The Developer's Digest, June to July 2016 Issue
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JUNE JAN – JULY – MAR <strong>2016</strong> <strong>2016</strong> ISSUE<br />
KENYA PROPERTY DEVELOPERS ASSOCIATION<br />
A Publication by the Kenya Property Developers Association<br />
Save Energy and Environment<br />
with Green Building<br />
Cover Pho<strong>to</strong>: THE ANGAMA MARA SAFARI LODGE<br />
Located high above the floor of Africa’s Great Rift Valley, Angama Mara is a safari lodge that<br />
overlooks Kenya’s Maasai Mara, considered by many as the loveliest game reserve on the continent.<br />
IN<br />
THIS<br />
ISSUE<br />
Focus on Policy<br />
Overview on KPDA Activities<br />
NCC Building Permitting Approval Report<br />
Kenya Property Developers Association... Development brings Development!<br />
1
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KENYA PROPERTY DEVELOPERS ASSOCIATION<br />
<strong>The</strong> Developer’s<br />
<strong>Digest</strong><br />
A KPDA PUBLICATION<br />
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Page 1:<br />
Page 4:<br />
From the Secretariat<br />
Focus on Policy<br />
Hamish Govani<br />
Board Member<br />
Kenneth Luusa<br />
Board Member<br />
Mwenda Thuranira<br />
Board Member<br />
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Page 6:<br />
Overview on KPDA<br />
Activities<br />
Page 11: KPDA Partnerships<br />
Page 13: NCC Building Permitting<br />
Approvals<br />
13<br />
Margaret Kibe<br />
Board Member<br />
Gikonyo Gi<strong>to</strong>nga<br />
Board Member<br />
Caroline Karugu<br />
Board Member<br />
KPDA SECRETARIAT<br />
George Wachiuri<br />
Board Member<br />
Chief Executive Officer: Elizabeth Mwangi – Oluoch<br />
Membership Relations Officer: Liz Kayaki<br />
Finance and Administrative Assistant: Nelly Oneya<br />
Membership and Administrative Assistant: Philip Kisaka<br />
Research and Development Intern: Samuel Kiarie<br />
<strong>The</strong> Secretariat address is :<br />
Fatima Flats, Suite 4B, Marcus Garvey Road off Argwings Kodhek<br />
Road, Nairobi | Tel: + 254 737 530 290 | 0705 277787<br />
Email: admin@kpda.or.ke | Website: www.kpda.or.ke<br />
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Kenya Property Developers Association... Development brings Development!<br />
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Kenya Property Developers Association... Development brings Development!
FROM THE SECRETARIAT<br />
“Choose a Job That You Like, and You Will<br />
Never Have To Work a Day In Your Life.”<br />
- Confucius, Philosopher<br />
Welcome <strong>to</strong> the third issue of <strong>The</strong><br />
Developer’s <strong>Digest</strong>. In this issue we bring<br />
you an overview on the activities that<br />
KPDA has held over the past couple of<br />
months, one amongst them being our<br />
first workshop in over 5 years.<br />
<strong>The</strong> Membership and Outreach<br />
Committee is proud <strong>to</strong> have organized a<br />
successful two day workshop on the 5th<br />
and 21st of <strong>July</strong> <strong>2016</strong> and whose final<br />
day featured a technical training ideal<br />
for middle and operational staff as well<br />
as <strong>to</strong>p management. <strong>The</strong> committee<br />
has noted that overwhelming positive<br />
response we received from participants<br />
and will be looking in<strong>to</strong> organizing more<br />
of the same in the near future.<br />
Also in this issue features our ‘Focus<br />
on Policy’ article with an emphasis on<br />
green and sustainable buildings. We at<br />
KPDA are passionate about sustainable<br />
development, evident through our<br />
partnership with the UN Habitat – Urban<br />
Energy Unit, the Kenya Green Building<br />
Society and the Delegation of German<br />
Industry and Commerce in Kenya under<br />
the Federal Republic of Germany.<br />
We encourage <strong>to</strong> attend the upcoming<br />
KGBS Annual Conference and Training<br />
which is coming up in the month of<br />
August. Details on this conference are<br />
availed inside this issue.<br />
As always, we continue <strong>to</strong> share our<br />
KPDA wishes <strong>to</strong> welcome our newest members:<br />
• Haussmann Group Ltd<br />
• Boleyn Magic Wall Panel Limited<br />
• Stanlib Kenya Limited<br />
• Nabo Capital Ltd<br />
• Bon<strong>to</strong>la Group Ltd<br />
research reports with you and in this<br />
issue you will find the Nairobi City<br />
County Government Building Permitting<br />
Approvals Report for the period April <strong>to</strong><br />
<strong>June</strong> <strong>2016</strong>.<br />
Once again, I would like <strong>to</strong> thank<br />
our members and partners for their<br />
unwavering belief in us and the support<br />
you continue <strong>to</strong> give.<br />
I wish you all a very profitable and happy<br />
month of August.<br />
Elizabeth<br />
• Saj Ceramics<br />
• Honeywell Technologies (K) Limited<br />
• Warrior Insight Ltd<br />
• Karanja Njenga Advocates<br />
• National Cooperative Housing Union (Nachu)<br />
Welcome <strong>to</strong> the KPDA Family!<br />
HOW TO GET THE LATEST 21 ST CENTURY<br />
SECURITY IN KENYA WITHOUT THE BIG PRICE TAG<br />
If you live and work in Nairobi you know<br />
that security is not taken lightly; Barbed<br />
wire, high brick walls and uniformed<br />
guards protect our homes, electric<br />
fences, CCTV cameras, dogs and more<br />
uniformed guards moni<strong>to</strong>r our building<br />
sites, our businesses and properties, and<br />
we all go through security checks at<br />
every entrance <strong>to</strong> any public building,<br />
be it an office, a hotel, a mall, or a<br />
restaurant. People need <strong>to</strong> feel that they<br />
are safe, that their business is secure<br />
and that their property is protected<br />
from theft, vandalism, or these days, the<br />
