The Developer's Digest, April - July 2017 Issue
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APRIL – JULY <strong>2017</strong> ISSUE<br />
Due Diligence Guide in<br />
Investing in Kenyan Real Estate<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 />
9<br />
KPDA BOARD MEMBERS<br />
Mucai Kunyiha<br />
Chairman<br />
Palkesh Shah<br />
Board Director<br />
Emma Achoki<br />
Treasurer<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: NCCG Building<br />
Permitting Approvals<br />
Page 15: KPDA Directory of<br />
Members<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 – Maryanne Mbogo<br />
Finance and Membership Support Officer – Grace Hinga<br />
Research, Administration & Membership Intern – Wilson Busaka<br />
Communications Intern – Cynthia Wakio<br />
Finance Intern – Gladys Lang’at<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 />
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 />
Kenya Property Developers Association... Development brings Development!<br />
Kenya Property Developers Association... Development brings Development!<br />
2
<strong>2017</strong> CALENDAR OF EVENTS<br />
DATE EVENT DETAILS LOCATION<br />
Tuesday, 17 th<br />
January <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 />
March <strong>2017</strong><br />
22 nd – 24 th<br />
March <strong>2017</strong><br />
Friday, 31 st<br />
March <strong>2017</strong><br />
5 th - 6 th <strong>April</strong><br />
<strong>2017</strong><br />
Thursday, 27 th<br />
<strong>April</strong> <strong>2017</strong><br />
Tuesday, 23 rd<br />
May <strong>2017</strong><br />
Tuesday, 3 rd<br />
October <strong>2017</strong><br />
Friday, 27 th<br />
October <strong>2017</strong><br />
Monday 30 th and<br />
Tuesday 31 st<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 />
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 />
KPDA Learning and Development<br />
Symposium<br />
<strong>The</strong>me: ‘<strong>The</strong> JBC Contract: What Developers<br />
Must Know’<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 />
Kiambu County – TO BE CONFIRMED<br />
Spice Roots Restaurant – Simba Union<br />
Club, Nairobi<br />
Bowmans (Coulson Harney) Advocates –<br />
ICEA Lion Centre, West Wing<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
FROM THE KPDA SECRETARIAT<br />
“Life is a mirror and will reflect back to the thinker what<br />
he thinks into it.” ~ Ernest Holmes<br />
Welcome to the second issue of <strong>The</strong><br />
Developer’s <strong>Digest</strong> for the year <strong>2017</strong>. You<br />
will note that this issue covers 4 months<br />
and not the usual 3 months.<br />
Aren’t we all glad that the process of<br />
the national elections has finally been<br />
concluded? I for one, breathe a sigh of<br />
relief that life and business, can finally<br />
get back to normal.<br />
For the real estate sector, there was a<br />
stagnation in investment with a majority<br />
of the local and international investors<br />
coining the proverb, ‘Wacha tuone<br />
baada ya elections.’ (‘Let us wait and see<br />
how things pan out after the elections.’)<br />
Well, let’s get back to the business of<br />
building this beautiful nation of ours<br />
one brick at a time!<br />
In this issue, we feature an article by<br />
the Kenya Bankers Association on the<br />
alleged ‘Housing Bubble.’ How many<br />
times do we hear that phrase thrown<br />
around in the media in relation to the<br />
Kenyan real estate sector?<br />
Let us get a better understanding of it as<br />
we read the article featured in our Focus<br />
on Policy section.<br />
We are encouraging all members<br />
of KPDA to get more active in the<br />
Association and hence feature a profile<br />
of the committees and working groups<br />
that are the engines behind KPDA and<br />
what it does. We have also published our<br />
<strong>2017</strong> Calendar of Events for those who<br />
would like to know what activities are<br />
left for the rest of the KPDA year.<br />
KPDA wishes to welcome our newest members:<br />
• Glamart Properties Ltd<br />
• Jones Lang Lasalle (Pty) Ltd (JLL)<br />
• Usafi Comfort<br />
• Rhombus Concrete Ltd<br />
• KONE Kenya Ltd<br />
• Town and County Planners<br />
Association of Kenya (TCPAK)<br />
• Meera Construction Ltd<br />
• Shreeji Development Ltd<br />
I am calling all authors to send through<br />
their articles to be featured in our Have<br />
Your Say section. You can write on<br />
anything affecting the industry, both<br />
locally and internationally. Feel free to<br />
submit your articles to me through the<br />
email address ceo@kpda.or.ke<br />
I leave you with the following quote to<br />
mull over as you contemplate the rest of<br />
the year, ‘Life is a mirror and will reflect<br />
back to the thinker what he thinks into<br />
it.’ ~ Ernest Holmes<br />
Do have an assiduous month of<br />
September……<br />
Elizabeth<br />
• African Infrastructure Development Company<br />
• City Engineering Works (K) Ltd<br />
• Classic Mouldings Ltd<br />
• AHCOF Investments (Kenya) Company Ltd<br />
• Cheriez Properties Ltd<br />
• Menezes and Partners Advocates<br />
• Moad Capital Ltd<br />
• Focus on Property Ltd<br />
Welcome to the KPDA Family!<br />
HOW TO JOIN THE KENYA PROPERTY DEVELOPERS ASSOCIATION<br />
<strong>The</strong> Kenya Property Developers Association (KPDA) was established in Nairobi in 2006 as the<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 />
SUBSCRIPTION<br />
TOTAL<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 />
Kenya Property Developers Association... Development brings Development!<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 />
3 4
FOCUS ON POLICY<br />
A STATUS REPORT ON KENYA’S REAL<br />
ESTATE MARKET:<br />
WHAT IS THE ‘HOUSING BUBBLE?’<br />
Real estate sector in Kenya has of late<br />
been a pillar underpinning the overall<br />
economic growth. This can be attested<br />
by the performance of the sector in a<br />
number of way.<br />
First, the sector has rose to top sectors<br />
in in terms of sectoral credit allocation<br />
by the banking industry (See Figure 1<br />
above). <strong>The</strong>refore the housing sector in<br />
Kenya has seen an unprecedented rise<br />
in the credit allocation rising to top three<br />
in terms of total credit among all sectors<br />
of the economy.<br />
David Muriithi Ndwiga is Research officer at Kenya Bankers Association - Centre for Research on Financial<br />
Markets and Policy. He holds a Master of Arts in Economics from the University of Nairobi, A Bachelor’s Degree in<br />
Economics from Egerton University and a Diploma in Project Management from Kenya Institute of Management.<br />
He is tasked with conducting research on financial markets to inform policy with regard to Kenya’s financial<br />
market. While at his current position, he has spearheaded the crafting and modelling of the Kenya Banker’s<br />
Association – House Price Index that monitors the movement in quarterly house prices for residential houses in<br />
Kenya. In addition, he brings on board expertise in the real estate as evidenced by a number surveys of focusing<br />
on studies on home ownership in Kenya. Reach him on dmuriithi@kba.co.ke<br />
<strong>The</strong> importance of the real estate sector<br />
can therefore not be underrated given<br />
that investment in real estate is both a<br />
consumption expenditure as well as an<br />
investment expenditure. Houses have<br />
been widely used as collaterals against<br />
lending within the financial sector. As<br />
such the stability of the prices of houses<br />
is core as it immensely implies to the<br />
quality of the lending advanced against<br />
