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The Developer's Digest, April - July 2017 Issue

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APRIL – JULY <strong>2017</strong> ISSUE<br />

Due Diligence Guide in<br />

Investing in Kenyan Real Estate<br />

IN<br />

THIS<br />

ISSUE<br />

Focus on Policy<br />

Have Your Say<br />

NCCG Building Permitting Approval Report


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

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

A KPDA PUBLICATION<br />

9<br />

KPDA BOARD MEMBERS<br />

Mucai Kunyiha<br />

Chairman<br />

Palkesh Shah<br />

Board Director<br />

Emma Achoki<br />

Treasurer<br />

Page 4:<br />

From the Secretariat<br />

Hamish Govani<br />

Immediate Past Chairman<br />

Kenneth Luusa<br />

Board Director<br />

Gikonyo Gitonga<br />

Board Director<br />

Margaret Kibe<br />

Board Director<br />

Page 5:<br />

Focus on Policy<br />

Page 9:<br />

Have Your Say<br />

Page 13: NCCG Building<br />

Permitting Approvals<br />

Page 15: KPDA Directory of<br />

Members<br />

Ravi Kohli<br />

Board Director<br />

George Wachiuri<br />

Board Director<br />

Caroline Karugu<br />

Board Director<br />

KPDA SECRETARIAT<br />

Anne Muchiri<br />

Board Director<br />

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

Membership Relations Officer – Maryanne Mbogo<br />

Finance and Membership Support Officer – Grace Hinga<br />

Research, Administration & Membership Intern – Wilson Busaka<br />

Communications Intern – Cynthia Wakio<br />

Finance Intern – Gladys Lang’at<br />

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

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

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

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

DESIGN & LAYOUT:<br />

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

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

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

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

info@insyncmedia.co.ke<br />

www.insyncmedia.co.ke<br />

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

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

2


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

DATE EVENT DETAILS LOCATION<br />

Tuesday, 17 th<br />

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

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

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

Registration Platform’<br />

Crowne Plaza Hotel, Nairobi<br />

Tuesday, 21 st<br />

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

Tuesday, 7 th<br />

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

22 nd – 24 th<br />

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

Friday, 31 st<br />

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

5 th - 6 th <strong>April</strong><br />

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

Thursday, 27 th<br />

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

Tuesday, 23 rd<br />

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

Tuesday, 3 rd<br />

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

Friday, 27 th<br />

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

Monday 30 th and<br />

Tuesday 31 st<br />

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

1 st – 3 rd<br />

November<br />

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

Construction Health and Safety Breakfast<br />

Forum (7.00am – 9.30am)<br />

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

Standards in the Kenyan Construction Industry’<br />

KPDA Learning and Development<br />

Symposium (7.00am – 9.30am)<br />

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

Africa Green Building Summit<br />

5 th KPDA AGM and Koroga Event<br />

(6.00pm onwards)<br />

East African Property Investment Summit<br />

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

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

(6.00pm onwards)<br />

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

9.30am)<br />

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

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

KPDA Roundtable Meeting with Kiambu<br />

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

KPDA End of Year Corporate Networking<br />

Koroga Event (6.30pm onwards)<br />

KPDA Learning and Development<br />

Symposium<br />

<strong>The</strong>me: ‘<strong>The</strong> JBC Contract: What Developers<br />

Must Know’<br />

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

International Building and Construction<br />

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

Crowne Plaza Hotel, Nairobi<br />

Bowmans (Coulson Harney) Advocates –<br />

ICEA Lion Centre, West Wing<br />

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

Spice Roots Restaurant – Simba Union<br />

Club, Nairobi<br />

Radisson Blue Hotel<br />

Koroga Country Club - Nyali, Mombasa<br />

Hotel Royal Orchid, Nairobi<br />

Kiambu County – TO BE CONFIRMED<br />

Spice Roots Restaurant – Simba Union<br />

Club, Nairobi<br />

Bowmans (Coulson Harney) Advocates –<br />

ICEA Lion Centre, West Wing<br />

Kenyatta International Conference<br />

Centre (KICC)<br />

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

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

1<br />

2


FROM THE KPDA SECRETARIAT<br />

“Life is a mirror and will reflect back to the thinker what<br />

he thinks into it.” ~ Ernest Holmes<br />

Welcome to the second issue of <strong>The</strong><br />

Developer’s <strong>Digest</strong> for the year <strong>2017</strong>. You<br />

