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The Developer's Digest, January - March 2017 Issue

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JANUARY JAN –– MARCH 2016 <strong>2017</strong> ISSUE<br />

Innovations in<br />

Construction in <strong>2017</strong><br />

Cover Photo: Ibuku Bamboo Architecture. Source; Ibuku.com.<br />

IN<br />

THIS<br />

ISSUE<br />

Focus on Policy<br />

Have Your Say<br />

NCCG Building Permitting Approval Report


<strong>The</strong> Developer’s<br />

<strong>Digest</strong><br />

A KPDA PUBLICATION<br />

KPDA BOARD MEMBERS<br />

Mucai Kunyiha<br />

Chairman<br />

Palkesh Shah<br />

Board Director<br />

Emma Achoki<br />

Treasurer<br />

11<br />

Page 4:<br />

From the Secretariat<br />

Hamish Govani<br />

Immediate Past Chairman<br />

Kenneth Luusa<br />

Board Director<br />

Gikonyo Gitonga<br />

Board Director<br />

Margaret Kibe<br />

Board Director<br />

Page 5:<br />

Focus on Policy<br />

Page 9:<br />

Have Your Say<br />

Page 13: KPDA Directory of<br />

Members<br />

Page 15: NCCG Building<br />

Permitting Approvals<br />

Ravi Kohli<br />

Board Director<br />

George Wachiuri<br />

Board Director<br />

Caroline Karugu<br />

Board Director<br />

KPDA SECRETARIAT<br />

Anne Muchiri<br />

Board Director<br />

Chief Executive Officer – Elizabeth Mwangi – Oluoch<br />

Membership Relations Officer – Liz Kayaki<br />

Finance and Membership Support Officer– Rachael Muthama<br />

Research and Development Intern – Mercy Ndung’u<br />

Research, Administration & Membership Intern – Kennedy Titus<br />

KENYA PROPERTY DEVELOPERS A SOCIATION<br />

<strong>The</strong> Secretariat address is :<br />

Fatima Flats, Suite 4B, Marcus Garvey Road off Argwings Kodhek<br />

Road, Nairobi | Tel: + 254 737 530 290 | 0705 277 787<br />

Email: admin@kpda.or.ke | Website: www.kpda.or.ke<br />

<strong>The</strong> Kenya Property Developers A sociation celebrates its 10th year anniversary culminating in a<br />

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

DESIGN & LAYOUT:<br />

InsyncMEDIA Limited. Devan Plaza . First Floor . Suite No16<br />

Chiromo Road, Waiyaki Way . Westlands . Nairobi . Kenya<br />

P.O. Box 9510 - 00100 . Nairobi . Kenya<br />

Landline: (+254) 020 4400218<br />

info@insyncmedia.co.ke<br />

www.insyncmedia.co.ke<br />

2<br />

Newmatic Africa Limited<br />

1st Floor, Unit 2, <strong>The</strong> Park Office Suites<br />

Near Parklands Police Station, Parklands Road<br />

P.O. Box 528-00200, Nairobi, Kenya<br />

Tel: +254 711 112 744 737 391 011<br />

Email: info@newmaticafrica.com<br />

Kenya Property Developers Association... Development brings Development!<br />

Kenya Property Developers Association... Development brings Development!


<strong>2017</strong> CALENDAR OF EVENTS<br />

DATE EVENT DETAILS LOCATION<br />

Tuesday, 17 th<br />

<strong>January</strong> <strong>2017</strong><br />

CEO Breakfast Forum (7.30am – 9.40am)<br />

<strong>The</strong>me: ‘Launch of the NCA Online Project<br />

Registration Platform’<br />

Crowne Plaza Hotel, Nairobi<br />

Tuesday, 21 st<br />

February <strong>2017</strong><br />

Tuesday, 7 th<br />

<strong>March</strong> <strong>2017</strong><br />

22 nd – 24 th<br />

<strong>March</strong> <strong>2017</strong><br />

Friday, 31 st<br />

<strong>March</strong> <strong>2017</strong><br />

5 th - 6 th April<br />

<strong>2017</strong><br />

Thursday, 27 th<br />

April <strong>2017</strong><br />

Tuesday, 23 rd<br />

May <strong>2017</strong><br />

13 th – 14 th June<br />

<strong>2017</strong><br />

Tuesday, 4 th July<br />

<strong>2017</strong><br />

9 th – 15 th<br />

September <strong>2017</strong><br />

Tuesday, 3 rd<br />

October <strong>2017</strong><br />

Friday, 27 th<br />

October <strong>2017</strong><br />

1 st – 3 rd<br />

November<br />

<strong>2017</strong><br />

Construction Health and Safety Breakfast<br />

Forum (7.00am – 9.30am)<br />

<strong>The</strong>me: 'Occupational Health and Safety<br />

Standards in the Kenyan Construction Industry’<br />

KPDA Learning and Development<br />

Symposium (7.00am – 9.30am)<br />

<strong>The</strong>me: ‘Understanding Construction Contracts’<br />

Africa Green Building Summit<br />

5 th KPDA AGM and Koroga Event<br />

(6.00pm onwards)<br />

East African Property Investment Summit<br />

<strong>2017</strong><br />

KPDA/MRM Meet and Greet Koroga Event<br />

(6.00pm onwards)<br />

KPDA CEO Breakfast Forum (7.00am –<br />

9.30am)<br />

<strong>The</strong>me: ‘Effects of the Elections on the Kenyan<br />

Real Estate Industry <strong>2017</strong>’<br />

Sustainable Properties Africa Conference<br />

and Exhibition SPACE Event<br />

KPDA Workshop (9.00am – 2.00pm)<br />

<strong>The</strong>me: ‘Capital Funding and Structuring’<br />

KPDA <strong>2017</strong> International Trip to UAE<br />

KPDA Roundtable Meeting with Kiambu<br />

County Government (9.00am – 11.30am)<br />

KPDA End of Year Corporate Networking<br />

Koroga Event (6.30pm onwards)<br />

<strong>The</strong> Big 5 Construct East Africa<br />

International Building and Construction<br />

Show <strong>2017</strong><br />

Crowne Plaza Hotel, Nairobi<br />

Bowmans (Coulson Harney) Advocates –<br />

ICEA Lion Centre, West Wing<br />

<strong>The</strong> UN Complex, Nairobi<br />

Spice Roots Restaurant – Simba Union<br />

Club, Nairobi<br />

Radisson Blue Hotel<br />

Koroga Country Club - Nyali, Mombasa<br />

Hotel Royal Orchid, Nairobi<br />

Radisson Blu Hotel, Nairobi<br />

To be confirmed<br />

Dubai, United Arab Emirates (UAE)<br />

Kiambu County<br />

Spice Roots Restaurant – Simba Union<br />

Club, Nairobi<br />

Kenyatta International Conference<br />

Centre (KICC)<br />

Kenya Property Developers Association... Development brings Development!<br />

Kenya Property Developers Association... Development brings Development!<br />

1<br />

2


HOW TO JOIN THE KENYA PROPERTY DEVELOPERS ASSOCIATION<br />

<strong>The</strong> Kenya Property Developers Association (KPDA) was established in Nairobi in 2006 as the<br />

representative body of the residential, commercial and industrial property development sector in<br />

Kenya. We are an emerging Business Member Organisation which works in proactive partnership with<br />

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

but in an organized, efficient, economical and ethical manner.<br />

Our current membership is a diverse make up of all industry players including property development<br />

firms, real estate agents and managers, professional firms, industry suppliers, government agencies,<br />

institutional investors and managers and financial institutions who are based both in Kenya and<br />

globally. Principally, KPDA champions the interests of the industry to ensure a better business<br />

environment.<br />

Benefits of Joining KPDA<br />

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

and diverse agenda.<br />

Join the conversation on policy reforms through our unique engagement with influential<br />

government players that contribute to the overall success of your business.<br />

Access to information on the latest issues affecting the industry, via regular publications,<br />

newsletters, media reports and research;<br />

Participate in networking events, putting you in touch with industry investors and potential<br />

clients;<br />

Attend professional development courses which reflect the changing nature of the property and<br />

indeed building and construction industry as a whole;<br />

Access marketing opportunities that will increase your business profits as you meet potential<br />

clients and partners during KPDA events<br />

While membership to KPDA is open only to registered companies or organizations, the benefits of<br />

membership extend to all staff in our member companies or organizations.<br />

Categories of Membership<br />

1. Premium Membership (Open to Developers and Non Developers)<br />

2. Corporate Membership (Open to Developers Only)<br />

3. Associate Membership (Open to Developers and Non Developers)<br />

CATEGORY ENTRANCE FEES ANNUAL<br />

TOTAL<br />

SUBSCRIPTION<br />

Premium Member Kshs. 25, 000 Kshs. 60, 000 Kshs. 85, 000<br />

Corporate Member Kshs. 12, 000 Kshs. 25, 000 Kshs. 37, 000<br />

Associate Member Kshs. 12, 000 Kshs. 25, 000 Kshs. 37, 000<br />

Membership Admission Requirements<br />

In order to join KPDA, the following should be submitted to the KPDA Secretariat:<br />