such houses as the collaterals.<br />
A broad stability in the prices of houses<br />
would be a substantial assurance of<br />
the good quality of lending against<br />
houses as collaterals. However, by<br />
contrast, highly volatile house prices<br />
could be a potential signal of exercising<br />
caution when lending against houses as<br />
collaterals. <strong>The</strong>refore, this warrants the<br />
need for an objective scrutiny on the<br />
status report on the housing market in<br />
Kenya with a view of answering whether<br />
there is a looming housing bubble or<br />
not.<br />
First, in addressing the issue on whether<br />
Kenya faces a property bubble or not<br />
Figure 1: Sectoral distribution of credit between March 2015 and March 2016<br />
Sectoral Distibution of Loans (Ksh. Bn )<br />
FOCUS ON POLICY<br />
SUMMARY OF THE BUDGET STATEMENT FOR THE FISCAL YEAR <strong>2017</strong>/2018<br />
with regard to the real estate sector,<br />
it’s of importance to define what a<br />
property bubble is. A property bubble,<br />
also referred to as real estate bubble<br />
or housing bubble is simply a scenario<br />
whereby the prices of houses increase<br />
rapidly to unsustainable levels and<br />
then decline sharply. It is therefore an<br />
economic bubble that is uniquely for the<br />
real estate sector.<br />
A bubble therefore is a short term price<br />
increase due to psychological effects. For<br />
instance, when real estate prices have<br />
been increasing for some time there<br />
may be a perception in the population<br />
that this increase will continue forever<br />
and that the investment is risk free.<br />
When the common belief is that prices<br />
can only go up, there is, also, a pressure<br />
to buy quickly, before housing gets even<br />
more expensive. As soon as the prices<br />
cease to increase demand will decrease<br />
and prices will start to decline.<br />
Such rapid rise in house prices followed<br />
by sharp decline can be attribute to a<br />
number of factors. First is the demand<br />
– supply mismatches. In this case,<br />
demand may outweigh supply leading<br />
to demand driven rise in property prices.<br />
<strong>The</strong> second factor could be speculation<br />
in the property market which could lead<br />
to surge in property prices as investors<br />
seek to make more profit margins.<br />
A HOUSING BUBBLE IN KENYA OR<br />
MERE ILLUSION? – AN EMPIRICAL<br />
EVIDENCE<br />
From the simple definition of what a<br />
property bubble or a housing bubble<br />
is, it can be certainly be concluded that<br />
housing bubble in Kenya’s real estate<br />
sector is a rosy illusion that may not<br />
stand a test of time against the facts.<br />
To start with, even though reals estate<br />
sector is one of the leading in terms of<br />
the total sectoral credit allocation mainly<br />
from commercial banks, the proportion<br />
of real estate sector remains minimal<br />
compared to lending in other sectors of<br />
the economy to warrant a justification<br />
for a house bubble.<br />
This is specifically evidenced by the<br />
annual value of cumulative mortgages<br />
in the market. In addition the aggregate<br />
number of mortgages remain low<br />
though on an upwards trend over years.<br />
Secondly, property market in Kenya<br />
remains broadly a primary market as<br />
opposed to secondary property market.<br />
This is evidenced by the time period<br />
taken to approve lending towards real<br />
estate especially mortgage lending.<br />
Further, mortgage transfers from<br />
one financier to another or from one<br />
borrower to another remains to be very<br />
rigid thus not warranting evidence for<br />
a housing bubble. Such rigidity comes<br />
with transaction costs in terms of time<br />
and other charges which discourage<br />
flexibility. It can be noted that housing<br />
bubbles are more eminent in the<br />
secondary property markets such as the<br />
sub – prime markets in the United States<br />
of America.<br />
Thirdly, the property process in Kenya<br />
with reference to the real estates have<br />
demonstrated a broad sense of stability<br />
though high. From the Kenya bankers<br />
Association Housing Price Index (KBA<br />
– HPI), the index speaks to two key<br />
messages. To start with, KBA-HPI) depicts<br />
a sense of overall price prices stability,<br />
600<br />
500<br />
400<br />
300<br />
200<br />
100<br />
0<br />
30,000<br />
25,000<br />
20,000<br />
15,000<br />
10,000<br />
16,135<br />
Figure 2: Number and value of cumulative Mortgages<br />
Cumulative no. of mortagages<br />
18,587 19,879 22,013<br />
24,458<br />
250,000<br />
200,000<br />
150,000<br />
100,000<br />
Value of Cumulative Mortgages<br />
(Ksh Bn)<br />
91,208<br />
119,610<br />
138,111<br />
164,007<br />
203,315<br />
Mar-15<br />
Mar-16<br />
5,000<br />
0<br />
2011 2012 2103 2014 2015<br />
50,000<br />
0<br />
2011 2012 2103 2014 2015<br />
Source: Central Bank of Kenya<br />
Source: Central Bank of Kenya<br />
Kenya Property Developers Association... Development brings Development!<br />
Kenya Property Developers Association... Development brings Development!<br />
5<br />
6
FOCUS ON POLICY<br />
A STATUS REPORT ON KENYA’S REAL ESTATE MARKET<br />
the trend over the years ever since its<br />
launch in the market. <strong>The</strong> underlying<br />
demand and supply characteristics<br />
and in particular it depicts a demand<br />
slow-down on the back of the broader<br />
economic environment characterised<br />
by a general sense of softening growth<br />
(See figure 3).<br />
<strong>The</strong> build-up of the risks in the sector<br />
as, measured by the fixed base index<br />
120.00<br />
115.00<br />
110.00<br />
105.00<br />
100.00<br />
95.00<br />
90.00<br />
posit that the house process have rose<br />
merely by 16.67 percent as at the end<br />
of quarter two of <strong>2017</strong> compared to the<br />
base period of quarter in of 2013.<br />
This reveals a broad stability in the<br />
house prices over a period of four and<br />
a half years. Similar conclusions can be<br />
made from the moving base index for<br />
the same time period.<br />
Figure 3: Quarterly Price Indices<br />
Index with a fixed base<br />
Source: Kenya Bankers Association – Centre for research on Financial Markets and Policy®<br />
KPDA MEMBER TESTIMONIAL<br />
Index with a moving base<br />
MMC Africa Law is a full service indigenous law firm founded<br />
in 1995. We joined the Kenya Property Developers Association<br />
in the year 2015. In the two years that we have been members<br />
of the Association, we have enjoyed the benefit of meeting<br />
stakeholders within the real estate sector including developers,<br />
Government agencies and officials, building consultants and<br />
professionals, amongst others. We have also participated in<br />
advocating for the improvement of public policy in the sector<br />
with the objective of developing a real estate sector that is<br />
efficient, robust and sustainable for our Kenyan population.<br />
<strong>The</strong> house prices in Kenya though high<br />
especially in the upper market segment,<br />
they are relatively stable thus the<br />
possibility of a housing bubble is muted<br />
at the moment.<br />
<strong>The</strong> possibility of the housing bubble<br />
can perhaps be alluded to given the<br />
developments in the house prices with<br />
time since property market is known to<br />
undergo correction with time.<br />
Esther Omulele<br />
Deputy Managing Partner, Head of Commercial & Property Department<br />
KPDA COMMITTEES AND WORKING GROUPS<br />
Members are encouraged to request to<br />
