The Developer's Digest, January - March 2017 Issue
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JANUARY JAN –– MARCH 2016 <strong>2017</strong> ISSUE<br />
Innovations in<br />
Construction in <strong>2017</strong><br />
Cover Photo: Ibuku Bamboo Architecture. Source; Ibuku.com.<br />
IN<br />
THIS<br />
ISSUE<br />
Focus on Policy<br />
Have Your Say<br />
NCCG Building Permitting Approval Report
<strong>The</strong> Developer’s<br />
<strong>Digest</strong><br />
A KPDA PUBLICATION<br />
KPDA BOARD MEMBERS<br />
Mucai Kunyiha<br />
Chairman<br />
Palkesh Shah<br />
Board Director<br />
Emma Achoki<br />
Treasurer<br />
11<br />
Page 4:<br />
From the Secretariat<br />
Hamish Govani<br />
Immediate Past Chairman<br />
Kenneth Luusa<br />
Board Director<br />
Gikonyo Gitonga<br />
Board Director<br />
Margaret Kibe<br />
Board Director<br />
Page 5:<br />
Focus on Policy<br />
Page 9:<br />
Have Your Say<br />
Page 13: KPDA Directory of<br />
Members<br />
Page 15: NCCG Building<br />
Permitting Approvals<br />
Ravi Kohli<br />
Board Director<br />
George Wachiuri<br />
Board Director<br />
Caroline Karugu<br />
Board Director<br />
KPDA SECRETARIAT<br />
Anne Muchiri<br />
Board Director<br />
Chief Executive Officer – Elizabeth Mwangi – Oluoch<br />
Membership Relations Officer – Liz Kayaki<br />
Finance and Membership Support Officer– Rachael Muthama<br />
Research and Development Intern – Mercy Ndung’u<br />
Research, Administration & Membership Intern – Kennedy Titus<br />
KENYA PROPERTY DEVELOPERS A SOCIATION<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 277 787<br />
Email: admin@kpda.or.ke | Website: www.kpda.or.ke<br />
<strong>The</strong> Kenya Property Developers A sociation celebrates its 10th year anniversary culminating in a<br />
Gala Dinner that was held on 3rd November 2016 at the Vi la Rosa Kempinski Hotel in Nairobi, Kenya.<br />
DESIGN & LAYOUT:<br />
InsyncMEDIA Limited. Devan Plaza . First Floor . Suite No16<br />
Chiromo Road, Waiyaki Way . Westlands . Nairobi . Kenya<br />
P.O. Box 9510 - 00100 . Nairobi . Kenya<br />
Landline: (+254) 020 4400218<br />
info@insyncmedia.co.ke<br />
www.insyncmedia.co.ke<br />
2<br />
Newmatic Africa Limited<br />
1st Floor, Unit 2, <strong>The</strong> Park Office Suites<br />
Near Parklands Police Station, Parklands Road<br />
P.O. Box 528-00200, Nairobi, Kenya<br />
Tel: +254 711 112 744 737 391 011<br />
Email: info@newmaticafrica.com<br />
Kenya Property Developers Association... Development brings Development!<br />
Kenya Property Developers Association... Development brings Development!
<strong>2017</strong> CALENDAR OF EVENTS<br />
DATE EVENT DETAILS LOCATION<br />
Tuesday, 17 th<br />
<strong>January</strong> <strong>2017</strong><br />
CEO Breakfast Forum (7.30am – 9.40am)<br />
<strong>The</strong>me: ‘Launch of the NCA Online Project<br />
Registration Platform’<br />
Crowne Plaza Hotel, Nairobi<br />
Tuesday, 21 st<br />
February <strong>2017</strong><br />
Tuesday, 7 th<br />
<strong>March</strong> <strong>2017</strong><br />
22 nd – 24 th<br />
<strong>March</strong> <strong>2017</strong><br />
Friday, 31 st<br />
<strong>March</strong> <strong>2017</strong><br />
5 th - 6 th April<br />
<strong>2017</strong><br />
Thursday, 27 th<br />
April <strong>2017</strong><br />
Tuesday, 23 rd<br />
May <strong>2017</strong><br />
13 th – 14 th June<br />
<strong>2017</strong><br />
Tuesday, 4 th July<br />
<strong>2017</strong><br />
9 th – 15 th<br />
September <strong>2017</strong><br />
Tuesday, 3 rd<br />
October <strong>2017</strong><br />
Friday, 27 th<br />
October <strong>2017</strong><br />
1 st – 3 rd<br />
November<br />
<strong>2017</strong><br />
Construction Health and Safety Breakfast<br />
Forum (7.00am – 9.30am)<br />
<strong>The</strong>me: 'Occupational Health and Safety<br />
Standards in the Kenyan Construction Industry’<br />
KPDA Learning and Development<br />
Symposium (7.00am – 9.30am)<br />
<strong>The</strong>me: ‘Understanding Construction Contracts’<br />
Africa Green Building Summit<br />
5 th KPDA AGM and Koroga Event<br />
(6.00pm onwards)<br />
East African Property Investment Summit<br />
<strong>2017</strong><br />
KPDA/MRM Meet and Greet Koroga Event<br />
(6.00pm onwards)<br />
KPDA CEO Breakfast Forum (7.00am –<br />
9.30am)<br />
<strong>The</strong>me: ‘Effects of the Elections on the Kenyan<br />
Real Estate Industry <strong>2017</strong>’<br />
Sustainable Properties Africa Conference<br />
and Exhibition SPACE Event<br />
KPDA Workshop (9.00am – 2.00pm)<br />
<strong>The</strong>me: ‘Capital Funding and Structuring’<br />
KPDA <strong>2017</strong> International Trip to UAE<br />
KPDA Roundtable Meeting with Kiambu<br />
County Government (9.00am – 11.30am)<br />
KPDA End of Year Corporate Networking<br />
Koroga Event (6.30pm onwards)<br />
<strong>The</strong> Big 5 Construct East Africa<br />
International Building and Construction<br />
Show <strong>2017</strong><br />
Crowne Plaza Hotel, Nairobi<br />
Bowmans (Coulson Harney) Advocates –<br />
ICEA Lion Centre, West Wing<br />
<strong>The</strong> UN Complex, Nairobi<br />
Spice Roots Restaurant – Simba Union<br />
Club, Nairobi<br />
Radisson Blue Hotel<br />
Koroga Country Club - Nyali, Mombasa<br />
Hotel Royal Orchid, Nairobi<br />
Radisson Blu Hotel, Nairobi<br />
To be confirmed<br />
Dubai, United Arab Emirates (UAE)<br />
Kiambu County<br />
Spice Roots Restaurant – Simba Union<br />
Club, Nairobi<br />
Kenyatta International Conference<br />
Centre (KICC)<br />
Kenya Property Developers Association... Development brings Development!<br />
Kenya Property Developers Association... Development brings Development!<br />
1<br />
2
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<br />
representative body of the residential, commercial and industrial property development sector in<br />
Kenya. We are an emerging Business Member Organisation which works in proactive partnership with<br />
policy-makers, financiers and citizens to ensure that the property development industry grows rapidly<br />
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<br />
firms, real estate agents and managers, professional firms, industry suppliers, government agencies,<br />
institutional investors and managers and financial institutions who are based both in Kenya and<br />
globally. Principally, KPDA champions the interests of the industry to ensure a better business<br />
environment.<br />
Benefits of Joining KPDA<br />
Become a part of an influential body representing major industry players. And help set our wideranging<br />
and diverse agenda.<br />
Join the conversation on policy reforms through our unique engagement with influential<br />
government players that contribute to the overall success of your business.<br />
Access to information on the latest issues affecting the industry, via regular publications,<br />
newsletters, media reports and research;<br />
Participate in networking events, putting you in touch with industry investors and potential<br />
clients;<br />
Attend professional development courses which reflect the changing nature of the property and<br />
indeed building and construction industry as a whole;<br />
Access marketing opportunities that will increase your business profits as you meet potential<br />
clients and partners during KPDA events<br />
While membership to KPDA is open only to registered companies or organizations, the benefits of<br />
membership extend to all staff in our member companies or organizations.<br />
Categories of Membership<br />
1. Premium Membership (Open to Developers and Non Developers)<br />
2. Corporate Membership (Open to Developers Only)<br />
3. Associate Membership (Open to Developers and Non Developers)<br />
CATEGORY ENTRANCE FEES ANNUAL<br />
TOTAL<br />
SUBSCRIPTION<br />
Premium Member Kshs. 25, 000 Kshs. 60, 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 />
Membership Admission Requirements<br />
In order to join KPDA, the following should be submitted to 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 />
Visit us online<br />
FROM THE KPDA SECRETARIAT<br />
“An entrepreneur is someone who jumps off a cliff and<br />
builds a plane on the way down.” ~ Reid Hoffman<br />
Welcome to the <strong>2017</strong> first issue of <strong>The</strong><br />
Developer’s <strong>Digest</strong>! In this issue we<br />
are delighted to share with you the<br />
Association’s achievements over the<br />
last 10 years (we turned 10 in 2016!). We<br />
will also bring you up to speed on the<br />
first quarter of the year’s activities, it is<br />
amazing how fast we have gotten to the<br />
month of April.<br />
Key to our members, we are proud to<br />
announce the introduction of 2 new<br />
Directors to the KPDA Board; Anne<br />