sinister threat of terrorism.<br />
And there is no shortage of security<br />
companies and contrac<strong>to</strong>rs offering a<br />
range of products and services <strong>to</strong> meet<br />
this ever growing demand. But the<br />
question <strong>to</strong> ask is, ‘are they the right<br />
solutions?’ and most importantly, ‘are<br />
they working?’ Adam Miller, the CEO of<br />
leading East African risk management<br />
company Warrior Insight says the<br />
answer, quite simply, is ‘no’.<br />
“Current systems are outdated, easily<br />
corruptible, and not up <strong>to</strong> the task<br />
– they just don’t work anymore,” he<br />
says. “As criminals are becoming more<br />
sophisticated and the rate of crime is<br />
increasing, it’s time for businesses <strong>to</strong> get<br />
smart and update their solutions, which<br />
is why we’ve developed RS24.<br />
Now, when new clients come <strong>to</strong> us<br />
looking for a better solution than more<br />
CCTV cameras and extra guards, which<br />
has been the standard for many years<br />
now, we know we can offer a game<br />
changing, 21st Century system, using<br />
the latest technology specifically tailored<br />
<strong>to</strong> the needs of the Kenyan market, and<br />
that’s RS24.”<br />
Warrior Insight’s latest product is a new<br />
security system created <strong>to</strong> address<br />
rising industrial and business crime<br />
rates in Nairobi. RS24 is designed <strong>to</strong><br />
replace current security measures such<br />
as manned guarding, electric fencing,<br />
intruder alarms and guard dogs with<br />
a combination of advanced video<br />
analytics software, moni<strong>to</strong>red around<br />
the clock by Warrior Insight’s Command<br />
and Control Centre, plus real-time audio<br />
intervention, promising <strong>to</strong> detect and<br />
intercept criminals <strong>to</strong> s<strong>to</strong>p them before<br />
they have a chance <strong>to</strong> commit a crime.<br />
RS24 is the first security system of its<br />
kind in East Africa, based on the latest<br />
international security technologies<br />
available, and similar <strong>to</strong> systems that<br />
are currently used around the world<br />
<strong>to</strong> protect nuclear facilities, airports,<br />
embassies and government buildings.<br />
Adam explains, “If a virtual trip wire line<br />
is crossed, a video alarm is immediately<br />
displayed in our command and control<br />
centre and a member of the Warrior<br />
Insight analysis team can immediately<br />
assess the risk. If necessary they will issue<br />
a voice warning <strong>to</strong> the intruder via loud<br />
speaker systems which sit alongside our<br />
surveillance cameras. Over 90% of the<br />
time this will s<strong>to</strong>p them in their tracks<br />
and the break-in never happens.”<br />
“RS24 takes away the human element. I<br />
know my fac<strong>to</strong>ry is being protected day<br />
and night, and the virtual trip wires and<br />
audio alert system really do work <strong>to</strong> turn<br />
intruders away. It’s been fantastic. We’ve<br />
had zero theft since installation, and I’ve<br />
saved 30% on guard costs.” – Ross Field,<br />
Direc<strong>to</strong>r Specialised Fibreglass Limited<br />
WWW.RS24.tech<br />
1<br />
Kenya Property Developers Association... Development brings Development!<br />
PURSHOTTAM PLACE / OFF WESTLANDS ROAD / WESTLANDS / P.O Box 1202-00502 NAIROBI, KENYA / E-MAIL: solutions@rs24.tech<br />
2
KPDA PREMIUM MEMBER PROFILE<br />
3<br />
HFGS Offers<br />
Giza Systems’<br />
Entire Product<br />
Family<br />
HF Giza Systems, which was fully acquired by Giza Systems last March, continues <strong>to</strong> serve the Kenyan<br />
market with a wider, more comprehensive portfolio of services and solutions.<br />
<strong>The</strong> acquisition opens up new markets <strong>to</strong> HFGS Kenya through offices in Egypt, Saud Arabia, United<br />
Arab Emirates, and Qatar. This fact coupled with Giza Systems’ vast geographic footprint in Tanzania,<br />
Uganda, and Nigeria, will surely accelerate and ensure the growth of the company and position it as a<br />
global integrated smart solutions provider.<br />
Our broad-based family of products and services enable us <strong>to</strong> cater <strong>to</strong> various sec<strong>to</strong>rs including:<br />
• Power<br />
• Telecom<br />
• Water<br />
• Transportation<br />
• Enterprise<br />
• Smart Cities<br />
• Manufacturing<br />
• Airports<br />
• Healthcare, Hospitality and Real Estate • Retail Outlets and Shopping Malls<br />
• Oil and Gas<br />
During the past two decades, HFGS has implemented various successful projects for a number of its<br />
cus<strong>to</strong>mers, installing state-of-the-art solutions including energy management systems, multimedia<br />
systems, fire and security systems. With this acquisition, the company now also benefits from in-house<br />
applications <strong>to</strong> serve the vision of new smart city projects like home au<strong>to</strong>mation, smart metering, and<br />
emergency response centers.<br />
Among HFGS’ clients are Golf Course Hotel Nairobi, Tamarind Tree Hotel, Airtel Tanzania, Julius Nyerere<br />
International Airport T3 Phase 1, Ramada Resort Dar Es Salaam, Ngalawa Beach Resort, Public Service<br />
Pension Fund Towers, and others.<br />
Our Offices<br />
• Egypt<br />
• Saudi Arabia<br />
• United Arab Emirates<br />
• Qatar<br />
Address: Kitisuru Rd., off Peponi Rd., opposite Thigiri Ridge Rd.<br />
P.O. Box 73825-00200 Nairobi, Kenya<br />
Tel: +254 203 862 737, Mobile: +254 722 741 645<br />
Email: hfgizasystems@gizasystems.com<br />
www.hfgizasystems.com<br />
• Tanzania<br />
• Uganda<br />
• Nigeria<br />
• Kenya<br />
SAVE ENERGY AND THE ENVIRONMENT WITH<br />
GREEN BUILIDINGS<br />
