The Developer's Digest, January - March 2017 Issue

kpdadevelopers

JANUARY JAN –– MARCH 2016 2017 ISSUE

Innovations in

Construction in 2017

Cover Photo: Ibuku Bamboo Architecture. Source; Ibuku.com.

IN

THIS

ISSUE

Focus on Policy

Have Your Say

NCCG Building Permitting Approval Report


The Developer’s

Digest

A KPDA PUBLICATION

KPDA BOARD MEMBERS

Mucai Kunyiha

Chairman

Palkesh Shah

Board Director

Emma Achoki

Treasurer

11

Page 4:

From the Secretariat

Hamish Govani

Immediate Past Chairman

Kenneth Luusa

Board Director

Gikonyo Gitonga

Board Director

Margaret Kibe

Board Director

Page 5:

Focus on Policy

Page 9:

Have Your Say

Page 13: KPDA Directory of

Members

Page 15: NCCG Building

Permitting Approvals

Ravi Kohli

Board Director

George Wachiuri

Board Director

Caroline Karugu

Board Director

KPDA SECRETARIAT

Anne Muchiri

Board Director

Chief Executive Officer – Elizabeth Mwangi – Oluoch

Membership Relations Officer – Liz Kayaki

Finance and Membership Support Officer– Rachael Muthama

Research and Development Intern – Mercy Ndung’u

Research, Administration & Membership Intern – Kennedy Titus

KENYA PROPERTY DEVELOPERS A SOCIATION

The Secretariat address is :

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

Road, Nairobi | Tel: + 254 737 530 290 | 0705 277 787

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

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

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

DESIGN & LAYOUT:

InsyncMEDIA Limited. Devan Plaza . First Floor . Suite No16

Chiromo Road, Waiyaki Way . Westlands . Nairobi . Kenya

P.O. Box 9510 - 00100 . Nairobi . Kenya

Landline: (+254) 020 4400218

info@insyncmedia.co.ke

www.insyncmedia.co.ke

2

Newmatic Africa Limited

1st Floor, Unit 2, The Park Office Suites

Near Parklands Police Station, Parklands Road

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

Tel: +254 711 112 744 737 391 011

Email: info@newmaticafrica.com

Kenya Property Developers Association... Development brings Development!

Kenya Property Developers Association... Development brings Development!


2017 CALENDAR OF EVENTS

DATE EVENT DETAILS LOCATION

Tuesday, 17 th

January 2017

CEO Breakfast Forum (7.30am – 9.40am)

Theme: ‘Launch of the NCA Online Project

Registration Platform’

Crowne Plaza Hotel, Nairobi

Tuesday, 21 st

February 2017

Tuesday, 7 th

March 2017

22 nd – 24 th

March 2017

Friday, 31 st

March 2017

5 th - 6 th April

2017

Thursday, 27 th

April 2017

Tuesday, 23 rd

May 2017

13 th – 14 th June

2017

Tuesday, 4 th July

2017

9 th – 15 th

September 2017

Tuesday, 3 rd

October 2017

Friday, 27 th

October 2017

1 st – 3 rd

November

2017

Construction Health and Safety Breakfast

Forum (7.00am – 9.30am)

Theme: 'Occupational Health and Safety

Standards in the Kenyan Construction Industry’

KPDA Learning and Development

Symposium (7.00am – 9.30am)

Theme: ‘Understanding Construction Contracts’

Africa Green Building Summit

5 th KPDA AGM and Koroga Event

(6.00pm onwards)

East African Property Investment Summit

2017

KPDA/MRM Meet and Greet Koroga Event

(6.00pm onwards)

KPDA CEO Breakfast Forum (7.00am –

9.30am)

Theme: ‘Effects of the Elections on the Kenyan

Real Estate Industry 2017

Sustainable Properties Africa Conference

and Exhibition SPACE Event

KPDA Workshop (9.00am – 2.00pm)

Theme: ‘Capital Funding and Structuring’

KPDA 2017 International Trip to UAE

KPDA Roundtable Meeting with Kiambu

County Government (9.00am – 11.30am)

KPDA End of Year Corporate Networking

Koroga Event (6.30pm onwards)

The Big 5 Construct East Africa

International Building and Construction

Show 2017

Crowne Plaza Hotel, Nairobi

Bowmans (Coulson Harney) Advocates –

ICEA Lion Centre, West Wing

The UN Complex, Nairobi

Spice Roots Restaurant – Simba Union

Club, Nairobi

Radisson Blue Hotel

Koroga Country Club - Nyali, Mombasa

Hotel Royal Orchid, Nairobi

Radisson Blu Hotel, Nairobi

To be confirmed

Dubai, United Arab Emirates (UAE)

Kiambu County

Spice Roots Restaurant – Simba Union

Club, Nairobi

Kenyatta International Conference

Centre (KICC)

Kenya Property Developers Association... Development brings Development!

Kenya Property Developers Association... Development brings Development!

1

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HOW TO JOIN THE KENYA PROPERTY DEVELOPERS ASSOCIATION

The Kenya Property Developers Association (KPDA) was established in Nairobi in 2006 as the

representative body of the residential, commercial and industrial property development sector in

Kenya. We are an emerging Business Member Organisation which works in proactive partnership with

policy-makers, financiers and citizens to ensure that the property development industry grows rapidly

but in an organized, efficient, economical and ethical manner.

Our current membership is a diverse make up of all industry players including property development

firms, real estate agents and managers, professional firms, industry suppliers, government agencies,

institutional investors and managers and financial institutions who are based both in Kenya and

globally. Principally, KPDA champions the interests of the industry to ensure a better business

environment.

Benefits of Joining KPDA

Become a part of an influential body representing major industry players. And help set our wideranging

and diverse agenda.

Join the conversation on policy reforms through our unique engagement with influential

government players that contribute to the overall success of your business.

Access to information on the latest issues affecting the industry, via regular publications,

newsletters, media reports and research;

Participate in networking events, putting you in touch with industry investors and potential

clients;

Attend professional development courses which reflect the changing nature of the property and

indeed building and construction industry as a whole;

Access marketing opportunities that will increase your business profits as you meet potential

clients and partners during KPDA events

While membership to KPDA is open only to registered companies or organizations, the benefits of

membership extend to all staff in our member companies or organizations.

Categories of Membership

1. Premium Membership (Open to Developers and Non Developers)

2. Corporate Membership (Open to Developers Only)

3. Associate Membership (Open to Developers and Non Developers)

CATEGORY ENTRANCE FEES ANNUAL

TOTAL

SUBSCRIPTION

Premium Member Kshs. 25, 000 Kshs. 60, 000 Kshs. 85, 000

Corporate Member Kshs. 12, 000 Kshs. 25, 000 Kshs. 37, 000

Associate Member Kshs. 12, 000 Kshs. 25, 000 Kshs. 37, 000

Membership Admission Requirements

In order to join KPDA, the following should be submitted to the KPDA Secretariat:

1) Fill the KPDA Membership Application Form

2) Sign the KPDA Code of Conduct

3) Attach a copy of your company's certificate of registration or incorporation and

4) Make the relevant payment

Submission may be made either physically or electronically. For more information, please contact:

Visit us online

FROM THE KPDA SECRETARIAT

“An entrepreneur is someone who jumps off a cliff and

builds a plane on the way down.” ~ Reid Hoffman

Welcome to the 2017 first issue of The

Developer’s Digest! In this issue we

are delighted to share with you the

Association’s achievements over the

last 10 years (we turned 10 in 2016!). We

will also bring you up to speed on the

first quarter of the year’s activities, it is

amazing how fast we have gotten to the

month of April.