1) Fill the KPDA Membership Application Form<br />

2) Sign the KPDA Code of Conduct<br />

3) Attach a copy of your company's certificate of registration or incorporation and<br />

4) Make the relevant payment<br />

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

Visit us online<br />

FROM THE KPDA SECRETARIAT<br />

“An entrepreneur is someone who jumps off a cliff and<br />

builds a plane on the way down.” ~ Reid Hoffman<br />

Welcome to the <strong>2017</strong> first issue of <strong>The</strong><br />

Developer’s <strong>Digest</strong>! In this issue we<br />

are delighted to share with you the<br />

Association’s achievements over the<br />

last 10 years (we turned 10 in 2016!). We<br />

will also bring you up to speed on the<br />

first quarter of the year’s activities, it is<br />

amazing how fast we have gotten to the<br />

month of April.<br />

Key to our members, we are proud to<br />

announce the introduction of 2 new<br />

Directors to the KPDA Board; Anne<br />

Muchiri (Managing Director – Rozanna<br />

Properties Ltd) and Ravi Kohli (Founder<br />

and Managing Director – Karibu Homes).<br />

Anne is ‘returning’ to the Board being one<br />

of the founder members of KPDA who in<br />

2006, gave free and legal support to the<br />

Association. Ravi joins the Board with a<br />

wealth of passion and experience in the<br />

provision of affordable and dignified<br />

housing for Kenyans. KPDA is embracing<br />

the provision of affordable and low<br />

cost/dignified housing as an advocacy<br />

agenda this year and welcomes Ravi’s<br />

contribution to see its fruition.<br />

Also in this issue is our Focus on Policy<br />

article whose focus is on the <strong>2017</strong> Kenyan<br />

Budget. We have paid specific focus to<br />

matters dealing with the building and<br />

construction industry and hope that the<br />

information will deem useful to you in<br />

running your businesses. We are happy<br />

to note that one of the issues we have<br />

been lobbying for bore fruit. <strong>The</strong> <strong>2017</strong><br />

– 2018 Budget Statement indicates the<br />

commitment by the Government to set<br />

up a ‘One Stop Centre’ for the payment<br />

of all licences and fees effective April<br />

<strong>2017</strong>, which is a move to ease doing<br />

business in Kenya for investors. As you<br />

are aware, <strong>2017</strong> is an election year for<br />

Kenya and with it comes certain effects<br />

to your businesses, but albeit it all, we<br />

remain hopeful that our businesses can<br />

continue to thrive. During the month<br />

of May, we will be organizing a CEO<br />

Breakfast Forum to specifically focus on<br />

remedial actions that can be taken to<br />

help our businesses ‘survive despite and<br />

inspite of the elections.’ This invitation is<br />

included in this issue..<br />

Finally, we continue to share our<br />

research reports with you and in this<br />

issue you will find the Nairobi City<br />

County Government Building Permitting<br />

Approvals Report for the period <strong>January</strong><br />

to December 2016. Once again, I would<br />

like to thank our members and partners<br />

for continuing to support the KPDA<br />

dream.<br />

Viva KPDA!<br />

KPDA wishes to welcome our newest members:<br />

• Newline Ltd<br />

• Kamhomes Investments Ltd<br />

• Nomadic Tents (K) Ltd<br />

• Diamond Property Merchants<br />

• Heri Homes Ltd<br />

• K.Mberia and Partners Advocates<br />

• Green Kenya Corporation Ltd<br />

• VAAL Real Estate Ltd<br />

• Davis & Shirtliff Ltd<br />

Elizabeth<br />

• Africa Reit Ltd<br />

• Ali Fabrication Solutions Ltd<br />

• Emerge Developments<br />

• Sterling and Wilson Private Ltd<br />

• Leo Capital Holdings Ltd<br />

• Dream Homes Construction Company Ltd<br />

• Galaxy Heritage Ltd<br />

• Paradigm Projects Ltd<br />

Welcome to the KPDA Family!<br />

<strong>The</strong> KPDA Membership Relations Officer, Liz Kayaki<br />

Kenya Property Developers Association<br />

Fatima Flats, Suite 4 B<br />

Marcus Garvey Road off Argwings Kodhek Road, Kilimani Area<br />

P. O. Box 76154 - 00508<br />

NAIROBI, KENYA<br />

Telephone: +254 737 530 290/0705 277 787<br />

Email: e.kayaki@kpda.o.ke<br />

Website: www.kpda.or.ke<br />

Kenya Property Developers Association... Development brings Development!<br />

Welcome to the KPDA Family!<br />

Kenya Property Developers Association... Development brings Development!<br />

3 4


FOCUS ON POLICY<br />

SUMMARY OF THE BUDGET STATEMENT FOR<br />

THE FISCAL YEAR <strong>2017</strong>/2018<br />

(1 ST JULY <strong>2017</strong> – 30 TH JUNE <strong>2017</strong>)<br />

BY MR. HENRY K. ROTICH, EGH<br />

CABINET SECRETARY FOR THE NATIONAL TREASURY<br />

30TH MARCH <strong>2017</strong><br />

THEME: ‘CREATING JOBS, DELIVERING A BETTER LIFE FOR ALL KENYANS’<br />

STATEMENT DELIVERED TO THE<br />

NATIONAL ASSEMBLY ON 30TH<br />

MARCH, <strong>2017</strong> BY MR. HENRY K.<br />

ROTICH, CABINET SECRETARY FOR<br />

THE NATIONAL TREASURY, REPUBLIC<br />

OF KENYA, WHEN HIGHLIGHTING<br />

THE BUDGET POLICY AND REVENUE<br />

RAISING MEASURES FOR FISCAL<br />

YEAR <strong>2017</strong>/18<br />

© Budget Statement <strong>2017</strong><br />

To obtain copies of the document,<br />

please contact:<br />

Public Relations Office<br />

<strong>The</strong> National Treasury<br />

Treasury Building<br />

P. O. Box 30007-00100<br />

NAIROBI, KENYA<br />

Tel: +254-20-2252-299<br />

Fax: +254-20-341-082<br />

<strong>The</strong> full statement is also available on<br />

the website at: www.treasury.go.ke<br />

INTRODUCTION<br />

It is my singular pleasure to present<br />

the Budget for the FY <strong>2017</strong>/18, the fifth<br />

Budget under the Jubilee Government.<br />

Mr. Speaker, this Budget is the first in our<br />

history to be presented before the month<br />

of June. Mr. Speaker, we have brought<br />

forward the reading of the Statement in<br />

order to allow the Honourable Members<br />

to approve the Appropriation Bill in time<br />

and focus on the elections scheduled for<br />

August 8, <strong>2017</strong>.<br />

We have consulted our Partner States<br />

in the East African Community (EAC) on<br />

the timing of the budget presentation<br />

and have agreed that Kenya can proceed<br />

with an early presentation of the Budget<br />

while the other Partner States will<br />

present theirs at the same time in Mid-<br />

June <strong>2017</strong>.<br />

Mid this month, we were reminded,<br />

by His Excellency President Uhuru<br />

Kenyatta during his <strong>2017</strong> State of the<br />

Nation address in this Chamber, of an<br />

extraordinary Kenyan journey of four<br />

years of transformation, growth and<br />

deepening democracy. Kenyans are<br />

proud of these achievements as they<br />

have happened through collective<br />

participation, partnership and the usual<br />

dynamism of our private sector.<br />

Four years ago, the Jubilee<br />

Administration inherited an economy<br />

which although had achieved several<br />

milestones, still had insufficient and<br />

expensive power with limited access,<br />

a century old railway, limited road<br />

network and port capacity, poorly<br />

equipped security forces, high maternal<br />

and child mortality, a poorly managed<br />

education sector, inadequate social<br />

protection for the poor and vulnerable,<br />

and disharmonized pay for public<br />

servants, among others.<br />

But today, and to use His Excellency the<br />

President’s words again, “we celebrate a<br />

transformed Kenya.”<br />

This transformation is the culmination<br />

of four years of working tirelessly to put<br />