will note that this issue covers 4 months<br />

and not the usual 3 months.<br />

Aren’t we all glad that the process of<br />

the national elections has finally been<br />

concluded? I for one, breathe a sigh of<br />

relief that life and business, can finally<br />

get back to normal.<br />

For the real estate sector, there was a<br />

stagnation in investment with a majority<br />

of the local and international investors<br />

coining the proverb, ‘Wacha tuone<br />

baada ya elections.’ (‘Let us wait and see<br />

how things pan out after the elections.’)<br />

Well, let’s get back to the business of<br />

building this beautiful nation of ours<br />

one brick at a time!<br />

In this issue, we feature an article by<br />

the Kenya Bankers Association on the<br />

alleged ‘Housing Bubble.’ How many<br />

times do we hear that phrase thrown<br />

around in the media in relation to the<br />

Kenyan real estate sector?<br />

Let us get a better understanding of it as<br />

we read the article featured in our Focus<br />

on Policy section.<br />

We are encouraging all members<br />

of KPDA to get more active in the<br />

Association and hence feature a profile<br />

of the committees and working groups<br />

that are the engines behind KPDA and<br />

what it does. We have also published our<br />

<strong>2017</strong> Calendar of Events for those who<br />

would like to know what activities are<br />

left for the rest of the KPDA year.<br />

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

• Glamart Properties Ltd<br />

• Jones Lang Lasalle (Pty) Ltd (JLL)<br />

• Usafi Comfort<br />

• Rhombus Concrete Ltd<br />

• KONE Kenya Ltd<br />

• Town and County Planners<br />

Association of Kenya (TCPAK)<br />

• Meera Construction Ltd<br />

• Shreeji Development Ltd<br />

I am calling all authors to send through<br />

their articles to be featured in our Have<br />

Your Say section. You can write on<br />

anything affecting the industry, both<br />

locally and internationally. Feel free to<br />

submit your articles to me through the<br />

email address ceo@kpda.or.ke<br />

I leave you with the following quote to<br />

mull over as you contemplate the rest of<br />

the year, ‘Life is a mirror and will reflect<br />

back to the thinker what he thinks into<br />

it.’ ~ Ernest Holmes<br />

Do have an assiduous month of<br />

September……<br />

Elizabeth<br />

• African Infrastructure Development Company<br />

• City Engineering Works (K) Ltd<br />

• Classic Mouldings Ltd<br />

• AHCOF Investments (Kenya) Company Ltd<br />

• Cheriez Properties Ltd<br />

• Menezes and Partners Advocates<br />

• Moad Capital Ltd<br />

• Focus on Property Ltd<br />

Welcome to the KPDA Family!<br />

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

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

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

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

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

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

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

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

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

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

environment.<br />

Benefits of Joining KPDA<br />

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

and diverse agenda.<br />

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

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

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

newsletters, media reports and research;<br />

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

clients;<br />

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

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

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

clients and partners during KPDA events<br />

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

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

Categories of Membership<br />

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

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

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

CATEGORY ENTRANCE FEES ANNUAL<br />

SUBSCRIPTION<br />

TOTAL<br />

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

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

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

Membership Admission Requirements<br />

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

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

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

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

4) Make the relevant payment<br />

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

Visit us online<br />

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

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

Kenya Property Developers Association<br />

Fatima Flats, Suite 4 B<br />

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

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

NAIROBI, KENYA<br />

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

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

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

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

Welcome to the KPDA Family!<br />

3 4


FOCUS ON POLICY<br />

A STATUS REPORT ON KENYA’S REAL<br />

ESTATE MARKET:<br />

WHAT IS THE ‘HOUSING BUBBLE?’<br />

Real estate sector in Kenya has of late<br />

been a pillar underpinning the overall<br />

economic growth. This can be attested<br />

by the performance of the sector in a<br />

number of way.<br />

First, the sector has rose to top sectors<br />

in in terms of sectoral credit allocation<br />

by the banking industry (See Figure 1<br />

above). <strong>The</strong>refore the housing sector in<br />

Kenya has seen an unprecedented rise<br />

in the credit allocation rising to top three<br />

in terms of total credit among all sectors<br />

of the economy.<br />

David Muriithi Ndwiga is Research officer at Kenya Bankers Association - Centre for Research on Financial<br />

Markets and Policy. He holds a Master of Arts in Economics from the University of Nairobi, A Bachelor’s Degree in<br />

Economics from Egerton University and a Diploma in Project Management from Kenya Institute of Management.<br />

He is tasked with conducting research on financial markets to inform policy with regard to Kenya’s financial<br />

market. While at his current position, he has spearheaded the crafting and modelling of the Kenya Banker’s<br />

Association – House Price Index that monitors the movement in quarterly house prices for residential houses in<br />