Key to our members, we are proud to

announce the introduction of 2 new

Directors to the KPDA Board; Anne

Muchiri (Managing Director – Rozanna

Properties Ltd) and Ravi Kohli (Founder

and Managing Director – Karibu Homes).

Anne is ‘returning’ to the Board being one

of the founder members of KPDA who in

2006, gave free and legal support to the

Association. Ravi joins the Board with a

wealth of passion and experience in the

provision of affordable and dignified

housing for Kenyans. KPDA is embracing

the provision of affordable and low

cost/dignified housing as an advocacy

agenda this year and welcomes Ravi’s

contribution to see its fruition.

Also in this issue is our Focus on Policy

article whose focus is on the 2017 Kenyan

Budget. We have paid specific focus to

matters dealing with the building and

construction industry and hope that the

information will deem useful to you in

running your businesses. We are happy

to note that one of the issues we have

been lobbying for bore fruit. The 2017

– 2018 Budget Statement indicates the

commitment by the Government to set

up a ‘One Stop Centre’ for the payment

of all licences and fees effective April

2017, which is a move to ease doing

business in Kenya for investors. As you

are aware, 2017 is an election year for

Kenya and with it comes certain effects

to your businesses, but albeit it all, we

remain hopeful that our businesses can

continue to thrive. During the month

of May, we will be organizing a CEO

Breakfast Forum to specifically focus on

remedial actions that can be taken to

help our businesses ‘survive despite and

inspite of the elections.’ This invitation is

included in this issue..

Finally, we continue to share our

research reports with you and in this

issue you will find the Nairobi City

County Government Building Permitting

Approvals Report for the period January

to December 2016. Once again, I would

like to thank our members and partners

for continuing to support the KPDA

dream.

Viva KPDA!

KPDA wishes to welcome our newest members:

• Newline Ltd

• Kamhomes Investments Ltd

• Nomadic Tents (K) Ltd

• Diamond Property Merchants

• Heri Homes Ltd

• K.Mberia and Partners Advocates

• Green Kenya Corporation Ltd

• VAAL Real Estate Ltd

• Davis & Shirtliff Ltd

Elizabeth

• Africa Reit Ltd

• Ali Fabrication Solutions Ltd

• Emerge Developments

• Sterling and Wilson Private Ltd

• Leo Capital Holdings Ltd

• Dream Homes Construction Company Ltd

• Galaxy Heritage Ltd

• Paradigm Projects Ltd

Welcome to the KPDA Family!

The KPDA Membership Relations Officer, Liz Kayaki

Kenya Property Developers Association

Fatima Flats, Suite 4 B

Marcus Garvey Road off Argwings Kodhek Road, Kilimani Area

P. O. Box 76154 - 00508

NAIROBI, KENYA

Telephone: +254 737 530 290/0705 277 787

Email: e.kayaki@kpda.o.ke

Website: www.kpda.or.ke

Kenya Property Developers Association... Development brings Development!

Welcome to the KPDA Family!

Kenya Property Developers Association... Development brings Development!

3 4


FOCUS ON POLICY

SUMMARY OF THE BUDGET STATEMENT FOR

THE FISCAL YEAR 2017/2018

(1 ST JULY 2017 – 30 TH JUNE 2017)

BY MR. HENRY K. ROTICH, EGH

CABINET SECRETARY FOR THE NATIONAL TREASURY

30TH MARCH 2017

THEME: ‘CREATING JOBS, DELIVERING A BETTER LIFE FOR ALL KENYANS’

STATEMENT DELIVERED TO THE

NATIONAL ASSEMBLY ON 30TH

MARCH, 2017 BY MR. HENRY K.

ROTICH, CABINET SECRETARY FOR

THE NATIONAL TREASURY, REPUBLIC

OF KENYA, WHEN HIGHLIGHTING

THE BUDGET POLICY AND REVENUE

RAISING MEASURES FOR FISCAL

YEAR 2017/18

© Budget Statement 2017

To obtain copies of the document,

please contact:

Public Relations Office

The National Treasury

Treasury Building

P. O. Box 30007-00100

NAIROBI, KENYA

Tel: +254-20-2252-299

Fax: +254-20-341-082

The full statement is also available on

the website at: www.treasury.go.ke

INTRODUCTION

It is my singular pleasure to present

the Budget for the FY 2017/18, the fifth

Budget under the Jubilee Government.

Mr. Speaker, this Budget is the first in our

history to be presented before the month

of June. Mr. Speaker, we have brought

forward the reading of the Statement in

order to allow the Honourable Members

to approve the Appropriation Bill in time

and focus on the elections scheduled for

August 8, 2017.

We have consulted our Partner States

in the East African Community (EAC) on

the timing of the budget presentation

and have agreed that Kenya can proceed

with an early presentation of the Budget

while the other Partner States will

present theirs at the same time in Mid-

June 2017.

Mid this month, we were reminded,

by His Excellency President Uhuru

Kenyatta during his 2017 State of the

Nation address in this Chamber, of an

extraordinary Kenyan journey of four

years of transformation, growth and

deepening democracy. Kenyans are

proud of these achievements as they

have happened through collective

participation, partnership and the usual

dynamism of our private sector.

Four years ago, the Jubilee

Administration inherited an economy

which although had achieved several

milestones, still had insufficient and

expensive power with limited access,

a century old railway, limited road

network and port capacity, poorly

equipped security forces, high maternal

and child mortality, a poorly managed

education sector, inadequate social

protection for the poor and vulnerable,

and disharmonized pay for public

servants, among others.

But today, and to use His Excellency the

President’s words again, “we celebrate a

transformed Kenya.”

This transformation is the culmination

of four years of working tirelessly to put

in place policies and reforms to foster a

rapid socio-economic transformation of

our country.

In this endeavour, I feel very encouraged

by the strong support we have received

from Kenyans of all walks of life. I am

happy to report to all Kenyans that we

have made significant progress towards

achieving our development goals.

Specifically:

At the macro level:

The value of goods and services we

produce has risen from Kshs. 4, 745

billion in 2013 in to an estimate of

Kshs. 6, 951 billion in 2016. As a

result, our per capita income rose

from Kshs. 113, 210 in 2013 to an

estimate of Kshs. 152, 671. Making us

a lower medium income economy.