join any of the Association committees to<br />
connect and engage with professional/peer<br />
networks and government leadership; as well<br />
as identify a leadership position that aligns<br />
with one’s professional goals and objectives.<br />
KPDA members are encouraged to play a<br />
more active role in the Association by getting<br />
involved in leadership opportunities.<br />
I. THE PUBLIC POLICY AND ADVOCACY<br />
COMMITTEE<br />
<strong>The</strong> Public Policy and Advocacy Committee<br />
is committed to ensuring that KPDA impacts<br />
the industry through engagement on policy<br />
issues and becomes the most reputable body<br />
for the advocacy of real estate issues.<br />
Mandates:<br />
1. Ensures that KPDA enhances the<br />
business environment that KPDA<br />
members are operating in;<br />
2. Engaged in increased advocacy for<br />
issues facing members;<br />
3. Ensures focused engagement with<br />
policy makers;<br />
4. Ensures increased knowledge on priority<br />
areas of advocacy and best approaches;<br />
5. Facilitates increased dissemination of<br />
research findings and KPDA’s main areas<br />
of focus;<br />
6. Facilitates increased capacity of KPDA<br />
to conduct impactful advocacy by<br />
increased engagement with likeminded<br />
organizations, associations and<br />
institutions.<br />
Committee Members:<br />
1. Gikonyo Gitonga – Axis Real Estate Ltd<br />
(Committee Convenor)<br />
2. Adnan Khan – Anjarwalla and Khanna<br />
Advocates<br />
3. Esther Omulele – MMC Africa Law<br />
4. Jacqueline Wangui – CFL Advocates<br />
5. Azmeena Bhanji – PDM (Kenya) Ltd<br />
6. Sam Mwaura – Private Sector<br />
Development Trust<br />
7. Palkesh Shah – Chigwell Holdings Ltd<br />
8. Anne Muchiri – Rozanna Properties Ltd<br />
9. Amarjit Virdi - Questworks<br />
10. Edward Kirathe - Acorn Group Ltd<br />
11. Harminder Chana – Lordship Africa<br />
12. Ravi Kohli – Karibu Homes<br />
13. Peris Karanja – Karanja Njenga<br />
Advocates<br />
14. Abraham Muriithi - PRC<br />
15. Alex Waiharo – Jabez Properties<br />
16. Catherine Kariuki – Land Development<br />
KENYA PROPERTY DEVELOPERS ASSOCIATION<br />
‘Creating a value driven, sustainable and socially responsible real estate industry’<br />
COMMITTEES AND MANDATES, AUGUST <strong>2017</strong><br />
and Governance Institute (LDGI)<br />
<strong>The</strong> committee has also subdivided itself<br />
into working groups who work on focused<br />
advocacy areas:<br />
1. <strong>The</strong> National Government Working<br />
Group: Facilitate KPDA’s engagement with<br />
central government (primarily the Ministry<br />
of Lands and Physical Planning as well as the<br />
Ministry of Transport, Infrastructure, Housing<br />
and Urban Development).<br />
Members:<br />
- Sam Mwaura (Group Leader)<br />
- Esther Omulele<br />
- Anne Muchiri<br />
- James Karanja<br />
- Alex Waiharo<br />
- Abraham Muriithi<br />
- Peris Karanja<br />
2. <strong>The</strong> County Government Working Group:<br />
Ensure effective engagement with various<br />
county governments to enhance the business<br />
environment that KPDA members work in.<br />
Members:<br />
- Amarjit Virdi (Group Leader)<br />
- Azmeena Bhanji<br />
- Gikonyo Gitonga<br />
3. <strong>The</strong> Research and Development Working<br />
Group: Spearhead the project to develop the<br />
KPDA Construction Process Handbook.<br />
Members:<br />
- Azmeena Bhanji (Group Leader)<br />
- Adnan Khan<br />
- Jacqueline Wangui<br />
4. <strong>The</strong> Regulatory Bodies Working Group:<br />
Ensure close and focused engagement<br />
with regulatory bodies that KPDA members<br />
interact with doing business in the Kenyan<br />
real estate sector.<br />
Members:<br />
- Harminder Chana (Group Leader)<br />
- Asher Owino (Newmatic Africa Ltd)<br />
- Faith Mwaura (RE/MAX Heritage)<br />
- Alex Waiharo (Jabez Properties)<br />
II. MEMBERSHIP AND OUTREACH<br />
COMMITTEE<br />
<strong>The</strong> main aim of the Membership and<br />
Outreach Committee is to develop KPDA to<br />
be the most relevant association for property<br />
developers and other players in the real<br />
estate sector. This committee supports the<br />
secretariat by maintaining active members<br />
by organizing vibrant and active activities<br />
and events as well as increasing membership<br />
numbers.<br />
Mandates:<br />
1. Enhance value and service to members<br />
through increased networking and<br />
opportunities for members;<br />
2. Facilitate increased diversity (amongst<br />
members) and increased number of<br />
members;<br />
3. Organize increased training<br />
opportunities for members;<br />
4. Enhance brand visibility, authority and<br />
respectability of KPDA through increased<br />
number of industry players and members<br />
of the public aware of and well informed<br />
about KPDA;<br />
5. Ensure increased number of industry<br />
players, clients and members of the public<br />
looking up to KPDA for leadership and<br />
guidance;<br />
6. Ensure KPDA members are differentiated<br />
in the market as superior developers;<br />
7. Build a national footprint for KPDA.<br />
Committee Members:<br />
1. Ken Luusa – Acorn Group Ltd (Committee<br />
Convenor)<br />
2. Gikonyo Gitonga – Axis Real Estate Ltd<br />
3. Stephanie Odhiambo – Acorn Group Ltd<br />
4. Caroline Kihara – KCB<br />
5. Palkesh Shah – Chigwell Holdings Ltd<br />
6. Caroline Ratemo – Ratemo and Company<br />
Advocates<br />
7. Caroline Karugu – Anjarwalla and Khanna<br />
Advocates<br />
8. George Wachiuri – Optiven Ltd<br />
III. THE INSTITUTIONAL STRENGTHENING<br />
COMMITTEE<br />
It is the mandate of this committee to<br />
develop structures that will ensure financial<br />
sustainability, operational capacity and facilitate<br />
realization of KPDA’s mission and vision.<br />
Mandates:<br />
1. Enhanced financial capacity and stability<br />
through ensuring growth in internal income<br />
and increased co-operation with other likeminded<br />
organizations;<br />
2. Increased capacity to drive and sustain<br />
growth by establishing and maintaining<br />
strengthened structure and systems within<br />
the association;<br />
3. Ensuring the secretariat has adequate HR<br />
capacity.<br />
Committee Members:<br />
1. Emma Achoki (Committee Convenor)<br />
2. Hamish Govani<br />
3. Ranee Nanji<br />
Kenya Property Developers Association... Development brings Development!<br />
Kenya Property Developers Association... Development brings Development!<br />
7 8
HAVE YOUR SAY<br />
HAVE YOUR SAY<br />
DUE DILIGENCE GUIDE IN INVESTING<br />
IN KENYAN REAL ESTATE:<br />
HOW TO SPOT A SCAM<br />
By the KPDA Secretariat<br />
Investing in real estate is always high<br />
risk, whether it is in the development<br />
of rental property, a family home or<br />
commercial real estate developments.<br />
Consider this scenario:<br />
<strong>The</strong> property listing almost looks too<br />
good to be true – it is in the perfect<br />
location, has beautiful photos and is<br />
well below your budget. You send off an<br />
enquiry and receive a quick response:<br />
the landlord is currently overseas and<br />
cannot show you the home. But if you<br />
can wire through a deposit as soon as<br />
possible, the property is yours.<br />
For many people who have tried to<br />
rent property online, this scenario<br />
might sound all too familiar. While<br />
new technologies have made it easier<br />
than ever before for property seekers<br />
to get all the information they need<br />
to supercharge their house hunt, the<br />
internet has also made it easier for<br />
online fraudsters to target both buyers<br />
