After a decade of losses, listed real estate developer Home Afrika Limited has returned to profitability, posting a KSh 133.5 million net profit in 2024, from a KSh 27.8 million loss in 2023.
- •The Group’s revenue rose sharply by 107% to KSh 781.9 million, up from KSh 377.2 million in 2023, while its operating profit shot up from KSh 3.3 million to KSh 223.8 million in 2024.
- •Home Afrika’s has said that its ongoing focus will be on reducing debt, improving liquidity, and eventually reversing the negative equity position fully.
- •While the company turned profitable, the directors opted not to declare a dividend, instead prioritizing liquidity preservation and balance sheet improvement.
This growth was supported by:
- •Strategic recognition of deferred income from completed projects.
- •Increased lease registrations from the flagship Migaa project.
- •Issuance of land titles under the Smart Plots initiative.
- •Higher green fees and rental income from Migaa Golf Course after achieving KGU certification.
“The year 2024 shows the outcome of the four-year turnaround strategy,” the company noted.
| Metric | 2024 | 2023 | Change / Note |
|---|---|---|---|
| Revenue | KSh 781.9 million | KSh 377.2 million | +107% |
| Gross Profit | KSh 373.5 million | KSh 114.8 million | +225% |
| Operating Profit | KSh 223.8 million | KSh 3.3 million | +6,656% |
| Finance Costs | (KSh 78.7 million) | (KSh 25.5 million) | +208% |
| Profit Before Tax | KSh 145.1 million | (KSh 22.2 million) | Positive turnaround |
| Net Profit (After Tax) | KSh 133.5 million | (KSh 27.8 million) | Positive turnaround |
| Earnings Per Share (EPS) | KSh 0.13 | (KSh 0.04) | Positive turnaround |
| Negative Equity (Net Liabilities) | (KSh 2.33 billion) | (KSh 2.59 billion) | Improved by KSh 255M |
Despite posting its first profit in 10 years, Home Afrika continues to carry negative equity, though the deficit narrowed in 2024 thanks to improved performance.
| Metric | 2024 | 2023 | Comment |
|---|---|---|---|
| Total Assets | KSh 3.74 billion | KSh 4.05 billion | Slight decline |
| Total Liabilities | KSh 6.07 billion | KSh 6.64 billion | Improved by KSh 570 million |
| Negative Equity (Net Liabilities) | (KSh 2.33 billion) | (KSh 2.59 billion) | Improved by KSh 255 million |
| Borrowings (Loans + Bond) | KSh 1.70 billion | KSh 1.61 billion | Slight increase |
The company’s turnaround was driven by a deliberate shift in strategy, emphasizing:
- •Product diversification, with a balanced mix of affordable and premium offerings.
- •Operational efficiencies, including cost controls in Migaa and other projects.
- •Market responsiveness, through targeted marketing and capitalizing on luxury housing demand from expatriates and high-income buyers.
- •Revenue realization from deferred income, leases, and title issuance.
Looking forward, Home Afrika is positioning itself to maintain momentum and accelerate growth. Key priorities include:
- •Acquiring new projects with discussions already underway with strategic partners.
- •Handover of completed developments to investors and management companies.
- •Enhancing stakeholder value through continued profitability and prudent balance sheet management.
“The Board and management are confident in acquiring new projects to generate revenue,” the company said.