This reflects the improvement of

our business climate as indicated in

the move from position 136 in 2013

to position 92 in the World Bank’s

Doing Business Indicators;

• Revenue collection has increased

from Ksh 1,001.0 billion in 2013/14

to the projected Kshs. 1,515.5 billion

in 2016/17, a 51 percent increase;

• Since 2013, our economy has

generated a total of 2.3 million new

jobs. In 2015 alone, 841, 600 new

jobs were created with similar levels

expected in 2016;

• Kenyans and their properties are

more secure today following the

heavy investment in the security

sector – The number of police

vehicles has risen from 3,155 in 2013

to 6, 363 in 2017.

FOCUS ON POLICY

SUMMARY OF THE BUDGET STATEMENT FOR THE FISCAL YEAR 2017/2018

With regard to infrastructure:

The movement of goods and people

around the country has been made

cheaper and more effective through

expansion of most roads, seaports

and airports. On the SGR, after going

over a century without a modern rail,

we have in three years constructed

a modern railway that will have

significant positive spill-over effects

on the economy;

• Today, more than 5.2 million Kenyans

have been connected to electricity

compared to 2.3 million in 2013.

In four years, we have connected

more Kenyans to the grid than in all

years since independence! This is a

remarkable achievement.

At the sectoral level:

• More of our farmers now have

access to subsidized fertilizer and

seeds, enabling them to increase

productivity of their lands, earn

more incomes and indeed make

Kenya more food secure,

• Reflecting our investment in

security, the tourism sector, which

was shrinking by 4.6 percent in 2013

is now expanding by 15 percent

and creating jobs for our youth and

women.

We have also invested heavily in

critical social sectors as well as on the

less fortunate:

• We have equipped our hospitals

with specialized medical equipment,

and maternal health care is now free

in all public hospitals;

• More of our children go to school

without their parents worrying

whether they can afford the school

fees;

• Examination fees for both standard

eight and form four candidates have

been abolished; and thousands of

orphans and vulnerable children,

people living with disabilities and

the elderly in our society continue

to receive cash transfers through the

social safety net program.

• In order to empower Kenyans

without title deeds, the Government

has issued 2.5 million title deeds

which, among other things, will

facilitate access to capital. Going

forward, the Government will be

waiving land title search fees with

immediate effect.

On devolution:

• Since 2013, about Ksh 1 trillion will

have been disbursed by end June

2017 to all the Counties to enhance

service delivery. This is a clear

demonstration of the Government’s

commitment to a strong devolved

system of Government.

While we celebrate these remarkable

achievements, we should not be

complacent. Having laid a firm

foundation for businesses to thrive and

expand, our focus is now to invest in

accelerating job creation especially for

the youth.

This is why we have chosen as the theme

for this year’s budget, “Creating Jobs,

Delivering a Better Life for All Kenyans”.

This budget builds on the transformation

we have achieved so far and emphasis

the need to support the sectors with

a high potential for creating jobs for

our youth such as manufacturing and

agriculture.

Among the strategies to be employed

will include supporting domestic

production and value-chains, boosting

exports, encouraging entrepreneurship,

continuing with business climate reforms,

completing on-going infrastructure

programmes, modernizing agriculture

and agro-processing, protecting the

vulnerable and supporting emerging

growth sectors.

All this will be accomplished within

sustainable public finances in order

to continue securing macroeconomic

stability. In sum, the 2017 Budget is

about building on the recent successes

and delivering jobs and prosperity to

Kenyans.

HIGHLIGHTS FROM THE BUDGET

1. This budget will continue to

empower businesses and

entrepreneurs to invest, grow

and create jobs. This budget

will continue to implement our

transformation agenda to build

new roads, railway and other

infrastructure that will generate

new growth opportunities. We will

also continue to prioritize social

spending in support of education,

health services and cash transfers

to vulnerable groups. This budget

will continue to support devolution

through disbursement of resources,

and maintaining transfers to County

Governments at levels well above

the constitutional threshold.

2. In this budget, we shall continue

to progressively reduce the fiscal

deficit and ensure the continued

sustainability of our debt. In this

regard, in the FY 2017/18, we project

the fiscal deficit to decline to 6.0

percent of GDP from an estimated

9.0 percent in the FY 2016/17.

The sharp reduction of the deficit

reflects reduced expenditures

owing to the one off expenditures

mainly those related to the General

elections and the drought which

are not expected to recur. Over

the medium term, the deficit is

expected to narrow to 4 percent of

GDP by 2019/20 which will further

lower our debt-to-GDP ratio.

3. To further accelerate growth, create

jobs and better the lives of Kenyans,

I will be proposing tax incentives to:

a) Support Growth and Domestic

Production;

b) Reduce Income Inequality;

c) Promote Job Creation;

d) Improve Tax Administration

and Compliance; and

e) Enhance Social Security and

Welfare.

5

Kenya Property Developers Association... Development brings Development!

Kenya Property Developers Association... Development brings Development!

6


FOCUS ON POLICY

KPDA WINS

SUMMARY OF THE BUDGET STATEMENT FOR THE FISCAL YEAR 2017/2018

AGENDA 2017/18 AND BEYOND:

CREATING JOBS, DELIVERING A

BETTER LIFE FOR ALL KENYANS

Continuing with Improving the

Business and Investment Climate

Macroeconomic Stability

To support an environment where more

jobs will be created, the Government

is strongly committed to pursuing

prudent fiscal and monetary policies

that support strong economic growth,

ensures price stability and maintains our

debt at sustainable levels.

Our fiscal policy will continue to focus on

prioritizing development expenditures

to support growth, while curtailing

growth of non-productive recurrent

expenditures.

Monetary policy will target to keep

inflation within the target range of 2.5

percent on either side of 5.0 percent.

To further reinforce price stability, our

proposed fiscal policy will help keep

interest rates low and stable and the

exchange rate broadly stable and

competitive to support our exports.

Business Regulatory Reforms

The Government has significantly

reduced the time and cost of opening

and operating a business, thus making

it easier for investors to start and run a

business.

This has been achieved as a result of the

implementation of measures initiated

by the dedicated Business Environment

Delivery Unit at the Ministry of

Industrialisation, and Enterprise

Development.

Kenya’s business environment has

improved remarkably. Over the past

three years, Kenya’s ranking in the

World Bank’s Doing Business indicators

has improved from 136 to 92, largely

due to reforms in getting credit,

getting electricity and ease of starting

a business.

In 2016, we were ranked third out of

the World’s top ten reformers. With the

objective of achieving a rank below 50

in the medium term, we have passed

appropriate legislations and processes

to reduce the time, steps and costs

associated with opening a business,

obtaining construction permits,

single business permits and property

registration.

To further improve our ranking, I have

allocated Kshs. 250 million to support

initiatives to the ease the cost of doing

business.

Today, Kenya is a preferred investment

destination in Africa with many major

companies from across the globe

starting operations in the country. As a

result, foreign direct investment (FDI)

has risen from about US dollar 0.514

billion in 2013, to at least US dollar 2.3

billion in 2016.

In an effort to reduce obstacles that

hinder faster growth of investment, the

Government has established a One Stop

Centre (OSC) for investors which will be

operational by April 2017.

