Pan African housing and habitat development financier Shelter Afrique has extended a Sh740 million development loan to Kenya Medical Association Housing Co-operative for the construction of 160 housing units in Mtwapa, Mombasa County.
The five year loan will be priced at 13.5 percent. Speaking at the loan signing ceremony, Shelter Afrique Acting Managing Director Mr. Yekini Olayanju said that the funds are earmarked to co-finance the development of project.
KMA Housing Cooperative, Olayanju disclosed, is one of Shelter Afrique’s major middle level investments geared at raising Kenya’s housing supply capacity.
“Our relationship with Kenya medical Association dates back to the year 2000 when we first advanced a facility of $1.5m. This has eventually grown overtime and the signing of Sh740 is in itself a milestone for Shelter Afrique – being the first largest loan facility the organization has advanced to a cooperative society,” said Mr. Olayanju.
Mr. Olayanju said the company was actively extending support to similar projects as part of its corporate commitment to boost supply of affordable housing units for Kenya’s growing middle class among other social classes.
“Shelter Afrique is always happy to play our part in developing the housing sector in our host country of Kenya, which till date is our strongest market and portfolio,” Olayanju explained
Kenya Medical Association Chairman Dr. Hezra Opere said the facility has been structured to ensure members access the houses at cost.
“The favourable terms of loan has ensured that our members will get these units at cost. As an association we are committed to improving the lives of our members and will continue to find avenues to do so,” said Dr. Opere.
The signing of the loan facility with KMA comes as Shelter Afrique courts housing Saccos across the country. Mr. Olayanju said the company was keen on keying into the schemes and solving the challenges of housing being faced by member of various Saccos.
“Most co-operatives have acquired landed properties which have been allocated to their members, what members need now is not land but decent homes, unfortunately most members cannot afford the lump sum to build on their allocated land. We have entered into deals with some Saccos to finance development of decent but affordable housing for their members and Kenya Medical Association Housing Cooperative is one such Sacco,” said Mr. Olayanju.
Kenya Medical Association (KMA) is a voluntary membership organization open to all medical and dental practitioners registered in Kenya. The Association currently has over 2,000 members countrywide and is one of the most successful co-operatives in Kenya with a solid track record and active members’ support. It has to date completed three residential developments (about 307 housing units).