The Developer's Digest Souvenir Issue 2006 - 2016

kpdadevelopers

2006 - 2016

KENYA PROPERTY DEVELOPERS ASSOCIATION

The Kenya Property Developers Association celebrates its 10th year anniversary culminating in a

Gala Dinner that was held on 3rd November 2016 at the Villa Rosa Kempinski Hotel in Nairobi, Kenya.


KENYA PROPERTY DEVELOPERS ASSOCIATION

A Publication by the Kenya Property Developers Association

Page 5:

The KPDA Journey

Page 29: The Diaspora and Real

Estate in Kenya

Page 35: NCC Building Permitting

Approvals

Page 43: KPDA Directory of

Members

KENYA PROPERTY DEVELOPERS ASSOCIATION

Launching of the KPDA 2017-2020 Strategic Plan at the KPDA

10th Year Anniversary Gala Dinner 3rd November 2016 at

the Villa Rosa Kempinski Nairobi. L-R KPDA Chairman, Mucai

Kunyiha, C.S Prof. Jacob Kaimenyi, P.S Arch. Mariamu El Maawy.

The Kenya Property Developers Association celebrates its 10th year anniversary culminating in a

Gala Dinner that was held on 3rd November 2016 at the Vi la Rosa Kempinski Hotel in Nairobi, Kenya.

KPDA marks its 10th year anniversary by

organizing the following events and activities:

1. A press conference held on Monday, 24th

October 2016.

2. The publication of the Souvenir Issue of

The Developer’s Digest.

3. The production of a supplement in The

Standard Newspaper on Thursday, 27th

October 2016.

4. An End of Year Gala Dinner on Thursday,

3rd November 2016 at the Villa Rosa

Kempinski Hotel, Nairobi.

KPDA SECRETARIAT

Chief Executive Officer: Elizabeth Mwangi – Oluoch

Membership Relations Officer: Liz Kayaki

Finance and Administrative Assistant: Nelly Oneya

Membership and Administrative Assistant: Philip Kisaka

Research and Development Intern: Samuel Kiarie

The Secretariat address is :

Fatima Flats, Suite 4B, Marcus Garvey Road off Argwings Kodhek

Road, Nairobi | Tel: + 254 737 530 290 | 0705 277787

Email: admin@kpda.or.ke | Website: www.kpda.or.ke

DESIGN, LAYOUT & PRODUCTION:

InsyncMEDIA Limited. Devan Plaza . First Floor . Suite No16

Chiromo Road, Waiyaki Way . Westlands . Nairobi . Kenya

P.O. Box 9510-00100 . Nairobi . Landline: (+254) 020 4400218

info@insyncmedia.co.ke / www.insyncmedia.co.ke

Kenya Property Developers Association... Development brings Development!


A MESSAGE FROM THE CHAIRMAN

BOARD OF DIRECTORS

At 10 years old, KPDA is among the

younger associations in Kenya today

and endowed with all the gifts of youth

– vibrancy, ideas and hope. Formed

by members of the equally young and

nascent private real estate development

sector revived in the 2000s, the association

has grown significantly in the last decade

in step with the growth of our industry

that is now estimated to be 7.6% of

Kenya’s GDP.

We are grateful to our members,

government and other agencies for their

support and co-operation that has brought

us this far. Our ethos is captured in the tagline

‘development brings development’. The

role of developers in delivering a suitable,

diverse and economically viable built

environment is critical in Kenya’s national

goals to attain Vision 2030.

KENYA PROPERTY DEVELOPERS ASSOCIATION

Welcome to the KPDA Family!

• Thika Greens Limited

• Soita & Associates Advocates

• Opticom Kenya Limited

• Yasian Technology Company Limited

• Parmalen Investments Limited

• Secureman Services Limited

• Epic Properties Limited

• Property Reality Company Limited

• Tandem & Stark Limited

• CEMEX Holdings Limited

The coming years will bring opportunity and challenge to

our members and the association. The association aims

to grow and develop its lobbying and services capacity

to advocate and drive implementation of sustainable

policy that enables our members thrive in the changing

environment.

This will include developments in the legal environment

and standards, the availing of affordable credit to

developers and purchasers of property, development

of infrastructure related to housing – roads, electricity

connections, water and sewerage – whilst also developing

the capacity, skills and competence of players in the

industry to deliver world class developments.

Working together with our membership and stakeholders

in the industry, we are convinced the next decade will

synergise continued industry growth in size, depth and

sophistication bringing the development our country and

this continent yearns for.

Mucai Kunyiha – KPDA Chairman

This wide role includes the provision

of housing to millions of our citizens,

commercial buildings in which

industry and services can be carried

out and leisure, shopping and

entertainment venues.

In addition the industry provides

employment to Kenyan’s directly

and indirectly and provides demand

and a market for the industrial

production of cement, steel, cabling,

ceramics and many other industries.

The industry’s GDP contribution in

2015 totaled KSh359.6bn ($3.86bn),

up 13.1% on 2014. This growth

pushed the construction sector’s

share of the economy up by a third

of a percentage point to reach 5.2%

of GDP.

The association aims to grow and

develop its lobbying and services

capacity to advocate and drive

implementation of sustainable

policy that enables our members

thrive in the changing environment.

Mucai Kunyiha

KPDA Chairman

Mucai Kunyiha is a Kenyan national

aged 44 years old, trained as a

lawyer in the University of Wales

(Cardiff) and holds an MBA from

Ashridge, UK. He has over 20 years’

experience in business at executive

management level in agricultural

inputs and the real estate industry.

He serves on various boards as a

non-executive director and also

serves on the Board of the Kenya

Association of Manufacturers.

Mucai was recently appointed

to the government’s Vision 2030

Delivery Board.

Palkesh Shah,

Vice Chairman for the Board

Palkesh Shah holds a Bachelor

of Science Degree in Business

Management from New

Hampshire College. He has

headed operations in Spin Knit

Dairy Limited, Sakiza Spinning

Ltd & GlobalN Paper Products Ltd

and an active Director at Chigwell

Holdings. He has held various

leadership positions in Shah

Lalji Nangpar Academy, Oshwal

Academy & is a founding member

of the Africa Leadership Initiative -

East Africa Foundation. He has also

been Captain at Sigona Golf Club.

Hamish Govani

Immediate Past Chair for KPDA

Hamish is the Executive Director

of Lantana Homes. He holds

a Bachelors Degree in Civil

Engineering, ACGI and a Masters

in Business Administration.

Hamish has diverse experience

in real estate development and

has overseen several construction

projects in the country.

Emma Achoki

Treasurer

Emma Achoki is the Managing

Director of Oakpark Properties

Ltd. She holds a Bachelor

of Commerce Degree from

Kenyatta University and a

Masters in International Business

Administration from the United

States International University.

She has previously worked with

PricewaterhouseCoopers (PwC) in

Kenya and Tanzania for 13 years.

She is a Certificed Public Accountant

(CPA-K) and also passed Level One

of the Certified Financial Analyst

(CFA) Examinations.

Gikonyo Gitonga

Board Director

V. GIKONYO GITONGA is the

Managing Director of Axis Real

Estate Limited in Nairobi, Kenya.

Gikonyo has over 29 years’

experience as a real estate

professional in Kenya. Mr. Gitonga

holds a BA (Land Economics) from

the University of Nairobi and an MSc

(Economics) in Urban Development

Planning from the University of

London. Professionally, he is a

full member of the Institution of

Surveyors of Kenya (Valuation and

Estate Management Chapter) and

is also a Registered Estate Agent.

Ken Luusa

Board Director

Ken graduated from the University

of Aberdeen, (Scotland) with

a Bachelors Degree in Land

Economics in 1990 & later joined

the Chartered Surveyors, Aberdeen

Office, responsible for the firm’s

client portfolio. Prior to joining

Acorn Group, he was the Regional

Chief Executive Officer of Property

Development & Management Ltd

(PDM), an Aga Khan Development

Network Company, responsible

for managing & developing

the organization’s commercial

property portfolio in East Africa.

Margaret Kibe

Board Director

Margaret is the Managing Director

at Bahati Ridge Development

Ltd. She has nearly twenty years

of experience in consulting,

production, logistics and event

management services. Her

primary areas of focus are in

real estate development and

property management. Margaret

holds a Post Graduate Certificate

in Film, Television and Digital

Etertainment and a BSc. In

Accounting with Honours.

Mwenda Thuranira

Board Director

As Chairman of Myspace Group

of Companies, a property

development and consultancy firm

based in Mombasa, Kenya, Mwenda

has pioneered the expansion of the

building industry in the Mombasa

area He is a graduate of both the

University of Dallas, Texas with a

major in Business Administration

and the Kenya Utalii College, where

he studied Tourism and Travel

Management.

Caroline Karugu

Board Director

Caroline is a Senior Associate in the

Real Estate & Finance department

of Anjarwalla & Khanna Advocates

& focuses mainly on property law,

property development work, real

estate financing, property joint

ventures & structuring of mixed

use developments. She handles

transactions including, structuring

of property joint ventures,

property acquisitions, residential

& mixed use projects, large

scale commercial retail leasing,

property management contracts

& securities.

George Wachiuri

Board Director

George is a Phd Candidate at

the Jomo Kenyatta University

for Agriculture and Technology

(JKUAT). He holds Masters

of Business Administration

(University of Nairobi) and

holds a Bachelor of Commerce

(Marketing Option) Degree from

the University of Nairobi. He is

Certified Public Accountant - CPA

(K). He is the CEO of Optiven

Limited and was formerly, a

Lecturer at Daystar University. He

was awarded the Entrepreneur

of the Year Award in 1997 by the

University of Nairobi. He has over

15 years’ working experience.

Kenya Property Developers Association... Development brings Development!

Kenya Property Developers Association... Development brings Development!

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THE ENGINE OF KPDA: OUR COMMITTEES

FROM THE SECRETARIAT

KPDA also ensures it carries out its mandate through two (2)

main committees:

PUBLIC POLICY AND ADVOCACY COMMITTEE

The Public Policy and Advocacy Committee provides strategic

advice, counsel, and options to the Board of Directors.

Mandates:

1. Ensures that KPDA is responsive and advocates for the

needs of the industry;

2. Keeps up with current and emerging public policy

issues impacting the property development industry;

3. Ensures that KPDA is responsive and advocates for the

needs of the society in terms of providing sustainable

development and robust, industry professionals;

4. Explore areas of advancing the profession within public

policy arenas, including but not limited to legislative

and regulatory venues.

Committee Convenor: Mucai Kunyiha

Members:

• Palkesh Shah (Chigwell Holdings Ltd)

• Ravi Kohli (Karibu Homes)

• Adnan Khan (Anjarwalla and Khanna Advocates)

• Harminder Chana (AMS Properties Ltd)

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• Anne Muchiri (Rozana Properties Ltd)

• Sam Mwaura (Kitusuru Country Villas Ltd)

• Peter Mutuku (Suraya Property Group Ltd).

• Amarjit Virdi (Questworks Ltd).

• Esther Omulele ( MMC Africa Law).

• Edward Kirathe (Acorn Group Ltd).

• Jacqueline Wangui (CFL and Company Advocates).

• Azmeena Bhanji (PDM (Kenya) Ltd)

• James Karanja (Housing Finance and Development

Investment Ltd – HFDI)

• David Mereka (Mereka and Company Advocates).

MEMBERSHIP AND OUTREACH COMMITTEE

The Membership and Outreach Committee works to support

the Secretariat with maintaining active members as well as

increasing membership numbers.

