Shelter Afrique recently released its second-quarter financial results as it announced its turn around plan. Shelter Afrique reported a net profit of Ksh 7.8 million compared to a loss of Ksh 500 million reported in the previous period. This was attributed to the growth in fees and commissions from new projects, performing loan books and loan recoveries.
During the period, fee and other income grew by 11% to KSh 80 million. The liquid ratio position was stable and maintained the 15% minimum threshold. Interest income decreased by 19% to Ksh 779 million. This was attributed to reduced loan portfolio since there was no new lending for the past two and a half years. Interest expense also decreased by 35% due to reduced debt load. The operating expenses also decreased by 9% due to stringent cost-containment measures.
According to Daniel Nghidinua the Shelter Afrique chairman, that turn around the process was fast-tracked by enhanced corporate governance, robust enterprise, risk management, new management team, a new strategic plan, new business model and debt restructuring plans
Shelter Afrique had recently temporarily stopped taking new projects in 2016 in order to restructure operations and development of new strategies but resumed full operations at the start of 2019. Thus has launched new projects such as Richland points, Everest apartments and Karibu Homes in Kenya and Ragarama Housing Project in Rwanda.