The Government has also established

e-regulation and will soon be

establishing the e-Opportunities to

enable investors interested in Kenya

to search for investment opportunities

available in Kenya from the comfort of

their homes.

These initiatives, in addition to the

existing Huduma Centres, will provide

comprehensive information to investors

on licenses, permits and approvals that

are currently offered in a multiplicity

of Government agencies located

in different parts of the city, further

sustaining increased FDI inflows in the

country.

We are aware of complaints from

our business community of double

taxation of their activities by County

Governments. This is not only bad for our

investment climate but is also a violation

of Article 209 of our Constitution.

Accordingly, I will be making legislative

proposals to Parliament that will set

out how County Governments may

raise revenues without violating the

Constitution and raising the cost of

doing business.

This budget will maximize social benefits

for all Kenyans. It will support industries,

create jobs and improve the quality of

life of Kenyans.

It will also help us realize a cleaner

environment; provide quality social

services (Health and Education), and

enhance access to efficient public

transport.

In sum, it is a budget that carefully

balances on the one hand the need to

reduce the cost of living for the poor

by enhancing social sector spending

while continuing to strengthen the

foundation for long-term economic

growth, job creation and provision of

incentives for rapidly moving towards

industrialization of our economy.

© Budget Statement 2017

To obtain copies of the document,

please contact:

Public Relations Office

The National Treasury

Treasury Building

P. O. Box 30007-00100

NAIROBI, KENYA

Tel: +254-20-2252-299

Fax: +254-20-341-082

The full statement is also available on

the website at: www.treasury.go.ke

BY MR. HENRY K. ROTICH, EGH

CABINET SECRETARY FOR THE

NATIONAL TREASURY

30TH MARCH 2017

THEME: ‘CREATING JOBS, DELIVERING

A BETTER LIFE FOR ALL KENYANS’

The Kenya Property Developers

Association was established in Nairobi in

2006 as the representative body of the

residential, commercial and industrial

property development sector in Kenya.

It is an emerging Business Member

Organisation which works in proactive

partnership with policy-makers,

financiers and citizens to ensure that the

property development industry grows

rapidly but in an organized, efficient,

economical and ethical manner.

1. The Association started with

a membership of less than 30

members and to date has now

grown to 150 members;

2. Following consistent and

combined lobbying with industry

partners and the National

Construction Authority (NCA) ,

the NCA Construction Levy was

scrapped off effective 1st January

2017;

3. Contributes to the excellence

within the industry through the

promotion of world-class practice

standards and sector-specific

educational programs;

4. Our collaboration with significant

market players in the establishment

of the National REITs Association

which will ensure the smooth

implementation of REITs in Kenya

as well market REITs to encourage

foreign investment in the Kenyan

property market;

5. Compiles and disseminates

focused research and analysis to

inform sound policy analysis and

public education;

6. Our strengthened collaboration

with the public sector resulting in

KPDA being nominated into the

Ministry of Land, Housing and

Urban Development Affordable

Housing Contact Group;

7. Committed service to policy

reforms through our participation

on the Kenya Private Sector Alliance

(KEPSA) Land, Housing and Urban

Development Sector Board;

8. Active and successful joint input

into the review of the Proposed

2014-2015 Finance Bill;

9. Established strong ties with

significant industry players

such as the Nairobi City County

Government, the National

Construction Authority, the

Ministry of Transport, Infrastructure,

Housing and Urban Development,

the Upper Hill District Association

(UHDA), the UN Habitat, the Kenya

Private Sector Alliance (KEPSA)

amongst others;

10. Demonstrated our commitment

towards Kenya having a

sustainable, green environment

by our continued collaboration

with the UN Habitat and the Kenya

Green Building Society;

11. The consistent and informed release

of data to our mailing list through

our Media Weekly Review Reports

and our bi-monthly e-newsletter,

The Developer’s Digest;

12. The successful organization of

several events both aimed at

providing professional networking

and educating platforms.

Our mission remains; ‘To promote the involvement of the private sector in

development through advocacy, education, research and ethical standards’

Thank you to the 150 members who continue to share our dream…

Kenya Property Developers Association

Fatima Flats, Suite 4 B

Marcus Garvey Road off Argwings Kodhek Road, Kilimani Area

P. O. Box 76154 - 00508

NAIROBI, KENYA

Telephone: +254 737 530 290/0705 277 787

Website: www.kpda.or.ke

Kenya Property Developers Association... Development brings Development!

Kenya Property Developers Association... Development brings Development!

7 8


Profiles of KPDA Board of Directors

Appreciation to KPDA Sponsors

Mucai Kunyiha

KPDA Chairman

Palkesh Shah,

Vice Chairman for the Board

Emma Achoki

Treasurer

Ken Luusa

Board Director

Margaret Kibe

Board Director

Ravi K. Kohli

Board Director

A SINGLE BEAM CANNOT

SUPPORT A GREAT HOUSE

Mucai Kunyiha is an LL.B (Hons.)

graduate of the University of

Wales, Cardiff and an advocate of

the High Court of Kenya. He also

holds an MBA from Ashridge, UK.

Mucai is the General Manager of

Coopers K-Brands Ltd, an animal

health company in East and Central

Africa. He is also the Managing

Director of Kzanaka Ltd, a Kenyan

property development firm.

Palkesh Shah holds a Bachelor

of Science Degree in Business

Management from New

Hampshire College. He is a

Director at Chigwell Holdings Ltd a

property development company.

Emma Achoki is the Managing

Director of Oakpark Properties

Ltd. She holds a Bachelor

of Commerce Degree from

Kenyatta University and a

Masters in International Business

Administration from the United

States International University.

She has previously worked with

PricewaterhouseCoopers (PwC) in

Kenya and Tanzania for 13 years.

She is a Certified Public Accountant

(CPA-K) and also passed Level One

of the Certified Financial Analyst

(CFA) Examinations.

Ken serves as the Managing

Director of Acorn Management

Services Limited. Prior to joining

Acorn Group, Ken served as

the Regional Chief Executive

Officer of Property Development

and Management Ltd (PDM),

an Aga Khan Development

Network Company where he was

responsible for managing and

developing the organization’s

commercial property portfolio in

East Africa. He is a Board Director

at KPDA.

Margaret is the Managing Director

at Bahati Ridge Development

Ltd. She has nearly twenty years

of experience in consulting,

production, logistics and event

management services. Her

primary areas of focus are in

real estate development and

property management. Margaret

holds a Post Graduate Certificate

in Film, Television and Digital

Etertainment and a BSc. In

Accounting with Honours.

Ravi is the Founder and Managing

Director of Karibu Homes, a large

scale affordable housing developer

of 1, 200 units under construction

in Athi River. He currently serves

as a member of the KPDA Public

Policy & Advocacy Committee. He

has 15 years working experience

in property development both in

Kenya and the United Kingdom and

holds a BA (Hons) in Economics and

Human Resource Management.