and renters.<br />
Remember that if it sounds too good to<br />
be true, it probably is! One of the most<br />
important rules in real estate is that if<br />
a deal sounds too good to be true, it<br />
most likely is. Be skeptical about any<br />
online listings for attractive properties<br />
which are very well priced for the area.<br />
Scammers often use these very low<br />
prices to lure property seekers.<br />
Being aware of a few tell-tale signs,<br />
house-hunters can learn to quickly sort<br />
the scammers from the legitimate real<br />
estate agents. Below is a compiled guide<br />
to help property seekers avoid falling<br />
victim to a scam.<br />
Due diligence is an investigation of<br />
potential investment prior to making<br />
a commitment in order to confirm all<br />
facts and keep an investor and his/<br />
her resources safe before entering<br />
into a transaction. It is considered a<br />
reasonable act expected of anyone who<br />
is thinking of investment. In real estate,<br />
due diligence is defined as a buyer’s<br />
obligation to do an investigation of<br />
property to determine whether he/she<br />
is satisfied.<br />
During this period, the buyer conducts<br />
an in-depth analysis of the condition<br />
of the property and the feasibility of<br />
purchasing the property. If the buyer<br />
finds defects in the property midprocess,<br />
he/she is allowed to cancel<br />
the purchase of the property due to<br />
unsatisfactory results.<br />
Below are some key things to consider<br />
during the due diligence process;<br />
1. FIND OUT WHAT THE MARKET OFFERS<br />
<strong>The</strong> state of the market usually affects<br />
the pricing of property. When there is a<br />
high demand for property with a lack of<br />
supply of good quality property, then<br />
prices of houses tend to rise and vice<br />
versa.<br />
However a large supply of housing that<br />
is in high demand translates to higher<br />
pricing as there might be buyers in the<br />
market who are willing to pay whatever<br />
it takes to acquire the property.<br />
Knowing what the market offers will<br />
ensure that you do not end up paying<br />
more than you should. For example<br />
having information like the current<br />
over-supply of office space in areas like<br />
Upper-hill will help someone who wants<br />
to buy commercial space get a good<br />
bargain on office space.<br />
2. INSPECT THE PROPERTY<br />
If you want to end up with a nice home,<br />
you need to be strategic. <strong>The</strong> rule of<br />
thumb is; “do not make payment for<br />
a property that you have not seen”.<br />
Fraudsters are everywhere looking for<br />
who to con next, and given the sacrifices<br />
you have made to save enough to buy<br />
your own home, be very careful who you<br />
give your money to.<br />
After confirming that a property exists,<br />
ensure that you scrutinize it top to<br />
bottom looking for issues that would<br />
cost you extra money to fix. Renovating<br />
property is a huge expense; therefore<br />
ensure you get estimates for work<br />
before you decide to move forward with<br />
the purchase, if at all you decide to buy<br />
property that has issues to be fixed. If you<br />
are in a position to hire a home inspector<br />
to do this the better, if not make sure<br />
you do it thoroughly. Having a second<br />
or third opinion is highly recommended<br />
for this.<br />
3. APPRAISE & VALUE PROPERTY<br />
An appraisal is an estimate of the<br />
value of property, also defined as<br />
the opinion of the market value for<br />
a property. A valuation on the other<br />
hand is done to establish “exactly how<br />
much a property is worth”. Property<br />
appraisal and valuation are necessities<br />
for successful real estate purchase. A<br />
valuation report usually includes details<br />
like its location, legal description, value,<br />
improvements, land use as well as<br />
information on comparative sales in<br />
the area. This information will help you<br />
review the future performance of your<br />
property, therefore lets you know if the<br />
particular property is a good investment<br />
opportunity or not.<br />
4. INVESTIGATE TITLE/TRANSACTION<br />
DOCUMENTS<br />
You need to establish legal ownership of<br />
property you are buying from someone.<br />
For a home that already exists, there<br />
has to be a public record showing that<br />
the seller of this property has legal<br />
ownership. To facilitate this, ensure you<br />
do a title search at the Lands Registry,<br />
Ardhi House to avoid issues like a long<br />
lost aunt claiming ownership of property<br />
that you have already paid for. Such<br />
issues are costly to address, and you<br />
need to sort them out with the previous<br />
owner before you inherit a problem you<br />
don’t want to have.<br />
Ensure you hire a conveyance lawyer<br />
to facilitate the Purchasing process<br />
and draw Agreements based on terms<br />
acceptable to both you and the seller.<br />
5. CHECK FOR GOVERNMENT<br />
REGULATIONS/ZONING ISSUES<br />
Check for issues that could have an<br />
impact on the property you want to<br />
acquire or a building you want to put<br />
up. Find out things like whether your<br />
home will lie in a flood zone are or if the<br />
renovations you plan to do, if any, will<br />
cause some environmental hazard to<br />
you future neighbours.<br />
Ensure that you are well conversant with<br />
National Construction Authority Act<br />
(NCA) to avoid buying property that will<br />
later get the big ‘X’ sign for demolition<br />
after pouring all your savings into it.<br />
Bottom line, when purchasing real<br />
estate, it is up to you to ensure that<br />
you get the asset that you are paying<br />
for, given the risks involved in real<br />
estate purchase could be as high as<br />
the perceived benefits. A good practice<br />
would then be to have a due diligence<br />
checklist to guide you through the<br />
process.<br />
DUE DILIGENCE FOR RENTALS<br />
1. Always Insist on Inspecting the<br />
Property.<br />
Never agree to make any payments<br />
upfront or sign a contract without first<br />
inspecting the property.<br />
Viewing the property and meeting the<br />
agent in person are the best ways to<br />
guarantee that the listing is legitimate.<br />
2. Verify the Identity of the Person You<br />
Are Dealing With.<br />
Take steps to check the agent you are<br />
dealing with is a licensed broker or<br />
agent. In the first instance, a simple<br />
online search can help you detect a<br />
scam. Try searching for the property’s<br />
address, the name of the agent and their<br />
email address.<br />
3. Avoid Listings that Have Been<br />
Posted Multiple Times.<br />
One common scam is for fraudsters to<br />
copy an existing (and legitimate) listing<br />
of a property for sale and repost it as a<br />
rental, with their own contact details<br />
attached. Look out for duplicate listings<br />
which have different asking prices.<br />
4. Never Give Away Your Personal<br />
Information or Documents.<br />
You should never be asked to provide<br />
your bank account details or personal<br />
identification documents to someone<br />
over the internet. Importantly, never<br />
provide your credit card verification<br />
code to anyone.<br />
GENERAL TIPS TO AVOID REAL<br />
ESTATE PROPERTY SCAMS<br />
1. Whether you are buying or renting<br />
a property from landlord or you<br />
are going to sell and rent your<br />
property to tenants, ensure this to<br />
make your contract in written form.<br />
Never assume that the party you<br />
are dealing with will follow verbal<br />