By Arthur Mijumbi, a Civil and Structural Engineer with Sampar Ltd, Uganda<br />
<strong>The</strong>re have been so many posts on<br />
social media describing the infamous<br />
Kampala heat; global warming is no<br />
longer an abstract <strong>to</strong>pic taught in<br />
schools, Ugandans are living it. Unlike<br />
what people define as heat back in the<br />
1960s when trees were still in plenty, the<br />
current Ugandan heat is more severe.<br />
A warm shower in the morning is no<br />
longer necessary and in the evening, you<br />
will get a warm shower without asking<br />
for it.<br />
Uganda is one of the 196 countries in the<br />
world facing the overwhelming elements<br />
of climate change. <strong>The</strong> devastating<br />
effects of pollution on the environment<br />
have become more obvious in recent<br />
years, sparking a movement <strong>to</strong> promote<br />
energy efficiency, less reliance on fossil<br />
fuels, and a reduction in air and water<br />
pollution through a concept called green<br />
building.<br />
A green building, also known as a<br />
sustainable building is, according<br />
<strong>to</strong> Sampar Projects Engineer, Arthur<br />
Mijumbi, ‘a building that is designed,<br />
built, renovated, operated, or reused<br />
in an ecological and resource-efficient<br />
manner. It is designed <strong>to</strong> meet certain<br />
objectives such as protecting the<br />
occupants’ health; using energy, water,<br />
and other resources more efficiently;<br />
and reducing the overall impact on the<br />
environment.’<br />
CONSIDERATIONS WHEN SETTING UP<br />
A GREEN BUILDING:<br />
1. Resource Efficiency<br />
This is done by selecting sustainable<br />
construction materials and products by<br />
evaluating several characteristics such<br />
as reused and recycled content, zero or<br />
low off-gassing of harmful air emissions.<br />
It may also be zero or low <strong>to</strong>xicity,<br />
sustainably harvested materials, high<br />
recyclability, durability, longevity, and<br />
local production; promotion of resource<br />
conservation and efficiency. Reusing and<br />
recycling construction and demolition<br />
materials, for example, using inert<br />
demolition materials as a base course for<br />
most of our parking lots and residential<br />
home slab-bases, minimizes the costs of<br />
construction.<br />
2. Air Quality and Safety<br />
Choosing construction materials and<br />
interior finishing products with zero<br />
or low emissions improves indoor air<br />
quality. According <strong>to</strong> the Environment<br />
Protection Agency, many building<br />
materials and maintenance products<br />
emit <strong>to</strong>xic gases, such as volatile organic<br />
compounds and formaldehyde.<br />
<strong>The</strong>se gases can have detrimental<br />
effects on the occupants’ health and<br />
productivity. <strong>The</strong> research says providing<br />
adequate ventilation and a highefficiency,<br />
in-duct filtration system can<br />
have a positive impact on indoor air<br />
quality. Preventing indoor microbial<br />
contamination through the selection of<br />
materials resistant <strong>to</strong> microbial growth<br />
provides effective drainage from the roof<br />
and surrounding landscape.<br />
Green building requires installation<br />
of adequate ventilation in bathrooms<br />
and allows proper drainage of airconditioning<br />
coils. Design other building<br />
systems <strong>to</strong> control humidity. Buildings<br />
with good overall environmental quality<br />
can reduce the rate of respira<strong>to</strong>ry<br />
disease, allergies, asthma, sick building<br />
symp<strong>to</strong>ms and enhance performance.<br />
“<strong>The</strong> potential financial benefits of<br />
improving indoor environments exceed<br />
costs by a fac<strong>to</strong>r of eight and 14,” reads a<br />
Fisk and Rosenfeld research.<br />
3. Energy Efficiency<br />
Passive design strategies can<br />
FOCUS ON POLICY<br />
dramatically affect a building’s energy<br />
performance. <strong>The</strong>se include building<br />
shape and orientation, passive solar<br />
design, and the use of natural lighting.<br />
Studies have shown that natural lighting<br />
has a positive impact on productivity<br />
and wellbeing. Depending on which part<br />
of Uganda you may be living in, using<br />
a properly sized and energy efficient<br />
heat or cooling system with a thermally<br />
efficient building shell is a good choice.<br />
Consider alternative energy sources<br />
such as pho<strong>to</strong>voltaics and fuel cells that<br />
are now available in new electronics.<br />
Buildings with properly thought-out and<br />
executed measures can consume from<br />
40% <strong>to</strong> up <strong>to</strong> 90% less energy than similar<br />
building structures of conventional<br />
construction.<br />
4. Water Conservation<br />
Uganda’s climate is tropical and generally<br />
rainy, with two dry seasons of December<br />
<strong>to</strong> February and <strong>June</strong> <strong>to</strong> August. This<br />
means Ugandans who harvest rainwater<br />
are able <strong>to</strong> depend on it for most of the<br />
year. Designing for dual plumbing <strong>to</strong><br />
use recycled water for <strong>to</strong>ilet flushing<br />
or a gray-water system that recovers<br />
rainwater or other non-potable water for<br />
site irrigation, is a sure way <strong>to</strong> be mostly<br />
independent from the national water<br />
grid. Minimizing waste water by using<br />
ultra low-flush <strong>to</strong>ilets, low-flow shower<br />
heads and other water conserving<br />
fixtures, will cut your water budget by<br />
half.<br />
5. Site Set Up and Management<br />
Protecting and retaining existing<br />
landscaping and natural features foils<br />
the need for irrigation and the use of<br />