Mandates:

1. Actively identifying and contacting potential members;

2. Encouraging active membership through the

participation of KPDA Annual General Meeting,

fundraising events and social or networking events.

Members will also be encouraged to participate in

event hosted by KPDA partners;

3. Organize ongoing education programs that improve

knowledge and skills and help in the delivery of more

professional standards in the industry;

4. Provide a platform for industry graduates to get

exposure to the industry and facilitate symmetry

between academic qualification and property

professional competency;

5. Plan and execute an annual list of activities that direct

translate to membership value;

6. Establish and maintain regional contacts;

7. Conduct a focused membership drive every three (3)

years to increase organizational membership.

Committee Convenor: Ken Luusa

Members:

• Mwenda Thuranira (MySpace Properties Ltd)

• George Wachiuri (Optiven Ltd)

• Palkesh Shah (Chigwell Holdings Ltd)

• Margaret Kibe (Bahati Ridge Development Ltd)

• Gikonyo Gitonga (Axis Real Estate Ltd)

• JudyLeah Gathoni (Panda Development Ltd)

• George Ikua (Realtrak Solutions Ltd)

• Caroline Ratemo (Ratemo and Company Advocates)

THE EXECUTIVE COMMITTEE

The Executive/Finance Committee works to support the Board

of Directors in the overall financial running of the Association.

Committee Convenor: Mucai Kunyiha

Members:

• Hamish Govani (Lantana Homes Ltd)

• Emma Achoki (Oak Park Properties Ltd)

• Margaret Kibe (Bahati Ridge Development Ltd)

The starting point of all achievement

is desire” ~ Napoleon Hill, American Writer

Welcome to the milestone Souvenir

Issue of The Developer’s Digest! Happy

birthday to KPDA!

The Kenya Property Developers

Association (KPDA) aims to contribute

to excellence in the Kenyan building

sector through the promotion of worldclass

ethical standards, educational

programs promoting good practice,

facilitating research and by providing

advice, information and expertise to its

members as well as players in the sector.

This particular issue takes on a different

Visit us online

Elizabeth holds a Post Graduate

Certificate in Project Management

and a Bachelor of Arts in Human

Resource Management from

Kenyatta University. She has over

seven years’ experience working

with professional business

membership associations.

Elizabeth has previously worked

with the Institute of Quantity

Surveyors of Kenya and the

Association of Professional

Societies in East Africa. Her

core areas of interest are in

programmes management,

advocacy and policy reforms.

Liz recently joined KPDA as

the Membership Relations

Officer. She holds a Bachelor of

Commerce (Finance) and has just

over 4 years working in the fields

of marketing, finance and public

relations. Her core passion is in

marketing and public relations

and it is her intention to double

KPDA’s membership numbers

within two years.

format from what we usually have for

our regular issue. All this is in an attempt

to present a synthesis of the past,

present and future of KPDA, highlighting

milestones achieved while at the same

time posing challenges on what we can

improve as an Association going into

the next 10 years.

We have compiled information about

the past chairpersons of the Association,

the women and men who dared to

dream when many would have thought

such a dream to be folly.

The KPDA Secretariat Structure:

Elizabeth Mwangi - Oluoch

Chief Executive Officer

Elizabeth Kayaki

Membership Relations Officer

Nelly Adhiambo Oneya

Finance and Administration

Assistant

Apart from the feature article, we also

have a compilation of other articles by

different and experience authors who

are experts in their field of practise,

which we hope you will find both

entertaining and useful.

It is my sincere hope that you will enjoy

reading this Souvenir Issue.

Philip Kisaka

Membership and

Administration Assistant

ElizabethKayaki

“Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense,

paid for in full, and managed with reasonable care, it is about the safest investment in the world.”

~ Franklin D. Roosevelt, U.S. President

Nellys holds a Bachelor of

Commerce in Finance and is a CPA

(K). She has worked as an intern

at KPDA before being confirmed

as a permanent staff member.

Her core areas of interest are in

accounting and finance.

Philip holds a Bachelor of Arts

in Economics, with over ten

(10) years’ worth of experience

working in various business

environments. He is passionate

about sales and customer

service and has joined the

KPDA secretariat to grow the

Association’s membership

numbers.

Samuel Kiarie

Research and Development,

Intern

Samuel holds a Bachelor of

Science in Land Resource Planning

and Development. He has

previously interned at the Nakuru

County Government’s Physical

Planning Department. Samuel

joins the secretariat to help grow

the research and development

arm of KPDA as well as lend as

much support as possible to the

secretariat team.

“Buy on the fringe and wait. Buy land near a growing city! Buy real estate when other people want to sell.

Hold what you buy!” ~ John Jacob Astor, real estate and business mogul.

Kenya Property Developers Association... Development brings Development!

Kenya Property Developers Association... Development brings Development!

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KPDA JOURNEY

KPDA JOURNEY

Immediate Past Chairman’s comments for

the 10th Year Anniversary of KPDA

Now a Decade old, this anniversary coincides

with a transition of the organisation: A

coming of age, as well as a new Chairman

at the helm, to take it through to its next

level. Initial promoters had a vision, that

only by banding together could they, share

experiences and information, collectively

bring about change and voice industry

issues, as well as to try and address the image

of the industry as was held in the lowest

esteem by the public and media. There was

a great need for an organisation, to be built

on repute and standing.

Following a few years on It was not an

easy time, to take the Chairman post, or

be a Director, as the organisation had few

members, a one person secretariat, not

financially self sustaining, nor recognised

by the public and the government bodies,

let alone the industry it self. It was reliant

predominantly on goodwill. Its mere

survivability on many occasions looked like

its inevitable end. Within the Board there

was soul searching, and there were many

discussions and reflection on the relevance

and sustainability of the organisation.

However by only having dedicated

committed and selfless Board members,

the organisation continued by trying

various avenues, and over time with some

experience, found a working model. This

coupled with a new secretariat, a CEO and

small team of dedicated and passionate

people, did the organisation begin to slowly

start to turnaround. On the strength of the

Board Members, and the, small professional

run Secretariat in place, it managed to qualify

for a grant from BAF that was desperately

needed to buy time so that the activities put

in place could start gaining traction.

Members began to join, and within a couple

of years have grown by multiples. Further,

members began joining the committees and

freely giving up their time and sharing their

wealth of experience and networks, making

the committees more vibrant and active.

The activities and growth in turn attracted

sponsors with which, the Secretariat could

grow, to further support the committees

and the organisations activities.

KPDA’s image became enhanced and

could legitimately claim to represent

a substantial number of players in the

market. By its recognition, interaction with

various Government Ministries and their

Departments, and a number of regulatory

bodies, meaningful discussions could now

take place. To this end, and for the most

part, we found willing partners to engage

with, granted, not always are we in accord,

but they remain accessible, interactive and

constructive dialogue continues.

Further, MOU’s have been entered into with

other industrial players and there is collusion

on some issues.

To paraphrase the Vice Chair at the time, last

year was our first year of a stable mature

organisation. On a personal note, it certainly

has been a challenging time, but a fulfilling

one, and in large part because of the number

of people I have come across who are

passionate, professional and committed to

the industry, both in the private and public

sectors. A sharing of values, acknowledging

that by the mere nature of our industry, the

shared responsibility, as whatever we do will

affect lifestyles of many for generations to

come, and always in the background, the

rhetorical question, what legacy do we wish

to leave behind?

Mucai, as the Vice Chair, has been a full

party to KPDA’s recent history and was

a natural successor. With the continued

strong dedicated Board, and with his

direction, they will take KPDA to the next

level, relying on the professional hard work

of the Secretariat to implement their vision.

I do hope, and remain optimistic, that the

various stakeholders will support him and

the Board and actively take up their rightful

place within or with KPDA.

There is much to be done in our industry.

Thank you all for your support !!!

‘development brings development’

Hamish Govani, Director

A decade ago, a small group

of men and women gathered

at VillaCare offices on Rhapta

Road. Alongside myself were

Daniel Ojijo, Ann Muchiri, Joe

Mungai, Nick Scalan, Hasmukh

Dawda, former Mayor Nathan

Kahara and the late Daniel

Njoroge, among others.

We were all entering a new

field, building housing estates,

malls, office block. Many had

big dreams to sell affordable

housing. Some wanted to build

entire towns! But even then,

we sensed what every builder

knows. Nothing good can

ever be accomplished alone.

We worked together on

low-income housing

incentives, alternative

technologies, housing

finance, the Building

Code, the Construction

Levy, e-construction

permits, the land policy,

the Constitution and

more. But best of all,

we’ve had a good time

doing it.

Today, we celebrate that

original daring dream.

Many more have joined

the movement to create

a building sector we can

be proud of. But the original

spirit has never changed: we

still support each other, learn

together, walk together. And

each generation of leadership

has taken this organization to

greater heights. Ten years later,

look how far KPDA has come!

I thank you all for turning an

acorn into an oak. We look

forward to the next ten years. I

know I will be amazed. Again.

Dr. Laila Macharia

I vividly remember the first meeting

we held to found the Kenya Private

Developers Association on April 3 rd

2006 at the offices of Villa Care Ltd. There

were four of us present in that meeting;

Laila Macharia of Magnolia Investments

Ltd, Joe Mungai of Tamarind Properties

Ltd and Grace Wakaba of International

Valuers Ltd.

There was an agreement that the

formation of a body that represents

the interests of real estate developers

and champions for the common good

of the industry was necessary. There

was an obvious void that required a

strong body to advocate for developers’

interests and stimulate participation by

the Government to provide incentives

for growth in the sector.

The Association was to find ways of

engaging with revenant arms of the

government to influence housing

development regulations with the aim

of creating a conducive environment

for real estate development and in

turn spur economic and infrastructural

growth. These goals were to be achieved

through supporting the government’s

initiatives in housing provision and job

creation by projects undertaken by the

members of the association.

From the initial meeting,

we went on to register

KPDA, myself having been

appointed as the Chairman.

Even from the initial months of existence,

KPDA was able to influence policies and

regulation in the sector. Our first win

came in June of 2006 when the then

Nairobi City Council (now the Nairobi

City County Government) lifted the ban

on development in Zones 3, 4 and 5 of

the City of Nairobi. This was actually

before the official launch of KPDA, which

happened later in 2007.

Over the years, KPDA has been able to

achieve significant milestones like being

nominated into the Ministry of Lands,

Housing and Urban Development (now

the Ministry of Transport, Infrastructure,

Housing and Urban Development)’s

contact group on affordable housing,

becoming part of the KEPSA Land,

Housing and Urban Development

Sector Board among many others.

I served as the chairman for the initial

four years and together with the able

managing committee members, we

were able to build KPDA in to a powerful

force in the real estate sector. The future

of property development in Kenya is

now brighter because a number of

strong willed developers have come

together and joined KPDA.

Authored By Daniel Ojijo, Chairman Homes

Universal, CEO Sigimo Enterprises Ltd.

Kenya Property Developers Association... Development brings Development!

Kenya Property Developers Association... Development brings Development!

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FOCUS ON POLICY

UPPER HILL- READY FOR BUSINESS

OVERVIEW ON KPDA ACTIVITIES

KPDA PRESS CONFERENCE ON 24TH OCTOBER 2016 AT THE NAIROBI SERENA HOTEL

KPDA Press Conference 24th October 2016 at the Nairobi Serena Hotel. Board of Directors

LEFT TO RIGHT: Gikonyo Gitonga, Mucai Kunyiha, Palkesh Shah, Hamish Govani.

Event Facilitator, Philip Mwembi from

APR&M.

EVENT ORGANISER:

Upper Hill District Association (UHDA) has

come a long way in pushing the agenda

for Upper Hill. Long before many of our

towering buildings made Upper Hill their

home, our fight to have improved roads

and infrastructure had already began.

