The Developer's Digest, August - September 2017 Issue
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AUGUST – SEPTEMBER JAN – MAR 2016 <strong>2017</strong> ISSUE<br />
Tribute to an Icon<br />
COVER PHOTO: Arch. Mariamu el Maawy<br />
at the KPDA Gala Dinner 2016.<br />
IN<br />
THIS<br />
ISSUE<br />
Focus on Policy<br />
Overview on KPDA Activities<br />
NCC Building Permitting Approval Report<br />
Kenya Property Developers Association... Development brings Development!<br />
1
PROUDLY SPONSORED BY<br />
<strong>The</strong> Developer’s<br />
<strong>Digest</strong><br />
A KPDA PUBLICATION<br />
Invitation to the End of Year KPDA Corporate<br />
Networking KOROGA Event<br />
#KorogaNaKPDA<br />
Thursday 19 th October <strong>2017</strong> at the Mint Shack Restaurant, Nairobi<br />
An interactive and informal networking event!<br />
15<br />
KPDA BOARD MEMBERS<br />
Mucai Kunyiha<br />
Chairman<br />
Palkesh Shah<br />
Board Director<br />
Emma Achoki<br />
Treasurer<br />
WHERE: MINT SHACK RESTAURANT<br />
(Located along Peponi Road, Nairobi)<br />
WHEN: Thursday, 19 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, 820 (incl. of VAT)<br />
Non Members Kshs. 3, 980 (incl. of VAT)<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 12 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 />
- Kenya Non Members Property will Developers not be allowed Association... to participate Development in this event without brings prior Development!<br />
payment<br />
Page 4:<br />
Page 5:<br />
Page 7:<br />
Page 9:<br />
From the Secretariat<br />
Tribute to an icon<br />
KPDA Member Profile<br />
Have Your Say<br />
Page 14: <strong>The</strong> State of Real<br />
Estate In Kenya<br />
Page 18: KPDA Directory of<br />
Members<br />
Hamish Govani<br />
Immediate Past Chairman<br />
Ravi Kohli<br />
Board Director<br />
Kenneth Luusa<br />
Board Director<br />
George Wachiuri<br />
Board Director<br />
Gikonyo Gitonga<br />
Board Director<br />
Caroline Karugu<br />
Board Director<br />
KPDA SECRETARIAT<br />
Margaret Kibe<br />
Board Director<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!
API AWARDS<br />
API AWARDS<br />
<strong>2017</strong> AFRICAN PROPERTY AWARDS (API)<br />
WINNERS ANNOUNCED!<br />
KARIBU HOMES AND GARDEN CITY<br />
BAG PRESTIGIOUS AWARDS!<br />
AWARDING EXCELLENCE<br />
Property developers, suppliers and owners recently got the opportunity to showcase<br />
their best projects and services from across sub-Saharan Africa at the first ever Africa<br />
Property Investment (API) Awards held in <strong>August</strong> this year.<br />
Garden City is East Africa’s first<br />
integrated residential, retail and office<br />
development. Set on 32 acres the<br />
development includes an approximately<br />
45 000m2 shopping mall, over 200<br />
residential apartments and 20 000m2<br />
built-to-suit office space. Developed<br />
by Actis in line with the Kenyan<br />
government’s Vision 2030 the project<br />
has sustainability at its core and features<br />
the largest solar paneled carport in<br />
Africa on the mall’s rooftop parking area.<br />
<strong>The</strong> developer’s vision was to create a<br />
“live-work-play” environment to cater<br />
to the community in the North-East<br />
suburbs of Nairobi.<br />
Mentor Management Ltd<br />
<strong>The</strong> Courtyard<br />
General Mathenge Drive<br />
P. O. Box 62899 - 00200<br />
Westlands, Nairobi<br />
Tel: +254(0) 20 3744903/4<br />
Mobile: +254 706 579 790<br />
www.mmlea.com<br />
<strong>The</strong> awards, announced today at<br />
the API Summit and Expo <strong>2017</strong>,<br />
recognises innovation and outstanding<br />
achievement across the entire property<br />
industry in seven categories.<br />
<strong>The</strong> projects were judged on a wide<br />
range of criteria including location,<br />
infrastructure and transport access,<br />
integration into the environment,<br />
originality of the concept, technical and<br />
architectural quality, services offered,<br />
sensitivity to the local community,<br />
innovation, sustainability, corporate<br />
staff involvement, response to market<br />
demands, financial performance,<br />
occupancy, and the impact of the<br />
project on economic convergence.<br />
<strong>The</strong> calibre of entries was world class<br />
and the judges had a challenging time<br />
selecting the winners, nevertheless<br />
they managed to hone in on the best<br />
projects.<br />
Here are the winners for each category<br />
from the <strong>2017</strong> Africa Property<br />
Investment Awards.<br />
API AWARDS CATEGORIES:<br />
Karibu Homes is a leading Kenyan<br />
developer of mass market affordable<br />
housing with 1000 homes currently<br />
under development. <strong>The</strong> developer<br />
has successfully delivered the first<br />
community of affordable housing in<br />
Nairobi having already completed Phase<br />
1 of the project with 285 homes built<br />
and sold. Work on Phase 2 has started<br />
with 500 homes under construction.<br />
Since inception the development has<br />
had a significant systemic impact on<br />
the affordable housing ecosystem in<br />
general with both public and private<br />
institutions actively seeking to learn<br />
something from the development<br />
through site visits, panel discussions and<br />
scholarships.<br />
Karibu Homes<br />
Springette Office Park, Block G, Lower<br />
Kabete Rd, Nairobi<br />
P. O. Box 40063-00100, Nairobi, Kenya<br />
705151515<br />
sales@karibuhomes.com<br />
www.karibuhomes.com<br />
Kenya Property Developers Association... Development brings Development!<br />
Kenya Property Developers Association... Development brings Development!<br />
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2
API AWARDS<br />
Best Apartment Kenya – One General<br />
Mathenge by AMS Properties Ltd<br />
AMS Properties Ltd, a pioneer in the<br />
property industry has been developing<br />
properties for almost two decades<br />
now. <strong>The</strong> brand has a reputation for<br />
investment integrity, quality finishes<br />
and on time delivery. With a proven<br />
track record of over 7,500,000 sq.ft. built<br />
up area being delivered and having<br />
attained several international property<br />
awards, the AMS brand is well respected<br />
in the market and is now a Superbrand.<br />
CONGRATULATIONS TO THE WINNERS!<br />
ABOUT THE INTERNATIONAL<br />
PROPERTY AWARDS<br />
<strong>The</strong> International Property Awards are open to residential<br />
and commercial property professionals from around the<br />
globe. <strong>The</strong>y celebrate the highest levels of achievement by<br />
companies operating in all sectors of the property and real<br />
estate industry. An International Property Award is a worldrenowned<br />
mark of excellence.<br />
<strong>The</strong> awards are split into regions covering Africa, Asia<br />
Pacific, Arabia, Canada, Caribbean, Central & South America,<br />
Europe, UK and USA. Participants enter at their relevant<br />
national level and are judged by a highly experienced team<br />
of professionals who cover the whole range of property<br />
disciplines. Companies selected as winners are then invited<br />
to attend a glittering awards dinner for each region and<br />
have the right to use the prestigious logo in their marketing.<br />
<strong>The</strong> highest-scoring winners from each region are<br />
AMS Properties Ltd<br />
P. O. Box 10713 - 00100, Nairobi Kenya<br />
Phone: +254 20 3660000<br />
Fax: +254 20 3660300<br />
Sales: 0737 267267, 0715 267267<br />
6th Floor, Block 1,<br />
Eden Square, Westlands Road<br />
automatically entered into the overall International Awards,<br />
which ultimately determine the world’s finest property<br />
companies.<br />
Contact our office at +44 (0) 1245 250981<br />