fertilizers. Although a green building<br />
may cost more up front, it saves through<br />
lower operating costs over the life of the<br />
building. <strong>The</strong>se cost saving measures can<br />
be met with professional help.<br />
Kenya Property Developers Association... Development brings Development!<br />
4
OVERVIEW ON KPDA ACTIVITIES<br />
<strong>The</strong> Kenya Property Developers Association was established in Nairobi in 2006<br />
as the representative body of the residential, commercial and industrial<br />
property development sec<strong>to</strong>r in Kenya. It is an emerging Business Member<br />
Organisation which works in proactive partnership with policy-makers,<br />
financiers and citizens <strong>to</strong> ensure that the property development industry<br />
grows rapidly but in an organized, efficient, economical and ethical manner.<br />
Our current membership stands at 85 members.<br />
REPORT ON THE WORKSHOP ON GREEN<br />
BUILDINGS AND ADVANCING INDUSTRY<br />
STANDARDS IN KENYA, TUESDAY 21 ST JUNE <strong>2016</strong><br />
Advocacy that champions the interests of the<br />
industry <strong>to</strong> both the public sec<strong>to</strong>r and the wider<br />
private sec<strong>to</strong>r <strong>to</strong> ensure a better business<br />
environment for the property industry;<br />
Information on the latest issues affecting the<br />
industry, via regular publications, newsletters,<br />
media reports and research;<br />
Networking events, putting members in <strong>to</strong>uch with<br />
industry leaders and potential clients;<br />
Networking events, putting members in <strong>to</strong>uch with<br />
industry leaders and potential clients;<br />
Marketing opportunities for member companies<br />
with discounts offered <strong>to</strong> various advertising<br />
platforms;<br />
Discounted rate at both KPDA events and events<br />
organized by international and regional<br />
organizations in the building and construction<br />
industry;<br />
Access <strong>to</strong> emerging markets and exposure <strong>to</strong> joint<br />
venture opportunities.<br />
While KPDA membership is open only <strong>to</strong><br />
companies, the benefits of membership extend <strong>to</strong><br />
all staff in member companies.<br />
<strong>The</strong> Association’s strategic objectives include working with the Government<br />
and other stakeholders <strong>to</strong> promote policies that stimulate the property sec<strong>to</strong>r;<br />
contributing <strong>to</strong> excellence in building through promotion of world-class<br />
ethical standards and educational programs; compiling focused research and<br />
analysis <strong>to</strong> inform investment decisions, policy analysis and public education;<br />
developing new financing mechanisms <strong>to</strong> help low and middle income<br />
Kenyan families own homes; providing a forum where property inves<strong>to</strong>rs can<br />
share expertise and build business contacts; and harmonising development<br />
activities with citizen concerns, like neighbourhood associations and<br />
environmental preservation groups.<br />
WHY JOIN THE KPDA FAMILY?<br />
Access <strong>to</strong><br />
potential<br />
inves<strong>to</strong>rs<br />
Working<br />
closely with<br />
government<br />
institutions<br />
Increase<br />
your business<br />
profit<br />
KPDA<br />
MEMBERS<br />
Working<br />
closely with<br />
regula<strong>to</strong>ry<br />
authorities<br />
Strategic<br />
partnerships <strong>to</strong><br />
ease land<br />
processes<br />
Opportunities<br />
for forming joint<br />
ventures with<br />
national and<br />
international<br />
industry players<br />
Development brings<br />
development! Become a part of<br />
this formidable family!<br />
Let KPDA become your partner in advocacy,<br />
education, information, research and<br />
helping develop your business.<br />
On Tuesday 21st <strong>June</strong> <strong>2016</strong>, the<br />
Embassy of the Federal Republic<br />
of Germany in Nairobi, Kenya<br />
in collaboration with KPDA<br />
organized a workshop on ‘Green<br />
Buildings and Advancing<br />
Industry Standards in Kenya.’<br />
<strong>The</strong> workshop which was held<br />
at the Intercontinental Nairobi<br />
hotel was attended by 80<br />
participants drawn from the<br />
built and energy sec<strong>to</strong>r in Kenya.<br />
Some of the speakers at the<br />
forum were from the Kenya<br />
Green Building Society,<br />
KPDA, the Kenya Association<br />
of Manufacturers, and the<br />
German Embassy. <strong>The</strong> event<br />
was graced by Michael Derus,<br />
Deputy Ambassador and Head<br />
of Economic Affairs of the<br />
Federal Republic of Germany in<br />
Kenya and the Deputy Nairobi<br />
Governor H.E. Jonathan Mueke.<br />
For more information, kindly contact<br />
KENYA PROPERTY DEVELOPERS ASSOCIATION<br />
Fatima Flats, Suite B4 Marcus Garvey Road<br />
our KPDA secretariat on<br />
Off Argwings Kodhek, Kilimani Area<br />
0737 Kenya 530 290 Property or 0705 Developers 277 787 Association... or Development brings P. O. Box Development!<br />
76154 – 00508 Nairobi, Kenya<br />
Kenya Property Developers Association... Development brings Development!<br />
by Email: admin@kpda.or.ke.<br />
Telephone: +254 737 530290/0705 277787<br />
Email: admin@kpda.or.ke Website: www.kpda.or.ke<br />
85<br />
6
OVERVIEW ON KPDA ACTIVITIES<br />
OVERVIEW ON KPDA ACTIVITIES<br />
REPORT ON THE KPDA WORKSHOP, TUESDAY 5 TH<br />
JULY <strong>2016</strong> AT THE CROWNE PLAZA NAIROBI<br />
THEME: ‘CAPITAL FUNDING AND STRUCTURING’<br />
Decisions relating <strong>to</strong> financing the<br />
assets of a firm are very crucial in every<br />
business and the finance manager is<br />
often caught in the dilemma of what<br />
the optimum proportion of debt and<br />
equity should be. As a general rule<br />
