Shelter Afrique Development Bank (ShafDB) and CPF Group have signed a Memorandum of Understanding (MoU) to accelerate the implementation of large-scale affordable housing projects in Kenya. This partnership aligns with ShafDB’s long-term goal of supporting member states through public-private partnerships, emphasizing the critical need for affordable housing solutions in the country.
The partnership between ShafDB and CPF Group is set to leverage the strengths of both institutions to address the persistent challenge of providing decent and affordable housing in Kenya. CPF Group Managing Director Hosea Kili expressed excitement about the collaboration, noting that it opens up new opportunities for innovative funding solutions and product design to support both current and future housing projects.
A key component of this agreement is the establishment of a Housing Solutions Fund for Kenya. This fund will focus on interventions across the affordable housing value chain, addressing both supply and demand challenges. The fund will be jointly designed and managed by ShafDB and CPF Group, with both institutions contributing capital and technical expertise to its management.
Christopher Chege, ShafDB’s Head of Credit and Operations, highlighted the significance of the partnership in scaling up affordable housing delivery in Kenya. He emphasized that this collaboration is expected to deepen the impact on Kenya’s affordable housing sector and, by extension, benefit the broader African housing market.
The urgency of this initiative is underscored by World Bank data showing Kenya’s housing deficit at 2 million units, a number that is projected to rise due to high population growth and rapid urbanization. Addressing this deficit is critical to improving living conditions and supporting sustainable urban development in the country.
This partnership is also in line with the Kenyan government’s Bottom-up Economic Transformation Agenda (BETA), which aims to deliver 250,000 housing units annually, a significant increase from the current 50,000 units. Through this collaboration, ShafDB and CPF Group are committed to playing a pivotal role in realizing this ambitious target.
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