in place policies and reforms to foster a<br />

rapid socio-economic transformation of<br />

our country.<br />

In this endeavour, I feel very encouraged<br />

by the strong support we have received<br />

from Kenyans of all walks of life. I am<br />

happy to report to all Kenyans that we<br />

have made significant progress towards<br />

achieving our development goals.<br />

Specifically:<br />

At the macro level:<br />

• <strong>The</strong> value of goods and services we<br />

produce has risen from Kshs. 4, 745<br />

billion in 2013 in to an estimate of<br />

Kshs. 6, 951 billion in 2016. As a<br />

result, our per capita income rose<br />

from Kshs. 113, 210 in 2013 to an<br />

estimate of Kshs. 152, 671. Making us<br />

a lower medium income economy.<br />

This reflects the improvement of<br />

our business climate as indicated in<br />

the move from position 136 in 2013<br />

to position 92 in the World Bank’s<br />

Doing Business Indicators;<br />

• Revenue collection has increased<br />

from Ksh 1,001.0 billion in 2013/14<br />

to the projected Kshs. 1,515.5 billion<br />

in 2016/17, a 51 percent increase;<br />

• Since 2013, our economy has<br />

generated a total of 2.3 million new<br />

jobs. In 2015 alone, 841, 600 new<br />

jobs were created with similar levels<br />

expected in 2016;<br />

• Kenyans and their properties are<br />

more secure today following the<br />

heavy investment in the security<br />

sector – <strong>The</strong> number of police<br />

vehicles has risen from 3,155 in 2013<br />

to 6, 363 in <strong>2017</strong>.<br />

FOCUS ON POLICY<br />

SUMMARY OF THE BUDGET STATEMENT FOR THE FISCAL YEAR <strong>2017</strong>/2018<br />

With regard to infrastructure:<br />

• <strong>The</strong> movement of goods and people<br />

around the country has been made<br />

cheaper and more effective through<br />

expansion of most roads, seaports<br />

and airports. On the SGR, after going<br />

over a century without a modern rail,<br />

we have in three years constructed<br />

a modern railway that will have<br />

significant positive spill-over effects<br />

on the economy;<br />

• Today, more than 5.2 million Kenyans<br />

have been connected to electricity<br />

compared to 2.3 million in 2013.<br />

In four years, we have connected<br />

more Kenyans to the grid than in all<br />

years since independence! This is a<br />

remarkable achievement.<br />

At the sectoral level:<br />

• More of our farmers now have<br />

access to subsidized fertilizer and<br />

seeds, enabling them to increase<br />

productivity of their lands, earn<br />

more incomes and indeed make<br />

Kenya more food secure,<br />

• Reflecting our investment in<br />

security, the tourism sector, which<br />

was shrinking by 4.6 percent in 2013<br />

is now expanding by 15 percent<br />

and creating jobs for our youth and<br />

women.<br />

We have also invested heavily in<br />

critical social sectors as well as on the<br />

less fortunate:<br />

• We have equipped our hospitals<br />

with specialized medical equipment,<br />

and maternal health care is now free<br />

in all public hospitals;<br />

• More of our children go to school<br />

without their parents worrying<br />

whether they can afford the school<br />

fees;<br />

• Examination fees for both standard<br />

eight and form four candidates have<br />

been abolished; and thousands of<br />

orphans and vulnerable children,<br />

people living with disabilities and<br />

the elderly in our society continue<br />

to receive cash transfers through the<br />

social safety net program.<br />

• In order to empower Kenyans<br />

without title deeds, the Government<br />

has issued 2.5 million title deeds<br />

which, among other things, will<br />

facilitate access to capital. Going<br />

forward, the Government will be<br />

waiving land title search fees with<br />

immediate effect.<br />

On devolution:<br />

• Since 2013, about Ksh 1 trillion will<br />

have been disbursed by end June<br />

<strong>2017</strong> to all the Counties to enhance<br />

service delivery. This is a clear<br />

demonstration of the Government’s<br />

commitment to a strong devolved<br />

system of Government.<br />

While we celebrate these remarkable<br />

achievements, we should not be<br />

complacent. Having laid a firm<br />

foundation for businesses to thrive and<br />

expand, our focus is now to invest in<br />

accelerating job creation especially for<br />

the youth.<br />

This is why we have chosen as the theme<br />

for this year’s budget, “Creating Jobs,<br />

Delivering a Better Life for All Kenyans”.<br />

This budget builds on the transformation<br />

we have achieved so far and emphasis<br />

the need to support the sectors with<br />

a high potential for creating jobs for<br />

our youth such as manufacturing and<br />

agriculture.<br />

Among the strategies to be employed<br />

will include supporting domestic<br />

production and value-chains, boosting<br />

exports, encouraging entrepreneurship,<br />

continuing with business climate reforms,<br />

completing on-going infrastructure<br />

programmes, modernizing agriculture<br />

and agro-processing, protecting the<br />

vulnerable and supporting emerging<br />

growth sectors.<br />

All this will be accomplished within<br />

sustainable public finances in order<br />

to continue securing macroeconomic<br />

stability. In sum, the <strong>2017</strong> Budget is<br />

about building on the recent successes<br />

and delivering jobs and prosperity to<br />

Kenyans.<br />

HIGHLIGHTS FROM THE BUDGET<br />

1. This budget will continue to<br />

empower businesses and<br />

entrepreneurs to invest, grow<br />

and create jobs. This budget<br />

will continue to implement our<br />

transformation agenda to build<br />

new roads, railway and other<br />

infrastructure that will generate<br />

new growth opportunities. We will<br />

also continue to prioritize social<br />

spending in support of education,<br />

health services and cash transfers<br />

to vulnerable groups. This budget<br />

will continue to support devolution<br />

through disbursement of resources,<br />

and maintaining transfers to County<br />

Governments at levels well above<br />

the constitutional threshold.<br />

2. In this budget, we shall continue<br />

to progressively reduce the fiscal<br />

deficit and ensure the continued<br />

sustainability of our debt. In this<br />

regard, in the FY <strong>2017</strong>/18, we project<br />

the fiscal deficit to decline to 6.0<br />

percent of GDP from an estimated<br />

9.0 percent in the FY 2016/17.<br />

<strong>The</strong> sharp reduction of the deficit<br />

reflects reduced expenditures<br />

owing to the one off expenditures<br />

mainly those related to the General<br />

elections and the drought which<br />

are not expected to recur. Over<br />

the medium term, the deficit is<br />

expected to narrow to 4 percent of<br />

GDP by 2019/20 which will further<br />

lower our debt-to-GDP ratio.<br />

3. To further accelerate growth, create<br />

jobs and better the lives of Kenyans,<br />

I will be proposing tax incentives to:<br />

a) Support Growth and Domestic<br />

Production;<br />

b) Reduce Income Inequality;<br />

c) Promote Job Creation;<br />

d) Improve Tax Administration<br />

and Compliance; and<br />

e) Enhance Social Security and<br />

Welfare.<br />

5<br />

Kenya Property Developers Association... Development brings Development!<br />

Kenya Property Developers Association... Development brings Development!<br />

6


FOCUS ON POLICY<br />

KPDA WINS<br />

SUMMARY OF THE BUDGET STATEMENT FOR THE FISCAL YEAR <strong>2017</strong>/2018<br />