there should be a proper mix of debt<br />
and equity capital in financing the<br />
firm’s assets. Capital structure is usually<br />
designed <strong>to</strong> serve the interest of the<br />
equity shareholders.<br />
On Tuesday 5th <strong>July</strong> <strong>2016</strong> KPDA held<br />
a workshop with the theme ‘Capital<br />
Funding and Structuring’ at the<br />
Intercontinental Nairobi Hotel. <strong>The</strong><br />
workshop had speakers and panellists<br />
from the following organizations:<br />
1. Chigwell Holdings Ltd<br />
2. HFC Ltd<br />
3. Fusion Capital, Kenya<br />
4. Shelter Afrique<br />
5. HF Development & Investment Ltd<br />
6. Phatisa Group<br />
7. Coulson Harney Advocates<br />
8. Horizon Africa Capital Ltd<br />
9. Co-operative Bank of Kenya<br />
10. Viva Africa Consulting and<br />
11. Kenya Commercial Bank<br />
<strong>The</strong> event was attended by seventy<br />
(70) participants and was very well<br />
received.<br />
PROUDLY SPONSORED BY:<br />
Kenya Property Developers Association... Development brings Development!<br />
Kenya Property Developers Association... Development brings Development!<br />
7<br />
8
OVERVIEW ON KPDA ACTIVITIES<br />
REPORT ON THE<br />
KPDA TECHNICAL<br />
WORKSHOP,<br />
THURSDAY 21 ST<br />
JULY <strong>2016</strong> AT THE<br />
CROWNE PLAZA<br />
NAIROBI<br />
THEME: ‘BUILDING A REAL<br />
ESTATE FINANCIAL MODEL’<br />
It was followed thereafter by a Technical<br />
Workshop on ‘Building a Real Estate<br />
Financial Model’ on Thursday 21st <strong>July</strong><br />
<strong>2016</strong> at the same venue. Guests attending<br />
this workshop received in-depth training<br />
on creating a financial model and were<br />
even provided with a template and case<br />
study <strong>to</strong> comprehensively take them<br />
through the practical aspect of building<br />
the model. <strong>The</strong> Technical Workshop was<br />
attended by seventy one (71) participants<br />
who varied from high level management<br />
staff <strong>to</strong> middle and operational level staff.<br />
KPDA would like <strong>to</strong> thank the sponsors of<br />
the workshop, HFC Ltd and HFDI without<br />
whose support, the forum would not<br />
have been successful.<br />
DID YOU KNOW?<br />
KENYA PROPERTY DEVELOPERS ASSOCIATION<br />
WHAT ARE SOME OF THE BENEFITS OF BECOMING A KPDA MEMBER?<br />
1. Advocacy that champions the interests of the industry <strong>to</strong><br />
both the public sec<strong>to</strong>r and the wider private sec<strong>to</strong>r <strong>to</strong> ensure<br />
a better business environment for the property industry;<br />
2. Information on the latest issues affecting the industry,<br />
via regular publications, newsletters, media reports and<br />
research;<br />
3. Networking events, putting members in <strong>to</strong>uch with industry<br />
leaders and potential clients;<br />
4. Professional development courses which reflect the changing<br />
nature of the property industry;<br />
5. Marketing opportunities for member companies with<br />
discounts offered <strong>to</strong> various advertising platforms;<br />
6. Discounted rate at both KPDA events and events organized<br />
by international and regional organizations in the building<br />
and construction industry;<br />
7. Access <strong>to</strong> emerging markets and exposure <strong>to</strong> joint venture<br />
opportunities.<br />
HOW TO JOIN THE KENYA PROPERTY DEVELOPERS ASSOCIATION<br />
<strong>The</strong> Kenya Property Developers Association (KPDA) was established in Nairobi in 2006 as the representative body of<br />
the residential, commercial and industrial property development sec<strong>to</strong>r in Kenya. We are an emerging Business<br />
Member Organisation which works in proactive partnership with policy-makers, financiers and citizens <strong>to</strong> ensure that<br />
the property development industry grows rapidly but in an organized, efficient, economical and ethical manner.<br />
Our current membership is a diverse make up of all industry players including property development firms, real estate<br />
agents and managers, professional firms, industry suppliers, government agencies, institutional inves<strong>to</strong>rs and<br />
managers and financial institutions who are based both in Kenya and globally. Principally, KPDA champions the<br />
interests of the industry <strong>to</strong> ensure a better business environment.<br />
Benefits of Joining KPDA<br />
Become a part of an influential body representing major industry players. And help set our wide-ranging and<br />
diverse agenda.<br />
Join the conversation on policy reforms through our unique engagement with influential government players that<br />
contribute <strong>to</strong> the overall success of your business.<br />
Access <strong>to</strong> information on the latest issues affecting the industry, via regular publications, newsletters, media<br />
reports and research;<br />
Participate in networking events, putting you in <strong>to</strong>uch with industry inves<strong>to</strong>rs and potential clients;<br />
Attend professional development courses which reflect the changing nature of the property and indeed building<br />
and construction industry as a whole;<br />
Access marketing opportunities that will increase your business profits as you meet potential clients and partners<br />
during KPDA events<br />
While membership <strong>to</strong> KPDA is open only <strong>to</strong> registered companies or organizations, the benefits of membership<br />
extend <strong>to</strong> all staff in our member companies or organizations.<br />
Categories of Membership<br />
1. Premium Membership (Open <strong>to</strong> Developers and Non Developers)<br />
2. Corporate Membership (Open <strong>to</strong> Developers Only)<br />