Kenya. In addition, he brings on board expertise in the real estate as evidenced by a number surveys of focusing<br />

on studies on home ownership in Kenya. Reach him on dmuriithi@kba.co.ke<br />

<strong>The</strong> importance of the real estate sector<br />

can therefore not be underrated given<br />

that investment in real estate is both a<br />

consumption expenditure as well as an<br />

investment expenditure. Houses have<br />

been widely used as collaterals against<br />

lending within the financial sector. As<br />

such the stability of the prices of houses<br />

is core as it immensely implies to the<br />

quality of the lending advanced against<br />

such houses as the collaterals.<br />

A broad stability in the prices of houses<br />

would be a substantial assurance of<br />

the good quality of lending against<br />

houses as collaterals. However, by<br />

contrast, highly volatile house prices<br />

could be a potential signal of exercising<br />

caution when lending against houses as<br />

collaterals. <strong>The</strong>refore, this warrants the<br />

need for an objective scrutiny on the<br />

status report on the housing market in<br />

Kenya with a view of answering whether<br />

there is a looming housing bubble or<br />

not.<br />

First, in addressing the issue on whether<br />

Kenya faces a property bubble or not<br />

Figure 1: Sectoral distribution of credit between March 2015 and March 2016<br />

Sectoral Distibution of Loans (Ksh. Bn )<br />

FOCUS ON POLICY<br />

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

with regard to the real estate sector,<br />

it’s of importance to define what a<br />

property bubble is. A property bubble,<br />

also referred to as real estate bubble<br />

or housing bubble is simply a scenario<br />

whereby the prices of houses increase<br />

rapidly to unsustainable levels and<br />

then decline sharply. It is therefore an<br />

economic bubble that is uniquely for the<br />

real estate sector.<br />

A bubble therefore is a short term price<br />

increase due to psychological effects. For<br />

instance, when real estate prices have<br />

been increasing for some time there<br />

may be a perception in the population<br />

that this increase will continue forever<br />

and that the investment is risk free.<br />

When the common belief is that prices<br />

can only go up, there is, also, a pressure<br />

to buy quickly, before housing gets even<br />

more expensive. As soon as the prices<br />

cease to increase demand will decrease<br />

and prices will start to decline.<br />

Such rapid rise in house prices followed<br />

by sharp decline can be attribute to a<br />

number of factors. First is the demand<br />

– supply mismatches. In this case,<br />

demand may outweigh supply leading<br />

to demand driven rise in property prices.<br />

<strong>The</strong> second factor could be speculation<br />

in the property market which could lead<br />

to surge in property prices as investors<br />

seek to make more profit margins.<br />

A HOUSING BUBBLE IN KENYA OR<br />

MERE ILLUSION? – AN EMPIRICAL<br />

EVIDENCE<br />

From the simple definition of what a<br />

property bubble or a housing bubble<br />

is, it can be certainly be concluded that<br />

housing bubble in Kenya’s real estate<br />

sector is a rosy illusion that may not<br />

stand a test of time against the facts.<br />

To start with, even though reals estate<br />

sector is one of the leading in terms of<br />

the total sectoral credit allocation mainly<br />

from commercial banks, the proportion<br />

of real estate sector remains minimal<br />

compared to lending in other sectors of<br />

the economy to warrant a justification<br />

for a house bubble.<br />

This is specifically evidenced by the<br />

annual value of cumulative mortgages<br />

in the market. In addition the aggregate<br />

number of mortgages remain low<br />

though on an upwards trend over years.<br />

Secondly, property market in Kenya<br />

remains broadly a primary market as<br />

opposed to secondary property market.<br />

This is evidenced by the time period<br />

taken to approve lending towards real<br />

estate especially mortgage lending.<br />

Further, mortgage transfers from<br />

one financier to another or from one<br />

borrower to another remains to be very<br />

rigid thus not warranting evidence for<br />

a housing bubble. Such rigidity comes<br />

with transaction costs in terms of time<br />

and other charges which discourage<br />

flexibility. It can be noted that housing<br />

bubbles are more eminent in the<br />

secondary property markets such as the<br />

sub – prime markets in the United States<br />

of America.<br />

Thirdly, the property process in Kenya<br />

with reference to the real estates have<br />

demonstrated a broad sense of stability<br />

though high. From the Kenya bankers<br />

Association Housing Price Index (KBA<br />

– HPI), the index speaks to two key<br />

messages. To start with, KBA-HPI) depicts<br />

a sense of overall price prices stability,<br />

600<br />

500<br />

400<br />

300<br />

200<br />

100<br />

0<br />

30,000<br />

25,000<br />

20,000<br />

15,000<br />

10,000<br />

16,135<br />

Figure 2: Number and value of cumulative Mortgages<br />

Cumulative no. of mortagages<br />