The Kenya Property Developers Association would like to appreciate

the financial and otherwise support that it has received from the

following companies:

The National Construction Authority

• AskaDoc

• Coulson and Harney Advocates and

• Simba Corporation Ltd

• Davis and Shirtliff and

• Newmatic Africa Ltd

With you we were able to celebrate a successful first quarter of the year.

Asante sana…

Hamish Govani

Immediate Past Chairman

Hamish is the Executive Director

of Lantana Homes. He holds

a Bachelors Degree in Civil

Engineering, ACGI and a Masters

in Business Administration.

Hamish has diverse experience

in real estate development and

has overseen several construction

projects in the country.

Gikonyo Gitonga

Board Director

Gikonyo is the Managng Director

at Axis Real Estate Ltd. He is a

highly experienced and qualified

Real Estate professional services

expert and holds an MSc (Econs)

in Urban Development Planning

from the University of London

and a BA (Land Economics) from

the University of Nairobi. He is a

full member of The Institution of

Surveyors of Kenya (Valuation &

Estate Agents Chapter) and is a

Registered Estate Agent.

George Wachiuri

Board Director

George holds a Masters of

Business Administration from

University of Nairobi and a

Bachelor of Commerce (Marketing

Option) and is a Certified Public

Accountant CPA (K). He is the

founder and CEO of Optiven Group.

Caroline Karugu

Board Director

Caroline is a Senior Associate in the

Real Estate and Finance department

of Anjarwalla & Khanna Advocates

and focuses mainly on property

law, property development work,

real estate financing, property joint

ventures and structuring of mixed

use developments. She has handled

a variety of property transactions

including, structuring of property

joint ventures, property acquisitions,

residential and mixed use projects,

large scale commercial retail leasing,

property management contracts

and securities.

Anne W. Muchiri

Board Director

Anne acted as a legal adviser and a

founder Director of the then Kenya

Private Developers Association. She

is currently serving as a member of

the KPDA Public Policy and Advocacy

Committee. She is currently the

Managing Director of Rozana

Properties Ltd, a company engaged in

development and sale of residential

homes. Anne is a Certified Public

Speaker (Toastmasters International)

and the Board of Directors of KPDA

has 100% confidence in the positive

impact Anne will make on the Board.

Our goal has

always been to

meet the needs

of our members

by providing

current industry

information,

high standards

of engagement

and quality

networking

events.

Now

you can

reach

us at

www.kpda.or.ke

Kenya Property Developers Association... Development brings Development!

Kenya Property Developers Association... Development brings Development!

9

10


HAVE YOUR SAY

HAVE YOUR SAY

INNOVATIONS IN CONSTRUCTION IN 2017

Innovation is a wide concept that

includes improvements in processes,

products or services. It involves

incorporating new ideas which

generate changes that help solve the

needs of a company and so increase its

competitiveness.

Standardized management of

innovation can help a company reap

significant rewards:

• Improvement in organization of

activities;

• Improvement in the company’s

competitiveness in the medium

and long- term;

• Efficient exploitation of the

organization’s knowledge

particularly from its skilled

personnel;

• Systematization of processes and

product knowledge;

• Client satisfaction

SO WHAT ARE THE CONSTRUCTION

TRENDS IN 2017?

1. Collaborative Project Delivery

Methods: Experts expect collaborative

approaches to become more common

for projects. Design-build, public-private

partnerships and integrated project

delivery are three of the most oftencited

methods that are altering the

industry and are likely to gain ground in

2017.

Here construction is to be carried out

on a team basis amidst the stakeholders

involved in the construction project

such as engineer, architect, owner

and contractor to collectively design

project goals, costs, risk – sharing

and compensation. This promotes

achievement of a more sustainable

project that efficiently meets the needs

of the target market and also save on the

time taken in the project development.

Within the same collaboration, a

government entity may also hire a

group from the private sector to design,

finance and build a large project and

thereafter operate and maintain the

facility for years before handing it over.

2. Offsite/Modular Construction:

Offsite construction, also called modular

or prefab is aimed at condensing the

construction schedule of a project and

saving cost. This involves structures

known as prefabs been manufactured

offsite (in factories) in standard sections

that’s are then transported to the

construction site. This also helps in

ensuring quality control e.g. in the case

where you would not have to deal

with weather changes as it delivers

components as and when needed.

Contractors are finding that offsite

methods allow them to reduce hours

onsite, improve efficiency and perform

more subassemblies than in the past.

3. VR/AR Technology: Virtual and

augmented reality technology

enhances collaboration among project

stakeholders before building begins. VR

and AR allow the construction team to

detect errors ahead of time and avoid

costly mistakes. They also have the

potential to improve job site safety, such

as letting managers and workers view

job site conditions without subjecting

them to safety hazards.

HIGHLIGHTS ON TOP CONSTRUCTION

METHODS IN 2017

1. Self - Healing Concrete: Cracking

is a major problem in construction,

usually caused by exposure to water

and chemicals. Researchers at Bath

University are looking to develop a selfhealing

concrete, using a mix containing

bacteria within microcapsules, which

will germinate when water enters a crack

in the concrete to produce limestone,

plugging the crack before water and

oxygen has a chance to corrode the steel

reinforcement.

2. Photovoltaic Glazing: Building

integrated photovoltaic (BIPV) glazing

can help buildings generate their own

electricity, by turning the whole building

envelope into a solar panel. Companies

such as Polysolar provide transparent

photovoltaic glass as a structural

building material, forming windows,

façades and roofs.

3. Cloud Collaboration: Basestone is

a system allowing the remote sharing

of data on a construction site in real

time. It is predominantly a review tool

for engineers and architects which

digitizes the drawing review process

on construction projects, and allows for

better collaboration. The cloud-based

collaboration tool is focused on the

installation of everything from steel

beams to light fittings. The system is

used to add “snags”, issues that happen

during construction, on to pdfs, then

users can mark or add notes through

basestone. Trials have revealed possible

cost-savings of around 60 per cent

compared with traditional paper-based

review methods.

4. Asset Mapping: Asset mapping

focuses on operational equipment,

including heating and air conditioning,

lighting and security systems, collecting

data from serial numbers, firmware,

engineering notes of when it was

installed and by whom, and combines

the data in one place. The system

can show engineers in real time on a

map where the equipment needs to

be installed and, once the assets are

connected to the real-time system

using the internet of things, these can

be monitored via the web, app, and

other remote devices and systems. It

helps customers build databases of

asset performance, which can assist in

proactive building maintenance, and

also reduce building procurement and

insurance costs.

5. Alternative Construction Materials:

Other ways of meeting the demand

for cost-effective, yet environmentally

friendly homes is through the use of

alternate construction materials such

as recycled fly ash (a waste by-product

of coal combustion). This medium can

be utilized to build budget housing

of fairly high quality. Other alternate

construction media are interlocking

bricks, hollow concrete blocks, rubble

filler blocks, stabilized mud-based

blocks and funicular (or rope-like) shells.

By using alternative construction

materials and methods, construction

costs can be reduced by a minimum of

10 to 15% in terms of materials and up

to 20% in terms of skilled manpower

expenses and construction time.