3. Associate Membership (Open <strong>to</strong> Developers and Non Developers)<br />
CATEGORY ENTRANCE FEES ANNUAL SUBSCRIPTION TOTAL<br />
Premium Member Kshs. 25, 000 Kshs. 65, 000 Kshs. 85, 000<br />
Corporate Member Kshs. 12, 000 Kshs. 25, 000 Kshs. 37, 000<br />
Associate Member Kshs. 12, 000 Kshs. 25, 000 Kshs. 37, 000<br />
UPCOMING KPDA EVENTS:<br />
Date: Friday 9th September <strong>2016</strong><br />
Venue: Goan Gymkhana Club<br />
Event Name: KPDA Corporate Networking Koroga Event (6.30pm onwards)<br />
Date: Thursday 3rd November <strong>2016</strong><br />
Venue: Villa Rosa Kempinski<br />
Event Name: KPDA Gala Dinner (6.00pm onwards)<br />
Kenya Property Developers Association... Development brings Development!<br />
Membership Admission Requirements<br />
In order <strong>to</strong> join KPDA, the following should be submitted <strong>to</strong> the KPDA Secretariat:<br />
1) Fill the KPDA Membership Application Form<br />
2) Sign the KPDA Code of Conduct<br />
3) Attach a copy of your company's certificate of registration or incorporation and<br />
4) Make the relevant payment<br />
Submission may be made either physically or electronically. For more information, please contact:<br />
<strong>The</strong> KPDA Membership Relations Officer, Liz Kayaki<br />
Kenya Property Developers Association<br />
Fatima Flats, Suite 4 B<br />
Marcus Garvey Road off Argwings Kodhek Road, Kilimani Area<br />
P. O. Box 76154 - 00508<br />
NAIROBI, KENYA<br />
Telephone: +254 737 530 290/0705 277 787<br />
Email: e.kayaki@kpda.o.ke<br />
Website: www.kpda.or.ke<br />
Welcome <strong>to</strong> the KPDA Family!<br />
Kenya Property Developers Association... Development brings Development!<br />
9<br />
10
KPDA PARTNERSHIPS
NCC BUILDING PERMITTING APPROVALS<br />
NCC BUILDING PERMITTING APPROVALS<br />
NAIROBI CITY COUNTY GOVERNMENT BUILDING<br />
PERMITTING APPROVALS ACTIVITY REPORT<br />
APRIL - JUNE <strong>2016</strong><br />
SOURCE<br />
<strong>The</strong> <strong>2016</strong> Quarter 2 KPDA NCCG<br />
Building Permitting Approvals Activity<br />
Report provides a summary of statistical<br />
information on planning permitting<br />
activity in Nairobi for the period April <strong>to</strong><br />
<strong>June</strong> <strong>2016</strong>. Only statistics received from<br />
the Nairobi City County Government,<br />
Urban Planning Department have been<br />
used as references.<br />
This report uses building permitting<br />
approval requests submitted <strong>to</strong> the<br />
Nairobi City County Government which<br />
are then analysed and approved by<br />
a specialist committee appointed by<br />
the Urban Planning Department of<br />
the Nairobi City County Government.<br />
<strong>The</strong> report contains information on<br />
applications that have been approved<br />
by the specialist committee highlighting<br />
development locations, types, values,<br />
application revenues and process<br />
performances.<br />
Fortis Tower, a building developed by AMS Properties Limited<br />
PERMIT APPLICATION ACTIVITY BY LOCALITY<br />
<strong>The</strong>re are more development activities on the Western side<br />
of Nairobi compared <strong>to</strong> the Eastern side. <strong>The</strong> highest permits<br />
were approved at Karen, Industrial Area, Westlands, Runda and<br />
Kilimani Area.<br />
1. Karen has the highest percentage of permits locality<br />
wise. This would be as a result of the construction<br />
of the Southern Bypass connecting the Nairobi -<br />
Naivasha Highway <strong>to</strong> Mombasa Road. <strong>The</strong> bypass has<br />
also enabled easy and fast commuting <strong>to</strong> the Jomo<br />
Kenyatta International Airport and Wilson Airport.<br />
<strong>The</strong> neighbourhood has an organized road network,<br />
with properly connected entry and exit routes that<br />
PERMIT APPLICATION ACTIVITY BY LOCALITY<br />
lead <strong>to</strong> and from Nairobi’s central business district.<br />
This provides for closer proximity <strong>to</strong> Nairobi’s central<br />
business district which most Kenyans find convenient.<br />
<strong>The</strong> high number of permits approved in the Karen<br />
area is also likely due <strong>to</strong> the high capital returns<br />
in rental and ownership income <strong>to</strong> be received by<br />
developers as the area is considered high-end.<br />
2. Kileleshwa has the least percentage of permits<br />
approved amongst the <strong>to</strong>p 10 areas of developments<br />
approved.<br />
NB: Localities that do not appear in the graph had less than 2%<br />
presentation.<br />
STATISTICS<br />
A <strong>to</strong>tal of 733 planning applications<br />
were approved during this period. Other<br />
key statistics from this report include:<br />
1. Value of approved permits was<br />
over Kshs.34.9 billion worth<br />
of development projects and<br />
permitting fees collected were over<br />
Kshs.322.4 million;<br />
2. <strong>The</strong> highest value of buildings<br />
submitted for approval was Kshs.<br />
1, 700, 000, 000 by the Aga Khan<br />
University and the maximum<br />
submission fee paid was Kshs. 13,<br />
164, 660;<br />
3. On average the estimated value of<br />
development was Kshs. 47, 921, 689<br />
and that of submission fees <strong>to</strong>taled<br />
Kshs. 439, 962;<br />
4. <strong>The</strong> location of buildings with the<br />
highest percentage of permits/<br />
approvals were from the below<br />
locations:<br />
• 11.46% in Karen<br />
• 6.82% in Industrial Area and<br />
• 4.5% in Westlands<br />
5. Based on the Kenyan Building Code<br />
of 1997, this report depicts permits<br />
that were issued in the following<br />
percentages in accordance <strong>to</strong> the<br />
named classifications below:<br />
• 80.6% (591) - Domestic<br />
Class (domestic buildings,<br />
commercial developments<br />
and offices)<br />