Muchiri (Managing Director – Rozanna<br />
Properties Ltd) and Ravi Kohli (Founder<br />
and Managing Director – Karibu Homes).<br />
Anne is ‘returning’ to the Board being one<br />
of the founder members of KPDA who in<br />
2006, gave free and legal support to the<br />
Association. Ravi joins the Board with a<br />
wealth of passion and experience in the<br />
provision of affordable and dignified<br />
housing for Kenyans. KPDA is embracing<br />
the provision of affordable and low<br />
cost/dignified housing as an advocacy<br />
agenda this year and welcomes Ravi’s<br />
contribution to see its fruition.<br />
Also in this issue is our Focus on Policy<br />
article whose focus is on the <strong>2017</strong> Kenyan<br />
Budget. We have paid specific focus to<br />
matters dealing with the building and<br />
construction industry and hope that the<br />
information will deem useful to you in<br />
running your businesses. We are happy<br />
to note that one of the issues we have<br />
been lobbying for bore fruit. <strong>The</strong> <strong>2017</strong><br />
– 2018 Budget Statement indicates the<br />
commitment by the Government to set<br />
up a ‘One Stop Centre’ for the payment<br />
of all licences and fees effective April<br />
<strong>2017</strong>, which is a move to ease doing<br />
business in Kenya for investors. As you<br />
are aware, <strong>2017</strong> is an election year for<br />
Kenya and with it comes certain effects<br />
to your businesses, but albeit it all, we<br />
remain hopeful that our businesses can<br />
continue to thrive. During the month<br />
of May, we will be organizing a CEO<br />
Breakfast Forum to specifically focus on<br />
remedial actions that can be taken to<br />
help our businesses ‘survive despite and<br />
inspite of the elections.’ This invitation is<br />
included in this issue..<br />
Finally, we continue to share our<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 <strong>January</strong><br />
to December 2016. Once again, I would<br />
like to thank our members and partners<br />
for continuing to support the KPDA<br />
dream.<br />
Viva KPDA!<br />
KPDA wishes to welcome our newest members:<br />
• Newline Ltd<br />
• Kamhomes Investments Ltd<br />
• Nomadic Tents (K) Ltd<br />
• Diamond Property Merchants<br />
• Heri Homes Ltd<br />
• K.Mberia and Partners Advocates<br />
• Green Kenya Corporation Ltd<br />
• VAAL Real Estate Ltd<br />
• Davis & Shirtliff Ltd<br />
Elizabeth<br />
• Africa Reit Ltd<br />
• Ali Fabrication Solutions Ltd<br />
• Emerge Developments<br />
• Sterling and Wilson Private Ltd<br />
• Leo Capital Holdings Ltd<br />
• Dream Homes Construction Company Ltd<br />
• Galaxy Heritage Ltd<br />
• Paradigm Projects Ltd<br />
Welcome to the KPDA Family!<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 />
Kenya Property Developers Association... Development brings Development!<br />
Welcome to the KPDA Family!<br />
Kenya Property Developers Association... Development brings Development!<br />
3 4
FOCUS ON POLICY<br />
SUMMARY OF THE BUDGET STATEMENT FOR<br />
THE FISCAL YEAR <strong>2017</strong>/2018<br />
(1 ST JULY <strong>2017</strong> – 30 TH JUNE <strong>2017</strong>)<br />
BY MR. HENRY K. ROTICH, EGH<br />
CABINET SECRETARY FOR THE NATIONAL TREASURY<br />
30TH MARCH <strong>2017</strong><br />
THEME: ‘CREATING JOBS, DELIVERING A BETTER LIFE FOR ALL KENYANS’<br />
STATEMENT DELIVERED TO THE<br />
NATIONAL ASSEMBLY ON 30TH<br />
MARCH, <strong>2017</strong> BY MR. HENRY K.<br />
ROTICH, CABINET SECRETARY FOR<br />
THE NATIONAL TREASURY, REPUBLIC<br />
OF KENYA, WHEN HIGHLIGHTING<br />
THE BUDGET POLICY AND REVENUE<br />
RAISING MEASURES FOR FISCAL<br />
YEAR <strong>2017</strong>/18<br />
© Budget Statement <strong>2017</strong><br />
To obtain copies of the document,<br />
please contact:<br />
Public Relations Office<br />
<strong>The</strong> National Treasury<br />
Treasury Building<br />
P. O. Box 30007-00100<br />
NAIROBI, KENYA<br />
Tel: +254-20-2252-299<br />
Fax: +254-20-341-082<br />
<strong>The</strong> full statement is also available on<br />
the website at: www.treasury.go.ke<br />
INTRODUCTION<br />
It is my singular pleasure to present<br />
the Budget for the FY <strong>2017</strong>/18, the fifth<br />
Budget under the Jubilee Government.<br />
Mr. Speaker, this Budget is the first in our<br />
history to be presented before the month<br />
of June. Mr. Speaker, we have brought<br />
forward the reading of the Statement in<br />
order to allow the Honourable Members<br />
to approve the Appropriation Bill in time<br />
and focus on the elections scheduled for<br />
August 8, <strong>2017</strong>.<br />
We have consulted our Partner States<br />
in the East African Community (EAC) on<br />
the timing of the budget presentation<br />
and have agreed that Kenya can proceed<br />
with an early presentation of the Budget<br />
while the other Partner States will<br />
present theirs at the same time in Mid-<br />
June <strong>2017</strong>.<br />
Mid this month, we were reminded,<br />
by His Excellency President Uhuru<br />
Kenyatta during his <strong>2017</strong> State of the<br />
Nation address in this Chamber, of an<br />
extraordinary Kenyan journey of four<br />
years of transformation, growth and<br />
deepening democracy. Kenyans are<br />
proud of these achievements as they<br />
have happened through collective<br />
participation, partnership and the usual<br />
dynamism of our private sector.<br />
Four years ago, the Jubilee<br />
Administration inherited an economy<br />
which although had achieved several<br />
milestones, still had insufficient and<br />
expensive power with limited access,<br />
a century old railway, limited road<br />
network and port capacity, poorly<br />
equipped security forces, high maternal<br />
and child mortality, a poorly managed<br />
education sector, inadequate social<br />
protection for the poor and vulnerable,<br />
and disharmonized pay for public<br />
servants, among others.<br />
But today, and to use His Excellency the<br />
President’s words again, “we celebrate a<br />
transformed Kenya.”<br />
This transformation is the culmination<br />
of four years of working tirelessly to put<br />
in place policies and reforms to foster a<br />
rapid socio-economic transformation of<br />
our country.<br />
In this endeavour, I feel very encouraged<br />
by the strong support we have received<br />
from Kenyans of all walks of life. I am<br />
happy to report to all Kenyans that we<br />
have made significant progress towards<br />
achieving our development goals.<br />
Specifically:<br />
At the macro level:<br />
• <strong>The</strong> value of goods and services we<br />
produce has risen from Kshs. 4, 745<br />
billion in 2013 in to an estimate of<br />
Kshs. 6, 951 billion in 2016. As a<br />
result, our per capita income rose<br />
from Kshs. 113, 210 in 2013 to an<br />
estimate of Kshs. 152, 671. Making us<br />
a lower medium income economy.<br />
This reflects the improvement of<br />
our business climate as indicated in<br />
the move from position 136 in 2013<br />
to position 92 in the World Bank’s<br />
Doing Business Indicators;<br />
• Revenue collection has increased<br />
from Ksh 1,001.0 billion in 2013/14<br />
to the projected Kshs. 1,515.5 billion<br />
in 2016/17, a 51 percent increase;<br />
• Since 2013, our economy has<br />
generated a total of 2.3 million new<br />
jobs. In 2015 alone, 841, 600 new<br />
jobs were created with similar levels<br />
expected in 2016;<br />
• Kenyans and their properties are<br />
more secure today following the<br />
heavy investment in the security<br />
sector – <strong>The</strong> number of police<br />
vehicles has risen from 3,155 in 2013<br />
to 6, 363 in <strong>2017</strong>.<br />
FOCUS ON POLICY<br />
SUMMARY OF THE BUDGET STATEMENT FOR THE FISCAL YEAR <strong>2017</strong>/2018<br />
With regard to infrastructure:<br />
• <strong>The</strong> movement of goods and people<br />
around the country has been made<br />
cheaper and more effective through<br />
expansion of most roads, seaports<br />
and airports. On the SGR, after going<br />
over a century without a modern rail,<br />
we have in three years constructed<br />
a modern railway that will have<br />
significant positive spill-over effects<br />
on the economy;<br />
• Today, more than 5.2 million Kenyans<br />
have been connected to electricity<br />
compared to 2.3 million in 2013.<br />
In four years, we have connected<br />
more Kenyans to the grid than in all<br />
years since independence! This is a<br />
remarkable achievement.<br />
At the sectoral level:<br />
• More of our farmers now have<br />
access to subsidized fertilizer and<br />
