- A key aspect of the ShafDB and CPF Group alliance is the setup of a Housing Solutions Fund for Kenya.
- By co-financing projects and providing capital raising and technical support, this Fund aims to catalyze the development of affordable housing across Kenya.
- The ShafDB and CPF Group alliance exemplifies the potential of Public Private Partnerships to drive meaningful change in the housing sector.
Kenya’s housing crisis has long been a pressing issue, with millions of citizens lacking access to decent and affordable housing. However, a new development seeks to address this challenge, following a partnership between two key players in the housing sector—Shelter Afrique Development Bank (ShafDB) and CPF Group.
This collaboration, sealed through a Memorandum of Understanding (MOU), aims to scale up the development of large-scale affordable housing projects across the country.
A strategic partnership for affordable housing
The agreement between ShafDB and CPF Group represents a strategic partnership designed to tackle the affordable housing crisis in Kenya. ShafDB, a Pan-African institution dedicated to financing and promoting housing, urban, and infrastructure development across Africa, has long been at the forefront of efforts to provide decent and affordable housing.
The CPF Group, on the other hand, is a well-established financial services provider with extensive experience in fund management, retirement benefits schemes administration, and property services, among other areas.
Signed in Nairobi by CPF Group Managing Director Dr. Hosea Kili and ShafDB Head of Credit and Operations Mr. Christopher Chege, this partnership is poised to create a lasting impact on Kenya’s housing landscape.
The partnership is set to boost ShafDB’s mandate of providing affordable housing in Africa by leveraging CPF Group’s extensive network and expertise in fund management and property services.
Mr. Chege highlighted the significance of this collaboration, stating, “As a company, our overriding strategy is the provision of affordable housing across our member states through public-private partnerships. This strategic partnership with CPF Group will be key in expanding our projects in Kenya.”
Addressing the housing deficit in Kenya
Kenya’s housing sector faces a severe deficit, with a shortfall of two million housing units. This deficit is exacerbated by the country’s rapid population growth and high urbanization rate, which stands at 4.4 per cent—well above the global average of 2.1 per cent.
As urban areas continue to expand, the demand for affordable housing continues to outstrip supply, leaving a significant portion of the population living in inadequate conditions.
In response to this challenge, the Kenyan government has launched the Bottom-up Economic Transformation Agenda (BETA), which aims to deliver 250,000 housing units per year. However, current delivery rates stand at just 50,000 units annually, highlighting the urgent need for increased investment and innovative solutions in the housing sector.
It is within this context that the partnership between ShafDB and CPF Group gains even greater significance. By pooling their resources and expertise, the two organizations are well-positioned to make a substantial contribution to the achievement of Kenya’s housing goals.
The role of the housing solutions fund
A central component of the ShafDB and CPF Group partnership is the establishment of a Housing Solutions Fund for Kenya. This fund is designed to address the challenges facing the affordable housing value chain from both the supply and demand sides.
By co-financing projects and providing capital raising and technical support, the fund aims to catalyze the development of affordable housing across Kenya’s 47 counties.
The Housing Solutions Fund will serve as a platform for intervention across the entire housing value chain, ensuring that affordable housing projects are not only initiated but also brought to completion.
By offering financial solutions and technical assistance, the fund will enable developers, investors, and other stakeholders to overcome the barriers that have historically hindered the delivery of affordable housing in Kenya.
Dr. Kili expressed enthusiasm about the partnership, stating, “We are excited to partner with Shelter Afrique Development and leverage on each institution’s strength as we jointly address the perennial problem of decent and affordable housing in Kenya. This partnership opens up opportunities for collaboration in many areas, including product and services design and finding innovative funding solutions for our current and future projects.”
Leveraging public-private partnerships
Public-private partnerships (PPPs) are a key strategy for addressing the affordable housing crisis in Kenya. By bringing together the resources and expertise of both the public and private sectors, PPPs can facilitate the development of large-scale housing projects that would be difficult to achieve through traditional financing methods alone.
The collaboration between ShafDB and CPF Group exemplifies the potential of PPPs to drive meaningful change in the housing sector. Through this partnership, the two organizations will be able to leverage their respective strengths to deliver affordable housing solutions that meet the needs of Kenya’s growing urban population.
Mr. Chege highlighted the importance of PPPs in achieving ShafDB’s mission, stating, “We believe our partnership with CPF Group will deepen our impact on Kenya’s, and by extension, Africa’s affordable housing value chain, from both the supply and demand side.”
The broader impact on Africa’s housing sector
While the immediate focus of the ShafDB and CPF Group partnership is on Kenya, the implications of this collaboration extend beyond the country’s borders. ShafDB’s Pan-African mandate means that the lessons learned and successes achieved through this partnership can be applied to other African nations facing similar housing challenges.
Africa’s housing crisis is a continent-wide issue, with millions of people living in substandard conditions due to a lack of affordable housing options. By developing innovative financing solutions and forging strategic partnerships, ShafDB is working to address this crisis on a broader scale.
The collaboration with CPF Group represents a significant step forward in these efforts, as it demonstrates the potential for Pan-African institutions to work together with local partners to achieve sustainable development outcomes.
Read also: Stable outlook for housing lender Shelter Afrique as GRC upgrades ratings
The future of affordable housing in Kenya
The partnership between ShafDB and CPF Group marks a new chapter in the quest to provide affordable housing in East Africa’s largest economy. By combining their resources, expertise, and commitment to social impact, the two organizations are poised to make a significant contribution to the country’s housing sector.
As Kenya continues to grapple with the challenges of rapid urbanization and population growth, the need for innovative solutions in the housing sector will only become more pressing. The Housing Solutions Fund, established through this partnership, is a promising initiative that has the potential to transform the affordable housing landscape in Kenya.
Looking ahead, the success of this partnership could serve as a model for other African nations seeking to address their own housing challenges. By demonstrating the power of collaboration and the potential of public-private partnerships, ShafDB and CPF Group are paving the way for a future where affordable housing is within reach for all Africans.
The MOU between ShafDB and CPF Group represents more than just a partnership—it is a commitment to addressing one of Kenya’s most pressing social issues. Through their combined efforts, these two organizations are working to ensure that affordable housing is not just a goal, but a reality for millions of Kenyans.
As they move forward with their plans, the impact of their work will be felt not only in Kenya but across the African continent, as they strive to create a future where decent, affordable housing is available to all.