What are the Building Blocks that set

the Foundation to Apply Innovation in

Construction?

1. People: There is need for a highly

skilled workforce, where there is diversity

of thought to promote collaboration

of this skills in innovations that

would eventually lead to a successful

construction project.

2. Strategy and Delivery: The

innovation process needs to be

systematized to ensure that the

innovation delivers an output.

3. Investing in Innovation: Investment

is a crucial input in innovation. Investing

in people and platforms, as well as

traditional Research and Development

initiatives, will create an environment

where innovation can thrive.

4. Knowledge Sharing: Traditionally,

the construction industry has not been

particularly proactive in sharing and

learning from its successes and failures.

The lack of knowledge capture from

previous projects results in ‘reinventing

the wheel’ and repeated mistakes.

5. Research and Development: The

construction industry does not invest

heavily in Research & Development.

This is proven at both a national level

where construction lags behind other

industries. Resources need to be

invested in the research sector to ensure

developers are better equipped with

knowledge.

6. Standards and Regulation:

Standards and regulations that are

highly prescriptive can stifle innovation.

There has been little incentive or

reward for exceeding or diverting from

standards, encouraging the same triedand-tested

solutions to be re-used to

meet requirements and prohibiting

advances in technology from being

driven forward, especially when not

supported in regulated industries.

7. Embracing Technology: Building

Information Modelling (BIM), sensors,

and smart construction technology will

transform the way we design, construct

and manage assets. With the rise of

the digital economy, embracing the

technology that is already available to us

in this industry will enable innovations

to move from concept to reality.

CONCLUSION

There is still a fair degree of resistance,

both from developers and buyers, to

projects built with alternate construction

materials.

In many developing countries, there

is still an erroneous assumption that

the use of cost-effective alternate

construction materials results in inferior

structures. Knowing that a building

has been built with anything but

conventional materials and technologies

cause potential buyers to have concerns

about its safety, durability and resale

value.

This lack of awareness can result in a

loss for developers who use them, since

it would impact the marketability of

their product. Alternative construction

materials have therefore not yet become

a very popular route among developers.

The primary challenge lies in convincing

buyers of the inherent value of such

projects, and also to educate developers

on the long-term business potential.

There needs to be a greater level of

awareness.

However, regardless of the above

mentioned challenges, the real estate

sector must support the use of cuttingedge

and environmentally sustainable

infrastructure, as well as commit to

working in collaboration with key

stakeholders to encourage innovation

and entrepreneurial thinking.

REFERENCES

1. DconstructionDive, Emily Peiffer, Jan 3

2017

2. Business/Future of Construction, Felicia

Jackson, June 14 2015

3. India Infoline News Service, Kishor Pate,

September 11, 2014)

4. Institution of Civil Engineers, Rob Curd,

February 15 2016

Kenya Property Developers Association... Development brings Development!

Kenya Property Developers Association... Development brings Development!

11

12


KPDA DIRECTORY OF MEMBERS

KPDA DIRECTORY OF MEMBERS

KPDA DIRECTORY OF MEMBERS IN GOOD STANDING AS AT 12 TH APRIL 2017

Nanyuki Mall Ltd

Tatu City Ltd

DLR Group Africa Ltd

Nabo Capital Ltd

PREMIUM MEMBERS

Ali Fabrication Solutions Ltd

Synthesis Systems Ltd

Coral Property International Ltd

Ijenga Ventures Ltd

Natureville Homes

Tilisi Developments Ltd

Emerge Developments Ltd

Nanchang Foreign Engineering

Company (Kenya) Ltd

Bamburi Cement Ltd

Tandem & Stark Ltd

County Home Developers Ltd/Runda

View Ltd

INFPAC Ltd

Oakpark Properties Ltd

The Epic Properties Ltd

Galaxy Heritage Ltd

Nomadic Tents (K) Ltd

Britam

Diamond Property Merchants

Fusion Capital

HF Development and Investment Ltd

Vaal Real Estate Ltd

Yasian Technology Company Ltd

CORPORATE MEMBERS

Acorn Management Services Ltd

Cytonn Real Estate

Daykio Plantations Ltd

Dream Home Construction

Company Ltd

Jabez Properties

Kamhomes Investment Ltd

Karibu Homes

Kings Developers Ltd

Optiven Limited

Paradigm Projects Ltd

Parmalen Investments Ltd

Thika Greens Ltd

Unity Homes Ltd

Urban Nirvana Property Solutions Ltd

Global Property Advice

Green Kenya Corporation Ltd

Honeywell Technologies (K) Ltd

Kanaga & Associates

Oraro & Company Advocates

Pam Goldings Properties Ltd

Paragon Architects

Property Link Africa Ltd

Imaran Real Estate Ltd

KCB Bank

Africa Reit Ltd

AMS Properties Ltd

Dunhill Consulting Ltd

Edifice Ltd

Kzanaka Ltd

Leo Capital Holdings Ltd

PDM (Kenya) Ltd

Pediment Developers

Pioneer Holdings (Africa) Ltd

ASSOCIATE MEMBERS

Anjarwalla & Khanna Advocates

Axis Real Estate Ltd

Karanja Njenga Advocates

K.Mberia and Partners Advocates

KN Associates LLP

Questworks Ltd

Ratemo & Company Advocates

Re/Max Heritage

Mabati Rolling Mills Ltd

Bahati Ridge Development Ltd

Elm Ridge Ltd

Property Reality Company Ltd

Broll Kenya Ltd

Knight Frank Kenya Ltd

Saj Ceramics Ltd

State Department For Housing And

Urban Development

Mmc Africa Law

Blueline Properties Ltd

Boleyn Magic Wall Panel Ltd

Enkavilla Properties Ltd

Fedha (Management) Ltd

Lordship Africa

Manrik Group

Rozana Properties Ltd

Sayani Investments Ltd

Buy Rent Kenya Ltd

Cemex Holdings Ltd

Koto Housing Kenya

Laser Property Services Ltd

Secureman Services Ltd

ecureman Services

Limited

S

“ Your Security, Our Duty”

Soita & Associates Advocates

Newline Ltd

Newmatic Africa Ltd

Camelot Cosultants Ltd/Lantana Homes Ltd

Century City Property Ltd

Hass Consult Ltd

Heri Homes Properties Ltd

Mentor Management Ltd (Mml)

Mugumo Developments Ltd

Sigimo Enterprises Ltd

Simba Corporation Ltd

Spartan Developers Ltd

CFL and Company Advocates

Coulson Harney Advocates

Mahida And Maina Company Advocates

Mboya Wangong’u & Waiyaki Advocates

Murimi And Company Advocates

Spearhead Africa Ltd

Stanlib Kenya Ltd

Steel Africa Limited

Savannah Cement Ltd

Chigwell Holdings Ltd

Homescope Properties Ltd

Mwanzoni Ltd

Superior Homes Kenya

Davis & Shirtliff Ltd

Mehta Electricals Ltd

Sterling & Wilson Private Ltd

Kenya Property Developers Association... Development brings Development!

Kenya Property Developers Association... Development brings Development!