AGENDA <strong>2017</strong>/18 AND BEYOND:<br />

CREATING JOBS, DELIVERING A<br />

BETTER LIFE FOR ALL KENYANS<br />

Continuing with Improving the<br />

Business and Investment Climate<br />

Macroeconomic Stability<br />

To support an environment where more<br />

jobs will be created, the Government<br />

is strongly committed to pursuing<br />

prudent fiscal and monetary policies<br />

that support strong economic growth,<br />

ensures price stability and maintains our<br />

debt at sustainable levels.<br />

Our fiscal policy will continue to focus on<br />

prioritizing development expenditures<br />

to support growth, while curtailing<br />

growth of non-productive recurrent<br />

expenditures.<br />

Monetary policy will target to keep<br />

inflation within the target range of 2.5<br />

percent on either side of 5.0 percent.<br />

To further reinforce price stability, our<br />

proposed fiscal policy will help keep<br />

interest rates low and stable and the<br />

exchange rate broadly stable and<br />

competitive to support our exports.<br />

Business Regulatory Reforms<br />

<strong>The</strong> Government has significantly<br />

reduced the time and cost of opening<br />

and operating a business, thus making<br />

it easier for investors to start and run a<br />

business.<br />

This has been achieved as a result of the<br />

implementation of measures initiated<br />

by the dedicated Business Environment<br />

Delivery Unit at the Ministry of<br />

Industrialisation, and Enterprise<br />

Development.<br />

Kenya’s business environment has<br />

improved remarkably. Over the past<br />

three years, Kenya’s ranking in the<br />

World Bank’s Doing Business indicators<br />

has improved from 136 to 92, largely<br />

due to reforms in getting credit,<br />

getting electricity and ease of starting<br />

a business.<br />

In 2016, we were ranked third out of<br />

the World’s top ten reformers. With the<br />

objective of achieving a rank below 50<br />

in the medium term, we have passed<br />

appropriate legislations and processes<br />

to reduce the time, steps and costs<br />

associated with opening a business,<br />

obtaining construction permits,<br />

single business permits and property<br />

registration.<br />

To further improve our ranking, I have<br />

allocated Kshs. 250 million to support<br />

initiatives to the ease the cost of doing<br />

business.<br />

Today, Kenya is a preferred investment<br />

destination in Africa with many major<br />

companies from across the globe<br />

starting operations in the country. As a<br />

result, foreign direct investment (FDI)<br />

has risen from about US dollar 0.514<br />

billion in 2013, to at least US dollar 2.3<br />

billion in 2016.<br />

In an effort to reduce obstacles that<br />

hinder faster growth of investment, the<br />

Government has established a One Stop<br />

Centre (OSC) for investors which will be<br />

operational by April <strong>2017</strong>.<br />

<strong>The</strong> Government has also established<br />

e-regulation and will soon be<br />

establishing the e-Opportunities to<br />

enable investors interested in Kenya<br />

to search for investment opportunities<br />

available in Kenya from the comfort of<br />

their homes.<br />

<strong>The</strong>se initiatives, in addition to the<br />

existing Huduma Centres, will provide<br />

comprehensive information to investors<br />

on licenses, permits and approvals that<br />

are currently offered in a multiplicity<br />

of Government agencies located<br />

in different parts of the city, further<br />

sustaining increased FDI inflows in the<br />

country.<br />

We are aware of complaints from<br />

our business community of double<br />

taxation of their activities by County<br />

Governments. This is not only bad for our<br />

investment climate but is also a violation<br />

of Article 209 of our Constitution.<br />

Accordingly, I will be making legislative<br />

proposals to Parliament that will set<br />

out how County Governments may<br />

raise revenues without violating the<br />

Constitution and raising the cost of<br />

doing business.<br />

This budget will maximize social benefits<br />

for all Kenyans. It will support industries,<br />

create jobs and improve the quality of<br />

life of Kenyans.<br />

It will also help us realize a cleaner<br />

environment; provide quality social<br />

services (Health and Education), and<br />

enhance access to efficient public<br />

transport.<br />

In sum, it is a budget that carefully<br />

balances on the one hand the need to<br />

reduce the cost of living for the poor<br />

by enhancing social sector spending<br />

while continuing to strengthen the<br />

foundation for long-term economic<br />

growth, job creation and provision of<br />

incentives for rapidly moving towards<br />

industrialization of our economy.<br />

© Budget Statement <strong>2017</strong><br />

To obtain copies of the document,<br />

please contact:<br />

Public Relations Office<br />

<strong>The</strong> National Treasury<br />

Treasury Building<br />

P. O. Box 30007-00100<br />

NAIROBI, KENYA<br />

Tel: +254-20-2252-299<br />

Fax: +254-20-341-082<br />

<strong>The</strong> full statement is also available on<br />

the website at: www.treasury.go.ke<br />

BY MR. HENRY K. ROTICH, EGH<br />

CABINET SECRETARY FOR THE<br />

NATIONAL TREASURY<br />

30TH MARCH <strong>2017</strong><br />

THEME: ‘CREATING JOBS, DELIVERING<br />

A BETTER LIFE FOR ALL KENYANS’<br />

<strong>The</strong> Kenya Property Developers<br />

Association was established in Nairobi in<br />

2006 as the representative body of the<br />

residential, commercial and industrial<br />

property development sector in Kenya.<br />

It is an emerging Business Member<br />

Organisation which works in proactive<br />

partnership with policy-makers,<br />

financiers and citizens to ensure that the<br />

property development industry grows<br />

rapidly but in an organized, efficient,<br />

economical and ethical manner.<br />

1. <strong>The</strong> Association started with<br />

a membership of less than 30<br />

members and to date has now<br />

grown to 150 members;<br />

2. Following consistent and<br />

combined lobbying with industry<br />

partners and the National<br />

Construction Authority (NCA) ,<br />

the NCA Construction Levy was<br />

scrapped off effective 1st <strong>January</strong><br />

<strong>2017</strong>;<br />

3. Contributes to the excellence<br />

within the industry through the<br />

promotion of world-class practice<br />

standards and sector-specific<br />

educational programs;<br />

4. Our collaboration with significant<br />

market players in the establishment<br />

of the National REITs Association<br />

which will ensure the smooth<br />

implementation of REITs in Kenya<br />

as well market REITs to encourage<br />

foreign investment in the Kenyan<br />

property market;<br />

5. Compiles and disseminates<br />

focused research and analysis to<br />

inform sound policy analysis and<br />

public education;<br />

6. Our strengthened collaboration<br />

with the public sector resulting in<br />

KPDA being nominated into the<br />

Ministry of Land, Housing and<br />

Urban Development Affordable<br />

Housing Contact Group;<br />

7. Committed service to policy<br />

reforms through our participation<br />

on the Kenya Private Sector Alliance<br />

(KEPSA) Land, Housing and Urban<br />

Development Sector Board;<br />

8. Active and successful joint input<br />

into the review of the Proposed<br />

2014-2015 Finance Bill;<br />

9. Established strong ties with<br />

significant industry players<br />

such as the Nairobi City County<br />

Government, the National<br />

Construction Authority, the<br />

Ministry of Transport, Infrastructure,<br />

Housing and Urban Development,<br />

the Upper Hill District Association<br />

(UHDA), the UN Habitat, the Kenya<br />

Private Sector Alliance (KEPSA)<br />

amongst others;<br />

10. Demonstrated our commitment<br />

towards Kenya having a<br />

sustainable, green environment<br />

by our continued collaboration<br />

with the UN Habitat and the Kenya<br />

Green Building Society;<br />

11. <strong>The</strong> consistent and informed release<br />

of data to our mailing list through<br />

our Media Weekly Review Reports<br />

and our bi-monthly e-newsletter,<br />

<strong>The</strong> Developer’s <strong>Digest</strong>;<br />

12. <strong>The</strong> successful organization of<br />

several events both aimed at<br />

providing professional networking<br />

and educating platforms.<br />

Our mission remains; ‘To promote the involvement of the private sector in<br />

development through advocacy, education, research and ethical standards’<br />

Thank you to the 150 members who continue to share our dream…<br />

Kenya Property Developers Association<br />

Fatima Flats, Suite 4 B<br />

Marcus Garvey Road off Argwings Kodhek Road, Kilimani Area<br />

P. O. Box 76154 - 00508<br />

NAIROBI, KENYA<br />

Telephone: +254 737 530 290/0705 277 787<br />

Website: www.kpda.or.ke<br />

Kenya Property Developers Association... Development brings Development!<br />

Kenya Property Developers Association... Development brings Development!<br />

7 8


Profiles of KPDA Board of Directors<br />

Appreciation to KPDA Sponsors<br />

Mucai Kunyiha<br />

KPDA Chairman<br />

Palkesh Shah,<br />

Vice Chairman for the Board<br />

Emma Achoki<br />

Treasurer<br />

Ken Luusa<br />

Board Director<br />

Margaret Kibe<br />

Board Director<br />

Ravi K. Kohli<br />

Board Director<br />

A SINGLE BEAM CANNOT<br />

SUPPORT A GREAT HOUSE<br />

Mucai Kunyiha is an LL.B (Hons.)<br />

graduate of the University of<br />

Wales, Cardiff and an advocate of<br />

the High Court of Kenya. He also<br />

holds an MBA from Ashridge, UK.<br />

Mucai is the General Manager of<br />

Coopers K-Brands Ltd, an animal<br />

health company in East and Central<br />

Africa. He is also the Managing<br />

Director of Kzanaka Ltd, a Kenyan<br />

property development firm.<br />

Palkesh Shah holds a Bachelor<br />

of Science Degree in Business<br />

Management from New<br />

Hampshire College. He is a<br />

Director at Chigwell Holdings Ltd a<br />

property development company.<br />

Emma Achoki is the Managing<br />

Director of Oakpark Properties<br />

Ltd. She holds a Bachelor<br />

of Commerce Degree from<br />

Kenyatta University and a<br />

Masters in International Business<br />

Administration from the United<br />

States International University.<br />

She has previously worked with<br />

PricewaterhouseCoopers (PwC) in<br />

Kenya and Tanzania for 13 years.<br />

She is a Certified Public Accountant<br />

(CPA-K) and also passed Level One<br />

of the Certified Financial Analyst<br />

(CFA) Examinations.<br />

Ken serves as the Managing<br />

Director of Acorn Management<br />

Services Limited. Prior to joining<br />

Acorn Group, Ken served as<br />

the Regional Chief Executive<br />

Officer of Property Development<br />

and Management Ltd (PDM),<br />

an Aga Khan Development<br />

Network Company where he was<br />

responsible for managing and<br />

developing the organization’s<br />

commercial property portfolio in<br />

East Africa. He is a Board Director<br />

at KPDA.<br />

Margaret is the Managing Director<br />

at Bahati Ridge Development<br />

Ltd. She has nearly twenty years<br />

of experience in consulting,<br />

production, logistics and event<br />

management services. Her<br />

primary areas of focus are in<br />

real estate development and<br />

property management. Margaret<br />

holds a Post Graduate Certificate<br />

in Film, Television and Digital<br />

Etertainment and a BSc. In<br />

Accounting with Honours.<br />

Ravi is the Founder and Managing<br />

Director of Karibu Homes, a large<br />

scale affordable housing developer<br />

of 1, 200 units under construction<br />

in Athi River. He currently serves<br />

as a member of the KPDA Public<br />

Policy & Advocacy Committee. He<br />

has 15 years working experience<br />

in property development both in<br />

Kenya and the United Kingdom and<br />

holds a BA (Hons) in Economics and<br />

Human Resource Management.<br />

<strong>The</strong> Kenya Property Developers Association would like to appreciate<br />

