Nigeria: ShafDB and CPF Group Sign MOU to Boost Affordable Housing Development

Shelter Afrique Development Bank (ShafDB), a prominent Pan-African institution dedicated to financing and promoting housing, urban, and infrastructure development, has signed a Memorandum of Understanding (MOU) with CPF Group. This partnership aims to accelerate the development of large-scale affordable housing projects in Kenya.

The agreement, which strengthens Shelter Afrique Development Bank’s mission to provide affordable and decent housing across Africa, was formalized in Nairobi. The MOU was signed by CPF Group Managing Director, Dr. Hosea Kili, and Shelter Afrique Development Bank’s Head of Credit and Operations, Mr. Christopher Chege, representing Managing Director Mr. Thierno-Habib Hann.

“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,” Mr. Chege said.

The agreement seeks to provide a platform for intervention across the affordable housing value chain by creating a partnership in affordable housing delivery through co-financing.

It also seeks to establish a Housing Solutions Fund for Kenya, which will make interventions on the supply and demand side of the affordable housing value chain. Both ShafDB and CPF Group will jointly design and manage the Fund – including offering capital raising and technical support to the management of the Fund.

“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 & services design and finding innovative funding solutions for our current and future projects,” Dr. Kili said.

Kenya faces a housing deficit of 2 million units, a figure that could increase due to the country’s rapid population growth and urbanization rate, which stands at 4.4%, significantly higher than the global average of 2.1%.

With 29% of Kenya’s 50.6 million population living in urban areas, the housing challenge is pressing. To address this, the Kenyan government has implemented the Bottom-up Economic Transformation Agenda (BETA), a global framework aimed at delivering 250,000 housing units annually, a significant increase from the current 50,000 units produced each year.

“It is against this background that Shelter Afrique Development Bank and the CPF Group are joining forces through the Collaboration Agreement to scale up affordable housing delivery. 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,” Mr. Chege concluded.