18,587 19,879 22,013<br />

24,458<br />

250,000<br />

200,000<br />

150,000<br />

100,000<br />

Value of Cumulative Mortgages<br />

(Ksh Bn)<br />

91,208<br />

119,610<br />

138,111<br />

164,007<br />

203,315<br />

Mar-15<br />

Mar-16<br />

5,000<br />

0<br />

2011 2012 2103 2014 2015<br />

50,000<br />

0<br />

2011 2012 2103 2014 2015<br />

Source: Central Bank of Kenya<br />

Source: Central Bank of Kenya<br />

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

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

5<br />

6


FOCUS ON POLICY<br />

A STATUS REPORT ON KENYA’S REAL ESTATE MARKET<br />

the trend over the years ever since its<br />

launch in the market. <strong>The</strong> underlying<br />

demand and supply characteristics<br />

and in particular it depicts a demand<br />

slow-down on the back of the broader<br />

economic environment characterised<br />

by a general sense of softening growth<br />

(See figure 3).<br />

<strong>The</strong> build-up of the risks in the sector<br />

as, measured by the fixed base index<br />

120.00<br />

115.00<br />

110.00<br />

105.00<br />

100.00<br />

95.00<br />

90.00<br />

posit that the house process have rose<br />

merely by 16.67 percent as at the end<br />

of quarter two of <strong>2017</strong> compared to the<br />

base period of quarter in of 2013.<br />

This reveals a broad stability in the<br />

house prices over a period of four and<br />

a half years. Similar conclusions can be<br />

made from the moving base index for<br />

the same time period.<br />

Figure 3: Quarterly Price Indices<br />

Index with a fixed base<br />

Source: Kenya Bankers Association – Centre for research on Financial Markets and Policy®<br />

KPDA MEMBER TESTIMONIAL<br />

Index with a moving base<br />

MMC Africa Law is a full service indigenous law firm founded<br />

in 1995. We joined the Kenya Property Developers Association<br />

in the year 2015. In the two years that we have been members<br />

of the Association, we have enjoyed the benefit of meeting<br />

stakeholders within the real estate sector including developers,<br />

Government agencies and officials, building consultants and<br />

professionals, amongst others. We have also participated in<br />

advocating for the improvement of public policy in the sector<br />

with the objective of developing a real estate sector that is<br />

efficient, robust and sustainable for our Kenyan population.<br />

<strong>The</strong> house prices in Kenya though high<br />

especially in the upper market segment,<br />

they are relatively stable thus the<br />

possibility of a housing bubble is muted<br />

at the moment.<br />

<strong>The</strong> possibility of the housing bubble<br />

can perhaps be alluded to given the<br />

developments in the house prices with<br />

time since property market is known to<br />

undergo correction with time.<br />

Esther Omulele<br />

Deputy Managing Partner, Head of Commercial & Property Department<br />

KPDA COMMITTEES AND WORKING GROUPS<br />

Members are encouraged to request to<br />

join any of the Association committees to<br />

connect and engage with professional/peer<br />

networks and government leadership; as well<br />

as identify a leadership position that aligns<br />

with one’s professional goals and objectives.<br />

KPDA members are encouraged to play a<br />

more active role in the Association by getting<br />

involved in leadership opportunities.<br />

I. THE PUBLIC POLICY AND ADVOCACY<br />

COMMITTEE<br />

<strong>The</strong> Public Policy and Advocacy Committee<br />

is committed to ensuring that KPDA impacts<br />

the industry through engagement on policy<br />

issues and becomes the most reputable body<br />

for the advocacy of real estate issues.<br />

Mandates:<br />

1. Ensures that KPDA enhances the<br />

business environment that KPDA<br />

members are operating in;<br />

2. Engaged in increased advocacy for<br />

issues facing members;<br />

3. Ensures focused engagement with<br />

policy makers;<br />

4. Ensures increased knowledge on priority<br />

areas of advocacy and best approaches;<br />

5. Facilitates increased dissemination of<br />

research findings and KPDA’s main areas<br />

of focus;<br />

6. Facilitates increased capacity of KPDA<br />

to conduct impactful advocacy by<br />

increased engagement with likeminded<br />

organizations, associations and<br />

institutions.<br />

Committee Members:<br />

1. Gikonyo Gitonga – Axis Real Estate Ltd<br />

(Committee Convenor)<br />

2. Adnan Khan – Anjarwalla and Khanna<br />

Advocates<br />

3. Esther Omulele – MMC Africa Law<br />

4. Jacqueline Wangui – CFL Advocates<br />

5. Azmeena Bhanji – PDM (Kenya) Ltd<br />

6. Sam Mwaura – Private Sector<br />

Development Trust<br />

7. Palkesh Shah – Chigwell Holdings Ltd<br />

8. Anne Muchiri – Rozanna Properties Ltd<br />

9. Amarjit Virdi - Questworks<br />

10. Edward Kirathe - Acorn Group Ltd<br />

11. Harminder Chana – Lordship Africa<br />

12. Ravi Kohli – Karibu Homes<br />

13. Peris Karanja – Karanja Njenga<br />

Advocates<br />

14. Abraham Muriithi - PRC<br />

15. Alex Waiharo – Jabez Properties<br />

16. Catherine Kariuki – Land Development<br />

KENYA PROPERTY DEVELOPERS ASSOCIATION<br />

‘Creating a value driven, sustainable and socially responsible real estate industry’<br />