In early 2000s a group of property owners

in Upper Hill began lobbying for the

expansion of roads, improved sewer and

water systems and even land rates. The

long meetings at City Hall and countless

letters to the Town Clerk and his officials

created the need to have a fully-fledged

Association and months later, UHDA was

born.

Armed with a vision to be the best

financial hub in East and Central Africa,

the uphill climb has been slow but steady.

UHDA started lobbying for expansion

of roads back in early 2000s but change

of government influenced the delay in

commencing the projects. Nevertheless,

UHDA was relentless and 2012 the project

finally commenced.

Today we have four major roads that

are dual carriage ways; Kilimanjaro road,

Hospital road, Elgon road and Mara road.

Creation of these roads has helped to

decongest traffic especially within the

area. One can quickly drive within the area

with less than 5 minutes or alternatively

Armed with a vision to be

the best financial hub in

East and Central Africa,

the uphill climb has been

slow but steady. UHDA

started lobbying for

expansion of roads back

in early 2000s.

walk along the newly created walkways.

To curb with the bottle necks, Kenya

Urban Roads Authority has identified

missing links to create more exits and

entrances in addition to expanding more

roads such as Ngong road. The newly

installed streetlights have ensured that

Upper Hill is not a ghost town at night.

Upper Hill currently enjoys excellent

security.

This is a fact that is further supported by

the reduced crime in the last two months

(September and October, according to

Capitol Hill Police Station recent report.

Currently, UHDA is lobbying for a high

mast system, commonly known as

“mulika mwizi” for Bunyala road cemetery

to curb its mugging notoriety as we also

engage with the police.

Removal of kiosks has aided in

improvement of security. Although the

informal trade is yet to be fully rid-off from

the area, UHDA has managed to remove

majority of these traders and plans to

reclaim the areas though landscaping are

under way. We envisage a clean, safe and

decongested “city”.

The issue of the sewer system is being

addressed through the near completion

of the Upper Hill sewer trunk. The sewer

expansion project by Athi Water Service

Board which started in 2013 is almost

complete with current works over 90%

done. The 17kms of sewer trunk will

mitigate the sewer related issues that

have been a challenge to properties in

the area.

A beautification project that will improve

the frontage of our properties is set to

commence soon. UHDA’s agenda is to

not only liaise with the National and

County Government but to ensure that

Upper Hill looks its best. By the time the

second phase of expansion of roads in

Upper Hill begins, we will be well on

our aware as the most ideal area in the

country to do business.

Wendi Kawira, Administration Manager

Upper Hill District Association (UHDA)

wendi@uhda.or.ke

Mucai Kunyiha, KPDA Chairman

Responding to Media Questions.

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LEFT TO RIGHT: Elizabeth Kayaki , George Wachiuri, Gikonyo Gitonga.

Eden Gardens

Eden Gardens is located at the Kajiado Township

approximately 1.4 km from Kajiado CBD.

The neighborhood is fully developed and set for

immediate settlement. Eden Gardens is suitable

for Prime Residential and commercial developments.

* Eldoret Breeze.

* Dollar Point Center

* Grace Gardens

*Silver Homes

* Imani Breeze

* Tumaini Gardens

7

Kenya Property Developers Association... Development brings Development!

Head Office: Barclays Plaza, Loita street, 14th floor

Contact: 0702 83 10 83 Email: info@optiven.co.ke

Website: www.optiven.co.ke Youtube: Optiven Kenya


OVERVIEW ON KPDA ACTIVITIES

A RECAP ON KPDA’S ACTIVITIES, 2014 – 2016

FURNITURE ACCESSORIES & FITTINGS

handles

• genuine materials [aluminium, zinc alloy & stainless steel]

• high grade surface coating

• long screw option for double front drawers

• wide variety

LEFT TO RIGHT: Arch. Daniel Manduku (Executive Director NCA), Hamish Govani (KPDA Immediate Past Chair), Arch. Steven Oundo (Chairman NCA), Arch.

Waweru Gatheca (President AAK), Arch. Emma Miloyo (AAK). RIGHT: Mucai Kunyiha Addressing the Audience at a KPDA Breakfast Meeting in 2014 at Nairobi

Serena Hotel.

KONZA CEO BREAKFAST FORUM

THEME: ‘INVESTMENT OPPORTUNITIES FOR THE REAL

ESTATE SECTOR WITHIN KONZA TECHNO CITY’

LEFT: Eng. Victor Kyalo, Principal Secretary for the Ministry of ICT and Innovation. THE PANEL: LEFT TO RIGHT: David Mugambi of KoTDA, Hamish

Govani of KPDA, Eng. John Tanui of KoTDA and Anna Musyimi of KoTDA. RIGHT: Konza Technopolis Development Authority CEO, Eng. John Tanui

making his presentation.

THEME: ‘CONSTRUCTION

REGULATIONS AND

COMPLIANCE IN KENYA’

On Thursday, 18th February 2016 KPDA held

a CEO Breakfast Forum at the Intercontinental

Nairobi Hotel, the second forum for 2016.The

forum was attended by one hundred and

twenty five (125) participants who included

individuals in positions of senior management

from private and public developer firms,

real estate management companies,

manufacturers as well as representatives from

regulatory authorities.

LEFT TO RIGHT: Dominic Mutegi, (Nairobi City County Government, Urban Planning Department),

Elizabeth Mwangi – Oluoch (KPDA), Arch. Steven Oundo (Chairman, NCA), Hamish Govani (

KPDA Chairman), Prof. Mwangi Maringa, (Principal Secretary for Public Works, Ministry of Land,

Housing and Urban Development), Arch. Daniel Manduku, (Executive Director and Registrar for

NCA), Gikonyo Gitonga, (KPDA Board Member) and Eng. Raymond Karani, (General Manager for

Registration and Compliance for NCA)

hinges

runners

fittings

• superior coating quality

• high salinity resistance

• long lasting [40,000 opening and closing]

• soft close, push to open, half overlay, straight hinges

• genuine materials

• high loading capacity

• long life [50,000 open & closing]

• s i z e variety for kitchen, wardrobe & office furniture

[300mm, 350mm, 400mm,450mm & 500mm]

• soft close

• push to open

• silent opening and closing

• shelf studs & connectors

• cabinet/ table legs

• wardrobe rails & sliding systems



s c r e ws

l o c k s

• kitchen storage accessories

• cable management, ventilators & backsplashes

• LED cabinet lighting

• toilet cubicles

9

Kenya Property Developers Association... Development brings Development!

+254 20 8088882 / 2049786 / 8006609 / +254 722 763947 / +254 733 726855

info@pgbison.co.ke


OVERVIEW ON KPDA ACTIVITIES

CEO MORNING LEARNING

SESSION HELD ON TUESDAY

17 TH MAY 2016 AT THE

INTERCONTINENTAL

NAIROBI HOTEL

THEME: ‘Lessons in

Affordable Housing

and Building Technologies

in Kenya’

Arrival of the Cabinet Secretary Ministry of Lands.

BAHATI RIDGE CONGRATULATES

KENYA PROPERTY DEVELOPMENT ASSOCIATION(KPDA)

ON THEIR 10 TH ANNIVERSARY

Situated in Thika, a mere 45-minute drive from Nairobi's Central

Business District, Bahati Ridge presents an exciting selection of

Townhouses, Villas and Bungalows that feature beautiful country

views, a tranquil rural ambience and a refreshing escape from city

chaos.

Phase 2 of this development is set to begin in 2017.

Discerning homeowners will love this 95-acre integrated gated

community with all the benefits of country living.

LEFT: Group Photo of the Speakers as well as some KPDA Directors and Staff Members. CENTRE: Event Sponsor Bamburi Cement Ltd CEO and Managing

Director Bruno Pescheux. RIGHT: Prof. Jacob Kaimenyi reiterates Government’s commitment to the housing agenda.

REPORT ON THE WORKSHOP ON

GREEN BUILDINGS & ADVANCING

INDUSTRY STANDARDS IN KENYA,

TUESDAY 21 ST JUNE 2016

11

Some of the speakers at

the forum were from the

Kenya Green Building

Society, KPDA, the

Kenya Association of

Manufacturers, and the

German Embassy. The

event was graced by

Michael Derus, Deputy

Ambassador and Head

of Economic Affairs of

the Federal Republic of

Germany in Kenya and

RIGHT: the Deputy Nairobi

Governor H.E. Jonathan

Mueke.

Kenya Property Developers Association... Development brings Development!

Facebook - Bahati Ridge Homes

Twitter - @BahatiRidge

Bahati Ridge Development Ltd

P O Box 47739-00100, Nairobi, KENYA

0717 049 644 | 0737 149 644

info@bahatiridge.co.ke | sales@bahatiridge.co.ke | onlinesales@bahatiridge.co.ke

www.bahatiridge.co.ke


OVERVIEW ON KPDA ACTIVITIES

REPORT ON THE KPDA WORKSHOP, TUESDAY 5 TH

JULY 2016 AT THE CROWNE PLAZA NAIROBI

THEME: ‘CAPITAL FUNDING AND STRUCTURING’

It was followed thereafter by a Technical

Workshop on ‘Building a Real Estate Financial

Model’ on Thursday 21st July 2016 at the

same venue. Guests attending this workshop

received in-depth training on creating a

financial model and were even provided with

a template and case study to comprehensively

take them through the practical aspect of

building the model. The Technical Workshop

was attended by seventy one (71) participants

who varied from high level management staff

to middle and operational level staff.

KPDA KOROGA

9th September 2016 at Spice Roots,

Simba Union Club

TOP PHOTO: LEFT TO RIGHT: Simon Kiriba (Bowmans

Kenya), Pareet Shah (Horizon Africa Capital Ltd),

Nirish Shah (Chigwell Holdings Ltd), Peter Kihara

(Cooperative Bank of Kenya), Mwangi Mbogo

(Mohammed Muigai Advocates), Okomboli Ong’ong’a

(Phatisa), James Karanja (HF Development Ltd), Fred

Auma (HF Group), Alex Njage (Bowmans Kenya),

Caroline Kihara (Kenya Commercial Bank), Kahumbya

Bashige (Shelter Afrique), Elizabeth Mwangi - Oluoch

(KPDA Secretariat), Daniel Kamau (Fusion Group)

MC Entertaining the Crowd 9-9-2016 Koroga - George Wachiuri

CENTRE PHOTO: LEFT TO RIGHT: Simon Kiriba

(Bowmans Kenya), Nirish Shah (Chigwell Holdings

Ltd), Pareet Shah (Horizon Africa Capital Ltd), Kairo

Thuo (Viva Africa)

BOTTOM PHOTO: LEFT TO RIGHT: Caroline Kihara

(Kenya Commercial Bank), Peter Kihara (Cooperative

Bank of Kenya), Kahumbya Bashige (Shelter Afrique)

Kenya Property Developers Association... Development brings Development!

Cooking Competition 9-9-2016 Koroga.

13

14


OVERVIEW ON KPDA ACTIVITIES

KPDA 10TH YEAR ANNIVERSARY GALA

DINNER 3 RD NOVEMBER 2016 AT THE VILLA

ROSA KEMPINSKI NAIROBI

OVERVIEW ON KPDA ACTIVITIES

C.S Prof Jacob Kaimenyi presenting an award to KPDA Chairman

Mucai Kunyiha.

LEFT TO RIGHT: Elizabeth Kayaki, Philip Kisaka, Elizabeth Mwangi - Oluoch, Samuel

Kiarie, Nelly Oneya, Job Kanoti.