promises.<br />
2. If you are going to make any kind<br />
of real estate property deal for the<br />
first time, it’s better to take advice<br />
from experienced professionals.<br />
Experienced and qualified investors<br />
and professionals will help you<br />
to estimate the real value of the<br />
project or property for which you<br />
are investing your money. <strong>The</strong>y<br />
will also help you to identify the<br />
ambiguity in a contract. Professional<br />
suggestions will surely protect you<br />
to make doubtful deals.<br />
3. Before making final decision to<br />
Kenya Property Developers Association... Development brings Development!<br />
Kenya Property Developers Association... Development brings Development!<br />
9<br />
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HAVE YOUR SAY<br />
KPDA PARTNERSHIPS<br />
DUE DILIGENCE GUIDE IN INVESTING IN KENYAN REAL ESTATE:<br />
invest in any property development<br />
project, it is good to observe major<br />
property development projects.<br />
You can also find information about<br />
common real estate scam cases via<br />
media. Usually, real estate fraudsters<br />
try to use same technique to<br />
deceive people. This makes it a little<br />
easy to identify scam property deal.<br />
4. Try to work with certified<br />
professionals. It is critically<br />
important to work with authorized<br />
real estate agents and property<br />
management companies.<br />
Moreover, if you are individually<br />
selling or renting your property to<br />
a buyer or tenant, make sure about<br />
his employment and bank balance.<br />
If a person you are dealing with<br />
shows a complex background be<br />
careful, he may be a scam artist.<br />
5. Always be ready to quit any real<br />
estate deal in case you don’t get<br />
satisfactory answers to any of your<br />
questions related to the property<br />
you are going to buy or rent. Even<br />
if the offer is too good, keep it in<br />
mind that real estate deals must<br />
be profitable for both the parties.<br />
Don’t focus only on what you will be<br />
getting after the deal; also consider<br />
what other party will get at the end.<br />
6. Similarly, keep an eye on your bank<br />
accounts; you will also become<br />
victim of identity theft that may lead<br />
to involve you in sort of corruption<br />
and fake bank transactions. Scam<br />
artists can open fake accounts with<br />
your name and make scam deals on<br />
your name. Maintain proper data of<br />
your accounts and properties you<br />
possess to avoid such incidents of<br />
identity thefts.<br />
7. Avoid paying beyond your capacity<br />
to pay for a property. Real estate<br />
scams also betray buyers and sellers<br />
showing them urgency to sell or<br />
purchase assets and encourage<br />
them to pay extra money for the<br />
property or finalizing sale deal<br />
below actual market prices. It is<br />
important to consider correct value<br />
of property ad your budget limits.<br />
Following these simple tips will help<br />
you to avoid real estate property scams.<br />
Whether you are going to purchase,<br />
sale or rent a property. <strong>The</strong>re are always<br />
chances to become a victim, only careful<br />
observation of whole business process<br />
will protect you from property scams.<br />
REFERENCES<br />
1. http://www.buyrentkenya.com/blog/<br />
your-due-diligence-guide-when-buyingreal-estate-in-kenya<br />
2. http://www.bhomes.com/blog/post/<br />
avoid-real-estate-property-scams.aspx<br />
(+971 600 52 2233 | customercare@<br />
bhomes.com)<br />
VALUE OF JOINING THE KPDA FAMILY<br />
<strong>The</strong> Kenya Property Developers Association was<br />
established in Nairobi in 2006 as the representative<br />
body of the residential, commercial and industrial<br />
property development sector in Kenya. It is an emerging<br />
Business Member Organisation which works in proactive<br />
partnership with policy-makers, financiers and citizens<br />
to ensure that the property development industry grows<br />
rapidly but in an organized, efficient, economical and<br />
ethical manner. Our current membership stands at 85<br />
members.<br />
<strong>The</strong> Association’s strategic objectives include working<br />
with the Government and other stakeholders to promote<br />
policies that stimulate the property sector; contributing<br />
to excellence in building through promotion of worldclass<br />
ethical standards and educational programs;<br />
compiling focused research and analysis to inform<br />
investment decisions, policy analysis and public<br />
education; developing new financing mechanisms<br />
to help low and middle income Kenyan families own<br />
homes; providing a forum where property investors<br />
can share expertise and build business contacts; and<br />
harmonising development activities with citizen<br />
concerns, like neighbourhood associations and<br />
environmental preservation groups.<br />
Our members enjoy the following:<br />
• Advocacy that champions the interests of the<br />
industry to both the public sector and the<br />
wider private sector to ensure a better business<br />
environment for the property industry;<br />
• Information on the latest issues affecting the<br />
industry, via regular publications, newsletters,<br />
media reports and research;<br />
• Networking events, putting members in touch<br />
with industry leaders and potential clients;<br />
• Professional development courses which reflect<br />
the changing nature of the property industry;<br />
• Marketing opportunities for member companies<br />
with discounts offered to various advertising<br />
platforms;<br />
• Discounted rate at both KPDA events and<br />
events organized by international and regional<br />
organizations in the building and construction<br />
industry;<br />
• Access to emerging markets and exposure to joint<br />
venture opportunities.<br />
While KPDA membership is open only to companies, the<br />
benefits of membership extend to all staff in member<br />
companies.<br />
Let KPDA become your partner in advocacy, education,<br />
information, research and helping develop your<br />
business.<br />
Become a part of this formidable family!<br />
For more information, kindly contact our KPDA<br />
secretariat on 0737 530 290 or 0705 277 787 or by<br />
email e.kayaki@kpda.or.ke.<br />
ABOUT KENYA GREEN<br />
BUILDING SOCIETY<br />
<strong>The</strong> Kenya Green Building Society<br />
(KGBS) is an independent, non-profit<br />
membership based society registered<br />
with the World Green Building Council as<br />
its Kenya Chapter. KGBS is mandated to<br />
certify the built environment, advocate<br />
for green buildings and train green<br />
building professionals.<br />
KGBS is the leading Green Building<br />
movement in the Kenyan market that<br />
ensure buildings are designed and built<br />
sustainably. Currently, KGBS using Green<br />
ABOUT TOWN AND COUNTY<br />
PLANNERS ASSOCIATION OF<br />
KENYA (TCPAK)<br />
<strong>The</strong> Town and County Planners Association<br />
of Kenya or TCPAK is a corporate body<br />
comprising of town, county and country<br />
planners, and/or urban and regional<br />
planners and/or physical planners. <strong>The</strong><br />
Association promotes professional<br />
development, education, public<br />
awareness, sustainable development and<br />
the protection and conservation of the<br />
built and natural environment.<br />
Our Vision<br />
To be the premier and leading town,<br />
star SA rating tool We are a dedicated<br />
team of professionals working in<br />
collaboration with industry experts,<br />