Chelmsford<br />
• <strong>The</strong> Mill House, Bishop Hall Lane, Chelmsford, Essex,<br />
CM1 1LG, UK<br />
• Phone: +44(0) 1245 250981<br />
• Email: info@propertyawards.net<br />
• Fax: +44(0) 01245 358323<br />
Newcastle<br />
• 6 Higham Place, Newcastle Upon Tyne, NE1 8AF<br />
• Phone: +44 (0)191 230 2269<br />
• Email: info@propertyawards.net<br />
WHY JOIN THE KPDA FAMILY?<br />
KPDA’s current membership is a diverse make up of all industry players including property development firms, real<br />
estate agents and managers, professional firms, industry suppliers, government agencies, institutional investors<br />
and managers and financial institutions who are based both in Kenya and globally. Principally, KPDA champions<br />
the interests of the industry to ensure a better business environment.<br />
In order to join KPDA, the following should be submitted to the KPDA Secretariat:<br />
1. Fill the KPDA Membership Application Form and sign the KPDA Code of Conduct;<br />
2. Attach a copy of your company’s certificate of registration or incorporation and;<br />
3. Make the relevant payment<br />
Submission may be made either physically or electronically.<br />
Kindly contact the Membership Relations Officer, Maryanne Mbogo through the telephone number 0737 530 290<br />
or 0705 277 787 or by email m.mbogo@kpda.or.ke.<br />
Kenya Property Developers Association<br />
Fatima Flats, Suite 4 B, Marcus Garvey Road off Argwings Kodhek Road, Kilimani Area<br />
P. O. Box 76154 - 00508, NAIROBI, KENYA<br />
Telephone: +254 737 530 290/0705 277 787 / Website: www.kpda.or.ke<br />
FROM THE SECRETARIAT<br />
“Our fingerprints do not fade<br />
from the lives that we touch” - Judy Blume<br />
Welcome to the third issue of <strong>The</strong><br />
Developer’s <strong>Digest</strong> for the year <strong>2017</strong>.<br />
In this issue we pay homage to an<br />
iconic woman, a woman who positively<br />
affected the built environment in<br />
Kenya, both in her character and<br />
professionalism.<br />
It was terrible news to hear of the<br />
demise of Arch. Mariamu el Maawy,<br />
Principal Secretary for Public Works on<br />
27th <strong>September</strong> <strong>2017</strong>.<br />
Her death brings into perspective the<br />
state of insecurity in this country and our<br />
(failing) efforts at beating terrorism. May<br />
our Lord rest her soul in eternal peace<br />
and be a constant comfort to her family<br />
and friends.<br />
On 19th October <strong>2017</strong>, KPDA shall hold<br />
its Corporate Networking Koroga Event<br />
at the Mint Shack Restaurant in Nairobi.<br />
We hope we can count on all of our local<br />
readers being there and joining us to<br />
unwind before we once again go to the<br />
polls and decide on who will rule Kenya!<br />
In this issue you will find a tribute to<br />
Arch. El Maawy, an article on the state<br />
of real estate in Kenya and as usual, our<br />
Directory of KPDA Members.<br />
I am once again calling on all writers<br />
KPDA wishes to welcome our newest members:<br />
• Canaan Properties Ltd<br />
• Endless Africa Ltd<br />
• Lifestyle Estate Holdings<br />
• Sohail Developments Ltd<br />
• Mlima Construction Company Ltd<br />
Welcome to the KPDA Family!<br />
(and potential writers) to send through<br />
their articles to be featured in our Have<br />
Your Say section.<br />
You can write on anything affecting the<br />
industry, both locally and internationally.<br />
Feel free to submit your articles to me<br />
through the email address ceo@kpda.<br />
or.ke<br />
I wish you all a patriotic month of<br />
October…<br />
Elizabeth<br />
3<br />
Kenya Property Developers Association... Development brings Development!<br />
Kenya Property Developers Association... Development brings Development!<br />
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SPECIAL FEATURE<br />
A TRIBUTE TO AN ICON<br />
ARCH. MARIAMU EL MAAWY<br />
Inna Lillaahi Wa Inna Ilayhi Raji’oun. May our Lord rest your soul in eternal peace.<br />
Arch. El Maawy was first appointed as<br />
the Principal Secretary of Land in June,<br />
2013, commencing her service in the<br />
then Ministry of Land, Housing and<br />
Urban Development.<br />
During her tenure as PS Land, she<br />
was engaged in major programs of<br />
government, which included the<br />
Titling Program that resulted in the<br />
award of thousands of title deeds<br />
including the resolution of the<br />
longstanding Likoni and Kihiumwiri<br />
land crises in Mombasa and Muranga<br />
counties respectively.<br />
She was posted to head the State<br />
Department of Public Works in the<br />
Ministry of Transport, Infrastructure,<br />
Housing and Urban Development in<br />
April <strong>2017</strong>.<br />
SPECIAL FEATURE<br />
We continue to remember you Mariamu…<br />
LEFT: Arch. Mariamu at<br />
the KPDA CEO Morning<br />
Learning Session held<br />
on 13th October 2015.<br />
RIGHT: Sharing a<br />
light moment with a<br />
couple of KPDA Board<br />
Directors at KPDA’s Gala<br />
Dinner celebrating the<br />
Association’s 10th Year<br />
anniversary held in 2016.<br />
Receiving a copy of<br />
the KPDA Strategic<br />
Plan <strong>2017</strong> – 2020 as<br />
her Cabinet Secretary<br />
Prof, Kaimenyi<br />
looks on. Arch. El<br />
Maawy endorsed the<br />
Association’s efforts at<br />
improving the Kenyan<br />
real estate sector.<br />
Prior to her appointment, Arch. El<br />
Maawy had served as an Honorary<br />
Treasurer of the Architectural<br />
Association of Kenya (AAK) from 2007<br />
to 2009.<br />
She also served as a member of the<br />
Mombasa Polytechnic University<br />
Council, Chairperson of the Faza Fire<br />
Disaster Fund, member of the Public<br />
Procurement Advisory Board, the<br />
Kenya Anti-Corruption Commission<br />
and the Privatization Commission of<br />
Kenya.<br />
As a close ally and friend of KPDA, Arch.<br />
El Maawy showed her unwavering<br />
support towards the work of the<br />
Association by attending several<br />
KPDA events.<br />
She was also responsible for the strong<br />
ties that KPDA has with the national<br />
government.<br />
Kenyans have lost an icon.<br />
Humble enough<br />
to sign in at the<br />
registration desk<br />
of the KPDA CEO<br />
Breakfast Form held<br />
on 25th <strong>August</strong> 2015.<br />
Inna Lillaahi Wa Inna<br />
Ilayhi Raji’oun.<br />
May our Lord rest your<br />
soul in eternal peace.<br />
- <strong>The</strong> KPDA Fraternity<br />
Kenya Property Developers Association... Development brings Development!<br />
Kenya Property Developers Association... Development brings Development!<br />
5 6
KPDA MEMBER PROFILE<br />
KPDA MEMBER PROFILE<br />
Improving People<br />
Flow in East Africa.<br />
KONE Kenya officially started operations in<br />
<strong>August</strong> 2014 after a successful acquisition<br />
of Marryat and Scott (Kenya) and Marryat<br />
East Africa (Uganda). Marryat and Scott<br />
was at the time the sole distributor of<br />
KONE products in East Africa since the late<br />
1980s.<br />
At KONE, our mission is to improve the<br />
flow of urban life. As a global leader in the<br />
elevator and escalator industry, KONE<br />
provides elevators, escalators and<br />
autowalks as well as innovative solutions<br />
for maintenance and modernization.<br />
Through more effective People Flow®<br />
Solutions, we make people’s journeys safe,<br />
convenient and reliable, in taller, smarter<br />
buildings. We help cities to be better places<br />
to live in.<br />
We have a dedicated maintenance team on<br />
the ground available 24/7 and a dedicated<br />
Toll Free Call Centre 0800 720 130. You can<br />
learn more about us on www.kone.co.ke.<br />
Kenya Property Developers Association... Development brings Development!<br />
