the Pan-African financial institution defer debt repayments worth Ksh. 85 million until January 2021 according to the company’s managing director Andrew Chimpondah.
The company has undertaken to restructure the Ksh. 3.1 billion worth of loans in consideration of the disruptions brought about by Covid-19 which has slowed down economic activity across all sectors.
Andrew Chimpondah, the firm’s MD, said the company is not absolving the developers from repaying the loans but instead providing them more headspace to manage their cashflows.
“We opted to forego our recovery of the principal amount and interest but in return boost client loyalty during the Covid-19 related hard times. We have also made food donations to 2,000 less advantaged families in Machakos,” he said.
He said Shelter Afrique has shifted its funding focus to low-income mass housing projects from the high-end and middle-income segments.
The move came after developers requested the lender to allow for repayment deferrals, citing diminishing rent returns and disruption in construction works which have seen most construction works suspended.
Shelter Afrique joins a list of other financial institutions that have come up with strategies to cushion borrowers from the adverse economic effects of the coronavirus. In April, StanChart announced a similar action offering clients a 3-month moratorium on mortgage repayments.
The financial institution is one of the financiers of the Kenya Mortgage Refinance Company (KMRC), contributing Ksh. 200 billion.