the financial and otherwise support that it has received from the<br />

following companies:<br />

• <strong>The</strong> National Construction Authority<br />

• AskaDoc<br />

• Coulson and Harney Advocates and<br />

• Simba Corporation Ltd<br />

• Davis and Shirtliff and<br />

• Newmatic Africa Ltd<br />

With you we were able to celebrate a successful first quarter of the year.<br />

Asante sana…<br />

Hamish Govani<br />

Immediate Past Chairman<br />

Hamish is the Executive Director<br />

of Lantana Homes. He holds<br />

a Bachelors Degree in Civil<br />

Engineering, ACGI and a Masters<br />

in Business Administration.<br />

Hamish has diverse experience<br />

in real estate development and<br />

has overseen several construction<br />

projects in the country.<br />

Gikonyo Gitonga<br />

Board Director<br />

Gikonyo is the Managng Director<br />

at Axis Real Estate Ltd. He is a<br />

highly experienced and qualified<br />

Real Estate professional services<br />

expert and holds an MSc (Econs)<br />

in Urban Development Planning<br />

from the University of London<br />

and a BA (Land Economics) from<br />

the University of Nairobi. He is a<br />

full member of <strong>The</strong> Institution of<br />

Surveyors of Kenya (Valuation &<br />

Estate Agents Chapter) and is a<br />

Registered Estate Agent.<br />

George Wachiuri<br />

Board Director<br />

George holds a Masters of<br />

Business Administration from<br />

University of Nairobi and a<br />

Bachelor of Commerce (Marketing<br />

Option) and is a Certified Public<br />

Accountant CPA (K). He is the<br />

founder and CEO of Optiven Group.<br />

Caroline Karugu<br />

Board Director<br />

Caroline is a Senior Associate in the<br />

Real Estate and Finance department<br />

of Anjarwalla & Khanna Advocates<br />

and focuses mainly on property<br />

law, property development work,<br />

real estate financing, property joint<br />

ventures and structuring of mixed<br />

use developments. She has handled<br />

a variety of property transactions<br />

including, structuring of property<br />

joint ventures, property acquisitions,<br />

residential and mixed use projects,<br />

large scale commercial retail leasing,<br />

property management contracts<br />

and securities.<br />

Anne W. Muchiri<br />

Board Director<br />

Anne acted as a legal adviser and a<br />

founder Director of the then Kenya<br />

Private Developers Association. She<br />

is currently serving as a member of<br />

the KPDA Public Policy and Advocacy<br />

Committee. She is currently the<br />

Managing Director of Rozana<br />

Properties Ltd, a company engaged in<br />

development and sale of residential<br />

homes. Anne is a Certified Public<br />

Speaker (Toastmasters International)<br />

and the Board of Directors of KPDA<br />

has 100% confidence in the positive<br />

impact Anne will make on the Board.<br />

Our goal has<br />

always been to<br />

meet the needs<br />

of our members<br />

by providing<br />

current industry<br />

information,<br />

high standards<br />

of engagement<br />

and quality<br />

networking<br />

events.<br />

Now<br />

you can<br />

reach<br />

us at<br />

www.kpda.or.ke<br />

Kenya Property Developers Association... Development brings Development!<br />

Kenya Property Developers Association... Development brings Development!<br />

9<br />

10


HAVE YOUR SAY<br />

HAVE YOUR SAY<br />

INNOVATIONS IN CONSTRUCTION IN <strong>2017</strong><br />

Innovation is a wide concept that<br />

includes improvements in processes,<br />

products or services. It involves<br />

incorporating new ideas which<br />

generate changes that help solve the<br />

needs of a company and so increase its<br />

competitiveness.<br />

Standardized management of<br />

innovation can help a company reap<br />

significant rewards:<br />

• Improvement in organization of<br />

activities;<br />

• Improvement in the company’s<br />

competitiveness in the medium<br />

and long- term;<br />

• Efficient exploitation of the<br />

organization’s knowledge<br />

particularly from its skilled<br />

personnel;<br />

• Systematization of processes and<br />

product knowledge;<br />

• Client satisfaction<br />

SO WHAT ARE THE CONSTRUCTION<br />

TRENDS IN <strong>2017</strong>?<br />

1. Collaborative Project Delivery<br />

Methods: Experts expect collaborative<br />

approaches to become more common<br />

for projects. Design-build, public-private<br />

partnerships and integrated project<br />

delivery are three of the most oftencited<br />

methods that are altering the<br />

industry and are likely to gain ground in<br />

<strong>2017</strong>.<br />

Here construction is to be carried out<br />

on a team basis amidst the stakeholders<br />

involved in the construction project<br />

such as engineer, architect, owner<br />

and contractor to collectively design<br />

project goals, costs, risk – sharing<br />

and compensation. This promotes<br />

achievement of a more sustainable<br />

project that efficiently meets the needs<br />

of the target market and also save on the<br />

time taken in the project development.<br />

Within the same collaboration, a<br />

government entity may also hire a<br />

group from the private sector to design,<br />

finance and build a large project and<br />

thereafter operate and maintain the<br />

facility for years before handing it over.<br />

2. Offsite/Modular Construction:<br />

Offsite construction, also called modular<br />

or prefab is aimed at condensing the<br />

construction schedule of a project and<br />

saving cost. This involves structures<br />

known as prefabs been manufactured<br />

offsite (in factories) in standard sections<br />

that’s are then transported to the<br />

construction site. This also helps in<br />

ensuring quality control e.g. in the case<br />

where you would not have to deal<br />

with weather changes as it delivers<br />

components as and when needed.<br />

Contractors are finding that offsite<br />

methods allow them to reduce hours<br />

onsite, improve efficiency and perform<br />

more subassemblies than in the past.<br />

3. VR/AR Technology: Virtual and<br />

augmented reality technology<br />

enhances collaboration among project<br />

stakeholders before building begins. VR<br />

and AR allow the construction team to<br />

detect errors ahead of time and avoid<br />

costly mistakes. <strong>The</strong>y also have the<br />

potential to improve job site safety, such<br />

as letting managers and workers view<br />

job site conditions without subjecting<br />

them to safety hazards.<br />

HIGHLIGHTS ON TOP CONSTRUCTION<br />

METHODS IN <strong>2017</strong><br />

1. Self - Healing Concrete: Cracking<br />

is a major problem in construction,<br />

usually caused by exposure to water<br />

and chemicals. Researchers at Bath<br />

University are looking to develop a selfhealing<br />

concrete, using a mix containing<br />

bacteria within microcapsules, which<br />

will germinate when water enters a crack<br />

in the concrete to produce limestone,<br />

plugging the crack before water and<br />

oxygen has a chance to corrode the steel<br />

reinforcement.<br />

2. Photovoltaic Glazing: Building<br />

integrated photovoltaic (BIPV) glazing<br />

