In a strategic move to address Kenya’s housing crisis, the Shelter Afrique Development Bank (ShafDB) has signed a Memorandum of Understanding (MOU) with the CPF Group, aiming to expand the development of large-scale affordable housing projects across the country. The agreement, which focuses on the supply and demand of affordable housing, is poised to support ShafDB’s mission to provide decent housing across Africa.
The MOU was signed in Nairobi by Dr. Hosea Kili, CPF Group Managing Director, and Mr. Christopher Chege, Head of Credit and Operations at Shelter Afrique Development Bank, representing Managing Director Mr. Thierno-Habib Hann.
A Public-Private Partnership for Housing
Speaking during the event, Mr. Chege highlighted the significance of the collaboration, stating, “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.”
The agreement is designed to provide a robust platform for intervention along the entire affordable housing value chain, with the co-financing of projects as a central component. Additionally, a key feature of the partnership is the creation of a Housing Solutions Fund for Kenya, which aims to address both supply and demand challenges in the housing market. Shelter Afrique and CPF Group will jointly manage this fund, offering capital-raising capabilities and technical expertise to ensure successful implementation.
Dr. Kili, expressing his enthusiasm for the collaboration, noted, “We are excited to partner with Shelter Afrique Development and leverage each institution’s strengths 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 and services design, and finding innovative funding solutions for our current and future projects.”
Addressing Kenya’s Growing Housing Deficit
Kenya faces a significant housing deficit, with an estimated shortage of 2 million housing units. The rapid population growth, coupled with an urbanization rate of 4.4%—well above the global average of 2.1%—exacerbates the housing crisis. With 29% of the country’s 50.6 million population living in urban areas, there is increasing pressure to provide affordable housing solutions.
In response to this challenge, the Kenyan government has outlined the Bottom-up Economic Transformation Agenda (BETA), which aims to deliver 250,000 housing units annually. Currently, only 50,000 units are delivered each year, highlighting the need for partnerships like the one between ShafDB and CPF Group.
“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,” Mr. Chege said. “We believe our partnership will deepen our impact on Kenya’s—and by extension, Africa’s—affordable housing value chain, from both the supply and demand side.”
A Pan-African Vision for Housing Development
The partnership between Shelter Afrique Development Bank and CPF Group represents a significant step toward solving Kenya’s housing crisis. The Housing Solutions Fund, along with co-financing mechanisms, demonstrates the potential of public-private partnerships to make large-scale, affordable housing a reality for millions of Kenyans.
As Kenya continues to grapple with urbanization and population growth, this partnership offers hope for creating a sustainable solution to the country’s housing deficit, while also setting a blueprint for other African nations facing similar challenges.
Through this collaborative effort, Shelter Afrique Development Bank and CPF Group are not only tackling the housing shortage but also contributing to broader social and economic development across Africa.