13

14


NCCG BUILDING PERMITTING APPROVALS

NCCG BUILDING PERMITTING APPROVALS

NAIROBI CITY COUNTY GOVERNMENT BUILDING

PERMITTING APPROVALS ACTIVITY REPORT

JANUARY – DECEMBER 2016

of 1997, this report depicts permits

that were issued in the following

average percentages in accordance

to the named classifications below:

• 80.9% (809) - Domestic Class

(commercial developments,

domestic buildings and

offices)

• 10.4% (241) - Public Class

(social halls, religious

buildings, libraries, schools,

etc.)

• 8.7% (199) - Warehouse

Class (industries, factories,

and go downs)

The statistics show that in the year 2016

approved proposed developments of

the Domestic Classification, had the

highest level of approvals issued due to

the ever increasing need for housing by

Kenyans and initiatives put in place by

the real estate industry on ownership of

homes by the middle income earners.

A comparative analysis is provided for the performance of all 4 quarters of the year.

PERMIT APPLICATION ACTIVITY BY SUB-COUNTY

1. There are more development activities on the Western

side of Nairobi compared to the Eastern side probably

because of the extra space available and the demand

for housing. The highest permits were approved in the

areas of Karen, Westlands, Industrial Area, Parklands

and Eastleigh.

2. Karen has the highest percentage of permits localitywise.

This would be as a result of the ongoing

construction of the Southern Bypass connecting the

Nairobi - Naivasha Highway to Mombasa Road. The

bypass has also enabled easy and fast commuting

to the Jomo Kenyatta International Airport and the

Wilson Airport. The neighbourhood has an organized

road network, with properly connected entry and

exit routes that lead to and from Nairobi’s CBD. This

would be one of the factors the developers might have

considered due to proximity and thus convenience. The

PERMIT APPLICATION ACTIVITY BY SUB-COUNTY

high number of permits in the Karen area are also very

likely due to the fact that rent or property owning in

Karen attracts high revenue. This is a likely factor that

developers considered in achieving better return on

capital;

3. Lavington has the least number of permits amongst

the top 10 areas of development regardless of being

very close to the CBD. Embakasi and Kilimani areas

attract fewer developments due to traffic and building

congestion. Lavington may be a discouraging location

for developers to set up office buildings as more and

more businesses are opting to be headquartered in the

Westlands are which has more space to accommodate

offices.

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

presentation.

Valley-View, Nairobi, Kenya

SOURCE

The 2016 KPDA Building Permitting

Activity Report provides a summary

of statistical information on planning

permitting activity in Nairobi from

January to December 2016. During this

reporting period, only statistics from

the Nairobi City County Government

are used as references. This report

uses standardized data submitted to

the Nairobi City County Government.

The report highlights information on

applications received, development

locations, types and values, department

revenue from applications and permit

processing performance.

INTRODUCTORY SUMMARY ON THE

REPORT

STATISTICS

A total of 2, 303 planning permit

applications were approved from

January to December 2016 with the

second quarter having the highest

number of approvals. Other key statistics

from this report include:

1. Value of approved permits

represents over Kshs. 117.9 billion

worth of development projects and

permitting fees collected were over

Kshs. 862.9 Million;

2. During 2016 the highest value of

buildings submitted for approval was

Kshs. 3, 000, 000, 000 (Kshs. 3billion)

by the Crossroad Ltd (Proposed

Shopping Mall) and the maximum

submission fee paid was Kshs. 186,

056, 000.

3. On average the estimated value of

building developments approved

was Kshs. 76, 233, 700 and that of the

submission fee was Kshs. 901,173.

4. Based on localities it was noted

from the statistics that most of the

developments were carried out in

Karen, Westlands, Industrial Area,

Kilimani and the Central Business

District.

5. Based on the Kenyan Building Code

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

permitting data was provided to the Kenya Property Developers Association by the Nairobi City County Government Physical Planning Department.

15

Kenya Property Developers Association... Development brings Development!

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

permitting data was provided to the Kenya Property Developers Association by the Nairobi City County Government Physical Planning Department.

Kenya Property Developers Association... Development brings Development!

16


NCCG BUILDING PERMITTING APPROVALS

NCCG BUILDING PERMITTING APPROVALS

DWELLING RELATED ACTIVITY ACROSS NAIROBI

Buildings approved included domestic

buildings, commercial developments, offices,

religious buildings, social halls, libraries,

schools, factories, industries and go downs. The

following graph identifies permit applications

that relate to various building classes.

1. It can be noted that 80.54% of the

planning submitted under the building

class category were domestic class which

includes domestic buildings, commercial

developments and offices. This indicates

a major shift for developers to provide

residential infrastructures as well as the

growing desire for Kenyans to own a

home. There is also the case of emerging

businesses, including but not limited to

foreign investors and SMEs which have

increased the demand for offices;

2. Over the past three years there has been a rapid urban population growth and therefore this could result to

development of dwelling facilities which is in accordance to the Kenya National Bureau of Statistics 2015 –

2016, Kenya National Housing Survey Basic Report whereby urban population is projected to grow by 50% by

2030. The increased development of domestic facilities has a direct influence on public infrastructures which

may have resulted to Public class having the second highest percent in developments within Nairobi.

BUILDING CLASS BY LOCALITY

routes that lead to and from Nairobi’s central business

district hence most of the developers shifted to

this locations. Also the value of land in these areas

is relatively high and this proves the nature of land

having an inelastic demand where the higher the value

may result to a higher demand.

3. The areas have closer proximity to Nairobi’s central

business district hence most convenient to most

Kenyans specifically for the middle income earners. The

NUMBER OF APPROVALS BY ZONAL USER DENSITY

1. The Residential Class

accounted for 75.41% of the

approvals due to an increase

in the middle aged working

population who consider

owning a home more crucial

than renting one and also high

demand by Kenyans to own

homes. Most of developers

have invested more on

Residential developments

which are more profitable due

to the growing demand. There

has been an improvement

in security within the nation

which has resulted in an influx

in foreign residents in Kenya

thus increasing the demand for

residential houses (in particular

well-furnished residential

infrastructures) mostly in the

high end areas.

2. Commercial Class buildings

accounted for 10.59% of the

approvals.

high number of permits approved in residential zones

like in Karen area is also likely due to the high capital

returns in rental and ownership income to be received

by developers as the area is considered high-end.

4. Due to increased population growth in Nairobi and

the growth of entrepreneurship, there has been a

huge demand for offices within the city and therefore

Westlands has been a favourable location for this

facilities over the year.

1. The highest development permits in the year 2016

were approved in Karen, Westlands, Kilimani, C.B.D

and Industrial Area with domestic infrastructures

dominating in these areas except from the Industrial

area where most of them were factories and

warehouses.

2. These neighborhoods have an organized road

network, with properly connected entry and exit

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

37% of the buildings presented for approval were valued between ten million and fifty million. Over seventy percent of these

buildings are domestic facilities rather than public, warehouses or commercial developments. This can be attributed to the high

demand of residential buildings.