Kenya Property Developers Association... Development brings Development!<br />
7<br />
8
HAVE YOUR SAY<br />
HAVE YOUR SAY<br />
Property developments are often bigticket<br />
investments with drawn out<br />
timelines and a myriad of risks through<br />
which to navigate. Careful management<br />
of the process is critical as mistakes<br />
can have high-cost implications to<br />
the project. It is in this environment<br />
of intense pressure and uncertainty<br />
that property developers operate.<br />
Hospitality consultants are engaged to<br />
help manage the uncertainty when the<br />
developer decides to invest in this asset<br />
class.<br />
Like their counterparts in other<br />
specialized industries, hospitality<br />
consultants offer their expertise based<br />
on the need of the engagement in<br />
tandem with the stage of property<br />
development. A hospitality consultant<br />
will typically offer professional counsel<br />
and expertise to hotel owners,<br />
developers, operators, restaurants,<br />
clubs, spas and other fields within the<br />
hospitality industry.<br />
It is a commonly held belief that a<br />
hospitality consultant would only<br />
provide operations expertise. On the<br />
contrary, their expertise stretches<br />
into other services such as appraisals,<br />
arbitration, architectural and<br />
engineering, construction and project<br />
management, feasibilities, executive<br />
search, food service, franchise expertise,<br />
legal services, operations review and<br />
sales and marketing, organization<br />
development, research, training,<br />
strategic planning and technology. This<br />
wide range of expertise reflects in the<br />
constituent membership of the body<br />
that represents hospitality consultants<br />
globally, the International Society of<br />
Hospitality Consultants (ISHC).<br />
<strong>The</strong>re are five main stages in a hospitality<br />
investment lifecycle each with a need<br />
for the services of any of the above<br />
hospitality consultants.<br />
STAGE 1: CONCEPT STAGE<br />
At this stage, the developer is in<br />
possession of land. <strong>The</strong>y would want at<br />
this stage to ascertain the best use of the<br />
land with the highest return. This highest<br />
and best use analysis would involve real<br />
estate consultants such as Knight Frank.<br />
If the area has hospitality potential,<br />
a hospitality consultant would be<br />
engaged to determine what the most<br />
viable type of hospitality asset would<br />
work for the area of choice. <strong>The</strong> role<br />
of the consultant at this stage would<br />
be to undertake market research that<br />
would determine the type of hospitality<br />
asset that would be the best fit for the<br />
area and a financial feasibility study to<br />
determine the most optimal returns that<br />
asset would generate.<br />
In some cases, the developer has the<br />
desire to invest in a particular asset class<br />
such as a hotel, the role of the consultant<br />
would be to refine the concept by<br />
identifying the class of hotel that would<br />
resonate with the supply and demand of<br />
the area.<br />
This intervention is important as<br />
it determines how the final asset<br />
would operate based on demand and<br />
competitive trends. Further, the process<br />
Trianum Hospitality Limited<br />
No. 11 Othaya Road, Lavington<br />
P.O. Box 76576 – 00508, Nairobi<br />
Tel: +254 (0) 2-2317119 / http://www.trianum.co.ke<br />
THE ROLE OF HOSPITALITY<br />
CONSULTANTS IN HOSPITALITY<br />
would give the developer an idea of the<br />
projected cash flows produced by the<br />
asset over a hold period of say ten years<br />
as well as the return on investment and<br />
the projected value of the asset.<br />
It is from this study that the developer<br />
can engage his/her project team to carry<br />
out concept design and preliminary<br />
project costs of the proposed developed.<br />
A strong feasibility study should have a<br />
section on the proposed design brief of<br />
the hotel that would guide the architect<br />
and other members of the development<br />
team.<br />
An important consideration for a<br />
hospitality developer is how the<br />
asset would operate. This is critical<br />
in determining the success of all<br />
subsequent stages in the development<br />
process. <strong>The</strong> skill and expertise of the<br />
operator will be the single critical factor<br />
in the success of a hospitality investment<br />
and the key to maximizing the value<br />
of the asset. In this regard, a hospitality<br />
consultant can be engaged to carry out<br />
an operator search and selection for a<br />
suitable management company, brand,<br />
or franchise.<br />
<strong>The</strong>y would also assist in contract<br />
negotiation to ensure the developer<br />
is fully aware of the key terms of the<br />
brand contract. Should the developer<br />
desire to engage an international chain,<br />
they should be fully aware of the chain’s<br />
build, fit out and design specifications.<br />
<strong>The</strong> ideal time for this is at the<br />
preconstruction stage, as incorporating<br />
brand specifications mid construction<br />
would have huge cost implications.<br />
Local consultants that are able to offer<br />
these services include Jones Lang<br />
LaSalle (which has a global footprint),<br />
Barefoot Consultancy, Trianum and PKF.<br />
International consultants may include<br />
HVS (South Africa, UK, UAE, USA & Asia),<br />
W Hospitality (Nigeria), Colliers (UAE),<br />
HTI Consulting (UAE) among others.<br />
STAGE 2: DESIGN STAGE<br />
In the process of detailing the project’s<br />
designs, there will need to use a<br />
hospitality consultant to refine the<br />
hospitality concept with a special focus<br />
on areas related to operation flow<br />
such as the kitchen and laundry. <strong>The</strong><br />
advice provided would serve to balance<br />
aesthetics, functionality, and workflow<br />
based on certain ratios that guide<br />
space allocation between the back of<br />
house staff areas, guest spaces and the<br />
interaction of hotel rooms to food and<br />
beverage space across the different<br />
asset ratings.<br />
<strong>The</strong>se ratios and the final workflow and<br />
guest circulation have a direct impact<br />
on the profitability of the asset. It is<br />
not uncommon for the project scope<br />
to change, hence, the developer may<br />
also choose to reach out to a hospitality<br />
consultant for concept refinement.<br />
<strong>The</strong> consultants’ role would be to work<br />
with the defined concept to ensure<br />
maximized efficiencies of the building.<br />
This may involve some construction<br />
reworks though checks are required<br />
to avoid high-cost escalations. <strong>The</strong><br />
hospitality consultant would join the<br />
developer’s core project team to provide<br />
their expertise on space optimization<br />
and workflow that increases profitability.<br />
Hotel operators and independent<br />
consultants, especially senior hospitality<br />
managers, would be able to provide<br />
these services since experience in<br />
operations are paramount in giving the<br />
right advice.<br />
A legal consultant may help define the<br />
contractual interaction between various<br />
operators in cases where spaces within<br />
one asset have different operators such<br />
as specialized spa or health and fitness<br />
operators, specialty restaurants or bars<br />
or casinos.<br />
STAGE 3: CONSTRUCTION STAGE<br />
As mentioned earlier, it is best to start<br />
with the end use of the asset in mind and<br />
select an operator, brand or franchise<br />
at the conclusion of the feasibility<br />
study before the detailed design and<br />