C.S Prof. Jacob Kaimenyi giving a

speech at the KPDA Gala Dinner at

Villa Rosa Kempinski.

Mucai Kunyiha, KPDA Chairman

addressing the audience at the

event.

Gikonyo Gitonga, The Convenor

of the 10th Year Anniversary

Organizing Sub-Committee.

Abhijeet Gupta from Mabati Rolling

Mills Limited addressing the

audience.

Nick Langford of Tatu City

addressing the Audience.

L-R Mucai Kunyiha, Philip Kisaka, Nisha Van Hoek,

Gikonyo Gitonga, Elizabeth Kayaki, Bonney Tunya,

Nelly Oneya, Gladys Gathu.

Audience listening to speeches at the KPDA Gala Dinner

at Villa Rosa Kempinski.

C.S Prof. Jacob Kaimenyi presenting an award to KPDA Immediate Past

Chair, Hamish Govani.

C.S Prof. Jacob Kaimenyi presenting an award to KPDA Founder Member

Daniel Ojijo.

Corporate Tables

1. AAK

2. Acorn Management

Services Limited

3. Anjarwalla & Khanna

Advocates

4. Axis Real Estate Limited

5. Bahati Ridge

Development Ltd

6. Chigwell Holdings Ltd

7. HF Development

Investment Ltd

8. Karibu Homes

9. KCB Bank

10. Lantana Homes Ltd

11. Mahida & Maina

Company Advocates 15. Tilisi Development Ltd

12. Mashiara Park Ltd 16. Bamburi Cement Ltd

13. Newmatic Africa Ltd 17. Cytonn Real Estate

14. Suraya Property Group Ltd 18. DLR Group Kenya Ltd

Launch of the KPDA 2017 - 2020 Strategic Plan at

the KPDA Gala Dinner.

L-R Palkesh Shah, Hamish Govani, Margaret Kibe, Ken Luusa, P.S Arch. Mariamu El Maawy, C.S Prof. Jacob Kaimenyi, Mucai Kunyiha, George Wachiuri,

Gikonyo Gitonga, Elizabeth Mwangi - Oluoch.

C.S Prof. Jacob Kaimenyi interacting with KPDA

Members at the KPDA Gala Dinner.

Kenya Property Developers Association... Development brings Development!

Kenya Property Developers Association... Development brings Development!

15

16


FOCUS ON POLICY

A PROJECT IS LIKE A BABY

The face of the construction industry in Kenya is

generally donned by a builder. This image could be

your local mjengo guy, a skilled or unskilled fundi, or

a contractor. The typical contractor is assumed to be

some Indian guy. Consultants who form the interface

between the client and the building team are least

known or understood. There are many reasons this is

a reality, including: the need to cut cost by any means

possible, the belief by many developers that they can

simply DIY a project, and a lack of knowledge on the

tasks that consultants cover.

On the need to cut costs, evading professional

consultation can only realise savings on the budget

when the projects in question are small enough to be

handled by a builder with procurement done by the

client themselves. Larger size projects are complicated

to the extent that trained pros acknowledge this fact

and pull in specialists to help out.

Doing it yourself is a fantastic way of getting things

done. A successful DIY project starts from the point of

proper appreciation of the scope. That way one is able

to establish the necessary skill towards achieving the

goal. The scope will also give an indication of the time

resource that shall be put into a project. It is important

to keep in mind the fact that as a developer one will

have to give their time (money in other words). Making

decisions early enough has positive implications to a

project. It will also help the client to decide whether or

not they need (consultants) help to achieve their dream.

Lack of knowledge is probably the commonest reason

consultants don’t get involved in construction projects.

Unverified figures floating in our circles state that more

than 70% of buildings in Nairobi are put up without the

involvement of professionals. The numbers are expected

to be higher out of the capital. The names architect,

quantity surveyor, structural engineer, mechanical &

electrical engineer, project manager, interior designer,

mean nothing to more than two thirds of developers in

the largest city in East Africa!

The following is an article carried in The Architect

magazine issue no. 11 that tries to compare the intricate

sequence that results in a baby with the process of

building design and construction. When a woman

meets a man a beautiful union could materialize. Their

relationship manifests itself in many ways one could

be conceiving a baby. The woman carries the foetus

for approximately 280 days of complicated biological

activities safely locked away in the darkness of the

womb.

If an architect were to be a gender it could be female!

The client would then be a male. These are fertile

conditions to breed projects. A relationship that builds

a happy family that brings up great kids is anybody’s

dream. The meeting of a client and an architect sets the

platform that later incorporates other consultants and

contractors (read that, relatives and friends) who work

to achieve one goal – realize a successful project (read,

wonderful baby).

Gestation can be paralleled to the period after concept

stage that the architect ‘horses’ day and night working

the brief like a witch mixing potions in her lair. Her

emotional strategies can be misunderstood, but totally

anticipated. A caring client is expected to not only hire a

competent architect but also let them do their one job.

Once or twice within a reasonable time the client should

call in to check that all is well, receive updates and give

their two cents worth of critique. The other consultants

will also give sound advice to guide the design in a

particular trajectory. Much like when an expectant

woman gets tit bits on what to eat, what to avoid,

how to exercise and sleeping positions, from the family

doctor and relatives.

A good client must stay close to the architect, to support

the office to maintain a certain stability that allows for

great designs to be fashioned. Financial support, in the

form of consultancy stage payments, is a vital life-line.

On their part the architect knows that they alone can’t

see through a huge responsibility. They will pick relevant

minds and hire qualified assistants for the mission.

People are not patient to be in the dark an entire 40

weeks. They want to know the gender of the baby,

is it one, two or more babies in the uterus, so request

for ultrasound scans. The architect‘s 3D visualizations,

specific details and physical models give a glimpse of

what the building will look like.

The burdens of carrying an entire team’s imagination

will culminate in the delivery room where everyone

awaits the unveiling of a bundle of joy. Naturally the

baby is expected be a beauty, looking a bit like the

father and a bit like the mother, and suitable for the

world under normal circumstances. If it turns out to be

less than desirable the situation could go from good to

bad, worse or worst. Bad, that the baby is not perfect

but everyone accepts responsibly (not a grand design,

but you know what, we can still sell the space). Worse,

that the man can deny the baby, or both the man

and the woman could disown the baby and opt for

adoption (this is not the way I wanted it, but it is not

my fault, sell it), Worst that there could occur a still born

(disagreements leading to a stalled project).

The delivery room experience can be a severe for the

architect, defending the design. The scheme could be

understood and accepted by the client or shot down in

an instant. The early moments of pain could be followed

by a joyous cry and then a warm embrace – Let’s break

ground!

The Swahili have a saying “delivering a baby isn’t work,

rearing one is the work.” The processes of concretizing a

great design begins in earnest after the client and the

A good client must stay close to the architect, to support

the office to maintain a certain stability that allows for

great designs to be fashioned. Financial support, in the

form of consultancy stage payments, is a vital life-line.

design team are satisfied with the plans. The tough job

of building ought to be handled skilfully otherwise the

once beautiful bouncing baby could turn out to be a

monster on maturity.

Meticulous workmanship and close supervision maketh

the building fine. Design defects picked at the right time

should be corrected before it is too late. Everyone’s input

is valuable as it adds to the sum of parts. An unfortunate

inclination to an overbearing side will be evident in the

end product.

The idea of two strangers eventually opens to the world

to marvel at and use to make lives more comfortable

than before. Most users will go about their chores not

knowing the strenuous process and labourers behind

their habitat. If things culminate in a mess, they might

bother looking for the woman, “who is your mother?!”

not the man.

George Arabbu, Architect.

The editor, The Architect Magazine.

Partner at Sitescape Studio Ltd, andArchitectural

Association of Kenya Architects Chapter council member.

Kenya Property Developers Association... Development brings Development!

Kenya Property Developers Association... Development brings Development!

17

14


FOCUS ON POLICY

THE LEGAL CONTEXT OF COMPULSORY ACQUISITION

Public purposes, as defined in Section 2 of the Land

Act, include activities that may be undertaken by

public or private entities, and in the latter case, land

maybe taken by the government and to a private

entity for development.

According to the Constitution (article 40 (3),

there must be prompt payment of full and just

compensation, whenever property is compulsorily

acquired for a public purpose, or in the public

interest. In terms of the Land Act, the procedure for

compulsory acquisition is undertaken by the National

Land Commission (NLC), at the request of an agency

of the national, or county governments.

In practice, it is the agency that is requesting for

compulsory acquisition that undertakes the process

of identification of the relevant land, including

verification of those people with an interest over the

land, public consultations, (including developing a

Resettlement Action Plan) (RAP), where applicable),

and budgeting the money for compensation, for

approval by the NLC – which then undertakes a

formal inquiry on compensation, as required by

section 112 of the Land Act.

In terms of the Land Act, the procedure

for compulsory acquisition is undertaken

by the National Land Commission

(NLC), at the request of an agency of the

national, or county governments.

The Compulsory acquisition of Land, especially for

large scale investments and development activities,

particularly for large projects, may present challenges

of involuntary resettlement, and displacement for

affected communities.

This means that in application of justice and equity, it

is necessary to go beyond the mere legal procedures

of compulsory acquisition. This requires drawing in

safeguard measures to enhance consultations with

affected communities, establish eligible legal rights

or other claims, address the impacts on livelihoods,

and the question of displacement when applicable.

In the Kenyan legal system, a law was enacted by

parliament in December 2012, and came into force

in January 2013 to address protection of persons

that have been internally displaced by among other

reasons, development projects, and internal strife.

This law, the Prevention, Protection, and Assistance

to internally Displaced Persons and Affected

Communities Act (The IDP Act), is the closest Kenyan

legal safeguard on involuntary resettlement caused

by development projects.

This is in addition to environmental safeguards,

including Strategic Environmental Assessments, and

Environmental Impact Assessment, that are required

for most development projects, by the Environmental

Management and Coordination Act (EMCA)

By: Land Development and Governance Institute

Robert Kibugi

Ibrahim Mwathane

Mwenda Makathimo

OUR PROJECTS

“We continue our

commitment to Real

Estate Investment

across East Africa”

CREATING A NEW FACE IN THE REAL ESTATE INDUSTRY IN THE 21ST CENTURY

Optiven Limited is Real Estate Company in Kenya

founded to Empower property investors in Africa. The

company started operations at very humble beginnings

in 2008 and has steadily grown to become the market

leader in the Real Estate Industry in the region. The

company’s flagship product is Value Added Plots which

have been transformed and made suitable for homes

development. Optiven’s main goal is to settle Kenyans.

To help attain its vision of becoming pacesetters in

real estate across Africa, Optiven works through stable

business networks and has a very well established

network with relevant Government agencies and the

private sector. The company also works closely with

major housing developers Such as KPDA and has an

excellent network with competitive lawyers in Kenya,

19

Uganda and Tanzania. Under the leadership of a very

able, passionate and down to earth CEO, Mr. George

Wachiuri, the company has managed to offer jobs to

over 150 high level caliber staff that propels the growth

of the enterprise.

BEST IN THE REAL ESTATE INDUSTRY

As recognition of its performance and commitment to

community service, Optiven received several awards

most outstanding being the number one company in

Kenya and the Best in Real Estate under Kenya Top 100

Mid- Size Company Awards 2014/15 edition.

