Housing start-ups win Sh25m UN Habitat contest

Five local business start-ups under the ShelterTech Kenya Accelerator Program have each secured Ksh5 Million funding following successful pitching to local and international investors. The five start-ups, out of the 15 that pitched proved that they were investor ready, and out to make a difference in the affordable housing sector.

Depending on their capacity to absorb and after further due diligence, three of those businesses will share a further Sh15 million courtesy of Habitat for Humanity.

The judges, drawn from the real estate, financial and technology sectors settled on Gjenge – a social enterprise recycling waste plastic into artistic construction products, ManPro- a construction Management System and The Vlage, which provides co-living spaces through their digital platform. The judges also picked AHomes – a startup that provides artisans with labour opportunities and certification and MycoTile – which provides alternative building material made from mushroom.

“These start-ups have put in a lot of work in their business ideas and we would have wished to match all of them with investors. However, we are compelled to go with the most investor ready outfits,” said Darshan Chandaria- Group CEO Chandaria who was a judge at the accelerator Demo Day.

Two other scale-ups were also picked for possible funding. They are Mali Kodi- a cloud based rental properties management system and Corec (Continental Renewable Energy Co. Limited), which produces, amoung other things, quality durable resin bonded roofing tiles, Man Hole covers and Plastic lumber planks.  

The 15 businesses that pitched were shortlisted from tens of others who applied for the program and have gone through intense training and validation to ensure they are investor ready.

According to Pangea Accelerator Team Lead Anne Lawi, the program was born out of the need to have affordable housing while ensuring key challenges such as high cost of construction due to very high import duties, poor import logistics and an unfavourable tax regime are dealt with.

“The purpose of this event is to encourage young and upcoming businesses that they can still be market validated through access to investment opportunities,” said Ms. Lawi.

Jane Otima, the Associate Director for Market Systems at Habitat for Humanity International remarked that the Demo Day is a further validation that it is possible to not only get innovative businesses that will aid in the achievement of the housing agenda but it is also an amazing way to nurture and scale entrepreneurs to be investor ready.

“The housing conversation is a complex one, but very achievable. To achieve it, we will need to pool in people from all sectors and to ensure that we encourage entrepreneurs like those who have pitched today to ensure they are part of this conversation.” Said Ms. Otima

The event also saw various stakeholders from Ministry of Housing & Urban Development, Ministry of Trade and Industrialization, Habitat for Humanity, UN Habitat, Pangea Accelerator and the private sector hold discussions on innovation in the affordable housing sector and how the ecosystem can plug into the affordable housing conversation and align it to the Big 4 Agenda. Through this, the ShelterTech Accelerator Kenya program not only looks at the culmination of the program but also brings to light discussions on affordable housing and the interventions and innovations needed to achieve this Agenda.