Loss-making Home Afrika sells land, houses to clear loan

One of the properties of Home Afrika.

Home Afrika, a real estate company listed on the stock exchange, is selling some of its assets, including houses and land, in order to repay an outstanding loan of KSh79 million from I&M Bank.

Home Afrika intends to sell six housing units from its Mitini Scapes Development, located along Kiambu Road and Lake View Heights in Kisumu. The purpose of this sale is to repay the company’s restructured debt facilities to the bank.

As part of the debt restructuring programme, Home Afrika’s directors held negotiations with several lenders including I&M Bank, Co-operative Bank, and NCBA Bank, to restructure the problematic facilities.

“During the year ended December 31, 2023, the directors negotiated a final and full settlement with the bank (I&M) of KSh100 million and the group paid KSh22 million during the year, towards settlement of the loan balance,” said Home Afrika.

“The outstanding balance of KSh79 million will be repaid in the next financial year from proceeds realized from the sale of six housing units under Mitini Scapes Development Limited and the sale of 5 acres of land under Lake View Heights Limited in Kisumu.”


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Home Afrika did not reveal the exact amount borrowed from I&M Bank and other lenders. However, in the year ending December, their borrowings from I&M Bank decreased from KSh141.3 million in 2022 to KSh78.9 million.

These loans were secured by KSh1.3 billion worth of guarantors, including a mortgage, debenture, and an indemnity corporate guarantee provided by the directors.

In 2014, the developer borrowed funds from lenders after being unsuccessful in raising money privately through a bond issue.

“The management negotiated for full and final settlement of KSh320 million and KSh460.95 million with Co-operative bank and NCBA Bank Kenya Plc respectively during the year under review.”

During the review year, the property firm attributed a 37 per cent reduction in finance costs to negotiations, while borrowing and private bonds decreased by 25 per cent. Additionally, the firm is currently embroiled in a dispute with Ecobank over an asset due to a failure to repay a facility.

The bank initiated legal proceedings to liquidate the asset, but the high court ruled that the pan-African bank must repurchase the property at its market value.

In 2013, the company secured funds from financial institutions Ecobank and I&M Bank to finance its Moru Ridge and Mitini projects.

“The bank was unsuccessful in its efforts to get a buyer to buy the properties and they did not receive any offers that were close to the cumulative costs (570 million) so far incurred in putting up the residential blocks,” added Home Afrika.

Home Afrika, which is based in Nairobi, was founded in 2008 by a group of like-minded professionals and real estate practitioners.

Home Afrika engages in the development and sale of real estate properties. They also provide quality, sustainable, and affordable housing for communities in Kenya and other countries in the East Africa sub-region.

By Frank Mugwe

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