Luke Kinoti, the immediate former Chief Executive Officer at Suntra Investments, is set to join Home Afrika’s Board of Directors as a Non-Executive Director.
The appointment of Mr. Kinoti, who left Suntra Investments in April to pursue other interests in finance and investments after his contract expired, took effect on July 24.
While making the announcement, Home Afrika Managing Director Dan Awendo endorsed Mr. Kinoti to succeed in his new position.
“He brings a wealth of experience in private equity, fund management, real estate, microfinance and insurance sectors having worked in various institutions such as Suntra Investment and Fusion Capital,” Mr Awendo said while making the announcement in Nairobi yesterday.
Mr. Kinoti joins the real estate development firm at a time when the company registered a 90 per cent increase in net losses in the year ended December 2018. The 90 percent increase in losses translated to the firm posting a Ksh. 346.2 million net loss in the period under review compared to the Ksh. 181.7 million registered in a similar period in 2017. Revenue collected from the firm’s contracts with customers similarly dropped to Ksh. 109 million down from Ksh. 262.7 million registered in 2017.
The firm attributed the significant increase in losses to low uptake of its real estate developments as a result of strained credit in the private sector that has been fueled by the interest rate cap law. The rate cap law has made lenders shy away from offering loans, which on most occasions fund real estate unit purchases, to persons considered likely to default on the credit advance. The poor performance in the year ended December 2018 has also seen the firm announce that it will not allocate any dividends for the period to its shareholders.