Home Afrika Limited, a real estate developer, has clarified that that it has not been placed under administration. Home Afrika company said it is its subsidiary, Mitini Scapes, that has been placed under receivership due to cashflow problems.
“Contrary to recent narratives, it is not Home Afrika that is under administration, but rather its subsidiary, Mitini Scapes Development Limited, a premier housing development within the expansive Home Afrika project known as Migaa – an exclusive Golf Estate in Kiambu County,” Mr Peter Mungai, the Home Afrika Limited chairman, said in a statement.
Mitini Scapes Development Limited’s appointment of administrators, Messrs. Kamal Anantroy Bhatt and Dhir Kamal Bhatt of Anant Bhatt LLP, marks a targeted step towards restructuring and revitalising the subsidiary’s financial standing, he said.
“This move aims to ensure the Mitini Scapes project continues to align with its promise of delivering quality housing within the esteemed Migaa Golf Estate,” said Mr Mungai. Mitini Scapes Development Limited, through its advocates, has already moved to court over the issue and the matter is yet to be determined.
Home Afrika’s Resilience
Home Afrika boasts a diversified portfolio beyond the borders of Mitini Scapes. The company’s strategic assets include the larger Migaa Golf Estate, Lakeview Heights, and plots available for development in Naivasha and Machakos counties.
“These projects underscore Home Afrika’s commitment to providing sustainable and affordable housing solutions across the East African subregion,” he added.
Notably, Home Afrika has witnessed a turnaround in financial performance, with losses narrowing down from Ksh65 million in 2022 financial year, to Ksh27.8 in December 2023 (64.7% decrease in losses), marking a positive trend in its financial recovery.
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In December 2023 financial results, the group reported an operating profit of Ksh3 million, compared to reported loss during a similar period of Ksh24 million, marking over 113% improved performance. This was due to organizational restructuring that streamlined operations and improved efficiency.
Fiscal Prudence and Strategic Alliances
Mr Mungai revealed that successful negotiations with lenders have significantly reduced the company’s finance costs by 33% in 2023 compared to the same period in 2022. The company anticipates a notable reduction in obligations due to diligent repayment efforts.
He said that the board and management are also actively seeking new revenue-generating opportunities through strategic partnerships and business expansion. “We have amplified our expenditure on marketing and selling activities, resulting in higher sales. Revenue from sales will be recognized once payment completion is achieved and titles are issued,” he said.
The board members of Home Afrika expressed unwavering confidence in the company’s long-term strategy and resilience in navigating the current economic landscape. The chairman stated that the focus remains steadfast on delivering value to investors, clients, and communities, ensuring a prosperous future for all stakeholders.
“Home Afrika Limited stands resolute and financially sound, committed to continuing its mission of building homes, creating communities, and transforming lives,” he said.
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