•Home Afrika reduced its losses from Sh65 million in the 2022 financial year to Sh27.8 million by December 2023.
•The company says its board members expressed confidence in its long-term strategy and resilience.
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Home Afrika Limited has clarified that it has not been placed under administration, countering recent media reports.
Instead, the company's subsidiary, Mitini Scapes Development Limited, is the entity undergoing administration.
This subsidiary is part of the larger Migaa Golf Estate project in Kiambu County.
"Contrary to recent narratives, it is not Home Afrika that is under administration, but rather its subsidiary, Mitini Scapes Development Limited," said chairman of Home Afrika Limited Peter Mungai.
The administration aims to restructure and revitalize Mitini Scapes’ financial standing, with Kamal Anantroy Bhatt and Dhir Kamal Bhatt of Anant Bhatt LLP appointed as administrators.
"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 matter is currently before the court, awaiting determination. Despite the situation with Mitini Scapes, Home Afrika says it maintains a robust portfolio, including the larger Migaa Golf Estate, Lakeview Heights, and development plots in Naivasha and Machakos counties.
Home Afrika reduced its losses from Sh65 million in the 2022 financial year to Sh27.8 million by December 2023.
The group reported an operating profit of Ksh3 million in December 2023, compared to a Sh24 million loss during the same period the previous year.
A turnaround that the firm attributed to organizational restructuring and improved operational efficiency.
Additionally, successful negotiations with lenders have cut the company's finance costs by 33 per cent in 2023.
Home Afrika is actively seeking new revenue opportunities through strategic partnerships and business expansion, focusing on increasing sales and recognizing revenue upon payment completion and title issuance.
The company says its board members expressed confidence in its long-term strategy and resilience.
“The company remains committed to delivering value to investors, clients, and communities. "Home Afrika Limited stands resolute and financially sound, committed to continuing its mission of building homes, creating communities, and transforming lives," said Mungai.