Same year, Optiven was awarded as the Best Property

Developer by Lamudi. Last year (2015), Optiven was

crowned as the Best & Overall Company in Kenya

in Customer Orientation & Marketing Under COYA

(Company of the Year ) Awards. In the same year, Optiven

CEO, George Wachiuri was recognized with a Global

Award as the Best & Most Innovative Entrepreneur

in the USA Mashujaa Awards in the business &

Entrepreneurship Category. “This was because of the

good work we do to our clients, the community and the

entire nation” Mr. Wachiuri said while responding to a

question on the company’s recent awards. Optiven has

managed to make a strong presence within the country

with projects in Nairobi, Machakos, Eldoret, Kajiado and

central Kenya. Plans are underway for further expansion

to other towns like Kisumu and Mombasa County. As a

way of acknowledging client’s contribution to the

company’s growth and success.

EYES ON THE COMMUNITY

Optiven gives back to the society through an arm,

Optiven Foundation.www.optivenfoundation.co.ke.

The foundation has carried out activities in the country

among them sponsoring Needy Bright students(Soaring

Eagles Scholarship Programme),Taking care of the

environment by planting trees, Running awareness

campaigns on the environment, Taking care of the olds

in the society (Forgotten senior Citizens) by building

houses for them among others.

www.optivenfoundation.org

Kenya Property Developers Association... Development brings Development!

Kigali Heights, Rwanda Now letting at $20 per square foot

Flamingo Towers in Upper Hill

Now letting at special offer of

Kes 110 per square foot

Montey Apartments Nakuru Phase 2

Now selling at Kes 6,500,000

Mtwapa Starehe Homes now selling

3 bedroom at Kes 15,000,000

4 bedroom pent house at Kes 30,000,000

4th Ngong Towers.

Now selling at

Kes 12,500 per square foot

Meru Greenwood mixed use development with apartments for sale,

Mall/Office space to let

ACK Garden House, Block A, 1st Ngong Avenue, P. O. Box 47538-00100 Nairobi, Kenya.

Tel: +254 20 2710149/53/55 Mobile: +254 727 287994 / +254 720 803010 www.fusioncapitalafrica.com


KPDA ACHIEVEMENTS

21

1KPDA marks its 10th year anniversary since its

establishment in the Kenyan building and construction

industry in 2006. KPDA is proud to mark this momentous

feat with a series of activities set to take place between

the months of October and November 2016.

2The Association’s membership has grown from

less than 20 members to 127 members to date.

The membership has also grown from being made up

on private developers to having industry suppliers,

professionals, government agencies and real estate

agents and managers.

3In tandem with the increase in our membership

has also come the renewed vibrancy of member

engagement through our two committees, the

Membership and Outreach Committee and the Public

Policy and Advocacy Committee. These committees work

hand in hand with the Board of Directors to ensure the

execution of members’ needs.

One of KPDA’s first wins was in its early years in June

4 of 2006 when the then Nairobi City Council (now

the Nairobi City County Government) lifted the ban on

development in Zones 3, 4 and 5 of the City of Nairobi.

Currently, KPDA members can now make payments

5 towards the National Construction Authority (NCA)

Construction Levy in instalments. Our members have also

been granted a specific Liaison Officer to handle queries

raised by our members;

Our strengthened collaboration with the public sector

6 resulting in KPDA being nominated into the Ministry

of Lands, Housing and Urban Development (now the

Ministry of Transport, Infrastructure, Housing and Urban

Development) Affordable Housing Contact Group;

Continued goodwill from the Nairobi City County

7 Government who continue to share data on Building

Permitting Approvals in Nairobi which are then analysed

into reports. KPDA has also signed a MoU with the Public

KENYA PROPERTY DEVELOPERS ASSOCIATION

Health department of the same county government.

KPDA has strong partnerships with sector players

8 and has signed MoUs with (amongst others), the UN

Habitat – Urban Energy Unit, the Kenya Green Building

Society, Konza Technopolis Development Authority and

the Housing Finance Foundation. These partnerships have

been established to further green building technology

in Kenyan construction as well as build more awareness

(and increase the number of) on artisans in the sector;

As a direct benefit of members, KPDA members can

9 now get Trade Discounts from fellow KPDA members

who are industry suppliers;

The successful organization of several events both

10 solely organized by KPDA and also co-organized

by some of our external international and local partner

organizations;

The consistent and informed release of research

11 reports, industry news and compiled media reports

through our Media Weekly Review Reports and our bimonthly

newsletter, The Developer’s Digest.

For more information on the Kenya Property Developers Association,

kindly visit the KPDA website www.kpda.or.ke.

Kenya Property Developers Association... Development brings Development!

DID YOU KNOW?

WHAT ARE SOME OF THE BENEFITS OF

BECOMING A KPDA MEMBER?

1. Advocacy that champions the interests of the industry

to both the public sector and the wider private sector to

ensure a better business environment for the property

industry;

2. Information on the latest issues affecting the industry,

via regular publications, newsletters, media reports

and research;

3. Networking events, putting members in touch with

industry leaders and potential clients;

4. Professional development courses which reflect the

changing nature of the property industry;

5. Marketing opportunities for member companies with

discounts offered to various advertising platforms;

6. Discounted rate at both KPDA events and events

organized by international and regional organizations

in the building and construction industry;

7. Access to emerging markets and exposure to joint

venture opportunities.

Build Green Save Kenya

The Kenya Green Building Society annual

conference 2016 in pictures

Save the Date!!

22nd- 24th March 2017 for

the next Annual Green Building

Conference.

The Africa Regional Network meeting 2017 will

also be hosted in Kenya

Kenya Green Building Society

P.O Box 50865 - 00100, Nairobi, Kenya

tel: +254 710869547

email: admin@kenyagreenbuildingsociety.co.ke

www.kenyagreenbuildingsociety.co.ke

22


THEN AND NOW

August 2015

Does your development require an

environmental impact assessment licence?

Kenya has experienced a boom in

development projects in the last couple

of years with resulting transformation of

whole neighbourhoods as the demand

for land outstrips the prescribed zones.

This rapid growth is due to growth in

population leading to a soaring demand

for housing in most parts of the country

and a huge deficit in infrastructure

such as rail, roads and ports. There are

many considerations that prospective

developers must deliberate on including

the availability of raw materials, funding

and compliance with laws such as

the Physical Planning Act, Cap 286

Laws of Kenya and the Environment

Management Coordination Act, Cap

387 Laws of Kenya (EMCA) as well as

various provisions of the Constitution.

The impact of a proposed development

on the environment is critical and the

regulatory body charged with approving

the environmental aspects of projects

and issuing the relevant environmental

licences is the National Environment

Management Authority (NEMA). The

requirements of EMCA with respect

to development projects reflect a

worldwide appreciation of the adverse

effects of unbridled development that

now find a Constitutional anchor in the

right to a clean and healthy environment

and public participation as well as

the obligations of the Courts under

Article 70 of the Constitution. These

concerns are aptly captured by the

phrases sustainable development and

the pre-cautionary principle. With such

enhanced rights and greater awareness,

developers increasingly experience

spirited resistance from residents and

environmental activists.

At the heart of numerous cases filed

in the National Environment Tribunal

is the challenge by objectors of

proposed developments with respect to

developers’ failure to conduct a proper

Environmental Impact Assessment (EIA)

as well as irregularities in the grant of

EIA Licences.

When is an EIA report necessary?

An EIA is a systematic examination

conducted to determine whether or

not a programme, activity or project

will have any adverse impact on the

environment. The requirement of an

EIA licence is prescribed in Section 58

of EMCA. It provides that any person,

being a proponent of a project,

shall before financing, commencing,

proceeding with, carrying out, executing

or conducting any undertaking specified

in the Second Schedule of the Act,

submit a project report to the Authority

in the prescribed form. The proponent

of the project is to undertake the EIA

study at its own expense.

Section 1 of the Second Schedule sets

out general projects that require EIA to

include any activity out of character with

its surrounding, any structure of a scale not

in keeping with its surrounding and major

changes in land use. Section 2 provides

a more specific and comprehensive list

of projects such as urban development,

transportation, dams and rivers, mining,

forestry and agriculture.

In the recent case of Registered

Trustees of Jamie Masjid Ahl-Sunnait-

Wal-Jamait Nairobi v Nairobi City

County & 2 others [2015] eKLR the

Plaintiff owner of a mosque sought to

challenge the ongoing development of a

public toilet facility by the 1st Defendant

who owned the adjoining land. The

Plaintiff contended that the intended

project required a proper EIA and that

the project being commercial in nature

would result in a major change in land

use. It was the 1st and 2nd Defendant’s

argument that the project did not fall

under the projects prescribed in the

Second Schedule of the Act.

The question faced by the Court was if a

project does not fall within those listed in

Section 2 of the Second Schedule, then

who ought to determine if it falls within

the general provisions of Section 1?

The Court stated that section 58 (1) of

the EMCA suggests that the proponent

of the project is the one to determine

whether the project falls under the

Second Schedule. The Court went on to

state that the criteria for determination

would be to first ascertain if the project

falls and is specified under any of the

sections of the Second Schedule. If it

does not then a determination has to

be made if it falls within section 1 of the

Second Schedule. The Court recognized

that this is not a simple task. The second

understand that an EIA is intended to

help protect the environment. Third,

would also be to appreciate and

understand that the “EIA process is

indeed to be an aid to an efficient and

inclusive decision making in special

cases, not an obstacle race”.

The relevant matters that the developer

ought to take into account in screening

the project for the necessity of an EIA

include but are not limited to:-

i) the characteristics of the intended

development;

ii) the location of the intended

development and characteristics of

potential impact;

iii) the size of the development as well

as cumulation with other neighboring

developments;

iv) the probability of any environmental

impact; and

v) the duration and reversibility of such

impact.

The Court in the above case conclusively

held that it was not enough to read

through the second schedule to the

EMCA and state that the intended

project does not fall under the said

schedule. The above listed matters

must be exhaustively considered by the

proponent and only upon thorough

analysis of these matters shall a

proponent rightfully conclude that

an EIA report is not required. To this

end, the Court granted the injunction

prohibiting further works on the

ground that there was no indication

of the criteria used by the 1st and 2nd

Defendants in determining whether or

not an EIA was necessary.

Therefore, it is important that proponents

adhere to such guidelines in the interest

of progressive, timely and sustainable

development. The lesson of Registered

Trustees of Jamie Masjid Ahl-Sunnait-

Wal-Jamait Nairobi v Nairobi City

County & 2 others [2015] eKLR is that

in a sense developers should adopt for

their developments the precautionary

principle in favour of conducting an EIA

and obtaining a licence.

Beryl Rachier

criteria would be to appreciate and

Chacha Odera

Kenya Property Developers Association... Development brings Development!

ORARO & COMPANY ADVOCATES

9

2017 CALENDAR OF EVENTS

DATE EVENT DETAILS LOCATION

Tuesday, 17 th

January 2017

Tuesday, 7 th

February 2017

Tuesday, 2 nd

March 2017

Friday, 31st

March 2017

Wednesday 5 th

and Thursday

6 th April 2017

Thursday, 27 th

April 2017

NCA Breakfast Forum (7.00am – 9.30am)

Theme:

KPDA CEO Breakfast Forum (7.00am –

9.30am)

Theme: “The Role of Advanced

Building Technology in enhancing

Returns on Investment and

Development”.