can help buildings generate their own<br />

electricity, by turning the whole building<br />

envelope into a solar panel. Companies<br />

such as Polysolar provide transparent<br />

photovoltaic glass as a structural<br />

building material, forming windows,<br />

façades and roofs.<br />

3. Cloud Collaboration: Basestone is<br />

a system allowing the remote sharing<br />

of data on a construction site in real<br />

time. It is predominantly a review tool<br />

for engineers and architects which<br />

digitizes the drawing review process<br />

on construction projects, and allows for<br />

better collaboration. <strong>The</strong> cloud-based<br />

collaboration tool is focused on the<br />

installation of everything from steel<br />

beams to light fittings. <strong>The</strong> system is<br />

used to add “snags”, issues that happen<br />

during construction, on to pdfs, then<br />

users can mark or add notes through<br />

basestone. Trials have revealed possible<br />

cost-savings of around 60 per cent<br />

compared with traditional paper-based<br />

review methods.<br />

4. Asset Mapping: Asset mapping<br />

focuses on operational equipment,<br />

including heating and air conditioning,<br />

lighting and security systems, collecting<br />

data from serial numbers, firmware,<br />

engineering notes of when it was<br />

installed and by whom, and combines<br />

the data in one place. <strong>The</strong> system<br />

can show engineers in real time on a<br />

map where the equipment needs to<br />

be installed and, once the assets are<br />

connected to the real-time system<br />

using the internet of things, these can<br />

be monitored via the web, app, and<br />

other remote devices and systems. It<br />

helps customers build databases of<br />

asset performance, which can assist in<br />

proactive building maintenance, and<br />

also reduce building procurement and<br />

insurance costs.<br />

5. Alternative Construction Materials:<br />

Other ways of meeting the demand<br />

for cost-effective, yet environmentally<br />

friendly homes is through the use of<br />

alternate construction materials such<br />

as recycled fly ash (a waste by-product<br />

of coal combustion). This medium can<br />

be utilized to build budget housing<br />

of fairly high quality. Other alternate<br />

construction media are interlocking<br />

bricks, hollow concrete blocks, rubble<br />

filler blocks, stabilized mud-based<br />

blocks and funicular (or rope-like) shells.<br />

By using alternative construction<br />

materials and methods, construction<br />

costs can be reduced by a minimum of<br />

10 to 15% in terms of materials and up<br />

to 20% in terms of skilled manpower<br />

expenses and construction time.<br />

What are the Building Blocks that set<br />

the Foundation to Apply Innovation in<br />

Construction?<br />

1. People: <strong>The</strong>re is need for a highly<br />

skilled workforce, where there is diversity<br />

of thought to promote collaboration<br />

of this skills in innovations that<br />

would eventually lead to a successful<br />

construction project.<br />

2. Strategy and Delivery: <strong>The</strong><br />

innovation process needs to be<br />

systematized to ensure that the<br />

innovation delivers an output.<br />

3. Investing in Innovation: Investment<br />

is a crucial input in innovation. Investing<br />

in people and platforms, as well as<br />

traditional Research and Development<br />

initiatives, will create an environment<br />

where innovation can thrive.<br />

4. Knowledge Sharing: Traditionally,<br />

the construction industry has not been<br />

particularly proactive in sharing and<br />

learning from its successes and failures.<br />

<strong>The</strong> lack of knowledge capture from<br />

previous projects results in ‘reinventing<br />

the wheel’ and repeated mistakes.<br />

5. Research and Development: <strong>The</strong><br />

construction industry does not invest<br />

heavily in Research & Development.<br />

This is proven at both a national level<br />

where construction lags behind other<br />

industries. Resources need to be<br />

invested in the research sector to ensure<br />

developers are better equipped with<br />

knowledge.<br />

6. Standards and Regulation:<br />

Standards and regulations that are<br />

highly prescriptive can stifle innovation.<br />

<strong>The</strong>re has been little incentive or<br />

reward for exceeding or diverting from<br />

standards, encouraging the same triedand-tested<br />

solutions to be re-used to<br />

meet requirements and prohibiting<br />

advances in technology from being<br />

driven forward, especially when not<br />

supported in regulated industries.<br />

7. Embracing Technology: Building<br />

Information Modelling (BIM), sensors,<br />

and smart construction technology will<br />

transform the way we design, construct<br />

and manage assets. With the rise of<br />

the digital economy, embracing the<br />

technology that is already available to us<br />

in this industry will enable innovations<br />

to move from concept to reality.<br />

CONCLUSION<br />

<strong>The</strong>re is still a fair degree of resistance,<br />

both from developers and buyers, to<br />

projects built with alternate construction<br />

materials.<br />

In many developing countries, there<br />

is still an erroneous assumption that<br />

the use of cost-effective alternate<br />

construction materials results in inferior<br />

structures. Knowing that a building<br />

has been built with anything but<br />

conventional materials and technologies<br />

cause potential buyers to have concerns<br />

about its safety, durability and resale<br />

value.<br />

This lack of awareness can result in a<br />

loss for developers who use them, since<br />

it would impact the marketability of<br />

their product. Alternative construction<br />

materials have therefore not yet become<br />

a very popular route among developers.<br />

<strong>The</strong> primary challenge lies in convincing<br />

buyers of the inherent value of such<br />

projects, and also to educate developers<br />

on the long-term business potential.<br />

<strong>The</strong>re needs to be a greater level of<br />

awareness.<br />

However, regardless of the above<br />

mentioned challenges, the real estate<br />

sector must support the use of cuttingedge<br />

and environmentally sustainable<br />

infrastructure, as well as commit to<br />

working in collaboration with key<br />

stakeholders to encourage innovation<br />

and entrepreneurial thinking.<br />

REFERENCES<br />

1. DconstructionDive, Emily Peiffer, Jan 3<br />

<strong>2017</strong><br />

2. Business/Future of Construction, Felicia<br />

Jackson, June 14 2015<br />

3. India Infoline News Service, Kishor Pate,<br />

September 11, 2014)<br />

4. Institution of Civil Engineers, Rob Curd,<br />

February 15 2016<br />

Kenya Property Developers Association... Development brings Development!<br />

Kenya Property Developers Association... Development brings Development!<br />

11<br />

12


KPDA DIRECTORY OF MEMBERS<br />

KPDA DIRECTORY OF MEMBERS<br />

KPDA DIRECTORY OF MEMBERS IN GOOD STANDING AS AT 12 TH APRIL <strong>2017</strong><br />

