Kenya bought more shares worth Ksh1 billion in Pan-African housing financier Shelter Afrique in the year ended December 2021.
The transaction cemented Kenya’s place in the entity as the majority shareholder with a 17.44 percent stake from the 14.82 percent held in 2020.
Nigeria, the second-largest shareholder enjoys 13.02 percent shareholding followed by the African Development Bank (AfDB) whose stake stands at 12.58 percent.
“The Kenyan government was the most significant contributor, with a payment of $9.28 million accounting for 37 percent of the total collections,” Shelter Afrique head of investor relations Kahumbya Bashige said in the firm’s latest annual report.
Shelter Afrique is owned by 44 African countries and two development institutions — AfDB and African Reinsurance Corporation — the latter being class B shareholders.
10 other countries also gave Shelter Afrique additional capital, bringing the fresh capital received by the housing financier in the year to December to $24.83 million (Ksh2.95 billion).
“During the year, shareholders continued to demonstrate their support of the institution and its mandate by injecting $24 million equity into the company,” said Shelter Afrique.
“This amount represents 143 percent of the annual target of $17 million and 46 percent growth over the 2020 collections of $16.7 million.”
Read: Nigeria Pays Ksh840M For Additional Stake In Shelter Afrique
Other members that contributed capital include the Democratic Republic of Congo ($4.18 million), Cameroon ($3.53 million), Tanzania ($3.08 million), and Mali ($2.06 million).
Shelter Afrique is looking to raise Ksh59.4 billion ($500 million) from East Africa and a similar amount from Nigeria, with the remaining $250 million (Ksh29.7 billion) coming from its francophone markets.
“As part of our 2021 to 2025 strategic goals, we are returning to the Local Currency Capital Markets and target to raise 30 to 45 percent of our total debt from these markets,” said the financier.
“The East Africa bond will be listed on Nairobi Securities Exchange, with the proceeds deployed in Kenya, Rwanda, Uganda and Tanzania.”
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