KPDA Breakfast Forum (7.00am – 9.30am)

Theme: ‘Understanding Construction

Contracts’

KPDA Annual General Meeting and

Koroga (4.00pm onwards)

East African Property Investment Summit

2017

KPDA Roundtable Meeting with

Machakos County Government (9.00am –

11.30am)

Theme: ‘To be Confirmed

Crowne Plaza Hotel Nairobi

Sarova Panafric Hotel Nairobi

Bowmans (Coulson Harney)

Advocates – ICEA Lion Centre,

West Wing

Spice Roots Restaurant –

Simba Union Club, Nairobi

Radisson Blue Hotel

Machakos County

May 2017 East Africa GRI Conference 2017 Villa Rosa Kempinski Hotel

Tuesday, 6 th

June 2017

Tuesday, 5 th

September 2017

Monday 25 th –

Friday 29 th

September 2017

Tuesday, 3 rd

October 2017

Thursday 19th

October 2017

November

2017

Friday, 17th

November 2017

KPDA One Day Workshop (9.00am –

4.00pm)

Theme: ‘Capital Funding and Structuring’

KPDA Conference on Policy Housing

Priorities for Housing, Nairobi (8.30am –

4.00pm)

KPDA 2017 International Trip

KPDA Roundtable Meeting with Kiambu

County Government (9.00am – 11.30am)

Theme: ‘To be Confirmed

KPDA Breakfast Forum (7.00am – 9.30am)

Theme: To be Confirmed

The Big 5 (ACOrCE)

KPDA Corporate Networking Koroga

Event (6.30pm onwards)

Crowne Plaza Hotel

Crowne Plaza Hotel

To be Confirmed

Kiambu County

Crowne Plaza Hotel

KICC

Spice Roots Restaurant –

Simba Union Club, Nairobi

24


THEN AND NOW

KILIMANI HAS EXPERIENCED DYNAMIC

CHANGES OVER THE LAST DECADE

Kilimani has experienced dynamic

changes over the last decade. Thirty

years ago, majority of the structures in

Kilimani were single unit bungalows

in one or half acre plots of land. This

slowly changed to maisonettes, then

apartments and now large commercial

buildings are taking root.

The zoning of the area changed from

residential area to a mixed land use,

bringing new social, physical and

economic changes to the ward. This has

required a lot of adaptation, acceptance

and action from all stakeholders

especially residents and business

persons in the area.

The changes would evidentially bring

more human population into the ward,

NAIROBI:

MMC ARCHES, SPRING VALLEY CRESCENT, OFF

PEPONI ROAD, WESTLANDS

P.O. Box 75362 – 00200, NAIROBI, KENYA.

TEL: +254 20 2167301/2 or 020

4180840/41/42/43,

+254 20 2329888, +254 20 2329898

CELL: +254 720 585 785, +254 734 333 339

FAX: +254 020 4180839

E-mail: info@wakili.com

Web: www.wakili.com

MOMBASA TRADE CENTRE, SOUTH WING

3rd FLOOR, NKRUMAH ROAD

P.O. BOX 90282-80100 MOMBASA, KENYA

TEL: +254 041 222 5839/91

CELL: +254 722 981 412

FAX: + 254 041 2315103

E-mail: wakilimsa@wakili.com

MAIN PRACTICE AREAS:

• COMMERCIAL LAW

• REAL ESTATE AND LAND USE PLANNING

• BANKING

• INTELLECTUAL PROPERTY

• DISPUTE RESOLUTION AND RECOVERIES

ABOUT MMC AFRICA LAW

thus the need for improved physical

infrastructure and social amenities.

With all this, the need for better security

would also be a concern.

Muriu Mungai and Company Advocates, doing business as “MMC Africa Law”, is a well es-

8 Partners and 14

ranging from Real Estate and Land Use Planning, Agriculture and Natural Resources; Banking

and Financial Services; Capital Markets; Corporate Law; Dispute Resolution and Litigation;

Finance; Telecommunication; Public Policy and Legislation and Taxation. MMC Africa’s Ad-

Africa Region.

has a branch in the city of Mombasa, Kenya, at the Mombasa International Trade Centre along

Information Technology.

Cleaning up the Kirichwa Kubwa River.

MMC Africa’s commitment is to provide innovative solutions to Public and Private Sector organizations

doing or seeking to do business in the Middle Africa Region (“MAR”), including

the East African Community Countries and South Sudan, plus Angola, Republic of Congo,

Democratic Republic of Congo, Ethiopia, Somalia, Mozambique and Zambia. To achieve that

MAR country, and it has established similar relationship with the International Law Firm of

of the world, including New York, Washington, London, Paris, Beijing, Tokyo and New Delhi.

International Financial

Law Review. In terms of volume of business and deals executed, the Firm is listed in the

Chambers Global Listing

of the World’s Leading Law Firms (“Chambers”). Two of its partners Njoroge Nani Mungai

and Esther Njiru Omulele have been ranked by Chambers as the leading lawyers in commercial

law and Real Estate in Kenya.The Firm has also been listed in the legal business guide,

Africa,“Leading Light in Africa in the Commercial

Law, Banking and Capital Markets”. It is ranked as a leading Trademark and Patent Firm

Kenya by “Managing in IP”, the leading international publication on Intellectual Property,

based on global interviews with Intellectual

A Law Firm recommended by IFLR 1000 2015 in Energy & Infrastructure, IFLR 1000 2016 in Financial & Corporate

and ranked as IPstars 2015

-

The Kilimani Project Foundation was

born out of a garden discussion among

residents and business persons who

saw the need for them to have influence

on how the area was changing. With

the increase in built environment

developments, there was also need for

further focus on the environment, need

for further social cohesion as well as

several opportunities networking and

enterprise development.

cilbuP;erutcurtsarfnIdnaecnaniFtcejorP;saGdnaliO;gniniM;ytreporPlautcelletnI ;ygrenE

The foundation bases itself on five

pillars: Social Cohesion, Security/Public

Safety, Environmental Management,

Entrepreneurial Development and

Planned Development. These pillars

cover the main areas of concern of

residents, property owners and business

persons.

The Foundation is membership based

and has a wide array of members from

residents, business owners, land and

building owners, informal traders and

persons employed in the area. Through

them, the foundation is able to place

one united force in ensuing that the area

offers a better enabling environment for

human activity.

The foundation has organized several

unique event around that revolve

around the pillars. For the first time

in a middle class neighbourhood in

THEN AND NOW

Nairobi, they held a ‘Police Community Day’ where residents

and other members spent a whole afternoon at the local

Police Station interacting with the police, discussing issues

of security and finishing with a football match against the

police!

This cohesion has developed further and KPF area now

partnering with KEPSA, the Embassy of the Peoples Republic

of China, Nairobi county Government and the National

Police Service to re develop the Kilimani Police Station.

Another milestone was coordinating the renovation of the

Kilimani Primary School swimming pool. Kilimani Primary

School is one of the five county owed primary schools in

the area. Most of the students at the county schools are

not Kilimani residents, and many times the schools face

varying degrees of neglect and run down infrastructure. The

foundation was able to bring together various stakeholders

towards improving the schools swimming pool as well as

other facilities.

The foundation also organizes a quarterly street festival that

brings together people of Kilimani to have an afternoon of

fun and games. To do this, they close a street for an entire

Saturday. This has brought residents and other persons in

Kilimani closer to each other, children from different courts

have got to know each other and young entrepreneurs have

been able to display and sell their wares.

The foundation also plays a role in advocating from a

better environment for Kilimanians. Of late, it has run an

#Icantsleep campaign. This has been against noisy night

clubs, churches and construction sites that do not operate

within the required legal mandates.

The campaign went viral with people in other parts of Nairobi

airing similar complaints and also caught the attention of

the international media. Another similar campaign was

#Icantbreath which is geared by foul smell due to illegal

discharges at the Kirichwa Kubwa River.

The foundation is currently piloting a street reclamation

programme. This involves multi-stakeholders including

land owners, both formal and informal business owners

and informal business persons. The pilot programme is

dubbed ‘Kilimani Rising’ and is spearheaded by a team of 10

volunteer residents.

The foundation intends to be the representative body of

the people of Kilimani before the local authorities, with

the intention of ensuring better planned development,

an environmentally friendly livable space as well as social

harmony among the diverse residents, business people and

friends.

Constant Cap; constant.cap@gmail.com; Kilimani Project Foundation

BUY. BUILD. BECOME

A HOMEOWNER AT BUSTANI

WHY INVEST IN BUSTANI?

Tel: 0717120177, 0725306291, 0732686943 / Email: info@daykio.com

Web: www.daykio.com daykioplantation Daykiokenya

Land | Development | Consulting

BUSTANI

PHASE 3

NOW

SELLING

1. Location: 3.5km from Thika Super – Highway, and 30 minutes from the CBD.

2. Infrastructure: Tarmac main road, Cabro-road network, Clean and sufficient water

supply already connected to the estate, Street lighting and ICT Connectivity.

3. Security: Perimeter wall with electric fence and designated area for police post.

4. Social Amenities: Access to amenities like Schools, Church, Children’s play ground

area, Dispensary, Club House and a Commercial Centre.

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within 3 years. Phase 1 & 2 purchasers now building.

6. Payment Plan: 30% deposit and balance to be cleared within 90 days.

COME INTERACT WITH US AT THE NAIROBI INTERNATIONAL TRADE FAIR FROM

3rd-9th OCTOBER 2016 AT THE CBD AREA ON KENYATTA AVENUE OPPOSITE THE

POLICE STATION.

Daykio is your property resource solution to

BUY. BUILD. BECOME.

NITF

AGRICULTURAL

SOCIETY OF KENYA

Kenya Property Developers Association... Development brings Development!

Kenya Property Developers Association... Development brings Development!

25

26


KPDA SPONSORSHIP AND PARTNERSHIPS

2016 KPDA SPONSORS

Thank you to KPDA sponsors for the support you have shown us in the year 2016!

Konza Techno City

National Construction Authority

PG Bison (K) Ltd

Crown Paints Kenya Ltd

Bamburi Cement Ltd

Savannah Cement Ltd

Newmatic Africa Ltd

Housing Finance

USIU Students Centre - Kenya

Mabati Rolling Mills

Acorn Group Ltd

HF Development Investment Ltd

Kenya Commercial Bank Ltd

Tatu City

Daykio Plantations

Limited

SynthesYs Systems Ltd

MMC Africa Law

Davis & Shirtliff

KPDA PARTNERS

Mihrab Towers - Kenya

Lake Victoria Serena Resort - Uganda

Architectural Association

of Kenya (AAK)

The Business Advocacy Fund (BAF)

Asoko-Insight

Kenya Private Sector

Alliance

Institution of Surveyors of

Kenya (ISK)

Kenya Association

of Manufacturers

The Kenya Alliance of

Resident Associations

Land Development Governance

Institute

Nairobi City County

Government

27

Upper Hill District Association

UN-Habitat – Urban

Energy Unit

Private Sector Magazine

Un Global Compact Kenya

Kenya Property Developers Association... Development brings Development!

Housing Finance

Foundation

Cementers Ltd

P.O BOX 42426 -00100

+254722515390

www.cementers.com

Ole Sereni Hotel - Kenya

| Building & Civil Engineering | Roadworks | Ready Mix Concrete | Custom Fit Outs |


FOCUS ON POLICY

THE DIASPORA AND REAL ESTATE IN KENYA

Joe arrives from a diaspora country to

his motherland, Kenya very excited to

be home because the last time he was

in Kenya there was no super highway,

or smooth road from the airport, or the

many billboards littering the highways.

He drives towards the super highway

and off that road he makes a turning to

where he remembers his cousin told him

his 1 acre plot was located which he had

purchased while abroad. As he nears the

area, he calls his cousin to confirm the

exact location which he gets to.

As he was told the land has been fenced

with some cheap wire not what he

expected or paid for but it is better than

nothing.

As he stands outside and takes pictures

of his property he notices some 2 young

men who arrive in a common Japanese

car. They are both wearing cheap looking

brown jackets and have toothpicks in

their mouths. They approach him and

greet him in Swahili of which he replies.