Nanyuki Mall Ltd<br />

Tatu City Ltd<br />

DLR Group Africa Ltd<br />

Nabo Capital Ltd<br />

PREMIUM MEMBERS<br />

Ali Fabrication Solutions Ltd<br />

Synthesis Systems Ltd<br />

Coral Property International Ltd<br />

Ijenga Ventures Ltd<br />

Natureville Homes<br />

Tilisi Developments Ltd<br />

Emerge Developments Ltd<br />

Nanchang Foreign Engineering<br />

Company (Kenya) Ltd<br />

Bamburi Cement Ltd<br />

Tandem & Stark Ltd<br />

County Home Developers Ltd/Runda<br />

View Ltd<br />

INFPAC Ltd<br />

Oakpark Properties Ltd<br />

<strong>The</strong> Epic Properties Ltd<br />

Galaxy Heritage Ltd<br />

Nomadic Tents (K) Ltd<br />

Britam<br />

Diamond Property Merchants<br />

Fusion Capital<br />

HF Development and Investment Ltd<br />

Vaal Real Estate Ltd<br />

Yasian Technology Company Ltd<br />

CORPORATE MEMBERS<br />

Acorn Management Services Ltd<br />

Cytonn Real Estate<br />

Daykio Plantations Ltd<br />

Dream Home Construction<br />

Company Ltd<br />

Jabez Properties<br />

Kamhomes Investment Ltd<br />

Karibu Homes<br />

Kings Developers Ltd<br />

Optiven Limited<br />

Paradigm Projects Ltd<br />

Parmalen Investments Ltd<br />

Thika Greens Ltd<br />

Unity Homes Ltd<br />

Urban Nirvana Property Solutions Ltd<br />

Global Property Advice<br />

Green Kenya Corporation Ltd<br />

Honeywell Technologies (K) Ltd<br />

Kanaga & Associates<br />

Oraro & Company Advocates<br />

Pam Goldings Properties Ltd<br />

Paragon Architects<br />

Property Link Africa Ltd<br />

Imaran Real Estate Ltd<br />

KCB Bank<br />

Africa Reit Ltd<br />

AMS Properties Ltd<br />

Dunhill Consulting Ltd<br />

Edifice Ltd<br />

Kzanaka Ltd<br />

Leo Capital Holdings Ltd<br />

PDM (Kenya) Ltd<br />

Pediment Developers<br />

Pioneer Holdings (Africa) Ltd<br />

ASSOCIATE MEMBERS<br />

Anjarwalla & Khanna Advocates<br />

Axis Real Estate Ltd<br />

Karanja Njenga Advocates<br />

K.Mberia and Partners Advocates<br />

KN Associates LLP<br />

Questworks Ltd<br />

Ratemo & Company Advocates<br />

Re/Max Heritage<br />

Mabati Rolling Mills Ltd<br />

Bahati Ridge Development Ltd<br />

Elm Ridge Ltd<br />

Property Reality Company Ltd<br />

Broll Kenya Ltd<br />

Knight Frank Kenya Ltd<br />

Saj Ceramics Ltd<br />

State Department For Housing And<br />

Urban Development<br />

Mmc Africa Law<br />

Blueline Properties Ltd<br />

Boleyn Magic Wall Panel Ltd<br />

Enkavilla Properties Ltd<br />

Fedha (Management) Ltd<br />

Lordship Africa<br />

Manrik Group<br />

Rozana Properties Ltd<br />

Sayani Investments Ltd<br />

Buy Rent Kenya Ltd<br />

Cemex Holdings Ltd<br />

Koto Housing Kenya<br />

Laser Property Services Ltd<br />

Secureman Services Ltd<br />

ecureman Services<br />

Limited<br />

S<br />

“ Your Security, Our Duty”<br />

Soita & Associates Advocates<br />

Newline Ltd<br />

Newmatic Africa Ltd<br />

Camelot Cosultants Ltd/Lantana Homes Ltd<br />

Century City Property Ltd<br />

Hass Consult Ltd<br />

Heri Homes Properties Ltd<br />

Mentor Management Ltd (Mml)<br />

Mugumo Developments Ltd<br />

Sigimo Enterprises Ltd<br />

Simba Corporation Ltd<br />

Spartan Developers Ltd<br />

CFL and Company Advocates<br />

Coulson Harney Advocates<br />

Mahida And Maina Company Advocates<br />

Mboya Wangong’u & Waiyaki Advocates<br />

Murimi And Company Advocates<br />

Spearhead Africa Ltd<br />

Stanlib Kenya Ltd<br />

Steel Africa Limited<br />

Savannah Cement Ltd<br />

Chigwell Holdings Ltd<br />

Homescope Properties Ltd<br />

Mwanzoni Ltd<br />

Superior Homes Kenya<br />

Davis & Shirtliff Ltd<br />

Mehta Electricals Ltd<br />

Sterling & Wilson Private Ltd<br />

Kenya Property Developers Association... Development brings Development!<br />

Kenya Property Developers Association... Development brings Development!<br />

13<br />

14


NCCG BUILDING PERMITTING APPROVALS<br />

NCCG BUILDING PERMITTING APPROVALS<br />

NAIROBI CITY COUNTY GOVERNMENT BUILDING<br />

PERMITTING APPROVALS ACTIVITY REPORT<br />

JANUARY – DECEMBER 2016<br />

of 1997, this report depicts permits<br />

that were issued in the following<br />

average percentages in accordance<br />

to the named classifications below:<br />

• 80.9% (809) - Domestic Class<br />

(commercial developments,<br />

domestic buildings and<br />

offices)<br />

• 10.4% (241) - Public Class<br />

(social halls, religious<br />

buildings, libraries, schools,<br />

etc.)<br />

• 8.7% (199) - Warehouse<br />

Class (industries, factories,<br />

and go downs)<br />

<strong>The</strong> statistics show that in the year 2016<br />

approved proposed developments of<br />

the Domestic Classification, had the<br />

highest level of approvals issued due to<br />

the ever increasing need for housing by<br />

Kenyans and initiatives put in place by<br />

the real estate industry on ownership of<br />

homes by the middle income earners.<br />

A comparative analysis is provided for the performance of all 4 quarters of the year.<br />

PERMIT APPLICATION ACTIVITY BY SUB-COUNTY<br />

1. <strong>The</strong>re are more development activities on the Western<br />

side of Nairobi compared to the Eastern side probably<br />

because of the extra space available and the demand<br />

for housing. <strong>The</strong> highest permits were approved in the<br />

areas of Karen, Westlands, Industrial Area, Parklands<br />

and Eastleigh.<br />

2. Karen has the highest percentage of permits localitywise.<br />

This would be as a result of the ongoing<br />

construction of the Southern Bypass connecting the<br />

Nairobi - Naivasha Highway to Mombasa Road. <strong>The</strong><br />

bypass has also enabled easy and fast commuting<br />

to the Jomo Kenyatta International Airport and the<br />

Wilson Airport. <strong>The</strong> neighbourhood has an organized<br />

road network, with properly connected entry and<br />

exit routes that lead to and from Nairobi’s CBD. This<br />

would be one of the factors the developers might have<br />

considered due to proximity and thus convenience. <strong>The</strong><br />

PERMIT APPLICATION ACTIVITY BY SUB-COUNTY<br />

high number of permits in the Karen area are also very<br />

likely due to the fact that rent or property owning in<br />

Karen attracts high revenue. This is a likely factor that<br />

developers considered in achieving better return on<br />

capital;<br />

3. Lavington has the least number of permits amongst<br />

the top 10 areas of development regardless of being<br />

very close to the CBD. Embakasi and Kilimani areas<br />

attract fewer developments due to traffic and building<br />

congestion. Lavington may be a discouraging location<br />

for developers to set up office buildings as more and<br />

more businesses are opting to be headquartered in the<br />

Westlands are which has more space to accommodate<br />

offices.<br />

NB: Localities that do not appear in the graph had less than 2%<br />

presentation.<br />

Valley-View, Nairobi, Kenya<br />

SOURCE<br />

<strong>The</strong> 2016 KPDA Building Permitting<br />

Activity Report provides a summary<br />

of statistical information on planning<br />

permitting activity in Nairobi from<br />

<strong>January</strong> to December 2016. During this<br />

reporting period, only statistics from<br />

the Nairobi City County Government<br />

are used as references. This report<br />

uses standardized data submitted to<br />

the Nairobi City County Government.<br />

<strong>The</strong> report highlights information on<br />

applications received, development<br />

locations, types and values, department<br />

revenue from applications and permit<br />

processing performance.<br />

INTRODUCTORY SUMMARY ON THE<br />

REPORT<br />

STATISTICS<br />

A total of 2, 303 planning permit<br />

applications were approved from<br />

<strong>January</strong> to December 2016 with the<br />

second quarter having the highest<br />

number of approvals. Other key statistics<br />

from this report include:<br />

1. Value of approved permits<br />

represents over Kshs. 117.9 billion<br />

worth of development projects and<br />

permitting fees collected were over<br />

Kshs. 862.9 Million;<br />

2. During 2016 the highest value of<br />

buildings submitted for approval was<br />

Kshs. 3, 000, 000, 000 (Kshs. 3billion)<br />

by the Crossroad Ltd (Proposed<br />

Shopping Mall) and the maximum<br />

submission fee paid was Kshs. 186,<br />

056, 000.<br />

3. On average the estimated value of<br />

building developments approved<br />

was Kshs. 76, 233, 700 and that of the<br />

submission fee was Kshs. 901,173.<br />

4. Based on localities it was noted<br />

from the statistics that most of the<br />

developments were carried out in<br />

Karen, Westlands, Industrial Area,<br />

Kilimani and the Central Business<br />

District.<br />

5. Based on the Kenyan Building Code<br />

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

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

15<br />

Kenya Property Developers Association... Development brings Development!<br />

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

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

Kenya Property Developers Association... Development brings Development!<br />

16


NCCG BUILDING PERMITTING APPROVALS<br />

NCCG BUILDING PERMITTING APPROVALS<br />

DWELLING RELATED ACTIVITY ACROSS NAIROBI<br />

Buildings approved included domestic<br />

buildings, commercial developments, offices,<br />

religious buildings, social halls, libraries,<br />

schools, factories, industries and go downs. <strong>The</strong><br />

following graph identifies permit applications<br />

that relate to various building classes.<br />

1. It can be noted that 80.54% of the<br />

planning submitted under the building<br />

class category were domestic class which<br />

includes domestic buildings, commercial<br />

developments and offices. This indicates<br />

a major shift for developers to provide<br />

residential infrastructures as well as the<br />

growing desire for Kenyans to own a<br />

home. <strong>The</strong>re is also the case of emerging<br />

businesses, including but not limited to<br />

foreign investors and SMEs which have<br />

increased the demand for offices;<br />

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

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

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

2030. <strong>The</strong> increased development of domestic facilities has a direct influence on public infrastructures which<br />

