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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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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!

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