seeds, enabling them to increase<br />
productivity of their lands, earn<br />
more incomes and indeed make<br />
Kenya more food secure,<br />
• Reflecting our investment in<br />
security, the tourism sector, which<br />
was shrinking by 4.6 percent in 2013<br />
is now expanding by 15 percent<br />
and creating jobs for our youth and<br />
women.<br />
We have also invested heavily in<br />
critical social sectors as well as on the<br />
less fortunate:<br />
• We have equipped our hospitals<br />
with specialized medical equipment,<br />
and maternal health care is now free<br />
in all public hospitals;<br />
• More of our children go to school<br />
without their parents worrying<br />
whether they can afford the school<br />
fees;<br />
• Examination fees for both standard<br />
eight and form four candidates have<br />
been abolished; and thousands of<br />
orphans and vulnerable children,<br />
people living with disabilities and<br />
the elderly in our society continue<br />
to receive cash transfers through the<br />
social safety net program.<br />
• In order to empower Kenyans<br />
without title deeds, the Government<br />
has issued 2.5 million title deeds<br />
which, among other things, will<br />
facilitate access to capital. Going<br />
forward, the Government will be<br />
waiving land title search fees with<br />
immediate effect.<br />
On devolution:<br />
• Since 2013, about Ksh 1 trillion will<br />
have been disbursed by end June<br />
<strong>2017</strong> to all the Counties to enhance<br />
service delivery. This is a clear<br />
demonstration of the Government’s<br />
commitment to a strong devolved<br />
system of Government.<br />
While we celebrate these remarkable<br />
achievements, we should not be<br />
complacent. Having laid a firm<br />
foundation for businesses to thrive and<br />
expand, our focus is now to invest in<br />
accelerating job creation especially for<br />
the youth.<br />
This is why we have chosen as the theme<br />
for this year’s budget, “Creating Jobs,<br />
Delivering a Better Life for All Kenyans”.<br />
This budget builds on the transformation<br />
we have achieved so far and emphasis<br />
the need to support the sectors with<br />
a high potential for creating jobs for<br />
our youth such as manufacturing and<br />
agriculture.<br />
Among the strategies to be employed<br />
will include supporting domestic<br />
production and value-chains, boosting<br />
exports, encouraging entrepreneurship,<br />
continuing with business climate reforms,<br />
completing on-going infrastructure<br />
programmes, modernizing agriculture<br />
and agro-processing, protecting the<br />
vulnerable and supporting emerging<br />
growth sectors.<br />
All this will be accomplished within<br />
sustainable public finances in order<br />
to continue securing macroeconomic<br />
stability. In sum, the <strong>2017</strong> Budget is<br />
about building on the recent successes<br />
and delivering jobs and prosperity to<br />
Kenyans.<br />
HIGHLIGHTS FROM THE BUDGET<br />
1. This budget will continue to<br />
empower businesses and<br />
entrepreneurs to invest, grow<br />
and create jobs. This budget<br />
will continue to implement our<br />
transformation agenda to build<br />
new roads, railway and other<br />
infrastructure that will generate<br />
new growth opportunities. We will<br />
also continue to prioritize social<br />
spending in support of education,<br />
health services and cash transfers<br />
to vulnerable groups. This budget<br />
will continue to support devolution<br />
through disbursement of resources,<br />
and maintaining transfers to County<br />
Governments at levels well above<br />
the constitutional threshold.<br />
2. In this budget, we shall continue<br />
to progressively reduce the fiscal<br />
deficit and ensure the continued<br />
sustainability of our debt. In this<br />
regard, in the FY <strong>2017</strong>/18, we project<br />
the fiscal deficit to decline to 6.0<br />
percent of GDP from an estimated<br />
9.0 percent in the FY 2016/17.<br />
<strong>The</strong> sharp reduction of the deficit<br />
reflects reduced expenditures<br />
owing to the one off expenditures<br />
mainly those related to the General<br />
elections and the drought which<br />
are not expected to recur. Over<br />
the medium term, the deficit is<br />
expected to narrow to 4 percent of<br />
GDP by 2019/20 which will further<br />
lower our debt-to-GDP ratio.<br />
3. To further accelerate growth, create<br />
jobs and better the lives of Kenyans,<br />
I will be proposing tax incentives to:<br />
a) Support Growth and Domestic<br />
Production;<br />
b) Reduce Income Inequality;<br />
c) Promote Job Creation;<br />
d) Improve Tax Administration<br />
and Compliance; and<br />
e) Enhance Social Security and<br />
Welfare.<br />
5<br />
Kenya Property Developers Association... Development brings Development!<br />
Kenya Property Developers Association... Development brings Development!<br />
6
FOCUS ON POLICY<br />
KPDA WINS<br />
SUMMARY OF THE BUDGET STATEMENT FOR THE FISCAL YEAR <strong>2017</strong>/2018<br />
AGENDA <strong>2017</strong>/18 AND BEYOND:<br />
CREATING JOBS, DELIVERING A<br />
BETTER LIFE FOR ALL KENYANS<br />
Continuing with Improving the<br />
Business and Investment Climate<br />
Macroeconomic Stability<br />
To support an environment where more<br />
jobs will be created, the Government<br />
is strongly committed to pursuing<br />
prudent fiscal and monetary policies<br />
that support strong economic growth,<br />
ensures price stability and maintains our<br />
debt at sustainable levels.<br />
Our fiscal policy will continue to focus on<br />
prioritizing development expenditures<br />
to support growth, while curtailing<br />
growth of non-productive recurrent<br />
expenditures.<br />
Monetary policy will target to keep<br />
inflation within the target range of 2.5<br />
percent on either side of 5.0 percent.<br />
To further reinforce price stability, our<br />
proposed fiscal policy will help keep<br />
interest rates low and stable and the<br />
exchange rate broadly stable and<br />
competitive to support our exports.<br />
Business Regulatory Reforms<br />
<strong>The</strong> Government has significantly<br />
reduced the time and cost of opening<br />
and operating a business, thus making<br />
it easier for investors to start and run a<br />
business.<br />
This has been achieved as a result of the<br />
implementation of measures initiated<br />
by the dedicated Business Environment<br />
Delivery Unit at the Ministry of<br />
Industrialisation, and Enterprise<br />
Development.<br />
Kenya’s business environment has<br />
improved remarkably. Over the past<br />
three years, Kenya’s ranking in the<br />
World Bank’s Doing Business indicators<br />
has improved from 136 to 92, largely<br />
due to reforms in getting credit,<br />
getting electricity and ease of starting<br />
a business.<br />
In 2016, we were ranked third out of<br />
the World’s top ten reformers. With the<br />
objective of achieving a rank below 50<br />
in the medium term, we have passed<br />
appropriate legislations and processes<br />
to reduce the time, steps and costs<br />
associated with opening a business,<br />
obtaining construction permits,<br />
single business permits and property<br />
registration.<br />
To further improve our ranking, I have<br />
allocated Kshs. 250 million to support<br />
initiatives to the ease the cost of doing<br />
business.<br />
Today, Kenya is a preferred investment<br />
destination in Africa with many major<br />
companies from across the globe<br />
starting operations in the country. As a<br />
result, foreign direct investment (FDI)<br />
has risen from about US dollar 0.514<br />
billion in 2013, to at least US dollar 2.3<br />
billion in 2016.<br />
In an effort to reduce obstacles that<br />
hinder faster growth of investment, the<br />
Government has established a One Stop<br />
Centre (OSC) for investors which will be<br />
operational by April <strong>2017</strong>.<br />
<strong>The</strong> Government has also established<br />
e-regulation and will soon be<br />
establishing the e-Opportunities to<br />
enable investors interested in Kenya<br />
to search for investment opportunities<br />
available in Kenya from the comfort of<br />
their homes.<br />
<strong>The</strong>se initiatives, in addition to the<br />
existing Huduma Centres, will provide<br />
comprehensive information to investors<br />
on licenses, permits and approvals that<br />
are currently offered in a multiplicity<br />
of Government agencies located<br />
in different parts of the city, further<br />
sustaining increased FDI inflows in the<br />
country.<br />