commencement of construction.<br />
In cases where this was not determined<br />
at an earlier stage, the developer may<br />
require an operator introduced once<br />
construction is in progress.<br />
<strong>The</strong> determination whether the property<br />
would be under a management<br />
contract, owner operated or leased<br />
to a hospitality operator requires the<br />
expertise of hospitality consultants who<br />
are able to present the contractual and<br />
financial implications of the various<br />
business models by projecting the cash<br />
flows between the parties.<br />
Local firms such as JLL, Unlimited<br />
Directions and Trianum with experience<br />
in negotiation and administering<br />
management contracts may be best<br />
placed to handle this task. Additionally,<br />
during the construction period, a<br />
hospitality consultant can be engaged<br />
to procure furniture, fittings and<br />
equipment (FF&E) in accordance with<br />
the operator’s standards.<br />
Many international brands have very<br />
detailed brand specifications that are<br />
not easy to meet within the local market<br />
hence requiring international sourcing<br />
and long lead times. Consultants such as<br />
Turea (Kenya), Hotel Spec (South Africa)<br />
and WATG (UK) offer these services and<br />
work closely with interior designers and<br />
operators to purchase the right quality<br />
and quantity of items.<br />
STAGE 4: PRE-OPENING STAGE<br />
Once construction of the hospitality<br />
asset is complete, handed over and the<br />
FF&E is in place, it is the time to put all<br />
the final pieces together. This includes<br />
the procurement of operating supplies<br />
and equipment (OSE), installation<br />
of information, communication and<br />
technological (ICT) as well as financial<br />
systems, establishing of procuring<br />
licenses and permits and hiring and<br />
training of staff to be able to deliver the<br />
required level of service.<br />
Again, hotel operators and independent<br />
consultants, especially senior hospitality<br />
managers, would be able to provide<br />
these services. In addition, specialized<br />
consultants like OKAL or HVS Executive<br />
Search for training and recruitment or<br />
Hospitality Systems Consultants (HSC)<br />
for ICT system set up may be required.<br />
STAGE 5: MANAGEMENT<br />
AND EXIT STAGES<br />
Hospitality consultants help the investor<br />
achieve their objectives by de-risking the<br />
development in the early development<br />
stages; however, making the investment<br />
viable during its operation life cycle<br />
is what ensures achievement of the<br />
owner’s objectives and maximization of<br />
returns.<br />
If an operator is managing the day-today<br />
operations under a management<br />
contract, then the role of asset managers<br />
like CHM (USA) and valuation specialists<br />
like HVS (South Africa) and JLL (Kenya)<br />
is crucial in tracking performance and<br />
developing strategies for continuation<br />
or exit. <strong>The</strong>se firms can also handle the<br />
valuation and brokerage should exit<br />
become necessary.<br />
In conclusion, the role hospitality<br />
consultants play in the development<br />
of hospitality assets depends on the<br />
requirements of the developer; however,<br />
it is best to engage a consultant at the<br />
start of the project to minimize both<br />
development and operating costs and<br />
risks, which in turn lead to higher returns.<br />
By Samantha Muna, Managing Director<br />
Robert Kimani, Business Development<br />
Executive<br />
Kenya Property Developers Association... Development brings Development!<br />
Kenya Property Developers Association... Development brings Development!<br />
9<br />
10
KPDA PARTNERS PROFILE<br />
KPDA PARTNERS PROFILE<br />
TOWN AND COUNTY PLANNERS<br />
ASSOCIATION OF KENYA<br />
INTRODUCTION<br />
Town and County Planners Association of Kenya<br />
(TCPAK) is registered and approved professional<br />
association for town planners, land use or<br />
physical planners in Kenya.<br />
In line with the Constitution of Kenya 2010, TCPAK<br />
motto is “Better Towns, Counties and Country”.<br />
<strong>The</strong> association is a member of the International<br />
Society of City and Regional Planners (<strong>The</strong><br />
Hague, Netherlands). As a member of the<br />
international community, TCPAK promotes the<br />
United Nations Sustainable Development Goals<br />
and the New Urban Agenda.<br />
Vision: To be the premier and leading town,<br />
county, regional and country planning<br />
association of choice in Kenya and the world.<br />
Mission: TCPAK exists to advance sustainable,<br />
integrated and inclusive association for the<br />
benefit of town and county planners by<br />
fostering professional growth of members,<br />
advancing planning knowledge and<br />
technologies, conducting research and<br />
professional development programs as well as<br />
championing the rights of the planners.<br />
Value Statement: A responsive association of<br />
town and county planners which is professional,<br />
accountable, democratic and mutually<br />
responsive.<br />
NATIONAL COUNCIL<br />
<strong>The</strong> Association is run by 8-member national<br />
council – Chairman, Vice-Chairman, Secretary;<br />
Treasurer, Registrar, Assistant Secretary,<br />
Assistant Treasurer and Assistant Registrar. <strong>The</strong><br />
current membership of the national council is<br />
outlined below.<br />
Chairman - Mairura Omwenga<br />
Mr. Omwenga is a civil engineer/town<br />
planner and EIA expert. He is holder of<br />
BSc (civil engineering) and MA (urban and<br />
regional planning) and a registered PhD<br />
candidate. He serves as coordinator of the<br />
International Society of City and Regional<br />
Planners (ISOCARP, Nairobi Liaison Office). He<br />
is a member of AAK Town Planners Chapter<br />
and associate member of the Royal Town<br />
Planning Institute (UK). He has previously<br />
served as member of Kenya Physical Planners<br />
Registration Board.<br />
Mr. Omwenga is a member of Institution<br />
of Engineers of Kenya (IEK) and registered with the Engineers Board of<br />
Kenya(EBK), Physical Planners Registration Board, and NEMA. Currently Mr.<br />
Omwenga is a lecturer at the University of Nairobi, College of Architecture and<br />
Engineering and runs a consulting firm-Kenmt Bill Engineers and Planners. He<br />
has been a consultant to a number of local and international organizations<br />
including national/county governments, UN-Habitat), UNDP, World Bank, JICA<br />
and African Development Bank.<br />
Vice Chairman - David Gatimu<br />
Mr. David Gatimu, Vice Chairman, is an<br />
alumnus of Oxford Brookes University and<br />
a practicing urban planner in the public<br />
sector. He is currently the Chief Officer,<br />
Lands, Housing and Spatial Planning -<br />
Kiambu County Government. For a long<br />
time, Mr. Gatimu worked in the city planning<br />
department of the Nairobi City Council.<br />
Secretary<br />
- Juliet Rita<br />
Juliet Rita holds a BA (Urban<br />
and Regional Planning) of<br />
University of Nairobi and<br />
MSc (Infrastructure planning)<br />
from the University of<br />
Stuttgart, Germany. She is an<br />
expert in transportation and<br />
infrastructure planning, urban<br />
planning, and environmental<br />
and social assessment (ESIA).<br />
She is a registered physical<br />
planner and EIA/EA lead expert<br />
with NEMA. She is the Chair<br />
AAK Town Planners Chapter, a<br />
corporate member of TCPAK<br />
and also the International<br />
Society of City and Regional<br />
Planners (ISOCARP). She has<br />
worked in government and<br />
also the private sector.<br />
Treasurer<br />
- Esther Muthoni<br />
