Home Afrika Limited has officially refuted claims circulating in the media that the real estate developer is under administration. The company clarified that the administration process applies only to its subsidiary, Mitini Scapes Development Limited, not the parent company itself.
“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,” stated Peter Mungai, Chairman of Home Afrika Limited, in a statement.
Mitini Scapes Development Limited has appointed administrators Kamal Anantroy Bhatt and Dhir Kamal Bhatt of Anant Bhatt LLP, in a targeted effort to restructure and strengthen the subsidiary’s financial standing.
“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,” Mungai added. The subsidiary has initiated legal proceedings, and the matter is currently pending in court.
Home Afrika’s Strategic Diversification and Financial Recovery
Despite the challenges facing Mitini Scapes, Home Afrika Limited remains resilient, backed by a diversified portfolio that extends beyond this single project. The company’s strategic assets include the larger Migaa Golf Estate, Lakeview Heights, and development plots in Naivasha and Machakos counties.
“These projects underscore Home Afrika’s commitment to providing sustainable and affordable housing solutions across the East African subregion,” Mungai emphasized.
The company has shown significant financial recovery, with losses decreasing from Ksh65 million in the 2022 financial year to Ksh27.8 million by December 2023—a 64.7 percent reduction. Furthermore, the group reported an operating profit of Ksh3 million in December 2023, a dramatic improvement from the Ksh24 million loss during the same period in 2022. This positive trend is credited to effective organizational restructuring that streamlined operations and enhanced efficiency.
Strategic Alliances and Cost Management Fuel Growth
Mungai also highlighted successful negotiations with lenders that have resulted in a 33 percent reduction in finance costs in 2023 compared to 2022. The company expects further reductions in obligations through diligent repayment strategies.
Home Afrika is actively exploring new revenue-generating opportunities through strategic partnerships and business expansion. “We have increased our investment in marketing and selling activities, leading to higher sales. Revenue from sales will be recognized once payment is complete and titles are issued,” Mungai explained.
The board and management expressed strong confidence in Home Afrika’s long-term strategy and resilience in navigating the current economic challenges. The Chairman reaffirmed the company’s commitment to 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,” Mungai concluded.