• 9.7% (71) - Public Class<br />
(religious buildings, social<br />
halls, libraries, schools, etc.)<br />
• 9.7% (71) - Warehouse Class<br />
(fac<strong>to</strong>ries, industries and go<br />
downs)<br />
A comparative analysis is provided<br />
based on monthly performance.<br />
While every reasonable<br />
effort is made <strong>to</strong> ensure that<br />
the information provided in<br />
this report is accurate no<br />
guarantee for the currency<br />
or accuracy of information<br />
is made. <strong>The</strong> permitting<br />
data was provided <strong>to</strong> the<br />
KPDA by the Nairobi City<br />
County Physical Planning<br />
Department.<br />
Kenya Property Developers Association... Development brings Development!<br />
Kenya Property Developers Association... Development brings Development!<br />
13<br />
14
NCC BUILDING PERMITTING APPROVALS<br />
NCC BUILDING PERMITTING APPROVALS<br />
DWELLING RELATED ACTIVITY ACROSS NAIROBI<br />
NUMBER OF APPROVALS BY ZONAL USER DENSITY<br />
Buildings approved included domestic buildings,<br />
commercial developments, offices, religious buildings,<br />
social halls, libraries, schools, fac<strong>to</strong>ries, industries<br />
and go downs. <strong>The</strong> following graph identifies permit<br />
applications that relate <strong>to</strong> various building classes:<br />
1. It is notable that 80.63% of the approvals for<br />
building permits were issued <strong>to</strong> the Domestic<br />
BUILDING CLASS BY LOCALITY<br />
Class of buildings. 9.69% permits were issued<br />
<strong>to</strong> the Public Class and 9.69% issued <strong>to</strong> the<br />
Warehouse Class. This can be majorly attributed<br />
<strong>to</strong> numerous emerging businesses, including but<br />
not limited <strong>to</strong> foreign inves<strong>to</strong>rs and SMEs which<br />
has increased demand for offices.<br />
1. <strong>The</strong> Residential<br />
Class accounted<br />
for 77.22% of<br />
the approvals<br />
(which is very<br />
likely) due <strong>to</strong> the<br />
high demand<br />
by Kenyans <strong>to</strong><br />
own a home<br />
and the increase<br />
in the middleaged<br />
working<br />
population<br />
who consider<br />
incurring the<br />
cost of buying a<br />
house rather than<br />
renting more<br />
significant an<br />
expense.<br />
2. Commercial<br />
Class buildings<br />
accounted for<br />
7.37%.<br />
THE VALUE TREND OF DEVELOPMENT PERMITTED BY THE NAIROBI CITY COUNTY GOVERNMENT<br />
1. <strong>The</strong> graph indicates Karen<br />
being the area with the<br />
highest number of Domestic<br />
Class approvals. Karen is<br />
dominated by residential<br />
homes.<br />
2. Industrial area <strong>to</strong>pped<br />
in approvals related <strong>to</strong> the<br />
Warehouse Class mainly<br />
because the area has a high<br />
number of industries as well<br />
as warehouses set up.<br />
38% of the buildings<br />
presented for approvals<br />
were valued between<br />
Kshs, 10 million and Kshs.<br />
50 million. Most of these<br />
buildings were in the<br />
residential category.<br />
Kenya Property Developers Association... Development brings Development!<br />
Kenya Property Developers Association... Development brings Development!<br />
15<br />
16
NCC BUILDING PERMITTING APPROVALS<br />
NCC BUILDING PERMITTING APPROVALS<br />
ESTIMATED COST OF APPROVALS ISSUED BY THE NAIROBI CITY COUNTY GOVERNMENT<br />
PERMIT PROCESSING PERFORMANCE<br />
May recorded the<br />
highest number<br />
of approvals in the<br />
second quarter<br />
accounting<br />
for 45.75 of all<br />
approvals issued.<br />
May had the highest<br />
investments in terms<br />
of estimated value of<br />
buildings which was<br />
Kshs. 12, 862, 020, 082.<br />
GRAPH DEPICTING APPROXIMATE APPROVAL TIME TAKEN BY THE NAIROBI CITY COUNTY GOVERNMENT<br />
TO CARRY OUT BUILDING PERMITTING<br />
On average, the number<br />
of days taken for approvals<br />
<strong>to</strong> be issued increased<br />
between the months of<br />
April and May and again<br />
during the months of May<br />
and <strong>June</strong>.<br />
This approval time frame<br />
should be improved.<br />
Kenya Property Developers Association... Development brings Development!<br />
Kenya Property Developers Association... Development brings Development!<br />
17<br />
18
NCC BUILDING PERMITTING APPROVALS<br />
GRAPH DEPICTING APPROXIMATE APPROVAL TIME TAKEN BY THE NAIROBI CITY COUNTY GOVERNMENT<br />
TO CARRY OUT BUILDING PERMITTING<br />
Most of the permits <strong>to</strong>ok<br />
more than one month<br />
<strong>to</strong> be approved. This<br />
accounted for 60.98%<br />
of the <strong>to</strong>tal approvals<br />
percentage.<br />
KPDA TURNS 10!<br />
In <strong>2016</strong>, the Kenya Property Developers Association marks ten (10) years since its establishment<br />
in 2006. What begun as the Kenya Private Developers Association and expanded its mandate in<br />
2010 (thus changing its name <strong>to</strong> the Kenya Property Developers Association) is now an<br />
organization with over one hundred and ten (110) members drawn from a diverse range of<br />
players in the Kenyan property industry.<br />
To mark this momen<strong>to</strong>us achievement, KPDA has planned for a few activities that will be held<br />
<strong>to</strong>wards the end of the year <strong>to</strong> celebrate this miles<strong>to</strong>ne with our partners and members. <strong>The</strong>y<br />
include:<br />
COMPARATIVE ANALYSIS OF Q2 2014 TO Q2 2015<br />
MONTH<br />
APRIL MAY JUNE<br />
Submission Fee<br />
Kshs. 121,627,370 Kshs. 131,027,883 Kshs. 69,837,397<br />
Estimated Value<br />
Kshs. 10,916,823,000 Kshs. 12,862,020,082 Kshs. 11,156,068,918<br />
Building Domestic 134 280 177<br />
Class Public 21 28 22<br />
Approvals Warehouse 21 27 23<br />