Muthoni holds a BA (Urban<br />
and Regional Planning) of<br />
University of Nairobi, and MSc<br />
(Geo-information Science and<br />
Earth Observation in Urban<br />
Planning and Management)<br />
from the University of Twente<br />
(ITC). She is a registered and<br />
practicing physical planner, and<br />
a corporate member of TCPAK<br />
and the AAK - Town Planners<br />
Chapter. She has about ten<br />
years professional experience<br />
in urban/physical planning,<br />
research and development,<br />
and GIS operations. Muthoni is<br />
currently the Vice-Chair of the<br />
Physical Planners Registration<br />
Board. She runs a consultancy<br />
firm – E&G Spatial Consultants<br />
Ltd.<br />
Vice Registrar - Betty Ong’injo<br />
Registrar<br />
- Collins Nthuni<br />
Mr. Collins Nthuni holds BA<br />
(urban and regional planning)<br />
of University of Nairobi. He<br />
is a registered and licensed<br />
by the Physical Planners<br />
Registration Board. He is a<br />
member of the International<br />
Society of City and Regional<br />
Planners (ISOCARP, <strong>The</strong><br />
Hague/Netherlands) and<br />
Royal Town Planning Institute<br />
(UK). Currently, Mr. Nthuni<br />
is employed as a physical<br />
planner in Kenya Wildlife<br />
Service. He has previously<br />
worked with Kenmt Bill<br />
Engineers and Planners. He<br />
has worked with and is still<br />
a consultant to a number<br />
of major organizations<br />
including Airtel, Safaricom<br />
YES Housing Sacco, FEP Group<br />
of Companies and various<br />
national/county government<br />
departments.<br />
Miss Betty Ong’injo is a holder of BA (Urban and Regional<br />
Planning) and currently pursuing M.A (Urban and Regional<br />
Planning) of the University of Nairobi. She previously worked<br />
at Kenmt Bill Engineers and Planners. Presently, she is a town/<br />
physical planner at Real Plan Consultants. She is a member of<br />
the AAK Town Planners Chapter.<br />
Assistant Secretary<br />
- Philip Olale<br />
Mr. Olale is a graduate of<br />
the University of Nairobi<br />
and holds BA (Urban and<br />
Regional Planning) and MA<br />
(Environmental Law) from<br />
Centre for Advanced Studies<br />
in Environmental Law and<br />
Policy (CASELAP) University<br />
of Nairobi. He has a bias<br />
research interest in land use<br />
planning law, transportation/<br />
infrastructure planning<br />
and environmental law. His<br />
professional engagements<br />
and experience has over<br />
the years focused on<br />
project management and<br />
coordination, preparation of<br />
master plans and physical<br />
development plans;<br />
environmental impact<br />
assessment, strategic<br />
environmental assessment;<br />
land and land use policy,<br />
sustainable<br />
human<br />
settlements. He previously<br />
worked at Kenmt Bill<br />
Engineers and Planners and<br />
also Architectural Association<br />
of Kenya (AAK). He is currently<br />
employed as assistant lecturer<br />
in the University of Nairobi<br />
and also research associate at<br />
the Centre for Urban Research<br />
and Innovations.<br />
Kenya Property Developers Association... Development brings Development!<br />
Kenya Property Developers Association... Development brings Development!<br />
11 12
KPDA PARTNERS PROFILE<br />
KPDA FEATURE<br />
TCPAK ACTIVITIES AND ENGAGEMENTS<br />
Legislation Agenda<br />
In the recent years, TCPAK members have<br />
participated in the review of various Acts<br />
and Bills of Parliament and engaged<br />
committees of both the Senate and<br />
National Assembly. Some of the Acts and<br />
Bills reviewed include the Land Act, Land<br />
Registration Act, Community Land Act<br />
and the Physical Planning Bill 2015.<br />
Policy and Guidelines<br />
<strong>The</strong> Association and its members<br />
have contributed in the review and<br />
formulation of policy, regulations and<br />
standards. Some of the policy and<br />
regulation items include - county spatial/<br />
urban land use planning oversight and<br />
monitoring guidelines, national land use<br />
policy, and national spatial plan.<br />
National State Agencies<br />
TCPAK has developed useful working<br />
relationship with many national<br />
government ministries, departments<br />
and state agencies.<br />
<strong>The</strong>se agencies include the Ministry<br />
of Lands and Physical Planning, the<br />
State Department for Housing and<br />
Urban Development, National Land<br />
Commission, LAPSSET, Kenya Power,<br />
KENGEN and the KWS.<br />
Town and County Governments<br />
<strong>The</strong> Association and its members are<br />
spread in all counties in Kenya. As a<br />
professional association of town and<br />
county planners, the Association has<br />
nurtured close working relationships<br />
with county governments directly and<br />
through the Council of Governors (COG).<br />
Town and County Planning and<br />
Development Conference<br />
<strong>The</strong> new Kenya Constitution 2010 has<br />
identified towns and counties as the<br />
engine and focus of development. To this<br />
end, TCPAK plays host to the annual Town<br />
and County Planning and Development<br />
conference, 8th to 10th November every<br />
year.<br />
This premier event attracts professionals,<br />
national/county government officials,<br />
private sector and the academia.<br />
World Town Planning Day<br />
<strong>The</strong> World Town Planning Day is marked<br />
annually on 8th November. Globally, the<br />
event is coordinated by the International<br />
Society of City and Regional Planning<br />
(ISOCARP, <strong>The</strong> Hague/Netherlands). As<br />
members of ISOCARP, AAK Town Planners<br />
Chapter and TCPAK have been hosting<br />
this event here in Kenya since 2008.<br />
Town Awards of Excellence<br />
Town Awards of Excellence is a brain child<br />
of TCPAK. This annual Award is given to<br />
individuals, corporate and state agencies<br />
in recognition of their efforts to making<br />
towns and counties better places to live,<br />
work and invest in.<br />
UPCOMING EVENTS<br />
THE ASSOCIATION INVITES ALL TO THE UPCOMING EVENTS LISTED BELOW:<br />
ISOCARP Congress 24th – 27th October <strong>2017</strong><br />
Portland Oregon, USA<br />
<strong>The</strong> International Society of City and Regional Planners<br />
(ISOCARP) 53rd Congress will be held over the period<br />
24th – 27th October <strong>2017</strong>, Portland Oregon, USA. TCPAK<br />
Chairman is member of the congress committee and chair/<br />
rapportuer for Track 1 on Infrastructure, Buildings and<br />
ICT. For more information on this ISOCARP International<br />
Congress, visit the ISOCARP official website at https://<br />
isocarp.org/<br />
Town and County Planning and Development<br />
Conference <strong>2017</strong><br />
<strong>The</strong> Town and County Planning and Development<br />
Conference, 6th - 8th December <strong>2017</strong>, will be held at the<br />
Travellers Beach Hotel in Nyali, Mombasa. This event will<br />
also mark the annual World Town Planning Day and Town<br />
Awards of Excellence <strong>2017</strong>. Registration for this 3-in-1<br />
event is now open and further details can be obtained<br />
from the TCPAK secretariat.<br />
MEMBERSHIP AND CONTACT ADDRESS<br />
Membership<br />
TCPAK membership categories include - Fellow,<br />
Corporate, Institutional, Graduate, Associate, Technician,<br />
Student, Honorary, Visiting, and Firm.<br />
Contact Address<br />
<strong>The</strong> Association Secretariat address is as outlined below:<br />
Physical Address:<br />
Block 2, White Court, Galana Road, Kilimani, Nairobi<br />
Email:<br />
tcpakassociation@yahoo.com; info@tcpak.com;<br />
Cell: (+254) 0725 028 572<br />
Website: www.tcpak.com<br />
THE STATE OF REAL ESTATE IN KENYA<br />
