Pan- African housing development financier – Shelter Afrique, is planning to tap into the East Africa’s capital markets and pension funds to finance affordable housing projects in the region.
It has kicked off negotiations with Kenya’s Capital Markets Authority (CMA) to issue a housing bond to support local housing projects.
The initiative will also be rolled out in other East African territories like Rwanda, Uganda and Tanzania in a Ksh.61 billion bond, buoyed by the successful local currency bond debut in Nigeria early this year
“We want to approach it as an East Africa issue- meaning we’ll issue Kenya Shilling bond, Uganda and Tanzania shillings bonds, and Rwandese Franc bond, subject to availability of bankable projects in each of the markets,” said Shelter Afrique’s Ag. Managing Director Kingsley Muwowo
The financier is eyeing pension funds such as Kenya’s National Social Security Fund (NSSF), Uganda National Social Security Fund, Rwanda Social Security Board, and Public Service Pensions Fund of Tanzania, to invest in housing projects in the region and earn decent returns.
“Our experience with the Nigerian bond debut is that pension funds present a viable option to tap funds for affordable housing projects. We equally believe they have the capacity to provide long term funding for such projects.”
Shelter Afrique has had ten successful local currency bond issues in Kenya dating back to 2000s, which have been successfully retired.
The Company has several projects in Kenya including Everest Park Apartments, Richland Point Apartment, Karibu Homes, Pine City and Sigona Valley in Nairobi; Lake Breeze Apartments and Translakes Apartments in Kisumu; and Eden Beach Apartments and KMA Housing Apartments in Mombasa.