We are aware of complaints from<br />
our business community of double<br />
taxation of their activities by County<br />
Governments. This is not only bad for our<br />
investment climate but is also a violation<br />
of Article 209 of our Constitution.<br />
Accordingly, I will be making legislative<br />
proposals to Parliament that will set<br />
out how County Governments may<br />
raise revenues without violating the<br />
Constitution and raising the cost of<br />
doing business.<br />
This budget will maximize social benefits<br />
for all Kenyans. It will support industries,<br />
create jobs and improve the quality of<br />
life of Kenyans.<br />
It will also help us realize a cleaner<br />
environment; provide quality social<br />
services (Health and Education), and<br />
enhance access to efficient public<br />
transport.<br />
In sum, it is a budget that carefully<br />
balances on the one hand the need to<br />
reduce the cost of living for the poor<br />
by enhancing social sector spending<br />
while continuing to strengthen the<br />
foundation for long-term economic<br />
growth, job creation and provision of<br />
incentives for rapidly moving towards<br />
industrialization of our economy.<br />
© Budget Statement <strong>2017</strong><br />
To obtain copies of the document,<br />
please contact:<br />
Public Relations Office<br />
<strong>The</strong> National Treasury<br />
Treasury Building<br />
P. O. Box 30007-00100<br />
NAIROBI, KENYA<br />
Tel: +254-20-2252-299<br />
Fax: +254-20-341-082<br />
<strong>The</strong> full statement is also available on<br />
the website at: www.treasury.go.ke<br />
BY MR. HENRY K. ROTICH, EGH<br />
CABINET SECRETARY FOR THE<br />
NATIONAL TREASURY<br />
30TH MARCH <strong>2017</strong><br />
THEME: ‘CREATING JOBS, DELIVERING<br />
A BETTER LIFE FOR ALL KENYANS’<br />
<strong>The</strong> Kenya Property Developers<br />
Association was established in Nairobi in<br />
2006 as the representative body of the<br />
residential, commercial and industrial<br />
property development sector in Kenya.<br />
It is an emerging Business Member<br />
Organisation which works in proactive<br />
partnership with policy-makers,<br />
financiers and citizens to ensure that the<br />
property development industry grows<br />
rapidly but in an organized, efficient,<br />
economical and ethical manner.<br />
1. <strong>The</strong> Association started with<br />
a membership of less than 30<br />
members and to date has now<br />
grown to 150 members;<br />
2. Following consistent and<br />
combined lobbying with industry<br />
partners and the National<br />
Construction Authority (NCA) ,<br />
the NCA Construction Levy was<br />
scrapped off effective 1st <strong>January</strong><br />
<strong>2017</strong>;<br />
3. Contributes to the excellence<br />
within the industry through the<br />
promotion of world-class practice<br />
standards and sector-specific<br />
educational programs;<br />
4. Our collaboration with significant<br />
market players in the establishment<br />
of the National REITs Association<br />
which will ensure the smooth<br />
implementation of REITs in Kenya<br />
as well market REITs to encourage<br />
foreign investment in the Kenyan<br />
property market;<br />
5. Compiles and disseminates<br />
focused research and analysis to<br />
inform sound policy analysis and<br />
public education;<br />
6. Our strengthened collaboration<br />
with the public sector resulting in<br />
KPDA being nominated into the<br />
Ministry of Land, Housing and<br />
Urban Development Affordable<br />
Housing Contact Group;<br />
7. Committed service to policy<br />
reforms through our participation<br />
on the Kenya Private Sector Alliance<br />
(KEPSA) Land, Housing and Urban<br />
Development Sector Board;<br />
8. Active and successful joint input<br />
into the review of the Proposed<br />
2014-2015 Finance Bill;<br />
9. Established strong ties with<br />
significant industry players<br />
such as the Nairobi City County<br />
Government, the National<br />
Construction Authority, the<br />
Ministry of Transport, Infrastructure,<br />
Housing and Urban Development,<br />
the Upper Hill District Association<br />
(UHDA), the UN Habitat, the Kenya<br />
Private Sector Alliance (KEPSA)<br />
amongst others;<br />
10. Demonstrated our commitment<br />
towards Kenya having a<br />
sustainable, green environment<br />
by our continued collaboration<br />
with the UN Habitat and the Kenya<br />
Green Building Society;<br />
11. <strong>The</strong> consistent and informed release<br />
of data to our mailing list through<br />
our Media Weekly Review Reports<br />
and our bi-monthly e-newsletter,<br />
<strong>The</strong> Developer’s <strong>Digest</strong>;<br />
12. <strong>The</strong> successful organization of<br />
several events both aimed at<br />
providing professional networking<br />
and educating platforms.<br />
Our mission remains; ‘To promote the involvement of the private sector in<br />
development through advocacy, education, research and ethical standards’<br />
Thank you to the 150 members who continue to share our dream…<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 />
Website: www.kpda.or.ke<br />
Kenya Property Developers Association... Development brings Development!<br />
Kenya Property Developers Association... Development brings Development!<br />
7 8
Profiles of KPDA Board of Directors<br />
Appreciation to KPDA Sponsors<br />
Mucai Kunyiha<br />
KPDA Chairman<br />
Palkesh Shah,<br />
Vice Chairman for the Board<br />
Emma Achoki<br />
Treasurer<br />
Ken Luusa<br />
Board Director<br />
Margaret Kibe<br />
Board Director<br />
Ravi K. Kohli<br />
Board Director<br />
A SINGLE BEAM CANNOT<br />
SUPPORT A GREAT HOUSE<br />
Mucai Kunyiha is an LL.B (Hons.)<br />
graduate of the University of<br />
Wales, Cardiff and an advocate of<br />
the High Court of Kenya. He also<br />
holds an MBA from Ashridge, UK.<br />
Mucai is the General Manager of<br />
Coopers K-Brands Ltd, an animal<br />
health company in East and Central<br />
Africa. He is also the Managing<br />
Director of Kzanaka Ltd, a Kenyan<br />
property development firm.<br />
Palkesh Shah holds a Bachelor<br />
of Science Degree in Business<br />
Management from New<br />
Hampshire College. He is a<br />
Director at Chigwell Holdings Ltd a<br />
property development company.<br />
Emma Achoki is the Managing<br />
Director of Oakpark Properties<br />
Ltd. She holds a Bachelor<br />
of Commerce Degree from<br />
Kenyatta University and a<br />
Masters in International Business<br />
Administration from the United<br />
States International University.<br />
She has previously worked with<br />
PricewaterhouseCoopers (PwC) in<br />
Kenya and Tanzania for 13 years.<br />
She is a Certified Public Accountant<br />
(CPA-K) and also passed Level One<br />
of the Certified Financial Analyst<br />
(CFA) Examinations.<br />
Ken serves as the Managing<br />
Director of Acorn Management<br />
Services Limited. Prior to joining<br />
Acorn Group, Ken served as<br />
the Regional Chief Executive<br />
Officer of Property Development<br />
and Management Ltd (PDM),<br />
an Aga Khan Development<br />
Network Company where he was<br />
responsible for managing and<br />
developing the organization’s<br />
commercial property portfolio in<br />
East Africa. He is a Board Director<br />
at KPDA.<br />
Margaret is the Managing Director<br />
at Bahati Ridge Development<br />
Ltd. She has nearly twenty years<br />
of experience in consulting,<br />
production, logistics and event<br />
management services. Her<br />
primary areas of focus are in<br />
real estate development and<br />
property management. Margaret<br />
holds a Post Graduate Certificate<br />
in Film, Television and Digital<br />
Etertainment and a BSc. In<br />
Accounting with Honours.<br />
Ravi is the Founder and Managing<br />
Director of Karibu Homes, a large<br />
scale affordable housing developer<br />
of 1, 200 units under construction<br />
in Athi River. He currently serves<br />
as a member of the KPDA Public<br />
Policy & Advocacy Committee. He<br />
has 15 years working experience<br />
in property development both in<br />
Kenya and the United Kingdom and<br />
holds a BA (Hons) in Economics and<br />
Human Resource Management.<br />
<strong>The</strong> Kenya Property Developers Association would like to appreciate<br />
the financial and otherwise support that it has received from the<br />
following companies:<br />
• <strong>The</strong> National Construction Authority<br />
• AskaDoc<br />
• Coulson and Harney Advocates and<br />
• Simba Corporation Ltd<br />
• Davis and Shirtliff and<br />
• Newmatic Africa Ltd<br />
With you we were able to celebrate a successful first quarter of the year.<br />