Kenya’s real estate market like any other<br />
in the world operates in cycles. Our cycles<br />
tend to start after a general election and<br />
end with the next general elections.<br />
<strong>2017</strong> will be an election year and the<br />
slowdown in uptake, drop in prices and<br />
the increasing number of vacancies is a<br />
telltale sign that the market is adopting<br />
a wait and see attitude.<br />
Real estate however, continues to<br />
remain one of the most sort after sectors<br />
of investment in the Kenyan economy.<br />
<strong>The</strong> simple reason behind this is<br />
twofold. One of the main reasons is due<br />
to its proven status as a safe investment<br />
with little risks and guaranteed returns<br />
given the ever appreciating value of<br />
land. Second and most importantly, the<br />
Kenyan population. A huge part of the<br />
Kenyan population have an underlying<br />
endeavour to one day own part of the<br />
earth’s crust (land) in order to actualize<br />
their ever existing ambition of land<br />
ownership.<br />
<strong>2017</strong> has thus far been a very interesting<br />
year. This is due to the fact that late last<br />
year, the Cabinet Secretary in charge of<br />
Land and Physical Planning had issued<br />
a freeze in the renewal of leases and in<br />
fact any dealings in land in several parts<br />
of the country including Kajiado County<br />
as a measure of moving in to curb fraud<br />
that had become rampant perpetuated<br />
on unexpecting land owners.<br />
<strong>The</strong> ban brought a temporary state<br />
of inactivity in terms of slowing down<br />
investment in those affected areas. <strong>The</strong><br />
real estate sector thus experienced a<br />
temporary drop in the overall amounts<br />
spent by investors to acquire disposition<br />
in land.<br />
Come May of <strong>2017</strong>, the Cabinet<br />
Secretary reversed his temporary ban<br />
on the renewal of leases and dealings<br />
in land from the affected areas and<br />
the sector once again became vibrant<br />
with investment in land going back to<br />
previous highs.<br />
Whereas land ownership remains a vital<br />
part of the real estate sector, various<br />
other avenues exist as viable investment<br />
opportunities in as far as real estate is<br />
concerned. This include construction,<br />
agency management, commercial and<br />
13<br />
Kenya Property Developers Association... Development brings Development!<br />
Kenya Property Developers Association... Development brings Development!<br />
14
KPDA FEATURE<br />
THE STATE OF REAL ESTATE IN KENYA<br />
rental letting just to mention but a few.<br />
Construction remains the all-time crown<br />
jewel that has attracted both local and<br />
international arrival firms to partake<br />
in the booming Kenyan construction<br />
sector.<br />
KPDA FEATURE<br />
<strong>The</strong> Tallest Building in Africa to<br />
be constructed in Kenya!<br />
<strong>The</strong> mighty peaks of Kilimanjaro and<br />
Kenya are the highest points in Africa,<br />
towering over the East Coast nations.<br />
<strong>The</strong> mountains will soon be sharing a<br />
skyline with a man-made behemoth<br />
named simply: “<strong>The</strong> Pinnacle.”<br />
<strong>The</strong> Pinnacle is a joint venture between<br />
Hass Petroleum Group’s real estate<br />
subsidiary Jabavu Village and Dubai<br />
based investment firm White Lotus<br />
Group. Upon completion, <strong>The</strong> Pinnacle<br />
will tower at a height of 300 meters<br />
above the ground with 70 floors and<br />
estimated to have construction costs<br />
totalling Kshs.20 Billion.<br />
Construction of <strong>The</strong> Pinnacle.<br />
<strong>The</strong> artistic building that President Uhuru Kenyatta laid its foundation on 23rd May,<strong>2017</strong>. It wiill be the tallest one in Africa.<br />
An example of a shipping container home in the UK.<br />
Located in Upperhill in Nairobi, <strong>The</strong><br />
Pinnacle will be the tallest building<br />
in Africa and therefore making it the<br />
biggest real estate project in the country<br />
currently. <strong>The</strong> Pinnacle is set to house<br />
among other things, 5-star hotel <strong>The</strong><br />
Hilton, a 5-star restaurant, 42 floors<br />
of residential apartments, 20 floors<br />
of Grade A offices, 5 floors for retail<br />
shopping, 3 floors of basement parking,<br />
a gaming zone and a luxury mall spread<br />
across 3 floors.<br />
<strong>The</strong>re can be little doubt that Africa’s<br />
tallest tower will raise Nairobi’s profile<br />
higher on the world stage.<br />
Innovations in Building<br />
<strong>The</strong> shortage of residential houses can<br />
be curbed by embracing alternative<br />
building technologies such as the<br />
conversion of shipping containers to put<br />
up affordable housing. Containers are<br />
mobile and relatively cheaper to make<br />
one’s house a ‘home.’ Unfortunately<br />
stigmatization and negative perception<br />
makes Kenyans believe that such houses<br />
belong in the ghettos alongside mabati<br />
structures.<br />
If the culture could be changed, one<br />
could modify and re-purpose used<br />
shipping containers and stick them<br />
together to build a house. Architects,<br />
designers and builders have actually<br />
found a way to transform big boxes of<br />
steel into beautiful and fully-functional<br />
homes. With proper planning, one<br />
can endeavor to design and build a<br />
luxurious house for half the price of a<br />
“normal” house. (https://www.24hplans.<br />
com/top-20-shipping-container-homedesigns-and-their-costs/)<br />
In the UK, there are prefabricated<br />
shipping container houses sold for as<br />
little as $15, 000 (Kshs. 2.07M). A big<br />
and luxurious house made of shipping<br />
containers can cost more than $200, 000<br />
(Kshs. 27.6M), but this is one half of the<br />
price of a regular construction that has<br />
the same size.<br />
Shipping container homes are the hot<br />
new trend in the UK and American real<br />
estate sector.<br />
<strong>The</strong> introduction of Real Estate<br />
Investment Trust<br />
<strong>The</strong> past decade has seen significant<br />
growth in most key sectors of the<br />
Kenyan economy, thanks to a vibrant<br />
private sector and the ever-increasing<br />
foreign appetite for investments in<br />
Africa. Indeed, Kenya has been the<br />
preferred hub for multinationals and<br />
other international organisations with<br />
operations in East and Central Africa.<br />
In response, the Kenyan Government<br />
has invested heavily in infrastructure<br />
development, while taking steps to<br />
improve the legal and regulatory<br />
framework in key sectors of the<br />
economy.<br />
Evidence of investor confidence in the<br />
Kenyan real estate and construction<br />
market, especially in relation to<br />
commercial property, is Old Mutual<br />
Property’s recent investment in the<br />
Two Rivers Mall. UK-based Old Mutual<br />
invested KES 6.4 billion in the holding<br />
company of Centum’s Two Rivers Mall,<br />
giving it an equivalent 50% stake in the<br />
firm.<br />
<strong>The</strong> country has also seen investments<br />
from the Delta Africa Property Fund,<br />
Retail Africa and Abland – all from<br />
South Africa. AVIC International Holding<br />
Corporation of China is also expected to<br />
invest over US$ 200M in constructing<br />
their Africa Headquarters in Nairobi.<br />
<strong>The</strong> multi-user development has been<br />
reported to contain the highest office<br />
block in East Africa and will undoubtedly<br />
reshape Nairobi’s skyline.<br />
<strong>The</strong> spill-over effect of this increased<br />
demand for real estate, however, is the<br />