It is noted that there has been an increase in the worth of developments approved. Domestic buildings continue <strong>to</strong> have the<br />
highest number of approvals.<br />
FOR MORE INFORMATION, KINDLY CONTACT THE KPDA SECRETARIAT<br />
Kenya Property Developers Association<br />
Fatima Flats, Suite B4, Marcus Garvey Road<br />
Telephone: +254 737 530290/0705 277787<br />
Off Argwings Kodhek, Kilimani Area<br />
Email: research@kpda.or.ke or admin@kpda.or.ke<br />
P. O. Box 76154 – 00508 Nairobi, Kenya<br />
Website: www.kpda.or.ke<br />
<strong>The</strong> publication of <strong>The</strong> Developer’s <strong>Digest</strong>; Souvenir <strong>Issue</strong> (August <strong>to</strong> Oc<strong>to</strong>ber <strong>2016</strong>)<br />
<strong>The</strong> publication of a newspaper supplement in one of our dailies<br />
An End of Year Gala Dinner<br />
We would like <strong>to</strong> inform our members and partners <strong>to</strong> diarise the KPDA Gala Dinner which is set<br />
for Thursday, 3 rd November <strong>2016</strong> at the Villa Rosa Kempinsky Hotel, Nairobi.<br />
Please contact the secretariat for more details.<br />
Kenya Property Developers Association<br />
Fatima Flats, Suite 4 B<br />
Marcus Garvey Road off Argwings Kodhek Road, Kilimani Area<br />
P. O. Box 76154 - 00508<br />
NAIROBI, KENYA<br />
Telephone: +254 737 530 290/0705 277 787<br />
Email: e.kayaki@kpda.o.ke<br />
Website: www.kpda.or.ke<br />
Development Brings Development<br />
While every reasonable effort is made <strong>to</strong> ensure that the information provided in this report is accurate no guarantee<br />
for the currency or accuracy of information is made. <strong>The</strong> permitting data was provided <strong>to</strong> the KPDA by the Nairobi City<br />
County Physical Planning Department.<br />
Kenya Property Developers Association... Development brings Development!<br />
Kenya Property Developers Association... Development brings Development!<br />
19 20
KENYA PROPERTY DEVELOPERS ASSOCIATION<br />
<strong>The</strong> Developer’s<br />
<strong>Digest</strong><br />
A KPDA PUBLICATION<br />
MEDIA PACK <strong>2016</strong><br />
<strong>The</strong> Developer’s <strong>Digest</strong> is a bi-monthly<br />
e-newsletter supported and published<br />
by the Kenya Property Developers<br />
Association and designed by Insync<br />
MEDIA Limited. It targets the various<br />
players in the property industry in<br />
Kenya and highlights a wide spectre<br />
of issues affecting our members, other<br />
professionals, manufacturers and both<br />
private and public sec<strong>to</strong>r players in the<br />
industry. We seek <strong>to</strong> encourage positive<br />
dialogue and development.<br />
<strong>The</strong> Developer’s <strong>Digest</strong> is filled with<br />
current industry news, updates on the<br />
Association’s ongoing activities, views,<br />
interesting facts and specialty advertising<br />
messages.<br />
It is a free downloadable Mobile App<br />
on<strong>to</strong> any mobile device.<br />
We at <strong>The</strong> Developer’s <strong>Digest</strong> will work<br />
with you <strong>to</strong> create the most effective<br />
multi-platform advertising strategy that<br />
will ensure you reach your targeted<br />
consumer every direction they look. After<br />
all, the distance between you and your<br />
consumer, is no longer a straight line.<br />
If you take up advertising with <strong>The</strong><br />
Developer’s <strong>Digest</strong>, we are also willing <strong>to</strong><br />
offer you an opportunity for you <strong>to</strong> have<br />
interactive banner advertisements on our<br />
website.<br />
Kindly contact the Secretariat on 0737<br />
530290 or 0705 277787 or by email<br />
admin@kpda.or.ke.<br />
ADVERTISING RATES<br />
Quarter (1/4) page: Kshs. 15, 000<br />
Third (1/3) page: Kshs. 20, 000<br />
Half (1/2) page: Kshs. 30, 000<br />
Full page: Kshs. 60, 000<br />
DIGITAL INPUT/MECHANICAL<br />
REQUIREMENTS — BANNERS<br />
300dpi resolution; colour calibration RGB;<br />
not larger than 20 MB; jpg format OR pdf<br />
PRESS QUALITY format with outlined text.<br />
NOTE: PDF/X 1-A or Adobe® Acrobat® distilled<br />
PDFs. PDFs exported from Pho<strong>to</strong>shop are<br />
discouraged and can lead <strong>to</strong> less than<br />
desirable results.<br />
WHY ADVERTISE THROUGH THE<br />
DEVELOPER’S DIGEST?<br />
We have a readership of over 1, 300<br />
people who are drawn from our<br />
membership, partners as well as industry<br />
affiliates both locally and regionally.<br />
We offer a unique, flexible, converged<br />
media mix that helps advertisers<br />
communicate their message effectively.<br />
This includes our website, e-newsletter,<br />
social media platforms and focused<br />
events (such as our training and<br />
networking forums as well as our social<br />
interactive sessions).<br />
We keep track of our readership and are<br />
sensitive <strong>to</strong> emerging issues in the industry.<br />
It is a free and interactive online<br />
publication.<br />
DIGITAL INPUT/MECHANICAL REQUIREMENTS — ADVERTS<br />
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ADVERTS SUBMISSION:<br />
<strong>The</strong> adverts should be submitted as Adobe PDF files with the above<br />
specific measurements for the desired advert and NOT a flat image PDF<br />
exported from Pho<strong>to</strong>shop.<br />
ONLINE ADVERTISING TERMS & CONDITIONS:<br />
Payment is due within 15 days from when an invoice is issued. Banner ads may be pulled if account<br />
balances are not paid by the due date. As space is limited, banner ads are sold on a first come, first<br />
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that the products or service advertised are in keeping with <strong>The</strong> Developer’s <strong>Digest</strong>’s philosophy.<br />
Kenya Property Developers Association... Development brings Development!