COMMITTEES AND MANDATES, AUGUST <strong>2017</strong><br />

and Governance Institute (LDGI)<br />

<strong>The</strong> committee has also subdivided itself<br />

into working groups who work on focused<br />

advocacy areas:<br />

1. <strong>The</strong> National Government Working<br />

Group: Facilitate KPDA’s engagement with<br />

central government (primarily the Ministry<br />

of Lands and Physical Planning as well as the<br />

Ministry of Transport, Infrastructure, Housing<br />

and Urban Development).<br />

Members:<br />

- Sam Mwaura (Group Leader)<br />

- Esther Omulele<br />

- Anne Muchiri<br />

- James Karanja<br />

- Alex Waiharo<br />

- Abraham Muriithi<br />

- Peris Karanja<br />

2. <strong>The</strong> County Government Working Group:<br />

Ensure effective engagement with various<br />

county governments to enhance the business<br />

environment that KPDA members work in.<br />

Members:<br />

- Amarjit Virdi (Group Leader)<br />

- Azmeena Bhanji<br />

- Gikonyo Gitonga<br />

3. <strong>The</strong> Research and Development Working<br />

Group: Spearhead the project to develop the<br />

KPDA Construction Process Handbook.<br />

Members:<br />

- Azmeena Bhanji (Group Leader)<br />

- Adnan Khan<br />

- Jacqueline Wangui<br />

4. <strong>The</strong> Regulatory Bodies Working Group:<br />

Ensure close and focused engagement<br />

with regulatory bodies that KPDA members<br />

interact with doing business in the Kenyan<br />

real estate sector.<br />

Members:<br />

- Harminder Chana (Group Leader)<br />

- Asher Owino (Newmatic Africa Ltd)<br />

- Faith Mwaura (RE/MAX Heritage)<br />

- Alex Waiharo (Jabez Properties)<br />

II. MEMBERSHIP AND OUTREACH<br />

COMMITTEE<br />

<strong>The</strong> main aim of the Membership and<br />

Outreach Committee is to develop KPDA to<br />

be the most relevant association for property<br />

developers and other players in the real<br />

estate sector. This committee supports the<br />

secretariat by maintaining active members<br />

by organizing vibrant and active activities<br />

and events as well as increasing membership<br />

numbers.<br />

Mandates:<br />

1. Enhance value and service to members<br />

through increased networking and<br />

opportunities for members;<br />

2. Facilitate increased diversity (amongst<br />

members) and increased number of<br />

members;<br />

3. Organize increased training<br />

opportunities for members;<br />

4. Enhance brand visibility, authority and<br />

respectability of KPDA through increased<br />

number of industry players and members<br />

of the public aware of and well informed<br />

about KPDA;<br />

5. Ensure increased number of industry<br />

players, clients and members of the public<br />

looking up to KPDA for leadership and<br />

guidance;<br />

6. Ensure KPDA members are differentiated<br />

in the market as superior developers;<br />

7. Build a national footprint for KPDA.<br />

Committee Members:<br />

1. Ken Luusa – Acorn Group Ltd (Committee<br />

Convenor)<br />

2. Gikonyo Gitonga – Axis Real Estate Ltd<br />

3. Stephanie Odhiambo – Acorn Group Ltd<br />

4. Caroline Kihara – KCB<br />

5. Palkesh Shah – Chigwell Holdings Ltd<br />

6. Caroline Ratemo – Ratemo and Company<br />

Advocates<br />

7. Caroline Karugu – Anjarwalla and Khanna<br />

Advocates<br />

8. George Wachiuri – Optiven Ltd<br />

III. THE INSTITUTIONAL STRENGTHENING<br />

COMMITTEE<br />

It is the mandate of this committee to<br />

develop structures that will ensure financial<br />

sustainability, operational capacity and facilitate<br />

realization of KPDA’s mission and vision.<br />

Mandates:<br />

1. Enhanced financial capacity and stability<br />

through ensuring growth in internal income<br />

and increased co-operation with other likeminded<br />

organizations;<br />

2. Increased capacity to drive and sustain<br />

growth by establishing and maintaining<br />

strengthened structure and systems within<br />

the association;<br />

3. Ensuring the secretariat has adequate HR<br />

capacity.<br />

Committee Members:<br />

1. Emma Achoki (Committee Convenor)<br />

2. Hamish Govani<br />

3. Ranee Nanji<br />

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

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

7 8


HAVE YOUR SAY<br />

HAVE YOUR SAY<br />

DUE DILIGENCE GUIDE IN INVESTING<br />

IN KENYAN REAL ESTATE:<br />

HOW TO SPOT A SCAM<br />

By the KPDA Secretariat<br />

Investing in real estate is always high<br />

risk, whether it is in the development<br />

of rental property, a family home or<br />

commercial real estate developments.<br />

Consider this scenario:<br />

<strong>The</strong> property listing almost looks too<br />

good to be true – it is in the perfect<br />

location, has beautiful photos and is<br />

well below your budget. You send off an<br />

enquiry and receive a quick response:<br />

the landlord is currently overseas and<br />

cannot show you the home. But if you<br />

can wire through a deposit as soon as<br />

possible, the property is yours.<br />

For many people who have tried to<br />

rent property online, this scenario<br />

might sound all too familiar. While<br />

new technologies have made it easier<br />

than ever before for property seekers<br />

to get all the information they need<br />

to supercharge their house hunt, the<br />

internet has also made it easier for<br />