high cost of developing new property.<br />
<strong>The</strong> market is facing extreme under-<br />
Kenya Property Developers Association... Development brings Development!<br />
Kenya Property Developers Association... Development brings Development!<br />
15<br />
16
KPDA FEATURE<br />
THE STATE OF REAL ESTATE IN KENYA<br />
supply especially in housing for the<br />
lower segment of the populace; so<br />
much so that a tax incentive was recently<br />
introduced into law which entitles<br />
developers who put up at least 400 low<br />
cost residential units to pay a reduced<br />
corporation tax rate of 15% (down from<br />
30%).<br />
It is against the backdrop of the<br />
enactment of the Capital Markets (Real<br />
Estate Investment Trusts) (Collective<br />
Investment Schemes) Regulations, 2013,<br />
that the Nairobi Securities Exchange<br />
became the fourth African bourse to<br />
launch the Real Estate Investment Trust<br />
(REITs) market in the 2013.<br />
REITS are regulated investment vehicles<br />
that enable collective investment in<br />
real estate. Investors, both retail and<br />
corporate, pool their funds under the<br />
REIT umbrella to invest in real estate<br />
projects.<br />
<strong>The</strong> launch of REITs was meant to<br />
further enhance financial inclusion in<br />
Kenyan capital markets. REITs would<br />
provide average investors belonging to<br />
the growing middle-income segment<br />
the opportunity to invest in large-scale<br />
commercial, residential and industrial<br />
properties, without requiring large sums<br />
of money. It was hoped that investors<br />
would gain from (i) the income and<br />
capital appreciation of the portfolio of<br />
properties in which a REITs fund was<br />
invested and (ii) the creation of a liquid<br />
market in immovable property.<br />
REITs in Kenya are structured as trusts<br />
rather than companies. <strong>The</strong> properties<br />
are held in the name of a corporate<br />
trustee who is the custodian of the REIT<br />
assets but managed by a corporate<br />
REIT manager. <strong>The</strong>re are two types of<br />
REITs - development and construction<br />
REITs and income REITs. Securities<br />
in the former can only be offered to<br />
professional investors who understand<br />
development risks. However, income<br />
REITs can be offered to both professional<br />
and retail investors.<br />
<strong>The</strong> first income REIT was listed at the<br />
Nairobi Securities Exchange late last year<br />
by Stanlib, which is controlled by the<br />
Liberty Group of South Africa. As at 10<br />
Feb <strong>2017</strong>, the Stanlib Fahari income REIT<br />
ranked 32nd on the Nairobi Securities<br />
Exchange in terms of returns to investors<br />
with a year-to-date loss of 9.62%.<br />
Registered REITs are a tax efficient<br />
structure, in that, except for the<br />
payment of withholding tax on interest<br />
income and dividends, the REIT itself is<br />
not subject to income tax. Additionally,<br />
instruments used in the transfer of<br />
property to listed REITs are exempt from<br />
stamp duty.<br />
<strong>The</strong> launch of REITs was<br />
meant to further enhance<br />
financial inclusion in Kenyan<br />
capital markets. REITs would<br />
provide average investors<br />
belonging to the growing<br />
middle-income segment<br />
the opportunity to invest<br />
in large-scale commercial,<br />
residential and industrial<br />
properties, without requiring<br />
large sums of money.<br />
Going forward, specialised REITs could<br />
be encouraged in Kenya, especially<br />
those relating to low and medium cost<br />
residential properties, which are seeing<br />
higher returns than high cost properties<br />
and where there is a lot of demand.<br />
This will also allow for more development<br />
of housing for this group. While the<br />
performance of Kenya’s first REIT may be<br />
somewhat disappointing, it is expected<br />
to grow in popularity as its long term<br />
investment potential becomes apparent<br />
to investors.<br />
<strong>The</strong> Kenyan Building Code<br />
As is known, the majority of the Kenyan<br />
population are middle income earners<br />
and a larger portion of these are low<br />
middle income earners earning between<br />
Kshs. 50, 000 to Kshs. 75, 000 gross<br />
monthly income per household. <strong>The</strong>se<br />
citizens desire to own affordable homes<br />
and one of the factors that undermine<br />
efforts by the private sector to provide<br />
affordable housing is archaic policies<br />
such as the 1967 Kenyan Building Code.<br />
<strong>The</strong> Code restricts the material type to<br />
be used in permanent construction such<br />
as brick and mortar and disregarding<br />
cheaper and stronger material such<br />
as coral stones or other types of<br />
materials used in alternative building<br />
technologies.<br />
It is important for the government to<br />
work closely with the private sector<br />
to ensure that the law governing<br />
construction in this country are current<br />
and applicable so as not to negatively<br />
impact the real estate industry.<br />
Despite it all, the real estate market in<br />
Kenya is alive and well, in fact if you’ve<br />
been waiting to jump on to the market<br />
and invest, there has never been a better<br />
time than now.<br />
REFERENCES<br />
1. http://www.constructionkenya.com/4029/africatallest-building-nairobi-kenya/<br />
2. https://www.standardmedia.co.ke/business/<br />
article/2001241024/nairobi-is-reaching-for-newheights-with-the-pinnacle<br />
3. https://www.24hplans.com/top-20-shippingcontainer-home-designs-and-their-costs/<br />
4. http://www.nation.co.ke/lifestyle/DN2/Would-youlive-in-a-container/957860-3016734-1vefwq/index.<br />
html<br />
5. https://www.alibaba.com/product-detail/<br />
prefabricated-houses-in-kenya-containerhomes_60387658653.html<br />
6. http://www.skyscrapercity.com/showthread.<br />
php?t=1827593<br />
7. http://africabusinesscommunities.com/features/<br />
the-kenyan-real-estate-market-and-the-introductionof-real-estate-investment-trusts/<br />
8. http://www.bowmanslaw.com/country/kenya/<br />
9. http://www.arkconsultantsltd.com/real-estate-sectorkenya-review-2016-forecast-<strong>2017</strong>-reginald-okumu/<br />
KPDA DIRECTORY OF MEMBERS<br />
KPDA DIRECTORY OF MEMBERS IN GOOD STANDING AS AT 30TH SEPTEMBER AUGUST <strong>2017</strong><br />
In order to join KPDA, the following should be submitted to the KPDA Secretariat:<br />
1) Fill the KPDA Membership Application Form and sign the KPDA Code of Conduct; 2) Attach a copy of your company’s certificate of registration or<br />
incorporation and; 3) Make the relevant payment<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 />
Kone Kenya Ltd<br />
Mabati Rolling Mills Ltd<br />
State Department For Housing And<br />
Urban Development<br />
Mmc Africa Law<br />
Newline Ltd<br />
Newmatic Africa Ltd<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 />
Africa Reit Ltd<br />
Africa Infrastructure Development<br />
Company (Aidc)<br />
Ahcof Investments (Kenya) Ltd<br />
AMS Properties Ltd<br />
Bahati Ridge Development Ltd<br />
Blueline Properties 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 />
Cytonn Real Estate<br />
Daykio Plantations Ltd<br />
Dream Home Construction<br />
Company Ltd<br />
Dunhill Consulting Ltd<br />
Edifice Ltd<br />
Elm Ridge 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 />
INFPAC Ltd<br />
Jabez Properties<br />
Kamhomes Investment Ltd<br />
Karibu Homes<br />
Karume Holdings Ltd<br />
Kings Developers Ltd<br />
Kzanaka Ltd<br />
Kenya Property Developers Association... Development brings Development!<br />
17<br />
18
KPDA DIRECTORY OF MEMBERS<br />
KPDA DIRECTORY OF MEMBERS IN GOOD STANDING AS AT 30TH SEPTEMBER AUGUST <strong>2017</strong><br />
