IN a significant move to tackle Kenya’s housing crisis, Shelter Afrique Development Bank (ShafDB) has signed a Memorandum of Understanding (MOU) with CPF Group. This partnership aims to accelerate the development of large-scale affordable housing projects across the country, addressing Kenya’s growing housing deficit.
The agreement, signed in Nairobi by CPF Group Managing Director Dr Hosea Kili and ShafDB’s Head of Credit and Operations Christopher Chege, is poised to strengthen ShafDB’s mission of providing affordable housing across Africa. Representing ShafDB’s Managing Director, Thierno-Habib Hann, Chege emphasised the strategic importance of this collaboration.
‘Our goal is to increase access to affordable housing in our member states through public-private partnerships. This alliance with CPF Group is crucial for expanding our projects in Kenya,’ said Chege.
The partnership focuses on enhancing the affordable housing value chain through co-financing and the establishment of a Housing Solutions Fund for Kenya. This fund will address both the supply and demand challenges of affordable housing. Both organisations will jointly design and manage the fund, offering capital raising and technical support to ensure its success.
Dr Kili of CPF Group expressed enthusiasm about the collaboration, highlighting the potential for innovative solutions in addressing Kenya’s housing needs. ‘This partnership with Shelter Afrique Development Bank leverages our combined strengths to tackle the challenge of affordable housing in Kenya. It opens doors for collaboration in various areas, including product design and innovative funding solutions,’ he stated.
Kenya currently faces a housing deficit of 2 million units, exacerbated by rapid population growth and urbanisation rates significantly above the global average. With 29 percent of Kenya’s 50.6 million people living in urban areas, the government has set ambitious goals under the Bottom-up Economic Transformation Agenda (BETA) to deliver 250,000 housing units annually. However, current efforts only meet 20 percent of this target.
The partnership between ShafDB and CPF Group is expected to play a vital role in scaling up the delivery of affordable housing, addressing both the supply and demand challenges within the sector. As Chege noted, ‘This collaboration will deepen our impact on Kenya’s affordable housing landscape and, by extension, benefit Africa’s broader housing market.’
This agreement marks a critical step forward in the ongoing efforts to resolve Kenya’s housing crisis, with both organisations committed to delivering sustainable and affordable housing solutions.
The CPF Group offers diverse services, including Retirement Benefits Schemes Administration, Fund Management, Insurance Brokerage, and Technology Solutions. CPF Financial Services manages both private and public pension funds, such as the PSSS, LAPTRUST, and Taifa Pension Fund, with a total net value of around KSh170bn and over 500,000 members.