online fraudsters to target both buyers<br />

and renters.<br />

Remember that if it sounds too good to<br />

be true, it probably is! One of the most<br />

important rules in real estate is that if<br />

a deal sounds too good to be true, it<br />

most likely is. Be skeptical about any<br />

online listings for attractive properties<br />

which are very well priced for the area.<br />

Scammers often use these very low<br />

prices to lure property seekers.<br />

Being aware of a few tell-tale signs,<br />

house-hunters can learn to quickly sort<br />

the scammers from the legitimate real<br />

estate agents. Below is a compiled guide<br />

to help property seekers avoid falling<br />

victim to a scam.<br />

Due diligence is an investigation of<br />

potential investment prior to making<br />

a commitment in order to confirm all<br />

facts and keep an investor and his/<br />

her resources safe before entering<br />

into a transaction. It is considered a<br />

reasonable act expected of anyone who<br />

is thinking of investment. In real estate,<br />

due diligence is defined as a buyer’s<br />

obligation to do an investigation of<br />

property to determine whether he/she<br />

is satisfied.<br />

During this period, the buyer conducts<br />

an in-depth analysis of the condition<br />

of the property and the feasibility of<br />

purchasing the property. If the buyer<br />

finds defects in the property midprocess,<br />

he/she is allowed to cancel<br />

the purchase of the property due to<br />

unsatisfactory results.<br />

Below are some key things to consider<br />

during the due diligence process;<br />

1. FIND OUT WHAT THE MARKET OFFERS<br />

<strong>The</strong> state of the market usually affects<br />

the pricing of property. When there is a<br />

high demand for property with a lack of<br />

supply of good quality property, then<br />

prices of houses tend to rise and vice<br />

versa.<br />

However a large supply of housing that<br />

is in high demand translates to higher<br />

pricing as there might be buyers in the<br />

market who are willing to pay whatever<br />

it takes to acquire the property.<br />

Knowing what the market offers will<br />

ensure that you do not end up paying<br />

more than you should. For example<br />

having information like the current<br />

over-supply of office space in areas like<br />

Upper-hill will help someone who wants<br />

to buy commercial space get a good<br />

bargain on office space.<br />

2. INSPECT THE PROPERTY<br />

If you want to end up with a nice home,<br />

you need to be strategic. <strong>The</strong> rule of<br />

thumb is; “do not make payment for<br />

a property that you have not seen”.<br />

Fraudsters are everywhere looking for<br />

who to con next, and given the sacrifices<br />

you have made to save enough to buy<br />

your own home, be very careful who you<br />

give your money to.<br />

After confirming that a property exists,<br />

ensure that you scrutinize it top to<br />

bottom looking for issues that would<br />

cost you extra money to fix. Renovating<br />

property is a huge expense; therefore<br />

ensure you get estimates for work<br />

before you decide to move forward with<br />

the purchase, if at all you decide to buy<br />

property that has issues to be fixed. If you<br />

are in a position to hire a home inspector<br />

to do this the better, if not make sure<br />

you do it thoroughly. Having a second<br />

or third opinion is highly recommended<br />

for this.<br />

3. APPRAISE & VALUE PROPERTY<br />

An appraisal is an estimate of the<br />

value of property, also defined as<br />

the opinion of the market value for<br />

a property. A valuation on the other<br />

hand is done to establish “exactly how<br />

much a property is worth”. Property<br />

appraisal and valuation are necessities<br />

for successful real estate purchase. A<br />

valuation report usually includes details<br />

like its location, legal description, value,<br />

improvements, land use as well as<br />

information on comparative sales in<br />

the area. This information will help you<br />

review the future performance of your<br />

property, therefore lets you know if the<br />

particular property is a good investment<br />

opportunity or not.<br />

4. INVESTIGATE TITLE/TRANSACTION<br />

DOCUMENTS<br />

You need to establish legal ownership of<br />

property you are buying from someone.<br />

For a home that already exists, there<br />

has to be a public record showing that<br />

the seller of this property has legal<br />

ownership. To facilitate this, ensure you<br />

do a title search at the Lands Registry,<br />

Ardhi House to avoid issues like a long<br />

lost aunt claiming ownership of property<br />

that you have already paid for. Such<br />

issues are costly to address, and you<br />

need to sort them out with the previous<br />

owner before you inherit a problem you<br />

don’t want to have.<br />

Ensure you hire a conveyance lawyer<br />

to facilitate the Purchasing process<br />

and draw Agreements based on terms<br />

acceptable to both you and the seller.<br />

5. CHECK FOR GOVERNMENT<br />

REGULATIONS/ZONING ISSUES<br />

Check for issues that could have an<br />

impact on the property you want to<br />

acquire or a building you want to put<br />

up. Find out things like whether your<br />

home will lie in a flood zone are or if the<br />