leaders, government departments to<br />
develop modern day building best<br />
practices crafted to suit the Kenyan<br />
dynamic property industry.<br />
Our Vision<br />
<strong>The</strong> Kenya Green Building Society<br />
seeks to lead the transformation in<br />
the construction industry towards<br />
environmentally sustainable buildings,<br />
promoting healthy and efficient<br />
environments.<br />
county, regional and country planning<br />
association of choice in Kenya and the<br />
world.<br />
Our Mission<br />
<strong>The</strong> Association exists to advance<br />
sustainable, integrated and inclusive<br />
association for the benefit of the<br />
town, county and country planners<br />
and professional growth of members<br />
through professional practice, advancing<br />
knowledge and technologies, research,<br />
championing the rights of town<br />
planners and conducting professional<br />
development programs.<br />
Our Mission<br />
To Promote and improve the awareness<br />
of green building design practices,<br />
programs, technologies and operations.<br />
To enable the objective measurement<br />
and recognition of green building<br />
practices by developing and operating a<br />
green building rating system.<br />
Why become a member?<br />
As a member of the Green Building<br />
Council SA, your company will play a<br />
critical role in transforming the South<br />
African built environment. You will<br />
become part of our network of industry<br />
leaders and pioneers, collectively<br />
championing the green building cause<br />
and accelerating the development and<br />
adoption of best practices.<br />
Visit Us<br />
Kenya Green Building Society<br />
Kiambu Road, Nairobi.<br />
Tel: +254 710 869 547<br />
Email: admin@<br />
kenyagreenbuildingsociety.co.ke<br />
Our Value Statement<br />
A responsive professional association<br />
of town, county and country planners<br />
which is professional, accountable,<br />
democratic and mutually supportive.<br />
Membership Options<br />
1. Honorary<br />
2. Fellow<br />
3. Corporate<br />
4. Graduate<br />
5. Technician<br />
6. Student<br />
7. Visitng<br />
8. Firm<br />
9. Institutional<br />
10. Associate<br />
For more information on TCPAK please visit<br />
Town and County Planners<br />
Association of Kenya<br />
Block 2, White Court, Galana Road,<br />
Kilimani, Nairobi<br />
P. O. Box 15692 – 00100 GPO Nairobi,<br />
Kenya<br />
Tel: +254 721 345 611<br />
Email: info@tcpak.com<br />
http://www.tcpak.com<br />
Kenya Property Developers Association... Development brings Development!<br />
Kenya Property Developers Association... Development brings Development!<br />
11<br />
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KPDA PARTNERSHIPS<br />
KPDA NCCG BUILDING PERMITTING APPROVALS REPORT<br />
ABOUT UHDA<br />
Upper Hill District Association (UHDA)<br />
is an association that represents the<br />
interests of property/ land owners,<br />
businesses and residents based in Upper<br />
Hill District.<br />
We are driven to improve the quality<br />
of life in Upper Hill by liaising with key<br />
authorities in the National and County<br />
Government.<br />
Our Vision<br />
Our vision is to see Upper Hill District<br />
become the financial hub of East and<br />
Central Africa.<br />
Membership<br />
To strengthen our lobbying voice, we<br />
need more members.<br />
Together with your support you are able to:<br />
• Play a part in initiating change for the<br />
better in Upperhill District.<br />
• Have pressing matters affecting you<br />
handled collectively as an Association.<br />
• Receive current and regular<br />
communication on recent developments<br />
in Upperhill through our mailing list and<br />
the UHDA Newsletter.<br />
• Have your company promoted through<br />
our publications.<br />
“<br />
ABOUT UPPER HILL<br />
<strong>The</strong> once small district that boasted to be<br />
a residential area for senior civil servants<br />
especially from Kenya Railways has<br />
transformed over the years to become<br />
one of the most sought after areas to set<br />
up a thriving business.<br />
Welcome to Upper Hill, the home of<br />
lucrative businesses with changing<br />
skylines thanks to the exquisite<br />
skycrapers that have popped up over<br />
the years.<br />
We boast to have key government<br />
parastatals and courts, Kenya’s public<br />
referral hospital, biggest private hospital,<br />
medical and dental centres, diplomatic<br />
missions, lavish hotels.<br />
For more information about us, write<br />
to us at upperhill@uhda.or.ke or simply<br />
visit our website and get to know us<br />
better on www.uhda.or.ke .<br />
Upperhill District Association<br />
2nd Floor, Royal Ngao Housem Upperhill<br />
Tel: 0739 584 765<br />
Email: Upperhill@uhda.or.ke<br />
www.uhda.or.ke<br />
We joined KPDA three years ago and as Optiven Group, we<br />
have no regrets. We have massively networked, participated<br />
in policy shaping. We have had opportunities to meet decision<br />
making individual's including the President, Cabinet secretaries,<br />
County Governor's and other key people to lobby on issues<br />
affecting the land <strong>Issue</strong>s.<br />
We had many events that presented opportunities to market<br />
our products.<br />
Being a member of KPDA is a yes yes. A lot of gains as an<br />
organization.<br />
We highly recommend any party out there to join this<br />
association.<br />
George Wachiuri - CEO Optiven Group<br />
“<br />
THE KPDA NAIROBI CITY COUNTY GOVERNMENT BUILDING<br />
PERMITTING APPROVALS ACTIVITY REPORT<br />
JANUARY – JUNE <strong>2017</strong><br />
<strong>The</strong> <strong>2017</strong> half year KPDA NCCG Building<br />
Permitting Approvals Activity Report<br />
provides a summary of statistical<br />
information on planning permitting<br />
activity in Nairobi for the period between<br />
January to June <strong>2017</strong>.<br />
Only statistics received from the Nairobi<br />
City County Government, Urban<br />
Planning Department have been used<br />
as references.<br />
This report uses building permitting<br />
approval requests submitted to the<br />
Nairobi City County Government which<br />
are then analysed and approved by<br />
a specialist committee appointed by<br />
the Urban Planning Department of the<br />
Nairobi City County Government.<br />
<strong>The</strong> report contains information on<br />
applications that have been approved<br />
by the specialist committee highlighting<br />
development locations, types, values,<br />
application revenues and process<br />
performances.<br />
SUMMARY STATISTICS<br />
A total of 1,140 planning permit<br />
applications were approved from<br />
January to June <strong>2017</strong> with June having<br />
the highest number of approvals (204)<br />
and <strong>April</strong> having the least (153). Other<br />
key statistics from this report include:<br />
1. <strong>The</strong> value of approved permits (for<br />
the period January – June <strong>2017</strong>)<br />
represents over Kshs. 53.5 billion<br />
worth of development projects and<br />
permitting fees collected were over<br />
Kshs. 493.9 Million for the period<br />
January – June <strong>2017</strong>;<br />
2. During 2016 the highest value of<br />
buildings submitted for approval<br />
was Kshs. 5, 367, 000, 000 (Kshs.<br />
5.37 billion) by the Rossyln Property<br />
Holdings Ltd (Proposed Mixed Use<br />
Development) and the maximum<br />
submission fee paid was Kshs. 57,<br />
658, 610.<br />
3. On average the estimated value of<br />
building developments approved<br />
was Kshs. 47, 005, 492 and that of the<br />