They then ask him if he is interested in

the land that he is taking pictures of and

he is a bit puzzled by that question, but

he decides to play along. He says yes,

and they proceed to tell him that they

are the agents of the owner who lives

abroad and that they are selling it on his

behalf.

At this point Joe becomes more curious,

he asks for the price and they give a

double value amount of the land of

which he says no but the men say they

can work with what Joe can afford, they

are sure the owner can be arm-twisted to

agree. At that point Joe asks if a copy of

the Title is available to which one of the

men dashes to the car and gets a hazy

print out of the Title and sure enough it

has Joe’s full names.

At that point Joe feels a cold chill

because he realises that his land is being

used to con people and is at a very high

Hearst Tower, New York City New York, USA

2000 - 2006.

Diaspora Kenyans need

trustworthy, honest and

straightforward real

estate consultants that

have a good track record.

This can be seen by how

much land they have

transacted in through

a trusted real estate

company and this is a

service that Diaspora

Services Ltd based in the

USA in June 2016 offers.

risk of being stolen. He quickly asks for

their phone numbers and promises to

call them the next day. Joe does not

reveal his true identity to them and

hastily drives off to his lawyer in the CBD.

That is what Diaspora Kenyans face

almost on a yearly basis, battling thieves

of land they have bought with their hard

earned cash from working multiple jobs.

According to the statistics by the Central

Bank of Kenya, Diaspora Kenyans as of

August 2016, had sent Kshs.16+Billion.

This is a lot of money that goes mostly

to family members and investments

mainly in land and housing. The appetite

for real estate among the Kenyan

community abroad has tripled in the last

5 years and growing, but this investment

in real estate can be reversed back if

Diaspora Kenyans keep getting conned

or battling never ending court cases to

protect their hard earned investments.

Diaspora Kenyans need trustworthy,

honest and straightforward real estate

consultants that have a good track

record. This can be seen by how much

land they have transacted in through a

trusted real estate company and this is a

service that Diaspora Services Ltd based

in the USA in June 2016 offers.

We have managed to sell 25 plots in

12 days! We at Diaspora Services carry

out due diligence on behalf of many

Diaspora clients on properties and

work together in marketing real estate

companies by giving them a platform

and a forum to do so.

We predict that in the next 3 years, the

appetite of individuals living in the

Diaspora will double and especially if

land legislative issues are settled. This is

a space to watch.

By Becky Karanja, Director

Kilimani Project Foundation

For more information: Telephone: 0723 603 939

Email: becky@diasporaservicesltd.com

DID YOU KNOW?

KENYA PROPERTY DEVELOPERS ASSOCIATION

WHAT ARE SOME OF THE BENEFITS OF

BECOMING A KPDA MEMBER?

1. Advocacy that champions the interests of

the industry to both the public sector and the

wider private sector to ensure a better business

environment for the property industry;

2. Information on the latest issues affecting the

industry, via regular publications, newsletters,

media reports and research;

3. Networking events, putting members in touch

with industry leaders and potential clients;

4. Professional development courses which reflect

the changing nature of the property industry;

5. Marketing opportunities for member companies

with discounts offered to various advertising

platforms;

6. Discounted rate at both KPDA events and

events organized by international and regional

organizations in the building and construction

industry;

7. Access to emerging markets and exposure to

joint venture opportunities.

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29

Kenya Property Developers Association... Development brings Development!


FOCUS ON POLICY

REGISTERING PROPERTY IN KENYA

In Kenya, “Land is the principal source

of livelihood and material wealth, and

invariably carries cultural significance

for many Kenyans,” explains one

of the founding documents of the

government’s national land policy.

Since the ratification of its new

constitution, Kenya’s legislature has

passed new acts and repealed others

in an effort to come to a sound,

comprehensive and transparent land

administrative policy.

This is a high priority, yet implementing

the new policies has proven

challenging: reforms take time, benefits

are slow to trickle down and the

government’s reorganization, resulting

from devolution remains a source of

confusion for many.

Around the globe, property rights

are important to support investment,

productivity and growth. Research

suggests that property owners with

secure ownership are more likely to

invest in private enterprises and transfer

property to more efficient users.

The ability to access authoritative

information on ownership also reduces

transaction costs in financial markets

and makes it easier to use property as

collateral. Land registries, together with

cadasters that identify the location of

WHAT CAN BE IMPROVED

1. Enforce time limits.

Around the globe,

property rights are

important to support

investment, productivity

and growth. Research

suggests that property

owners with secure

ownership are more

likely to invest in private

enterprises and transfer

property to more

efficient users. The ability

to access authoritative

information on

ownership also reduces

transaction costs in

financial markets and

makes it easier to use

property as collateral.

a property are tools used around the

world to map, prove and secure property

rights.

These are part of the land information

system of an economy. With real property

(land and buildings) accounting for

2. Use a unified form for Lands Office requirements.

3. Replace the rates clearance certificate with online payment confirmation

or accept payment receipts as proof of payment.

4. Simplify the process of obtaining a land rent clearance certificate.

5. Consider replacing on-site inspections with a property value assessment

based on a standardized schedule of property values.

6. Continue the digitization of land records and move towards more

online services.

between half and three-quarter wealth

in most economies, having an up-todate

land information system matters.

For governments, having reliable, up-todate

information in cadasters and land

registries is essential to correctly assess

and collect tax revenues. With up-todate

land information, governments

can map out the varying requirements

location by location and strategically

plan the provision of services and

infrastructure in the areas where they

are most needed.

The first step is to conduct the title search

at the local Lands Office, to confirm who

the rightful owner is and ensure there

are no liens or encumbrances against

the property. Next, the seller obtains

a land rent clearance certificate from

the central Lands Office in Nairobi and

a rates clearance certificate from the

county government to prove there

are no outstanding rent payments or

property taxes.

A lawyer draws up the transfer

instruments and files it at the lands

officer and requests for property

valuation. The seller then files the

agreement and clearance certificates,

along with an application for consent

to transfer the property, with the local

Lands Office.

Once the Lands Office grants consent,

they send a valuer to the site to produce

a valuation report used to access the

stamp duty. The stamp duty is paid at a

commercial bank.

Upon the KRA’s confirmation of receipt of

payment, the seller files the registration

documents with the local Lands Office.

Lastly, the local Lands Office registers

the property in the name of the new

owner.

Doing Business in Kenya 2016 Report

World Bank Group

Kenya Property Developers Association... Development brings Development!

31


FOCUS ON POLICY

ENERGY EFFICIENCY, SUSTAINABILITY

AND SAFETY

Africa is the 2nd fastest urbanizing

continent, with an average annual

growth rate of 1.4% from 2010 to

2015. The African Development Bank

estimates that Africa’s urban population

rose from 19% to 39% between 1960

and 2011, and projects that 50% of

Africans will live in urban areas by 2040.

Unfortunately this quick urbanization

hasn’t been followed by an improvement

in economic structure, infrastructure

and creditworthiness in most countries

on the continent.

In terms of the provision of housing,

African governments should connect

with other governments that want to

finance the same type of investments,

allowing them to access the market

together at better financing terms. For

housing delivery in the region there is

an emphasis on green building and the

use of the LEED standard.

The current world population of 7.2

billion is projected to reach 9.6 billion

by 2050: Growth is happening mainly

in developing countries with more than

half of these being located in Africa.

African urban population is projected

to reach 1.4 billion by 2050 from the

current 400 million and 60% of urban

population lives in informal settlements.

As the population increases so does

the demand for more energy. High

dependency on energy imports (mainly

fossil fuels: oil, coal, gas) has created

vulnerability to price fluctuations (oil

price rose from $14 in 1999 to $140 in

2008, and $30 in 2016).

This has led to “Imported” inflation and

price instability for goods and services.

Currently energy used in buildings in

Africa is estimated at 56% of the total

national electricity consumption. Over

70% of energy is consumed in cities

alone and in some cases; more than

Strathmore Business School Building.

In terms of the provision of housing, African

governments should connect with other governments

that want to finance the same type of investments,

allowing them to access the market together at better

financing terms. For housing delivery in the region

there is an emphasis on green building and the use

of the LEED standard. The current world population

of 7.2 billion is projected to reach 9.6 billion by 2050:

Growth is happening mainly in developing countries

with more than half of these being located in Africa.

50% of the national energy is used in the

capital city alone.

There is little to no consideration of

energy efficiency for commercial

property development and this needs

to change urgently. When architecture

and buildings are not adapted to their

respective climates, there is wastage of

electricity leading to power transmission

losses of up to 20 – 30%.

In Africa the absence of adequate urban

planning has led to urban sprawl with

low density development leading to

high energy demand, need for private

cars, increased air pollution. The

proliferation of unplanned settlements

is mainly underway in developing

countries.

Unplanned settlements create the

following issues:

• Outdated city master-plans,

• Traffic congestion and blockage

• No roads and poor streets

patterns

For local property development, public

and private sector need to valorise

local building materials and avoid

importation of materials from other

regions unless necessary; minimise the

use of artificial and mechanical means

to provide indoor comfort ; make use

of onside natural resources including

renewable energies; adopt resources

efficiency measures; design green

and plant trees; and reduce, reuse and

recycle!

Report from Totally Construction East Africa

Commercial Property Development East Africa

Briefing Section

Soren Du Preez

Programme Director Africa

soren.dupreez@hypenica.com

Kenya Property Developers Association... Development brings Development!

33


NCC BUILDING PERMITTING APPROVALS

NAIROBI CITY COUNTY GOVERNMENT BUILDING

PERMITTING APPROVALS ACTIVITY REPORT

JULY – SEPTEMBER 2016

BRITAM Towers courtesy of Construction Review Online.

SOURCE

The 2016 Quarter 3 KPDA NCCG

Building Permitting Approvals

Activity Report provides a summary

of statistical information on planning

permitting activity in Nairobi for the

period between July and September

2016. Only statistics received from the

Nairobi City County Government, Urban

Planning Department have been used

as references. This report uses building

permitting approval requests submitted

to the Nairobi City County Government

which are then analysed and approved

by a specialist committee appointed by

the Urban Planning Department of the

Nairobi City County Government.

The report contains information on

applications that have been approved

by the specialist committee highlighting

development locations, types, values,

application revenues and process

performances.

STATISTICS

580 planning applications were

approved during this period which is

21% less than that of Q2 same year.

Other key statistics from this report

include:

1. Value of approved permits was

over Kshs.25.7 billion worth

of development projects and

permitting fees collected were over

203 million;

2. The highest value of buildings

submitted for approval was Kshs.

1, 133, 100, 000 by the Alexander

Forbes Retirement Fund and the

maximum submission fee paid was

Kshs. 11,366, 000;

3. On average the estimated value of

development was Kshs. 44, 503, 571

and that of submission fees totaled

Kshs. 352, 820 which is close to the

averages of the previous quarter;

4. The location of buildings with the

highest percentage of permits/

approvals were from the below subcounties:

• 26% in Westlands

• 20% in Langata

• 8% in Starehe and

• 8% in Roysambu

5. Based on the Kenyan Building Code

of 1997, this report depicts permits

that were issued in the following

percentages in accordance to the

named classifications below:

• 80% (462) - Domestic

Class (domestic buildings,

commercial developments

and offices)

• 12% (71) - Public Class

(religious buildings, social

halls, libraries, schools, etc.)

• 8% (47) - Warehouse Class

(factories, industries and go

downs)

A comparative analysis is provided

based on monthly performance.

While every reasonable effort is made to ensure that the information provided in this report is accurate no guarantee for the currency or accuracy of information is made.