Asante sana…<br />
Hamish Govani<br />
Immediate Past Chairman<br />
Hamish is the Executive Director<br />
of Lantana Homes. He holds<br />
a Bachelors Degree in Civil<br />
Engineering, ACGI and a Masters<br />
in Business Administration.<br />
Hamish has diverse experience<br />
in real estate development and<br />
has overseen several construction<br />
projects in the country.<br />
Gikonyo Gitonga<br />
Board Director<br />
Gikonyo is the Managng Director<br />
at Axis Real Estate Ltd. He is a<br />
highly experienced and qualified<br />
Real Estate professional services<br />
expert and holds an MSc (Econs)<br />
in Urban Development Planning<br />
from the University of London<br />
and a BA (Land Economics) from<br />
the University of Nairobi. He is a<br />
full member of <strong>The</strong> Institution of<br />
Surveyors of Kenya (Valuation &<br />
Estate Agents Chapter) and is a<br />
Registered Estate Agent.<br />
George Wachiuri<br />
Board Director<br />
George holds a Masters of<br />
Business Administration from<br />
University of Nairobi and a<br />
Bachelor of Commerce (Marketing<br />
Option) and is a Certified Public<br />
Accountant CPA (K). He is the<br />
founder and CEO of Optiven Group.<br />
Caroline Karugu<br />
Board Director<br />
Caroline is a Senior Associate in the<br />
Real Estate and Finance department<br />
of Anjarwalla & Khanna Advocates<br />
and focuses mainly on property<br />
law, property development work,<br />
real estate financing, property joint<br />
ventures and structuring of mixed<br />
use developments. She has handled<br />
a variety of property transactions<br />
including, structuring of property<br />
joint ventures, property acquisitions,<br />
residential and mixed use projects,<br />
large scale commercial retail leasing,<br />
property management contracts<br />
and securities.<br />
Anne W. Muchiri<br />
Board Director<br />
Anne acted as a legal adviser and a<br />
founder Director of the then Kenya<br />
Private Developers Association. She<br />
is currently serving as a member of<br />
the KPDA Public Policy and Advocacy<br />
Committee. She is currently the<br />
Managing Director of Rozana<br />
Properties Ltd, a company engaged in<br />
development and sale of residential<br />
homes. Anne is a Certified Public<br />
Speaker (Toastmasters International)<br />
and the Board of Directors of KPDA<br />
has 100% confidence in the positive<br />
impact Anne will make on the Board.<br />
Our goal has<br />
always been to<br />
meet the needs<br />
of our members<br />
by providing<br />
current industry<br />
information,<br />
high standards<br />
of engagement<br />
and quality<br />
networking<br />
events.<br />
Now<br />
you can<br />
reach<br />
us at<br />
www.kpda.or.ke<br />
Kenya Property Developers Association... Development brings Development!<br />
Kenya Property Developers Association... Development brings Development!<br />
9<br />
10
HAVE YOUR SAY<br />
HAVE YOUR SAY<br />
INNOVATIONS IN CONSTRUCTION IN <strong>2017</strong><br />
Innovation is a wide concept that<br />
includes improvements in processes,<br />
products or services. It involves<br />
incorporating new ideas which<br />
generate changes that help solve the<br />
needs of a company and so increase its<br />
competitiveness.<br />
Standardized management of<br />
innovation can help a company reap<br />
significant rewards:<br />
• Improvement in organization of<br />
activities;<br />
• Improvement in the company’s<br />
competitiveness in the medium<br />
and long- term;<br />
• Efficient exploitation of the<br />
organization’s knowledge<br />
particularly from its skilled<br />
personnel;<br />
• Systematization of processes and<br />
product knowledge;<br />
• Client satisfaction<br />
SO WHAT ARE THE CONSTRUCTION<br />
TRENDS IN <strong>2017</strong>?<br />
1. Collaborative Project Delivery<br />
Methods: Experts expect collaborative<br />
approaches to become more common<br />
for projects. Design-build, public-private<br />
partnerships and integrated project<br />
delivery are three of the most oftencited<br />
methods that are altering the<br />
industry and are likely to gain ground in<br />
<strong>2017</strong>.<br />
Here construction is to be carried out<br />
on a team basis amidst the stakeholders<br />
involved in the construction project<br />
such as engineer, architect, owner<br />
and contractor to collectively design<br />
project goals, costs, risk – sharing<br />
and compensation. This promotes<br />
achievement of a more sustainable<br />
project that efficiently meets the needs<br />
of the target market and also save on the<br />
time taken in the project development.<br />
Within the same collaboration, a<br />
government entity may also hire a<br />
group from the private sector to design,<br />
finance and build a large project and<br />
thereafter operate and maintain the<br />
facility for years before handing it over.<br />
2. Offsite/Modular Construction:<br />
Offsite construction, also called modular<br />
or prefab is aimed at condensing the<br />
construction schedule of a project and<br />
saving cost. This involves structures<br />
known as prefabs been manufactured<br />
offsite (in factories) in standard sections<br />
that’s are then transported to the<br />
construction site. This also helps in<br />
ensuring quality control e.g. in the case<br />
where you would not have to deal<br />
with weather changes as it delivers<br />
components as and when needed.<br />
Contractors are finding that offsite<br />
methods allow them to reduce hours<br />
onsite, improve efficiency and perform<br />
more subassemblies than in the past.<br />
3. VR/AR Technology: Virtual and<br />
augmented reality technology<br />
enhances collaboration among project<br />
stakeholders before building begins. VR<br />
and AR allow the construction team to<br />
detect errors ahead of time and avoid<br />
costly mistakes. <strong>The</strong>y also have the<br />
potential to improve job site safety, such<br />
as letting managers and workers view<br />
job site conditions without subjecting<br />
them to safety hazards.<br />
HIGHLIGHTS ON TOP CONSTRUCTION<br />
METHODS IN <strong>2017</strong><br />
1. Self - Healing Concrete: Cracking<br />
is a major problem in construction,<br />
usually caused by exposure to water<br />
and chemicals. Researchers at Bath<br />
University are looking to develop a selfhealing<br />
concrete, using a mix containing<br />
bacteria within microcapsules, which<br />
will germinate when water enters a crack<br />
in the concrete to produce limestone,<br />
plugging the crack before water and<br />
oxygen has a chance to corrode the steel<br />
reinforcement.<br />
2. Photovoltaic Glazing: Building<br />
integrated photovoltaic (BIPV) glazing<br />
can help buildings generate their own<br />
electricity, by turning the whole building<br />
envelope into a solar panel. Companies<br />
such as Polysolar provide transparent<br />
photovoltaic glass as a structural<br />
building material, forming windows,<br />
façades and roofs.<br />
3. Cloud Collaboration: Basestone is<br />
a system allowing the remote sharing<br />
of data on a construction site in real<br />
time. It is predominantly a review tool<br />
for engineers and architects which<br />
digitizes the drawing review process<br />
on construction projects, and allows for<br />
better collaboration. <strong>The</strong> cloud-based<br />
collaboration tool is focused on the<br />
installation of everything from steel<br />
beams to light fittings. <strong>The</strong> system is<br />
used to add “snags”, issues that happen<br />
during construction, on to pdfs, then<br />
users can mark or add notes through<br />
basestone. Trials have revealed possible<br />
cost-savings of around 60 per cent<br />
compared with traditional paper-based<br />
review methods.<br />
4. Asset Mapping: Asset mapping<br />
focuses on operational equipment,<br />
including heating and air conditioning,<br />
lighting and security systems, collecting<br />
data from serial numbers, firmware,<br />
engineering notes of when it was<br />
installed and by whom, and combines<br />
the data in one place. <strong>The</strong> system<br />
can show engineers in real time on a<br />
map where the equipment needs to<br />
be installed and, once the assets are<br />
connected to the real-time system<br />
using the internet of things, these can<br />
be monitored via the web, app, and<br />
other remote devices and systems. It<br />
helps customers build databases of<br />
asset performance, which can assist in<br />
proactive building maintenance, and<br />
also reduce building procurement and<br />