submission fee was Kshs. 433, 629.<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 />
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% (922) - Domestic Class<br />
(commercial developments,<br />
domestic buildings and offices)<br />
• 10.1% (115) - Public Class (social halls,<br />
religious buildings, libraries, schools,<br />
etc.)<br />
• 9% (103) - Warehouse Class<br />
(industries, factories, and go downs)<br />
• <strong>The</strong> statistics show that in the first half<br />
of the year <strong>2017</strong>, approved proposed<br />
developments of the Domestic<br />
Classification had the highest level of<br />
approvals issued.<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 />
Kenya Property Developers Association... Development brings Development!<br />
13<br />
14
KPDA NCCG BUILDING PERMITTING APPROVALS REPORT<br />
PERMIT APPLICATION ACTIVITY BY SUB-COUNTY<br />
KPDA NCCG BUILDING PERMITTING APPROVALS REPORT<br />
DWELLING RELATED ACTIVITY ACROSS NAIROBI<br />
1. Buildings approved included domestic<br />
buildings, commercial developments,<br />
offices, religious buildings, social halls,<br />
libraries, schools, factories, industries<br />
and go downs. <strong>The</strong> following graph<br />
identifies permit applications that<br />
relate to various building classes.<br />
2. It can be noted that 80.88% of the<br />
planning submitted under the<br />
building class category were domestic<br />
class which includes domestic<br />
buildings, commercial developments<br />
and offices.<br />
<strong>The</strong>re are more development activities on the Western side of Nairobi compared to the Eastern side.<br />
<strong>The</strong> highest permits were approved in the areas of Karen, Westlands, Industrial Area, Runda and Eastleigh.<br />
1. Karen has the highest percentage of permits locality-wise.<br />
2. Riruta has the least number of permits amongst the top 10 areas of development.<br />
NB: Localities that do not appear in the graph had less than 1% permit approval activity.<br />
NUMBER OF APPROVALS BY ZONAL USER DENSITY<br />
BUILDING CLASS BY LOCALITY<br />
1. <strong>The</strong> graph indicates Karen being<br />
the area with the highest number of<br />
Domestic and Public Class approvals.<br />
This signals a new settlement area for<br />
Nairobi’s residents.<br />
2. Industrial area topped in approvals<br />
related to the Warehouse Class mainly<br />
because the area has a high number of<br />
industries as well as warehouses set up.<br />
1. <strong>The</strong> Residential Class<br />
accounted for 74.21% of the<br />
approvals.<br />
2. Commercial Class buildings<br />
accounted for 5.44% of the<br />
approvals.<br />
3. Public Class buildings<br />
accounted for 9.04% of the<br />
total approvals.<br />
4. Industrial Class buildings<br />
accounted for 10.43% of the<br />
total approvals.<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
KPDA NCCG BUILDING PERMITTING APPROVALS REPORT<br />
GRAPH DEPICTING PERIOD OF APPROVALS ON A MONTHLY BASIS<br />
KPDA NCCG BUILDING PERMITTING APPROVALS REPORT<br />
GRAPH DEPICTING LENGTH OF TIME TAKEN FOR PROJECT APPROVALS<br />
<strong>The</strong> Month of June had<br />
the highest number<br />
of approvals, with 204<br />
approvals and March<br />
had the lowest at 153.<br />
1. Most of the permits<br />
took over a month to<br />
be approved.<br />
2. On average, the<br />
number of days taken<br />
for approvals to be<br />
issued is 52 days which<br />
is slightly below 2<br />
months.<br />
BUILDING CLASS BY LOCALITY<br />
COMPARATIVE ANALYSIS BETWEEN THE SIX MONTHS OF <strong>2017</strong><br />
868 buildings presented<br />
for approvals were<br />
valued between Kshs.1<br />
million and Kshs. 50<br />
million while only 3<br />
buildings were valued<br />
over Kshs. 1 billion.<br />
Most of these buildings<br />
were in the residential<br />
category.<br />
It can be noted that<br />
there has been an<br />
increase in the worth of<br />
developments approved<br />
by XXXX. Domestic<br />
buildings continue<br />
to have the highest<br />
number of approvals.<br />
FOR MORE INFORMATION, KINDLY CONTACT THE KPDA SECRETARIAT<br />
KENYA PROPERTY DEVELOPERS ASSOCIATION<br />
Fatima Flats, Suite 4B Marcus Garvey Road<br />
Telephone: +254 737 530 290/0705 277 787<br />
Off Argwings Kodhek, Kilimani Area<br />
Email: ceo@kpda.or.ke<br />
P. O. Box 76154 – 00508 Nairobi, Kenya<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 />
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
KPDA DIRECTORY OF MEMBERS<br />
KPDA DIRECTORY OF MEMBERS<br />
KPDA DIRECTORY OF MEMBERS IN GOOD STANDING AS AT 23 RD AUGUST <strong>2017</strong><br />
Leo Capital Holdings Ltd<br />
Parmalen Investments Ltd<br />
Thika Greens Ltd<br />
Coulson Harney Advocates<br />
PREMIUM MEMBERS<br />
Ali Fabrication Solutions Ltd<br />
Bamburi Cement Ltd<br />
Britam<br />
Diamond Property Merchants<br />
Fusion Capital<br />
HF Development and Investment Ltd<br />
Imaran Real Estate Ltd<br />
KCB Bank<br />
Savannah Cement Ltd<br />
Synthesis Systems Ltd<br />
Tandem & Stark Ltd<br />
Vaal Real Estate Ltd<br />
Yasian Technology Company Ltd<br />
CORPORATE MEMBERS<br />
Acorn Management Services Ltd<br />
Actis Africa Ltd<br />
Boleyn Magic Wall Panel Ltd<br />
Camelot Cosultants Ltd/Lantana Homes Ltd<br />
Century City Property Ltd<br />
Cheriez Properties Ltd<br />
Chigwell Holdings Ltd<br />
Coral Property International Ltd<br />
County Home Developers Ltd/Runda<br />
View Ltd<br />
Enkavilla Properties Ltd<br />
Fedha (Management) Ltd<br />
Glamart Properties Ltd<br />
Hass Consult Ltd<br />
Heri Homes Properties Ltd<br />
Homescope Properties Ltd<br />
Ijenga Ventures Ltd<br />
Lordship Africa<br />
Manrik Group<br />
Meera Construction Ltd<br />
Mentor Management Ltd (Mml)<br />
Moad Capital<br />
Mugumo Developments Ltd<br />
PDM (Kenya) Ltd<br />
Pediment Developers<br />
Pentagon Properties Ltd<br />
Pioneer Holdings (Africa) Ltd<br />
Property Reality Company Ltd<br />
Rozana Properties Ltd<br />
Sayani Investments Ltd<br />
Shreeji Development Ltd<br />
Unity Homes Ltd<br />
Urban Nirvana Property Solutions Ltd<br />
Vishwa Developers Ltd<br />
ASSOCIATE MEMBERS<br />
Anjarwalla & Khanna Advocates<br />
Aspenn Global Mobility Consultants<br />
Axis Real Estate Ltd<br />
Davis & Shirtliff Ltd<br />
DLR Group Africa Ltd<br />
Emerge Developments Ltd<br />
Focus On Property Ltd<br />
Galaxy Heritage Ltd<br />
Geokarma Construction Ltd<br />
Global Property Advice<br />
Kone Kenya Ltd<br />
Mabati Rolling Mills Ltd<br />
State Department For Housing And<br />
Urban Development<br />
Mmc Africa Law<br />
Africa Reit Ltd<br />
Africa Infrastructure Development<br />
Company (Aidc)<br />
Ahcof Investments (Kenya) Ltd<br />
AMS Properties Ltd<br />
Cytonn Real Estate<br />
Daykio Plantations Ltd<br />
Dream Home Construction<br />
Company Ltd<br />
Dunhill Consulting Ltd<br />
INFPAC Ltd<br />
Jabez Properties<br />
Kamhomes Investment Ltd<br />
Karibu Homes<br />
Mwanzoni Ltd<br />
Nanyuki Mall Ltd<br />
Natureville Homes<br />
Oakpark Properties Ltd<br />
Sigimo Enterprises Ltd<br />
Simba Corporation Ltd<br />
Spartan Developers Ltd<br />
Superior Homes Kenya<br />
Tatu City Ltd<br />
Broll Kenya Ltd<br />
Buy Rent Kenya Ltd<br />
Cemex Holdings Ltd<br />
CFL and Company Advocates<br />
Green Kenya Corporation Ltd<br />
Honeywell Technologies (K) Ltd<br />
Intex Construction Ltd<br />
Jones Lang Lasalle (Pty) Ltd (Jll)<br />
Kanaga & Associates<br />
Newline Ltd<br />
Bahati Ridge Development Ltd<br />
Edifice Ltd<br />
Karume Holdings Ltd<br />
Kings Developers Ltd<br />
Optiven Limited<br />
Tilisi Developments Ltd<br />
CITY ENGINEERING WORKS (K) LTD<br />