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

BUILDING CLASS BY LOCALITY<br />

routes that lead to and from Nairobi’s central business<br />

district hence most of the developers shifted to<br />

this locations. Also the value of land in these areas<br />

is relatively high and this proves the nature of land<br />

having an inelastic demand where the higher the value<br />

may result to a higher demand.<br />

3. <strong>The</strong> areas have closer proximity to Nairobi’s central<br />

business district hence most convenient to most<br />

Kenyans specifically for the middle income earners. <strong>The</strong><br />

NUMBER OF APPROVALS BY ZONAL USER DENSITY<br />

1. <strong>The</strong> Residential Class<br />

accounted for 75.41% of the<br />

approvals due to an increase<br />

in the middle aged working<br />

population who consider<br />

owning a home more crucial<br />

than renting one and also high<br />

demand by Kenyans to own<br />

homes. Most of developers<br />

have invested more on<br />

Residential developments<br />

which are more profitable due<br />

to the growing demand. <strong>The</strong>re<br />

has been an improvement<br />

in security within the nation<br />

which has resulted in an influx<br />

in foreign residents in Kenya<br />

thus increasing the demand for<br />

residential houses (in particular<br />

well-furnished residential<br />

infrastructures) mostly in the<br />

high end areas.<br />

2. Commercial Class buildings<br />

accounted for 10.59% of the<br />

approvals.<br />

high number of permits approved in residential zones<br />

like in Karen area is also likely due to the high capital<br />

returns in rental and ownership income to be received<br />

by developers as the area is considered high-end.<br />

4. Due to increased population growth in Nairobi and<br />

the growth of entrepreneurship, there has been a<br />

huge demand for offices within the city and therefore<br />

Westlands has been a favourable location for this<br />

facilities over the year.<br />

1. <strong>The</strong> highest development permits in the year 2016<br />

were approved in Karen, Westlands, Kilimani, C.B.D<br />

and Industrial Area with domestic infrastructures<br />

dominating in these areas except from the Industrial<br />

area where most of them were factories and<br />

warehouses.<br />

2. <strong>The</strong>se neighborhoods have an organized road<br />

network, with properly connected entry and exit<br />

THE VALUE TREND OF DEVELOPMENT PERMITTED BY THE NAIROBI CITY COUNTY GOVERNMENT<br />

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

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

demand of residential buildings.<br />

Graph... next page<br />

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

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

17<br />

Kenya Property Developers Association... Development brings Development!<br />

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

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

Kenya Property Developers Association... Development brings Development!<br />

18


NCCG BUILDING PERMITTING APPROVALS<br />

NCCG BUILDING PERMITTING APPROVALS<br />

ESTIMATED COST OF APPROVALS ISSUED BY THE NAIROBI CITY COUNTY GOVERNMENT<br />

PERMIT PROCESSING PERFORMANCE<br />

1. <strong>The</strong> Month of May had the highest number of<br />

approvals, with 618 approvals.<br />

2. <strong>March</strong> recorded the highest number of approvals in<br />

the first quarter. This was due to a high demand for<br />

residential property. <strong>The</strong> planning system plays an<br />

important role in improving the lives of the modern<br />

society. It is meant to protect social amenities and the<br />

environment for the public’s interest. How we live our<br />

lives is shaped by where we live and therefore our<br />

planning regulations have to cover many different<br />

situations that influence the shape of lives of every city<br />

resident and help protect the urban environment.<br />

3. In the last quarter of 2015, Kenya experienced high<br />

interest rates leading to a decrease in the number of<br />

developments hence the low development rate in<br />

<strong>January</strong> 2016.<br />

4. <strong>The</strong>reafter, in the first quarter of 2016, inflation came<br />

down by 6.5% stabilizing the Kenyan shilling and<br />

therefore increasing investors’ appetite for the property<br />

market.<br />

AVERAGE APPROVAL RATE BY THE NAIROBI CITY COUNTY GOVERNMENT<br />

TO CARRY OUT BUILDING PERMITTING<br />

PERMIT PROCESSING PERFORMANCE<br />

1. Most of the permits took more than one month to<br />

be approved. This accounted for 61.77% of the total<br />

percentage. This delay in the approval process is<br />

a cause for concern and the Nairobi City County<br />

Government needs to offer sufficient explanation as<br />

to the reasons behind this delay.<br />

2. Permits that took less than one month to be<br />

approved accounted for 38.24 % of the total<br />

approvals. <strong>The</strong>re was a great improvement on<br />

approval time as compared to 2015. Some of the<br />

factors leading to this improvement on approval<br />

time could be as a result of the following factors:<br />

• Most of the developers could meet the minimum<br />

approval requirement<br />

• Transparency in the urban and housing<br />

department.<br />

• Adequate support from professionals<br />

throughout the entire plan preparation process.<br />

<strong>The</strong>re were very few disapproved plans therefore<br />

this indicates that most of the plans met the<br />

conditions for approval.<br />

• Reduce land ownership conflicts over the period.<br />

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

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

19<br />

Kenya Property Developers Association... Development brings Development!<br />

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

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

Kenya Property Developers Association... Development brings Development!<br />

20


NCCG BUILDING PERMITTING APPROVALS<br />

COMPARATIVE ANALYSIS BETWEEN THE FOUR QUARTERS OF 2016<br />

<strong>The</strong> Developer’s<br />

<strong>Digest</strong><br />

A KPDA PUBLICATION<br />

KENYA PROPERTY DEVELOPERS A SOCIATION<br />

<strong>The</strong> Kenya Property Developers A sociation celebrates its 10th year a niversary culminating in a<br />

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

MEDIA PACK <strong>2017</strong><br />

<strong>The</strong> highest average value of estimated cost was incurred during the October to December quarter of the year with the<br />

least average value being <strong>January</strong> to <strong>March</strong> Quarter.<br />

FOR MORE INFORMATION, KINDLY CONTACT THE KPDA SECRETARIAT<br />

KENYA PROPERTY DEVELOPERS ASSOCIATION<br />

Fatima Flats, Suite B4, Marcus Garvey Road<br />

Off Argwings Kodhek, Kilimani Area<br />

P. O. Box 76154 – 00508 Nairobi, Kenya<br />

Domestic buildings<br />

continue to have the<br />

highest number of<br />

approvals with the<br />

highest number of<br />

developments being<br />

approved in the 2nd<br />

quarter of the year.<br />

Residential buildings<br />

had the highest<br />

number of approvals<br />

which has been the<br />

trend for the over the<br />

whole year.<br />

Telephone: +254 737 530290/0705 277787<br />

Email: research@kpda.or.ke or admin@kpda.or.ke<br />

Website: www.kpda.or.ke<br />

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

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

<strong>The</strong> Developer’s <strong>Digest</strong> is a quarterly<br />

e-newsletter supported and published<br />

by the Kenya Property Developers<br />

Association and designed by Insync<br />

MEDIA Ltd. It targets the various<br />

players in the property industry in<br />

Kenya and highlights a wide spectre<br />

of issues affecting our members, other<br />

professionals, manufacturers and both<br />

private and public sector players in the<br />

industry. We seek to encourage positive<br />

dialogue and development<br />

<strong>The</strong> Developer’s <strong>Digest</strong> is filled with<br />

current industry news, updates on<br />

the Association’s ongoing activities,<br />

views, interesting facts and specialty<br />

advertising messages.<br />

WHY ADVERTISE THROUGH THE<br />

DEVELOPER’S DIGEST?<br />

We offer a unique, flexible, converged<br />

media mix that helps advertisers<br />

communicate their message effectively.<br />

This includes our website, e-newsletter,<br />

social media platforms and focused events<br />

(such as our training and networking<br />

forums).<br />

We keep track of our readership and<br />

are sensitive to emerging issues in the<br />

industry.<br />

It is a free and interactive online<br />

publication.<br />

It is a free downloadable Mobile App<br />

onto any mobile device.<br />

We at <strong>The</strong> Developer’s <strong>Digest</strong> will work<br />

with you to create the most effective<br />

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will ensure you reach your targeted<br />

consumer every direction they look.<br />

After all, the distance between you and<br />

your consumer, is no longer a straight<br />

line.<br />

<strong>The</strong> Developer’s <strong>Digest</strong> will also offer<br />

you advertising on our website with a<br />

direct link to you and your company’s<br />

website.<br />

Please contact the KPDA Secretariat via<br />

email on admin@kpda.or.ke or call us<br />

on 0737 530 290 or 0705 277 787 for<br />

more information.<br />

ADVERTISING RATES<br />

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

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

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

Full page: Kshs. 60, 000<br />

DIGITAL INPUT/MECHANICAL<br />

REQUIREMENTS — BANNERS<br />

300dpi resolution; colour calibration RGB;<br />

not larger than 20 MB; jpg format OR pdf<br />

PRESS QUALITY format with outlined text.<br />

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

PDFs. PDFs exported from Photoshop are<br />

discouraged and can lead to less than<br />

desirable results.<br />

DIGITAL INPUT/MECHANICAL REQUIREMENTS — ADVERTS<br />

SIZE WIDTH DEPTH<br />

1/4 page (horizontal) 184.5mm 65mm<br />

1/4 page (vertical) 90mm 125.5mm<br />

1/3 page (horizontal) 210mm 90mm<br />

1/3 page (vertical) 68mm 270mm<br />

1/2 page (horizontal) 210mm 139mm<br />

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ADVERTS SUBMISSION:<br />

<strong>The</strong> adverts should be submitted as Adobe PDF files with the above specific measurements<br />

for the desired advert and NOT a flat image PDF exported from Photoshop.<br />

ONLINE ADVERTISING TERMS & CONDITIONS:<br />

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

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

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

subject to the publisher’s approval upon determination that the products or service advertised are<br />

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Kenya Property Developers Association... Development brings Development!<br />

Kenya Property Developers Association... Development brings Development!<br />

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