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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 />

C<br />

B<br />

C<br />

B<br />

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our offering<br />

superior quality particleboard & mdf (european norm standards)<br />

Mucai Kunyiha<br />

Chairman<br />

Palkesh Shah<br />

Vice-Chairman<br />

Emma Achoki<br />

Treasurer<br />

cabinet components produced in hi-tech panel processing centres<br />

latest trend decors & real wood feel textures<br />

innovative furniture hardware & accessories<br />

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100% colour match backers<br />

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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our brands<br />

FLATPAX<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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P.O. Box 9510-00100 . Nairobi . Kenya<br />

Landline: (+254) 020 4400218<br />

info@insyncmedia.co.ke www.insyncmedia.co.ke<br />

2<br />

nairobi<br />

mombasa<br />

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Kenya Property Developers Association... Development brings Development!<br />

leader across the BOARD<br />

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 />

SIZE WIDTH DEPTH<br />

1/4 page (horizontal) 184.5mm 65mm<br />

1/4 page (vertical) 90mm 125.5mm<br />

1/3 page (horizontal) 210mm 90mm<br />

1/3 page (vertical) 68mm 270mm<br />

1/2 page (horizontal) 210mm 139mm<br />

1/2 page (vertical) 105mm 265mm<br />

Full page (theme colour) 210mm 247mm<br />

Full page 210mm 297mm<br />

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 />

served basis. All advertising is accepted subject <strong>to</strong> the publisher’s approval upon determination<br />

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!

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