KPDA DIRECTORY OF MEMBERS<br />
KPDA DIRECTORY OF MEMBERS IN GOOD STANDING AS AT 30TH SEPTEMBER AUGUST <strong>2017</strong><br />
Leo Capital Holdings Ltd<br />
Parmalen Investments Ltd<br />
Thika Greens Ltd<br />
Classic Mouldings Ltd<br />
K.Mberia and Partners Advocates<br />
Mereka & Co. Advocates<br />
Paragon Architects<br />
Soita & Associates Advocates<br />
Lordship Africa<br />
PDM (Kenya) Ltd<br />
Unity Homes Ltd<br />
Coulson Harney Advocates<br />
KN Associates LLP<br />
Mohammed Muigai Advocates<br />
Private Sector Development Trust<br />
Spearhead Africa Ltd<br />
Manrik Group<br />
Pediment Developers<br />
Pentagon Properties Ltd<br />
Urban Nirvana Property Solutions Ltd<br />
Davis & Shirtliff Ltd<br />
Knight Frank Kenya Ltd<br />
Murimi And Company Advocates<br />
Property Link Africa Ltd<br />
Stanlib Kenya Ltd<br />
Meera Construction Ltd<br />
Pioneer Holdings (Africa) Ltd<br />
Property Reality Company Ltd<br />
Vishwa Developers Ltd<br />
Endless Africa Ltd<br />
DLR Group Africa Ltd<br />
Emerge Developments Ltd<br />
Koto Housing Kenya<br />
Laser Property Services Ltd<br />
Nabo Capital Ltd<br />
Nanchang Foreign Engineering<br />
Company (Kenya) Ltd<br />
Questworks Ltd<br />
Ratemo & Company Advocates<br />
Steel Africa Limited<br />
Sterling & Wilson Private Ltd<br />
Mentor Management Ltd (Mml)<br />
Moad Capital<br />
Mugumo Developments Ltd<br />
Rozana Properties Ltd<br />
Sayani Investments Ltd<br />
Shreeji Development Ltd<br />
ASSOCIATE MEMBERS<br />
Anjarwalla & Khanna Advocates<br />
Aspenn Global Mobility Consultants<br />
Focus On Property Ltd<br />
Galaxy Heritage Ltd<br />
Geokarma Construction Ltd<br />
Mahida And Maina Company Advocates<br />
Mboya Wangong’u & Waiyaki Advocates<br />
Mehta Electricals Ltd<br />
Nomadic Tents (K) Ltd<br />
O & M Law Llp<br />
Oraro & Company Advocates<br />
Re/Max Heritage<br />
Rhombus Concrete Ltd<br />
Saj Ceramics Ltd<br />
Town And County Planners Association<br />
Of Kenya (TCPAK)<br />
Canaan Properties Ltd<br />
Mwanzoni Ltd<br />
Sigimo Enterprises Ltd<br />
Axis Real Estate Ltd<br />
Global Property Advice<br />
Menezes And Partners Advocates<br />
Pam Goldings Properties Ltd<br />
Secureman Services Ltd<br />
ecureman Services<br />
Limited<br />
S<br />
“ Your Security, Our Duty”<br />
Usafi Comfort Ltd<br />
Nanyuki Mall Ltd<br />
Simba Corporation Ltd<br />
Spartan Developers Ltd<br />
Broll Kenya Ltd<br />
Green Kenya Corporation Ltd<br />
Honeywell Technologies (K) Ltd<br />
DID YOU KNOW?<br />
KENYA PROPERTY DEVELOPERS ASSOCIATION<br />
Natureville Homes<br />
Superior Homes Kenya<br />
Buy Rent Kenya Ltd<br />
Intex Construction Ltd<br />
WHAT ARE SOME OF THE BENEFITS OF BECOMING A KPDA MEMBER?<br />
Oakpark Properties Ltd<br />
Optiven Limited<br />
Paradigm Projects Ltd<br />
Tatu City Ltd<br />
Tilisi Developments Ltd<br />
<strong>The</strong> Epic Properties Ltd<br />
Cemex Holdings Ltd<br />
CFL and Company Advocates<br />
City Engineering Works (K) Ltd<br />
Jones Lang Lasalle (Pty) Ltd (Jll)<br />
Kanaga & Associates<br />
Karanja Njenga Advocates<br />
1. Advocacy that champions the interests of the industry to both the public sector and the wider private sector to<br />
ensure a better business environment for the property industry;<br />
2. Information on the latest issues affecting the industry, via regular publications, newsletters, media reports and<br />
research;<br />
3. Networking events, putting members in touch with industry leaders and potential clients;<br />
4. Professional development courses which reflect the changing nature of the property industry;<br />
5. Marketing opportunities for member companies with discounts offered to various advertising platforms;<br />
6. Discounted rate at both KPDA events and events organized by international and regional organizations in the<br />
building and construction industry;<br />
7. Access to emerging markets and exposure to joint venture opportunities.<br />
Kenya Property Developers Association... Development brings Development!<br />
19<br />
20
<strong>The</strong> Developer’s<br />
<strong>Digest</strong><br />
A KPDA PUBLICATION<br />
MEDIA PACK <strong>2017</strong><br />
<strong>The</strong> Developer’s <strong>Digest</strong> is a bi-monthly<br />
e-newsletter supported and published<br />
by the Kenya Property Developers<br />
Association and designed by Insync<br />
MEDIA Limited. It targets the various<br />
players in the property industry in<br />
Kenya and highlights a wide spectre<br />
of issues affecting our members, other<br />
professionals, manufacturers and both<br />
private and public 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 the<br />
Association’s ongoing activities, views,<br />
interesting facts and specialty advertising<br />
messages.<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 />
multi-platform advertising strategy that<br />
will ensure you reach your targeted<br />
consumer every direction they look. After<br />
all, the distance between you and your<br />
consumer, is no longer a straight line.<br />
If you take up advertising with <strong>The</strong><br />
Developer’s <strong>Digest</strong>, we are also willing to<br />
offer you an opportunity for you to have<br />
interactive banner advertisements on our<br />
website.<br />
Kindly contact the Secretariat on 0737<br />
530290 or 0705 277787 or by email<br />
admin@kpda.or.ke.<br />
ADVERTISING RATES<br />
Quarter (1/4) page: Kshs. 15, 000<br />
Third (1/3) page: Kshs. 20, 000<br />
Half (1/2) page: Kshs. 30, 000<br />
Full page: Kshs. 60, 000<br />
DIGITAL INPUT/MECHANICAL<br />
REQUIREMENTS — BANNERS<br />
300dpi resolution; colour calibration RGB;<br />
not larger than 20 MB; jpg format OR pdf<br />
PRESS QUALITY format with outlined text.<br />
NOTE: PDF/X 1-A or Adobe® Acrobat® distilled<br />
PDFs. PDFs exported from Photoshop are<br />
discouraged and can lead to less than<br />
desirable results.<br />
WHY ADVERTISE THROUGH THE<br />
DEVELOPER’S DIGEST?<br />
We have a readership of over 1, 300<br />
people who are drawn from our<br />
membership, partners as well as industry<br />
affiliates both locally and regionally.<br />
We offer a unique, flexible, converged<br />
media mix that helps advertisers<br />
communicate their message effectively.<br />
This includes our website, e-newsletter,<br />
social media platforms and focused<br />
events (such as our training and<br />
networking forums as well as our social<br />
interactive sessions).<br />
We keep track of our readership and are<br />
sensitive to emerging issues in the industry.<br />
It is a free and interactive online<br />
publication.<br />
DIGITAL INPUT/MECHANICAL REQUIREMENTS — ADVERTS<br />
SIZE WIDTH DEPTH<br />
1/4 page (horizontal) 184.5mm 65mm<br />
1/4 page (vertical) 90mm 125.5mm<br />
1/3 page (horizontal) 210mm 90mm<br />
1/3 page (vertical) 68mm 270mm<br />
1/2 page (horizontal) 210mm 139mm<br />
1/2 page (vertical) 105mm 265mm<br />
Full page (theme colour) 210mm 247mm<br />
Full page 210mm 297mm<br />
ADVERTS SUBMISSION:<br />
<strong>The</strong> adverts should be submitted as Adobe PDF files with the above<br />
specific measurements for the desired advert and NOT a flat image PDF<br />
exported from Photoshop.<br />
ONLINE ADVERTISING TERMS & CONDITIONS:<br />
Payment is due within 15 days from when an invoice is issued. Banner ads may be pulled if account<br />
balances are not paid by the due date. As space is limited, banner ads are sold on a first come, first<br />
served basis. All advertising is accepted subject to the publisher’s approval upon determination<br />
that the products or service advertised are in keeping with <strong>The</strong> Developer’s <strong>Digest</strong>’s philosophy.<br />
Kenya Property Developers Association... Development brings Development!