Home Afrika: Developer grapples with multimillion projects

Friday, August 16th, 2019 00:00 |
Morning Side building on Ngong Road, Nairobi, Home Afrika’s head office. Photo/COURTESY

Mitini Scapes in Kiambu county, 100 per cent owned by Home Afrika, is so far the most successful project for the developer, helping raise millions of shillings to boost revenues. Almost all the 82 homes —70 apartments and 12 villas—  have been sold off. 

However, the 774-acre Migaa estate and mixed-use project with a golf course are the most ambitious. It was said to have been modelled after the Thika Greens estate on Thika-Kenol highway, Murang’a county, but financial affairs went awry after the golf project became too costly. 

About Sh1.1 billion was used to acquire the property, but the slow sale of homes and high expenditure generated heat from shareholders. “It is our only ongoing project now,” Dan Awendo, Home Afrika’s CEO  says

Lake View Heights in Kisumu was launched in 2014 with aplomb by the then CEO, Lee Karuri. Located on 91 acres at Riat Hills,  it aimed to build 300 homes, a hotel and convention centre, commercial facilities, clubhouse, nursery and daycare centres, medical and recreational facilities.

Towards the end of April 2014, Home Afrika announced plans to build 20,000 low-cost homes at Kikwetu, Athi River, Machakos, to cater for the low-end market segment.

Another project was Lango in South Coast, where the firm acquired 21 acres. In September last year, the cash-strapped company announced plans to exit from Lake View and Lango projects — which it was unable to complete due to inadequate capital.  

“We are still looking for buyers for our land in Lakeview. For Lango, the buyers of plots have taken over and we have exited. We are prioritising the completion of Migaa, which is where any money raised from the exits will be deployed,” Awendo said.

More on Finance and Investments