insurance costs.<br />
5. Alternative Construction Materials:<br />
Other ways of meeting the demand<br />
for cost-effective, yet environmentally<br />
friendly homes is through the use of<br />
alternate construction materials such<br />
as recycled fly ash (a waste by-product<br />
of coal combustion). This medium can<br />
be utilized to build budget housing<br />
of fairly high quality. Other alternate<br />
construction media are interlocking<br />
bricks, hollow concrete blocks, rubble<br />
filler blocks, stabilized mud-based<br />
blocks and funicular (or rope-like) shells.<br />
By using alternative construction<br />
materials and methods, construction<br />
costs can be reduced by a minimum of<br />
10 to 15% in terms of materials and up<br />
to 20% in terms of skilled manpower<br />
expenses and construction time.<br />
What are the Building Blocks that set<br />
the Foundation to Apply Innovation in<br />
Construction?<br />
1. People: <strong>The</strong>re is need for a highly<br />
skilled workforce, where there is diversity<br />
of thought to promote collaboration<br />
of this skills in innovations that<br />
would eventually lead to a successful<br />
construction project.<br />
2. Strategy and Delivery: <strong>The</strong><br />
innovation process needs to be<br />
systematized to ensure that the<br />
innovation delivers an output.<br />
3. Investing in Innovation: Investment<br />
is a crucial input in innovation. Investing<br />
in people and platforms, as well as<br />
traditional Research and Development<br />
initiatives, will create an environment<br />
where innovation can thrive.<br />
4. Knowledge Sharing: Traditionally,<br />
the construction industry has not been<br />
particularly proactive in sharing and<br />
learning from its successes and failures.<br />
<strong>The</strong> lack of knowledge capture from<br />
previous projects results in ‘reinventing<br />
the wheel’ and repeated mistakes.<br />
5. Research and Development: <strong>The</strong><br />
construction industry does not invest<br />
heavily in Research & Development.<br />
This is proven at both a national level<br />
where construction lags behind other<br />
industries. Resources need to be<br />
invested in the research sector to ensure<br />
developers are better equipped with<br />
knowledge.<br />
6. Standards and Regulation:<br />
Standards and regulations that are<br />
highly prescriptive can stifle innovation.<br />
<strong>The</strong>re has been little incentive or<br />
reward for exceeding or diverting from<br />
standards, encouraging the same triedand-tested<br />
solutions to be re-used to<br />
meet requirements and prohibiting<br />
advances in technology from being<br />
driven forward, especially when not<br />
supported in regulated industries.<br />
7. Embracing Technology: Building<br />
Information Modelling (BIM), sensors,<br />
and smart construction technology will<br />
transform the way we design, construct<br />
and manage assets. With the rise of<br />
the digital economy, embracing the<br />
technology that is already available to us<br />
in this industry will enable innovations<br />
to move from concept to reality.<br />
CONCLUSION<br />
<strong>The</strong>re is still a fair degree of resistance,<br />
both from developers and buyers, to<br />
projects built with alternate construction<br />
materials.<br />
In many developing countries, there<br />
is still an erroneous assumption that<br />
the use of cost-effective alternate<br />
construction materials results in inferior<br />
structures. Knowing that a building<br />
has been built with anything but<br />
conventional materials and technologies<br />
cause potential buyers to have concerns<br />
about its safety, durability and resale<br />
value.<br />
This lack of awareness can result in a<br />
loss for developers who use them, since<br />
it would impact the marketability of<br />
their product. Alternative construction<br />
materials have therefore not yet become<br />
a very popular route among developers.<br />
<strong>The</strong> primary challenge lies in convincing<br />
buyers of the inherent value of such<br />
projects, and also to educate developers<br />
on the long-term business potential.<br />
<strong>The</strong>re needs to be a greater level of<br />
awareness.<br />
However, regardless of the above<br />
mentioned challenges, the real estate<br />
sector must support the use of cuttingedge<br />
and environmentally sustainable<br />
infrastructure, as well as commit to<br />
working in collaboration with key<br />
stakeholders to encourage innovation<br />
and entrepreneurial thinking.<br />
REFERENCES<br />
1. DconstructionDive, Emily Peiffer, Jan 3<br />
<strong>2017</strong><br />
2. Business/Future of Construction, Felicia<br />
Jackson, June 14 2015<br />
3. India Infoline News Service, Kishor Pate,<br />
September 11, 2014)<br />
4. Institution of Civil Engineers, Rob Curd,<br />
February 15 2016<br />
Kenya Property Developers Association... Development brings Development!<br />
Kenya Property Developers Association... Development brings Development!<br />
11<br />
12
KPDA DIRECTORY OF MEMBERS<br />
KPDA DIRECTORY OF MEMBERS<br />
KPDA DIRECTORY OF MEMBERS IN GOOD STANDING AS AT 12 TH APRIL <strong>2017</strong><br />
Nanyuki Mall Ltd<br />
Tatu City Ltd<br />
DLR Group Africa Ltd<br />
Nabo Capital Ltd<br />
PREMIUM MEMBERS<br />
Ali Fabrication Solutions Ltd<br />
Synthesis Systems Ltd<br />
Coral Property International Ltd<br />
Ijenga Ventures Ltd<br />
Natureville Homes<br />
Tilisi Developments Ltd<br />
Emerge Developments Ltd<br />
Nanchang Foreign Engineering<br />
Company (Kenya) Ltd<br />
Bamburi Cement Ltd<br />
Tandem & Stark Ltd<br />
County Home Developers Ltd/Runda<br />
View Ltd<br />
INFPAC Ltd<br />
Oakpark Properties Ltd<br />
<strong>The</strong> Epic Properties Ltd<br />
Galaxy Heritage Ltd<br />
Nomadic Tents (K) Ltd<br />
Britam<br />
Diamond Property Merchants<br />
Fusion Capital<br />
HF Development and Investment Ltd<br />
Vaal Real Estate Ltd<br />
Yasian Technology Company Ltd<br />
CORPORATE MEMBERS<br />
Acorn Management Services Ltd<br />
Cytonn Real Estate<br />
Daykio Plantations Ltd<br />
Dream Home Construction<br />
Company Ltd<br />
Jabez Properties<br />
Kamhomes Investment Ltd<br />
Karibu Homes<br />
Kings Developers Ltd<br />
Optiven Limited<br />
Paradigm Projects Ltd<br />
Parmalen Investments Ltd<br />
Thika Greens Ltd<br />
Unity Homes Ltd<br />
Urban Nirvana Property Solutions Ltd<br />
Global Property Advice<br />
Green Kenya Corporation Ltd<br />
Honeywell Technologies (K) Ltd<br />
Kanaga & Associates<br />
Oraro & Company Advocates<br />
Pam Goldings Properties Ltd<br />
Paragon Architects<br />
Property Link Africa Ltd<br />
Imaran Real Estate Ltd<br />
KCB Bank<br />
Africa Reit Ltd<br />
AMS Properties Ltd<br />
Dunhill Consulting Ltd<br />
Edifice Ltd<br />
Kzanaka Ltd<br />
Leo Capital Holdings Ltd<br />
PDM (Kenya) Ltd<br />
Pediment Developers<br />
Pioneer Holdings (Africa) Ltd<br />
ASSOCIATE MEMBERS<br />
Anjarwalla & Khanna Advocates<br />
Axis Real Estate Ltd<br />
Karanja Njenga Advocates<br />
K.Mberia and Partners Advocates<br />
KN Associates LLP<br />
Questworks Ltd<br />
Ratemo & Company Advocates<br />
Re/Max Heritage<br />
Mabati Rolling Mills Ltd<br />
Bahati Ridge Development Ltd<br />
Elm Ridge Ltd<br />
Property Reality Company Ltd<br />
Broll Kenya Ltd<br />
Knight Frank Kenya Ltd<br />
Saj Ceramics Ltd<br />
State Department For Housing And<br />
Urban Development<br />
Mmc Africa Law<br />
Blueline Properties Ltd<br />
Boleyn Magic Wall Panel Ltd<br />
Enkavilla Properties Ltd<br />
Fedha (Management) Ltd<br />
Lordship Africa<br />
Manrik Group<br />
Rozana Properties Ltd<br />
Sayani Investments Ltd<br />
Buy Rent Kenya Ltd<br />
Cemex Holdings Ltd<br />
Koto Housing Kenya<br />
Laser Property Services Ltd<br />
Secureman Services Ltd<br />
ecureman Services<br />
Limited<br />
S<br />
“ Your Security, Our Duty”<br />
Soita & Associates Advocates<br />
Newline Ltd<br />
Newmatic Africa Ltd<br />
Camelot Cosultants Ltd/Lantana Homes Ltd<br />
Century City Property Ltd<br />
Hass Consult Ltd<br />
Heri Homes Properties Ltd<br />
Mentor Management Ltd (Mml)<br />
Mugumo Developments Ltd<br />
Sigimo Enterprises Ltd<br />
Simba Corporation Ltd<br />
Spartan Developers Ltd<br />
CFL and Company Advocates<br />
Coulson Harney Advocates<br />
Mahida And Maina Company Advocates<br />
Mboya Wangong’u & Waiyaki Advocates<br />
Murimi And Company Advocates<br />
Spearhead Africa Ltd<br />
Stanlib Kenya Ltd<br />
Steel Africa Limited<br />
Savannah Cement Ltd<br />
Chigwell Holdings Ltd<br />
Homescope Properties Ltd<br />
Mwanzoni Ltd<br />
Superior Homes Kenya<br />
