Shelter Afrique, a pan-African housing financier led by Zimbabwean senior executive Andrew Chimphondah, announced that it recovered Ksh687.19 million ($5.7 million) from some of its troubled real estate projects in Kenya at the end of its 2021 fiscal year, which ended on Dec. 30, 2021.
The recovery is the result of efforts taken by Shelter Afrique’s management to put the financial institution on the path of sustainable growth and reduce its mounting non-performing loans.
Chimphondah was appointed managing director in September 2018.
“In 2021, the management sustained the recovery efforts anchored in the 2020-2023 board-approved non-performing loan management strategy,” Macharia Kihuro, special operations manager, said.
He went on to stated that the company has regularly reviewed the success and effectiveness of its non-performing loan management strategies through its special operations unit.
According to BusinessDaily, the housing financier earlier disclosed that it was able to recover collateral totaling Ksh533.7 million ($4.47 million), including 15 housing units in unnamed local projects, 11 apartments in Eden Beach Resort & Spa in Mombasa, and vacant land.
Beatrice Mburu, Shelter Afrique’s acting CFO, said earnings for the period were bolstered by $2.53 million in impairment recoveries from its $4.34 million investment in the Spring Green project in Kenya, which went bad, and the $4.47 million that it recovered from various Kenyan properties.
Shelter Afrique’s financial performance for the period represents a strategic turnaround for the institution.
Chimphondah, who has more than 20 years of leadership experience in real estate finance and retail and commercial banking, is known for his successful business turnarounds.
Last year, Zimbabwean executive led Shelter Afrique to an $11-million housing deal with the African Banking Corporation in Harare, Zimbabwe.
The housing loan, which is due in 2027, will be used to build 2,500 residential units, for mortgage origination, home extensions and improvements, and for affordable housing and commercial project lending.