renovations you plan to do, if any, will<br />

cause some environmental hazard to<br />

you future neighbours.<br />

Ensure that you are well conversant with<br />

National Construction Authority Act<br />

(NCA) to avoid buying property that will<br />

later get the big ‘X’ sign for demolition<br />

after pouring all your savings into it.<br />

Bottom line, when purchasing real<br />

estate, it is up to you to ensure that<br />

you get the asset that you are paying<br />

for, given the risks involved in real<br />

estate purchase could be as high as<br />

the perceived benefits. A good practice<br />

would then be to have a due diligence<br />

checklist to guide you through the<br />

process.<br />

DUE DILIGENCE FOR RENTALS<br />

1. Always Insist on Inspecting the<br />

Property.<br />

Never agree to make any payments<br />

upfront or sign a contract without first<br />

inspecting the property.<br />

Viewing the property and meeting the<br />

agent in person are the best ways to<br />

guarantee that the listing is legitimate.<br />

2. Verify the Identity of the Person You<br />

Are Dealing With.<br />

Take steps to check the agent you are<br />

dealing with is a licensed broker or<br />

agent. In the first instance, a simple<br />

online search can help you detect a<br />

scam. Try searching for the property’s<br />

address, the name of the agent and their<br />

email address.<br />

3. Avoid Listings that Have Been<br />

Posted Multiple Times.<br />

One common scam is for fraudsters to<br />

copy an existing (and legitimate) listing<br />

of a property for sale and repost it as a<br />

rental, with their own contact details<br />

attached. Look out for duplicate listings<br />

which have different asking prices.<br />

4. Never Give Away Your Personal<br />

Information or Documents.<br />

You should never be asked to provide<br />

your bank account details or personal<br />

identification documents to someone<br />

over the internet. Importantly, never<br />

provide your credit card verification<br />

code to anyone.<br />

GENERAL TIPS TO AVOID REAL<br />

ESTATE PROPERTY SCAMS<br />

1. Whether you are buying or renting<br />

a property from landlord or you<br />

are going to sell and rent your<br />

property to tenants, ensure this to<br />

make your contract in written form.<br />

Never assume that the party you<br />

are dealing with will follow verbal<br />

promises.<br />

2. If you are going to make any kind<br />

of real estate property deal for the<br />

first time, it’s better to take advice<br />

from experienced professionals.<br />

Experienced and qualified investors<br />

and professionals will help you<br />

to estimate the real value of the<br />

project or property for which you<br />

are investing your money. <strong>The</strong>y<br />

will also help you to identify the<br />

ambiguity in a contract. Professional<br />

suggestions will surely protect you<br />

to make doubtful deals.<br />

3. Before making final decision to<br />

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

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

9<br />

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HAVE YOUR SAY<br />

KPDA PARTNERSHIPS<br />

DUE DILIGENCE GUIDE IN INVESTING IN KENYAN REAL ESTATE:<br />

invest in any property development<br />

project, it is good to observe major<br />

property development projects.<br />

You can also find information about<br />

common real estate scam cases via<br />

media. Usually, real estate fraudsters<br />

try to use same technique to<br />

deceive people. This makes it a little<br />

easy to identify scam property deal.<br />

4. Try to work with certified<br />

professionals. It is critically<br />

important to work with authorized<br />

real estate agents and property<br />

management companies.<br />

Moreover, if you are individually<br />

selling or renting your property to<br />

a buyer or tenant, make sure about<br />

his employment and bank balance.<br />

If a person you are dealing with<br />

shows a complex background be<br />

careful, he may be a scam artist.<br />

5. Always be ready to quit any real<br />

estate deal in case you don’t get<br />

satisfactory answers to any of your<br />

questions related to the property<br />

you are going to buy or rent. Even<br />

if the offer is too good, keep it in<br />

mind that real estate deals must<br />

be profitable for both the parties.<br />

Don’t focus only on what you will be<br />

getting after the deal; also consider<br />

what other party will get at the end.<br />

6. Similarly, keep an eye on your bank<br />

accounts; you will also become<br />

victim of identity theft that may lead<br />

to involve you in sort of corruption<br />

and fake bank transactions. Scam<br />

artists can open fake accounts with<br />

your name and make scam deals on<br />

your name. Maintain proper data of<br />

your accounts and properties you<br />

possess to avoid such incidents of<br />

identity thefts.<br />

7. Avoid paying beyond your capacity<br />

to pay for a property. Real estate<br />

scams also betray buyers and sellers<br />

showing them urgency to sell or<br />

purchase assets and encourage<br />

them to pay extra money for the<br />

property or finalizing sale deal<br />

below actual market prices. It is<br />

important to consider correct value<br />

of property ad your budget limits.<br />