Davis & Shirtliff Ltd<br />
Mehta Electricals Ltd<br />
Sterling & Wilson Private Ltd<br />
Kenya Property Developers Association... Development brings Development!<br />
Kenya Property Developers Association... Development brings Development!<br />
13<br />
14
NCCG BUILDING PERMITTING APPROVALS<br />
NCCG BUILDING PERMITTING APPROVALS<br />
NAIROBI CITY COUNTY GOVERNMENT BUILDING<br />
PERMITTING APPROVALS ACTIVITY REPORT<br />
JANUARY – DECEMBER 2016<br />
of 1997, this report depicts permits<br />
that were issued in the following<br />
average percentages in accordance<br />
to the named classifications below:<br />
• 80.9% (809) - Domestic Class<br />
(commercial developments,<br />
domestic buildings and<br />
offices)<br />
• 10.4% (241) - Public Class<br />
(social halls, religious<br />
buildings, libraries, schools,<br />
etc.)<br />
• 8.7% (199) - Warehouse<br />
Class (industries, factories,<br />
and go downs)<br />
<strong>The</strong> statistics show that in the year 2016<br />
approved proposed developments of<br />
the Domestic Classification, had the<br />
highest level of approvals issued due to<br />
the ever increasing need for housing by<br />
Kenyans and initiatives put in place by<br />
the real estate industry on ownership of<br />
homes by the middle income earners.<br />
A comparative analysis is provided for the performance of all 4 quarters of the year.<br />
PERMIT APPLICATION ACTIVITY BY SUB-COUNTY<br />
1. <strong>The</strong>re are more development activities on the Western<br />
side of Nairobi compared to the Eastern side probably<br />
because of the extra space available and the demand<br />
for housing. <strong>The</strong> highest permits were approved in the<br />
areas of Karen, Westlands, Industrial Area, Parklands<br />
and Eastleigh.<br />
2. Karen has the highest percentage of permits localitywise.<br />
This would be as a result of the ongoing<br />
construction of the Southern Bypass connecting the<br />
Nairobi - Naivasha Highway to Mombasa Road. <strong>The</strong><br />
bypass has also enabled easy and fast commuting<br />
to the Jomo Kenyatta International Airport and the<br />
Wilson Airport. <strong>The</strong> neighbourhood has an organized<br />
road network, with properly connected entry and<br />
exit routes that lead to and from Nairobi’s CBD. This<br />
would be one of the factors the developers might have<br />
considered due to proximity and thus convenience. <strong>The</strong><br />
PERMIT APPLICATION ACTIVITY BY SUB-COUNTY<br />
high number of permits in the Karen area are also very<br />
likely due to the fact that rent or property owning in<br />
Karen attracts high revenue. This is a likely factor that<br />
developers considered in achieving better return on<br />
capital;<br />
3. Lavington has the least number of permits amongst<br />
the top 10 areas of development regardless of being<br />
very close to the CBD. Embakasi and Kilimani areas<br />
attract fewer developments due to traffic and building<br />
congestion. Lavington may be a discouraging location<br />
for developers to set up office buildings as more and<br />
more businesses are opting to be headquartered in the<br />
Westlands are which has more space to accommodate<br />
offices.<br />
NB: Localities that do not appear in the graph had less than 2%<br />
presentation.<br />
Valley-View, Nairobi, Kenya<br />
SOURCE<br />
<strong>The</strong> 2016 KPDA Building Permitting<br />
Activity Report provides a summary<br />
of statistical information on planning<br />
permitting activity in Nairobi from<br />
<strong>January</strong> to December 2016. During this<br />
reporting period, only statistics from<br />
the Nairobi City County Government<br />
are used as references. This report<br />
uses standardized data submitted to<br />
the Nairobi City County Government.<br />
<strong>The</strong> report highlights information on<br />
applications received, development<br />
locations, types and values, department<br />
revenue from applications and permit<br />
processing performance.<br />
INTRODUCTORY SUMMARY ON THE<br />
REPORT<br />
STATISTICS<br />
A total of 2, 303 planning permit<br />
applications were approved from<br />
<strong>January</strong> to December 2016 with the<br />
second quarter having the highest<br />
number of approvals. Other key statistics<br />
from this report include:<br />
1. Value of approved permits<br />
represents over Kshs. 117.9 billion<br />
worth of development projects and<br />
permitting fees collected were over<br />
Kshs. 862.9 Million;<br />
2. During 2016 the highest value of<br />
buildings submitted for approval was<br />
Kshs. 3, 000, 000, 000 (Kshs. 3billion)<br />
by the Crossroad Ltd (Proposed<br />
Shopping Mall) and the maximum<br />
submission fee paid was Kshs. 186,<br />
056, 000.<br />
3. On average the estimated value of<br />
building developments approved<br />
was Kshs. 76, 233, 700 and that of the<br />
submission fee was Kshs. 901,173.<br />
4. Based on localities it was noted<br />
from the statistics that most of the<br />
developments were carried out in<br />
Karen, Westlands, Industrial Area,<br />
Kilimani and the Central Business<br />
District.<br />
5. Based on the Kenyan Building Code<br />
While every reasonable effort is made to ensure that the information provided in this report is accurate no guarantee for the currency or accuracy of information is made. <strong>The</strong><br />
permitting data was provided to the Kenya Property Developers Association by the Nairobi City County Government Physical Planning Department.<br />
15<br />
Kenya Property Developers Association... Development brings Development!<br />
While every reasonable effort is made to ensure that the information provided in this report is accurate no guarantee for the currency or accuracy of information is made. <strong>The</strong><br />
permitting data was provided to the Kenya Property Developers Association by the Nairobi City County Government Physical Planning Department.<br />
Kenya Property Developers Association... Development brings Development!<br />
16
NCCG BUILDING PERMITTING APPROVALS<br />
NCCG BUILDING PERMITTING APPROVALS<br />
DWELLING RELATED ACTIVITY ACROSS NAIROBI<br />
Buildings approved included domestic<br />
buildings, commercial developments, offices,<br />
religious buildings, social halls, libraries,<br />
schools, factories, industries and go downs. <strong>The</strong><br />
following graph identifies permit applications<br />
that relate to various building classes.<br />
1. It can be noted that 80.54% of the<br />
planning submitted under the building<br />
class category were domestic class which<br />
includes domestic buildings, commercial<br />
developments and offices. This indicates<br />
a major shift for developers to provide<br />
residential infrastructures as well as the<br />
growing desire for Kenyans to own a<br />
home. <strong>The</strong>re is also the case of emerging<br />
businesses, including but not limited to<br />
foreign investors and SMEs which have<br />
increased the demand for offices;<br />
2. Over the past three years there has been a rapid urban population growth and therefore this could result to<br />
development of dwelling facilities which is in accordance to the Kenya National Bureau of Statistics 2015 –<br />
2016, Kenya National Housing Survey Basic Report whereby urban population is projected to grow by 50% by<br />
2030. <strong>The</strong> increased development of domestic facilities has a direct influence on public infrastructures which<br />
may have resulted to Public class having the second highest percent in developments within Nairobi.<br />
BUILDING CLASS BY LOCALITY<br />
routes that lead to and from Nairobi’s central business<br />
district hence most of the developers shifted to<br />
this locations. Also the value of land in these areas<br />
is relatively high and this proves the nature of land<br />
having an inelastic demand where the higher the value<br />
may result to a higher demand.<br />
3. <strong>The</strong> areas have closer proximity to Nairobi’s central<br />
business district hence most convenient to most<br />
Kenyans specifically for the middle income earners. <strong>The</strong><br />
NUMBER OF APPROVALS BY ZONAL USER DENSITY<br />
1. <strong>The</strong> Residential Class<br />
accounted for 75.41% of the<br />
approvals due to an increase<br />
in the middle aged working<br />
population who consider<br />
owning a home more crucial<br />
than renting one and also high<br />
demand by Kenyans to own<br />
homes. Most of developers<br />
have invested more on<br />
Residential developments<br />
which are more profitable due<br />
to the growing demand. <strong>The</strong>re<br />