The permitting data was provided to the KPDA by the Nairobi City County Physical Planning Department.

35

Kenya Property Developers Association... Development brings Development!


NCC BUILDING PERMITTING APPROVALS

PERMIT APPLICATION ACTIVITY BY SUBCOUNTY

There are more development activities on the Western side of

Nairobi compared to the Eastern side. The highest permits were

approved at Westlands and Langata areas.

1. For a while Karen had the highest percentage of

permits locality wise. This would be as a result of the

construction of the Southern Bypass connecting the

Nairobi - Naivasha Highway to Mombasa Road. The

bypass has also enabled easy and fast commuting to

the Jomo Kenyatta International Airport and Wilson

Airport. The neighbourhood has an organized road

network, with properly connected entry and exit routes

that lead to and from Nairobi’s central business district.

This provides for closer proximity to Nairobi’s central

business district which most Kenyans find convenient.

The high number of permits approved in the Karen area

is also likely due to the high capital returns in rental and

ownership income to be received by developers as the

area is considered high-end.

2. During this quarter we note that the distribution

has shifted to Westlands. There has been an increase

in demand for office space hence development for

Commercial use. This could be attributed to Westlands

proximity to the CBD.

3. Kamukunji has the least percentage of permits approved

amongst the top 10 areas of developments approved.

NB: Localities that do not appear in the graph had less than 2%

presentation.

DWELLING RELATED ACTIVITY ACROSS NAIROBI

Buildings approved included domestic

buildings, commercial developments,

offices, religious buildings, social halls,

libraries, schools, factories, industries

and go downs. The following graph

identifies permit applications that relate

to various building classes:

• It is notable that 80 % of the approvals

for building permits were issued to

the Domestic Class of buildings. 12%

permits were issued to the Public

Class and only 8% issued to the

Warehouse Class.

• This can be majorly attributed to

numerous emerging businesses,

including but not limited to foreign

investors and SMEs which has

increased demand for offices and

residential houses.

While every reasonable effort is made to ensure that the information provided in this report is accurate no guarantee for the currency or accuracy of information is made.

The permitting data was provided to the KPDA by the Nairobi City County Physical Planning Department.

37

Kenya Property Developers Association... Development brings Development!

Newmatic Africa Limited

1st Floor, Unit 2, The Park Office Suites

Near Parklands Police Station, Parklands Road

P.O. Box 528-00200, Nairobi, Kenya

Tel: +254 711 112 744 737 391 011

Email: info@newmaticafrica.com


NCC BUILDING PERMITTING APPROVALS

PERMIT APPLICATION ACTIVITY BY SUBCOUNTY

NCC BUILDING PERMITTING APPROVALS

THE VALUE TREND OF DEVELOPMENT PERMITTED BY THE NAIROBI CITY COUNTY GOVERNMENT

31% of the buildings

presented for approvals

were valued below Kshs,

5 million while 51% were

valued between Kshs. 5 -

50 million. Most of these

buildings were in the

residential category.

1. The graph indicates Westlands being the area with the

highest number of Domestic Class approvals.

NUMBER OF APPROVALS BY ZONAL USER DENSITY

2. Makadara sub-county topped in approvals related to

the Warehouse Class mainly because the area has a high

number of industries as well as warehouses set up.

1. The Residential Class accounted

for 75% of the approvals (which is

notably lower than the previous

quarter) due to the high demand

by Kenyans to own a home and

the increase in the middle-aged

working population who consider

incurring the cost of buying a

house rather than renting more

significant an expense.

REVENUE FROM THE APPROVALS ISSUED BY THE NAIROBI CITY COUNTY GOVERNMENT

The main source of submission fee during this quarter is from Westlands followed by Langata. The category that contributed the

highest amount of revenue is the Domestic Class.

2. Commercial Class buildings

accounted for 10% which is

slightly higher than Q 2. This

could indicate shift to commercial

use development probably due

to higher returns and uptake as

compared to residential class.

While every reasonable effort is made to ensure that the information provided in this report is accurate no guarantee for the currency or accuracy of information is made.

The permitting data was provided to the KPDA by the Nairobi City County Physical Planning Department.

Kenya Property Developers Association... Development brings Development!

While every reasonable effort is made to ensure that the information provided in this report is accurate no guarantee for the currency or accuracy of information is made.

The permitting data was provided to the KPDA by the Nairobi City County Physical Planning Department.

Kenya Property Developers Association... Development brings Development!

39

40


NCC BUILDING PERMITTING APPROVALS

NCC BUILDING PERMITTING APPROVALS

MONTHLY ANALYSIS OF APPROVALS ISSUED BY THE NAIROBI CITY COUNTY GOVERNMENT

PERMIT PROCESSING PERFORMANCE

August recorded the highest

number of approvals in the

third quarter accounting for

41% of all approvals issued in

the quarter.

GRAPH DEPICTING APPROXIMATE APPROVAL TIME TAKEN BY THE NAIROBI CITY COUNTY

GOVERNMENT TO CARRY OUT BUILDING PERMITTING

1. Most of the permits

took more than

one month to be

approved. This

accounted for 60%

of the total approvals

percentage.

2. On average, the

number of days

taken for approvals

to be issued is 69

days which is slightly

over 2 months.

August had the

highest investments

in terms of estimated

value of buildings

which was Kshs.

9,869,497,174.

COMPARATIVE ANALYSIS OF Q3 2016

41

Throughout the quarter,

the Domestic class

dominated the permitting

activities of the NCCG. This

may lead to imbalance in

the county development

as the residential and

commercial development

need to be substituted

with the essential public

establishments such as

schools, churches , social

halls etc.

While every reasonable effort is made to ensure that the information provided in this report is accurate no guarantee for the currency or accuracy of information is made.

The permitting data was provided to the KPDA by the Nairobi City County Physical Planning Department.

Kenya Property Developers Association... Development brings Development!

It is noted that there has been an increase in the worth of developments approved. Domestic buildings continue to have the

highest number of approvals.

FOR MORE INFORMATION, KINDLY CONTACT THE KPDA SECRETARIAT

Kenya Property Developers Association

Fatima Flats, Suite B4, Marcus Garvey Road

Off Argwings Kodhek, Kilimani Area

P. O. Box 76154 – 00508 Nairobi, Kenya

Telephone: +254 737 530290/0705 277787

Email: research@kpda.or.ke or admin@kpda.or.ke

Website: www.kpda.or.ke

While every reasonable effort is made to ensure that the information provided in this report is accurate no guarantee

for the currency or accuracy of information is made. The permitting data was provided to the KPDA by the Nairobi City

County Physical Planning Department.

Kenya Property Developers Association... Development brings Development!

42


KPDA DIRECTORY OF MEMBERS

KPDA DIRECTORY OF MEMBERS

PREMIUM MEMBERS

Bamburi Cement Limited

HF Development and

Investment Ltd

Mabati Rolling Mill Ltd

Newmatic Africa Ltd

Suraya Property Group Ltd

SyntheSys Systems Ltd

Thika Greens Ltd Tilisi Developments Limited Unity Homes Ltd Urban Nirvana Property

Solutions Ltd

Vishwa Developers Ltd

Epic Properties Limited

Bontola Group limited

HF Giza Systems Kenya Ltd

Ministry Of Land, Housing &

Urban Development

Panda Development Co. Ltd

Yasian Technology Company

Limited

Kenya Commercial Bank

Fusion Capital Limited

Imaran Real Estate Ltd

MMC Africa Law

Savannah Cement Ltd

Britam Holdings Ltd

Tandem & Stark Limited

ASSOCIATE MEMBERS

Anjarwalla & Khanna

Advocates

CFL and Company Advocates

Knight Frank Kenya Ltd

Nanchang Foreign

Engineering Company

(Kenya) Ltd

Ratemo & Company

Advocates

Technoconstruct Kenya Ltd

CORPORATE MEMBERS

Collaborations Engineering

Solutions & Products (CESP)

Koto Housing Kenya

RealTrak Solutions

Warrior Insight Ltd

Acorn Group Limited

AMS Properties Ltd

Bahati Ridge Development Ltd

Blueline Properties Ltd

Boleyn Magic Wall Panel Ltd

Century City Property Limited

Chigwell Holdings Limited

Coral Property International

Limited

Cytonn Real Estate

Daykio Plantations Limited

Dunhill Consulting Ltd

Edifice Limited

Elm Ridge Limited

Falcon Development Ltd

Fedha (Management) Ltd

Hass Consult Ltd

Haussmann Group Ltd

Ijenga Ventures Ltd

Intex Construction Ltd

Jabez Properties Ltd

Jambo Holdings Ltd

Karibu Homes

Karume Holdings Limited

Kings Developers Ltd

Kitusuru Country Villas Ltd

Kitusuru Country

Villas Ltd

Kzanaka Ltd

Limojade Management Ltd

Lordship Africa

Home Afrika Ltd

Manrik Group Ltd

Mentor Management

Limited (MML)

Mugumo Developments Ltd

Mwanzoni Limited/

Lavish Golf Limited

My Space Properties Ltd

National Cooperative

Housing Union

Natureville Homes

Ndatani Enterprises Company

Limited

Oak Park Properties Ltd

Optiven Limited

Parmalen Investments Ltd

PDM (Kenya) Ltd

Pediment Developers

Pentagon Properties Ltd

Property Reality Company

Limited

Rozana Properties Ltd

Sayani Investments Ltd

Scion Real Estate

Sigimo Enterprises Ltd

Simba Corporation Ltd

SJR Properties Ltd

Spartan Developers Limited

Superior Homes Kenya

Askadoc

Aspenn Global Mobility

Consultants Kenya

Aspire Africa Ltd

Axis Real Estate Limited

Bowmans (Coulson Harney)

Broll Kenya Ltd

Buy Rent Kenya Ltd

DLR Group Africa Ltd

Geokarma Construction

Limited

Glinis & Kigera & Company

Advocates

Honeywell Technologies (k)

Limited

Jumia House

Kanaga & Associates

Karanja Njenga Advocates

Laser Property Services

Limited

Lupat Cleaning

Services Ltd

Mahida and Maina Company

Advocates

Mboya Wangong’u & Waiyaki

Advocates

Mereka & Company

Advocates

Mohammed Muigai

Advocates

Ogola and Mujera Advocates

LLP

Opticom Kenya Ltd

Oraro & Company Advocates

Pam Goldings Properties Ltd

Paragon Architects

Property Link Africa Ltd

Questworks Ltd

Re/Max Heritage

Saj Ceramics Ltd

Secureman Services

Limited

Soita & Associates Advocates

Spearhead Africa Ltd

Steel Africa Limited

Wambua & Maseno

Advocates

FOR MORE

INFORMATION,

KINDLY

CONTACT

Kenya Property

Developers Association

Fatima Flats, Suite B4,

Marcus Garvey Road

Off Argwings Kodhek,

Kilimani Area

P. O. Box 76154 – 00508

Nairobi, Kenya

Telephone:

+254 - 737 530 290

+254 - 705 277 787

Email:

research@kpda.or.ke or

admin@kpda.or.ke

County Home Developers Ltd

Homescope Properties Ltd

Lantana Homes Ltd

Nanyuki Mall Ltd

Pioneer Holdings (Africa) Ltd

Tatu City Ltd

CEMEX Holdings Limited

KN Associates LLP

Nabo Capital Limited

Rak Ceramics Kenya Ltd

Taka Taka Solutions

Website:

www.kpda.or.ke

Kenya Property Developers Association... Development brings Development!

Kenya Property Developers Association... Development brings Development!

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