Karanja Njenga Advocates<br />
Newmatic Africa Ltd<br />
Blueline Properties Ltd<br />
Elm Ridge Ltd<br />
Kzanaka Ltd<br />
Paradigm Projects Ltd<br />
<strong>The</strong> Epic Properties Ltd<br />
Classic Mouldings Ltd<br />
K.Mberia and Partners Advocates<br />
Kenya Property Developers Association... Development brings Development!<br />
Kenya Property Developers Association... Development brings Development!<br />
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20
KPDA DIRECTORY OF MEMBERS<br />
KPDA DIRECTORY OF MEMBERS IN GOOD STANDING AS AT 23 RD AUGUST <strong>2017</strong><br />
KN Associates LLP<br />
Knight Frank Kenya Ltd<br />
Koto Housing Kenya<br />
Laser Property Services Ltd<br />
Mahida And Maina Company Advocates<br />
Mboya Wangong’u & Waiyaki Advocates<br />
Mehta Electricals Ltd<br />
Menezes And Partners Advocates<br />
Mereka & Co. Advocates<br />
Mohammed Muigai Advocates<br />
Murimi And Company Advocates<br />
Nabo Capital Ltd<br />
Nanchang Foreign Engineering<br />
Company (Kenya) Ltd<br />
Nomadic Tents (K) Ltd<br />
O & M Law Llp<br />
Oraro & Company Advocates<br />
KPDA MEMBER TESTIMONIAL<br />
Pam Goldings Properties Ltd<br />
Paragon Architects<br />
Private Sector Development Trust<br />
Property Link Africa Ltd<br />
Questworks Ltd<br />
Ratemo & Company Advocates<br />
Re/Max Heritage<br />
Rhombus Concrete Ltd<br />
Saj Ceramics Ltd<br />
Secureman Services Ltd<br />
ecureman Services<br />
Limited<br />
S<br />
“ Your Security, Our Duty”<br />
Soita & Associates Advocates<br />
Spearhead Africa Ltd<br />
Stanlib Kenya Ltd<br />
Steel Africa Limited<br />
Sterling & Wilson Private Ltd<br />
Town And County Planners Association<br />
Of Kenya (TCPAK)<br />
Usafi Comfort Ltd<br />
Paragon Architects has been a member of KPDA since our<br />
first project in Nairobi went into construction. Even though<br />
we are based outside of Kenya, the industry news, regulatory<br />
news and property-related news items distributed<br />
regularly are of great value to our business. Without the<br />
KPDA, we would have a much less developed insight into<br />
the functioning of the local market and its dynamics. In<br />
addition, the networking opportunities are very valuable.<br />
Henning Rasmuss, Director<br />
– Paragon Architects<br />
<strong>The</strong> Developer’s <strong>Digest</strong> is a quarterly<br />
e-newsletter supported and published<br />
by the Kenya Property Developers<br />
Association and designed by Insync<br />
MEDIA Ltd. It targets the various<br />
players in the property industry in<br />
Kenya and highlights a wide spectre<br />
of issues affecting our members, other<br />
professionals, manufacturers and both<br />
private and public 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 />
the Association’s ongoing activities,<br />
views, interesting facts and specialty<br />
advertising messages.<br />
WHY ADVERTISE THROUGH THE<br />
DEVELOPER’S DIGEST?<br />
We offer a unique, flexible, converged<br />
media mix that helps advertisers<br />
communicate their message effectively.<br />
This includes our website, e-newsletter,<br />
social media platforms and focused events<br />
(such as our training and networking<br />
forums).<br />
We keep track of our readership and<br />
are sensitive to emerging issues in the<br />
industry.<br />
It is a free and interactive online<br />
publication.<br />
It is a free downloadable Mobile App<br />
onto any mobile device.<br />
We at <strong>The</strong> Developer’s <strong>Digest</strong> will work<br />
with you to create the most effective<br />
<strong>The</strong> Developer’s<br />
<strong>Digest</strong><br />
A KPDA PUBLICATION<br />
MEDIA PACK <strong>2017</strong><br />
multi-platform advertising strategy that<br />
will ensure you reach your targeted<br />
consumer every direction they look.<br />
After all, the distance between you and<br />
your consumer, is no longer a straight<br />
line.<br />
<strong>The</strong> Developer’s <strong>Digest</strong> will also offer<br />
you advertising on our website with a<br />
direct link to you and your company’s<br />
website.<br />
Please contact the KPDA Secretariat via<br />
email on admin@kpda.or.ke or call us<br />
on 0737 530 290 or 0705 277 787 for<br />
more information.<br />
ADVERTISING RATES<br />
Quarter (1/4) page: Kshs. 20, 000<br />
Third (1/3) page: Kshs. 30, 000<br />
Half (1/2) page: Kshs. 45, 000<br />
Full page: Kshs. 60, 000<br />
DIGITAL INPUT/MECHANICAL<br />
REQUIREMENTS — BANNERS<br />
300dpi resolution; colour calibration RGB;<br />
not larger than 20 MB; jpg format OR pdf<br />
PRESS QUALITY format with outlined text.<br />
NOTE: PDF/X 1-A or Adobe® Acrobat® distilled<br />
PDFs. PDFs exported from Photoshop are<br />
discouraged and can lead to less than<br />
desirable results.<br />
DIGITAL INPUT/MECHANICAL REQUIREMENTS — ADVERTS<br />
SIZE WIDTH DEPTH<br />
1/4 page (horizontal) 184.5mm 65mm<br />
1/4 page (vertical) 90mm 125.5mm<br />
1/3 page (horizontal) 210mm 90mm<br />
1/3 page (vertical) 68mm 270mm<br />
1/2 page (horizontal) 210mm 139mm<br />
1/2 page (vertical) 105mm 265mm<br />
Full page (theme colour) 210mm 247mm<br />
Full page 210mm 297mm<br />
ADVERTS SUBMISSION:<br />
<strong>The</strong> adverts should be submitted as Adobe PDF files with the above specific measurements<br />
for the desired advert and NOT a flat image PDF exported from Photoshop.<br />
ONLINE ADVERTISING TERMS & CONDITIONS:<br />
Payment is due within 15 days from when an invoice is issued. All payments should be made in<br />
the name of KPDA. Banner ads may be pulled if account balances are not paid by the due date. As<br />
space is limited, banner ads are sold on a first come, first served basis. All advertising is accepted<br />
subject to the publisher’s approval upon determination that the products or service advertised are<br />
in keeping with <strong>The</strong> Developer’s <strong>Digest</strong>’s philosophy.<br />
Kenya Property Developers Association... Development brings Development!<br />
Kenya Property Developers Association... Development brings Development!<br />
21<br />
22
PROUDLY SPONSORED BY<br />
Invitation to the End of Year KPDA Corporate<br />
Networking KOROGA Event<br />
#KPDAKorogaOct<strong>2017</strong><br />
Friday 27 th October <strong>2017</strong> at the Spice Roots Restaurant, Simba<br />
Union Club, Muthaiga Nairobi<br />
An interactive and informal networking event!<br />
WHERE: SPICE ROOTS RESTAURANT, SIMBA UNION CLUB<br />
(Located along Forest Road, Muthaiga, Nairobi)<br />
WHEN: Friday, 27 th October <strong>2017</strong><br />
TIME:<br />
6.00pm onwards<br />
<strong>The</strong> Koroga will run from 6.00pm onwards. Drinks will be<br />
served at a cash bar.<br />
TICKETS FOR THE KOROGA (AUTOMATIC ENTRY INTO THE<br />
RAFFLE COMPETITION)<br />
Members Kshs. 2, 500<br />
Non Members Kshs. 3, 500<br />
Companies wishing to register for the cooking competition are allowed to do so and<br />
participate in cooking vegetarian or non-vegetarian starter meals or main meals.<br />
One company may only register to cook one meal.<br />
THE DEADLINE TO RSVP (WITH PAYMENT) IS THURSDAY 19 TH OCTOBER <strong>2017</strong>. Kindly send your<br />
confirmations to m.mbogo@kpda.or.ke and cc ceo@kpda.or.ke<br />
NB:<br />
- Please note that registration fees once paid are non-refundable and cannot be transferred<br />
to cater for the cost of attending future events.<br />
- Participants who attend this event without an RSVP will be surcharged at the door<br />
- Non Members will not be allowed to participate in this event without prior payment<br />
Kenya Property Developers Association... Development brings Development!<br />
23