has been an improvement<br />
in security within the nation<br />
which has resulted in an influx<br />
in foreign residents in Kenya<br />
thus increasing the demand for<br />
residential houses (in particular<br />
well-furnished residential<br />
infrastructures) mostly in the<br />
high end areas.<br />
2. Commercial Class buildings<br />
accounted for 10.59% of the<br />
approvals.<br />
high number of permits approved in residential zones<br />
like in Karen area is also likely due to the high capital<br />
returns in rental and ownership income to be received<br />
by developers as the area is considered high-end.<br />
4. Due to increased population growth in Nairobi and<br />
the growth of entrepreneurship, there has been a<br />
huge demand for offices within the city and therefore<br />
Westlands has been a favourable location for this<br />
facilities over the year.<br />
1. <strong>The</strong> highest development permits in the year 2016<br />
were approved in Karen, Westlands, Kilimani, C.B.D<br />
and Industrial Area with domestic infrastructures<br />
dominating in these areas except from the Industrial<br />
area where most of them were factories and<br />
warehouses.<br />
2. <strong>The</strong>se neighborhoods have an organized road<br />
network, with properly connected entry and exit<br />
THE VALUE TREND OF DEVELOPMENT PERMITTED BY THE NAIROBI CITY COUNTY GOVERNMENT<br />
37% of the buildings presented for approval were valued between ten million and fifty million. Over seventy percent of these<br />
buildings are domestic facilities rather than public, warehouses or commercial developments. This can be attributed to the high<br />
demand of residential buildings.<br />
Graph... next page<br />
While every reasonable effort is made to ensure that the information provided in this report is accurate no guarantee for the currency or accuracy of information is made. <strong>The</strong><br />
permitting data was provided to the Kenya Property Developers Association by the Nairobi City County Government Physical Planning Department.<br />
17<br />
Kenya Property Developers Association... Development brings Development!<br />
While every reasonable effort is made to ensure that the information provided in this report is accurate no guarantee for the currency or accuracy of information is made. <strong>The</strong><br />
permitting data was provided to the Kenya Property Developers Association by the Nairobi City County Government Physical Planning Department.<br />
Kenya Property Developers Association... Development brings Development!<br />
18
NCCG BUILDING PERMITTING APPROVALS<br />
NCCG BUILDING PERMITTING APPROVALS<br />
ESTIMATED COST OF APPROVALS ISSUED BY THE NAIROBI CITY COUNTY GOVERNMENT<br />
PERMIT PROCESSING PERFORMANCE<br />
1. <strong>The</strong> Month of May had the highest number of<br />
approvals, with 618 approvals.<br />
2. <strong>March</strong> recorded the highest number of approvals in<br />
the first quarter. This was due to a high demand for<br />
residential property. <strong>The</strong> planning system plays an<br />
important role in improving the lives of the modern<br />
society. It is meant to protect social amenities and the<br />
environment for the public’s interest. How we live our<br />
lives is shaped by where we live and therefore our<br />
planning regulations have to cover many different<br />
situations that influence the shape of lives of every city<br />
resident and help protect the urban environment.<br />
3. In the last quarter of 2015, Kenya experienced high<br />
interest rates leading to a decrease in the number of<br />
developments hence the low development rate in<br />
<strong>January</strong> 2016.<br />
4. <strong>The</strong>reafter, in the first quarter of 2016, inflation came<br />
down by 6.5% stabilizing the Kenyan shilling and<br />
therefore increasing investors’ appetite for the property<br />
market.<br />
AVERAGE APPROVAL RATE BY THE NAIROBI CITY COUNTY GOVERNMENT<br />
TO CARRY OUT BUILDING PERMITTING<br />
PERMIT PROCESSING PERFORMANCE<br />
1. Most of the permits took more than one month to<br />
be approved. This accounted for 61.77% of the total<br />
percentage. This delay in the approval process is<br />
a cause for concern and the Nairobi City County<br />
Government needs to offer sufficient explanation as<br />
to the reasons behind this delay.<br />
2. Permits that took less than one month to be<br />
approved accounted for 38.24 % of the total<br />
approvals. <strong>The</strong>re was a great improvement on<br />
approval time as compared to 2015. Some of the<br />
factors leading to this improvement on approval<br />
time could be as a result of the following factors:<br />
• Most of the developers could meet the minimum<br />
approval requirement<br />
• Transparency in the urban and housing<br />
department.<br />
• Adequate support from professionals<br />
throughout the entire plan preparation process.<br />
<strong>The</strong>re were very few disapproved plans therefore<br />
this indicates that most of the plans met the<br />
conditions for approval.<br />
• Reduce land ownership conflicts over the period.<br />
While every reasonable effort is made to ensure that the information provided in this report is accurate no guarantee for the currency or accuracy of information is made. <strong>The</strong><br />
permitting data was provided to the Kenya Property Developers Association by the Nairobi City County Government Physical Planning Department.<br />
19<br />
Kenya Property Developers Association... Development brings Development!<br />
While every reasonable effort is made to ensure that the information provided in this report is accurate no guarantee for the currency or accuracy of information is made. <strong>The</strong><br />
permitting data was provided to the Kenya Property Developers Association by the Nairobi City County Government Physical Planning Department.<br />
Kenya Property Developers Association... Development brings Development!<br />
20
NCCG BUILDING PERMITTING APPROVALS<br />
COMPARATIVE ANALYSIS BETWEEN THE FOUR QUARTERS OF 2016<br />
<strong>The</strong> Developer’s<br />
<strong>Digest</strong><br />
A KPDA PUBLICATION<br />
KENYA PROPERTY DEVELOPERS A SOCIATION<br />
<strong>The</strong> Kenya Property Developers A sociation celebrates its 10th year a niversary culminating in a<br />
Gala Dinner that was held on 3rd November 2016 a the Vi la Rosa Kempinski Hotel in Nairobi, Kenya.<br />
MEDIA PACK <strong>2017</strong><br />
<strong>The</strong> highest average value of estimated cost was incurred during the October to December quarter of the year with the<br />
least average value being <strong>January</strong> to <strong>March</strong> Quarter.<br />
FOR MORE INFORMATION, KINDLY CONTACT THE KPDA SECRETARIAT<br />
KENYA PROPERTY DEVELOPERS ASSOCIATION<br />
Fatima Flats, Suite B4, Marcus Garvey Road<br />
Off Argwings Kodhek, Kilimani Area<br />
P. O. Box 76154 – 00508 Nairobi, Kenya<br />
Domestic buildings<br />
continue to have the<br />
highest number of<br />
approvals with the<br />
highest number of<br />
developments being<br />
approved in the 2nd<br />
quarter of the year.<br />
Residential buildings<br />
had the highest<br />
number of approvals<br />
which has been the<br />
trend for the over the<br />
whole year.<br />
Telephone: +254 737 530290/0705 277787<br />
Email: research@kpda.or.ke or admin@kpda.or.ke<br />
Website: www.kpda.or.ke<br />
While every reasonable effort is made to ensure that the information provided in this report is accurate no guarantee for the currency or accuracy of information is made. <strong>The</strong><br />
permitting data was provided to the Kenya Property Developers Association by the Nairobi City County Government Physical Planning Department.<br />
<strong>The</strong> Developer’s <strong>Digest</strong> is a quarterly<br />
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by the Kenya Property Developers<br />
Association and designed by Insync<br />
MEDIA Ltd. It targets the various<br />
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Kenya and highlights a wide spectre<br />
of issues affecting our members, other<br />
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private and public sector players in the<br />
industry. We seek to encourage positive<br />
dialogue and development<br />
<strong>The</strong> Developer’s <strong>Digest</strong> is filled with<br />
current industry news, updates on<br />
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NOTE: PDF/X 1-A or Adobe® Acrobat® distilled<br />
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DIGITAL INPUT/MECHANICAL REQUIREMENTS — ADVERTS<br />
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