Graph... next page

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

permitting data was provided to the Kenya Property Developers Association by the Nairobi City County Government Physical Planning Department.

17

Kenya Property Developers Association... Development brings Development!

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

permitting data was provided to the Kenya Property Developers Association by the Nairobi City County Government Physical Planning Department.

Kenya Property Developers Association... Development brings Development!

18


NCCG BUILDING PERMITTING APPROVALS

NCCG BUILDING PERMITTING APPROVALS

ESTIMATED COST OF APPROVALS ISSUED BY THE NAIROBI CITY COUNTY GOVERNMENT

PERMIT PROCESSING PERFORMANCE

1. The Month of May had the highest number of

approvals, with 618 approvals.

2. March recorded the highest number of approvals in

the first quarter. This was due to a high demand for

residential property. The planning system plays an

important role in improving the lives of the modern

society. It is meant to protect social amenities and the

environment for the public’s interest. How we live our

lives is shaped by where we live and therefore our

planning regulations have to cover many different

situations that influence the shape of lives of every city

resident and help protect the urban environment.

3. In the last quarter of 2015, Kenya experienced high

interest rates leading to a decrease in the number of

developments hence the low development rate in

January 2016.

4. Thereafter, in the first quarter of 2016, inflation came

down by 6.5% stabilizing the Kenyan shilling and

therefore increasing investors’ appetite for the property

market.

AVERAGE APPROVAL RATE BY THE NAIROBI CITY COUNTY GOVERNMENT

TO CARRY OUT BUILDING PERMITTING

PERMIT PROCESSING PERFORMANCE

1. Most of the permits took more than one month to

be approved. This accounted for 61.77% of the total

percentage. This delay in the approval process is

a cause for concern and the Nairobi City County

Government needs to offer sufficient explanation as

to the reasons behind this delay.

2. Permits that took less than one month to be

approved accounted for 38.24 % of the total

approvals. There was a great improvement on

approval time as compared to 2015. Some of the

factors leading to this improvement on approval

time could be as a result of the following factors:

• Most of the developers could meet the minimum

approval requirement

• Transparency in the urban and housing

department.

• Adequate support from professionals

throughout the entire plan preparation process.

There were very few disapproved plans therefore

this indicates that most of the plans met the

conditions for approval.

• Reduce land ownership conflicts over the period.

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

permitting data was provided to the Kenya Property Developers Association by the Nairobi City County Government Physical Planning Department.

19

Kenya Property Developers Association... Development brings Development!

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

permitting data was provided to the Kenya Property Developers Association by the Nairobi City County Government Physical Planning Department.

Kenya Property Developers Association... Development brings Development!

20


NCCG BUILDING PERMITTING APPROVALS

COMPARATIVE ANALYSIS BETWEEN THE FOUR QUARTERS OF 2016

The Developer’s

Digest

A KPDA PUBLICATION

KENYA PROPERTY DEVELOPERS A SOCIATION

The Kenya Property Developers A sociation celebrates its 10th year a niversary culminating in a

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

MEDIA PACK 2017

The highest average value of estimated cost was incurred during the October to December quarter of the year with the

least average value being January to March Quarter.

FOR MORE INFORMATION, KINDLY CONTACT THE KPDA SECRETARIAT

KENYA PROPERTY DEVELOPERS ASSOCIATION

Fatima Flats, Suite B4, Marcus Garvey Road

Off Argwings Kodhek, Kilimani Area

P. O. Box 76154 – 00508 Nairobi, Kenya

Domestic buildings

continue to have the

highest number of

approvals with the

highest number of

developments being

approved in the 2nd

quarter of the year.

Residential buildings

had the highest

number of approvals

which has been the

trend for the over the

whole year.

Telephone: +254 737 530290/0705 277787

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

Website: www.kpda.or.ke

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

permitting data was provided to the Kenya Property Developers Association by the Nairobi City County Government Physical Planning Department.

The Developer’s Digest is a quarterly

e-newsletter supported and published

by the Kenya Property Developers

Association and designed by Insync

MEDIA Ltd. It targets the various

players in the property industry in

Kenya and highlights a wide spectre

of issues affecting our members, other

professionals, manufacturers and both

private and public sector players in the

industry. We seek to encourage positive

dialogue and development

The Developer’s Digest is filled with

current industry news, updates on

the Association’s ongoing activities,

views, interesting facts and specialty

advertising messages.

WHY ADVERTISE THROUGH THE

DEVELOPER’S DIGEST?

We offer a unique, flexible, converged

media mix that helps advertisers

communicate their message effectively.

This includes our website, e-newsletter,

social media platforms and focused events

(such as our training and networking

forums).

We keep track of our readership and

are sensitive to emerging issues in the

industry.

It is a free and interactive online

publication.

It is a free downloadable Mobile App

onto any mobile device.

We at The Developer’s Digest will work

with you to create the most effective

multi-platform advertising strategy that

will ensure you reach your targeted

consumer every direction they look.

After all, the distance between you and

your consumer, is no longer a straight

line.

The Developer’s Digest will also offer

you advertising on our website with a

direct link to you and your company’s

website.

Please contact the KPDA Secretariat via

email on admin@kpda.or.ke or call us

on 0737 530 290 or 0705 277 787 for

more information.

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Quarter (1/4) page: Kshs. 20, 000

Third (1/3) page: Kshs. 30, 000

Half (1/2) page: Kshs. 45, 000

Full page: Kshs. 60, 000

DIGITAL INPUT/MECHANICAL

REQUIREMENTS — BANNERS

300dpi resolution; colour calibration RGB;

not larger than 20 MB; jpg format OR pdf

PRESS QUALITY format with outlined text.

NOTE: PDF/X 1-A or Adobe® Acrobat® distilled

PDFs. PDFs exported from Photoshop are

discouraged and can lead to less than

desirable results.

DIGITAL INPUT/MECHANICAL REQUIREMENTS — ADVERTS

SIZE WIDTH DEPTH

1/4 page (horizontal) 184.5mm 65mm

1/4 page (vertical) 90mm 125.5mm

1/3 page (horizontal) 210mm 90mm

1/3 page (vertical) 68mm 270mm

1/2 page (horizontal) 210mm 139mm

1/2 page (vertical) 105mm 265mm

Full page (theme colour) 210mm 247mm

Full page 210mm 297mm

ADVERTS SUBMISSION:

The adverts should be submitted as Adobe PDF files with the above specific measurements

for the desired advert and NOT a flat image PDF exported from Photoshop.

ONLINE ADVERTISING TERMS & CONDITIONS:

Payment is due within 15 days from when an invoice is issued. All payments should be made in

the name of KPDA. Banner ads may be pulled if account balances are not paid by the due date. As

space is limited, banner ads are sold on a first come, first served basis. All advertising is accepted

subject to the publisher’s approval upon determination that the products or service advertised are

in keeping with The Developer’s Digest’s philosophy.

Kenya Property Developers Association... Development brings Development!

Kenya Property Developers Association... Development brings Development!

21

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Kenya Property Developers Association... Development brings Development!

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