Following these simple tips will help<br />

you to avoid real estate property scams.<br />

Whether you are going to purchase,<br />

sale or rent a property. <strong>The</strong>re are always<br />

chances to become a victim, only careful<br />

observation of whole business process<br />

will protect you from property scams.<br />

REFERENCES<br />

1. http://www.buyrentkenya.com/blog/<br />

your-due-diligence-guide-when-buyingreal-estate-in-kenya<br />

2. http://www.bhomes.com/blog/post/<br />

avoid-real-estate-property-scams.aspx<br />

(+971 600 52 2233 | customercare@<br />

bhomes.com)<br />

VALUE OF JOINING THE KPDA FAMILY<br />

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

established in Nairobi in 2006 as the representative<br />

body of the residential, commercial and industrial<br />

property development sector in Kenya. It is an emerging<br />

Business Member Organisation which works in proactive<br />

partnership with policy-makers, financiers and citizens<br />

to ensure that the property development industry grows<br />

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

ethical manner. Our current membership stands at 85<br />

members.<br />

<strong>The</strong> Association’s strategic objectives include working<br />

with the Government and other stakeholders to promote<br />

policies that stimulate the property sector; contributing<br />

to excellence in building through promotion of worldclass<br />

ethical standards and educational programs;<br />

compiling focused research and analysis to inform<br />

investment decisions, policy analysis and public<br />

education; developing new financing mechanisms<br />

to help low and middle income Kenyan families own<br />

homes; providing a forum where property investors<br />

can share expertise and build business contacts; and<br />

harmonising development activities with citizen<br />

concerns, like neighbourhood associations and<br />

environmental preservation groups.<br />

Our members enjoy the following:<br />

• Advocacy that champions the interests of the<br />

industry to both the public sector and the<br />

wider private sector to ensure a better business<br />

environment for the property industry;<br />

• Information on the latest issues affecting the<br />

industry, via regular publications, newsletters,<br />

media reports and research;<br />

• Networking events, putting members in touch<br />

with industry leaders and potential clients;<br />

• Professional development courses which reflect<br />

the changing nature of the property industry;<br />

• Marketing opportunities for member companies<br />

with discounts offered to various advertising<br />

platforms;<br />

• Discounted rate at both KPDA events and<br />

events organized by international and regional<br />

organizations in the building and construction<br />

industry;<br />

• Access to emerging markets and exposure to joint<br />

venture opportunities.<br />

While KPDA membership is open only to companies, the<br />

benefits of membership extend to all staff in member<br />

companies.<br />

Let KPDA become your partner in advocacy, education,<br />

information, research and helping develop your<br />

business.<br />

Become a part of this formidable family!<br />

For more information, kindly contact our KPDA<br />

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

email e.kayaki@kpda.or.ke.<br />

ABOUT KENYA GREEN<br />

BUILDING SOCIETY<br />

<strong>The</strong> Kenya Green Building Society<br />

(KGBS) is an independent, non-profit<br />

membership based society registered<br />

with the World Green Building Council as<br />

its Kenya Chapter. KGBS is mandated to<br />

certify the built environment, advocate<br />

for green buildings and train green<br />

building professionals.<br />

KGBS is the leading Green Building<br />

movement in the Kenyan market that<br />

ensure buildings are designed and built<br />

sustainably. Currently, KGBS using Green<br />

ABOUT TOWN AND COUNTY<br />

PLANNERS ASSOCIATION OF<br />

KENYA (TCPAK)<br />

<strong>The</strong> Town and County Planners Association<br />

of Kenya or TCPAK is a corporate body<br />

comprising of town, county and country<br />

planners, and/or urban and regional<br />

planners and/or physical planners. <strong>The</strong><br />

Association promotes professional<br />

development, education, public<br />

awareness, sustainable development and<br />

the protection and conservation of the<br />

built and natural environment.<br />

Our Vision<br />

To be the premier and leading town,<br />

star SA rating tool We are a dedicated<br />

team of professionals working in<br />

collaboration with industry experts,<br />

leaders, government departments to<br />

develop modern day building best<br />

practices crafted to suit the Kenyan<br />

dynamic property industry.<br />

Our Vision<br />

<strong>The</strong> Kenya Green Building Society<br />

seeks to lead the transformation in<br />

the construction industry towards<br />

environmentally sustainable buildings,<br />

promoting healthy and efficient<br />

environments.<br />

county, regional and country planning<br />

association of choice in Kenya and the<br />

world.<br />

Our Mission<br />

<strong>The</strong> Association exists to advance<br />

sustainable, integrated and inclusive<br />

association for the benefit of the<br />

town, county and country planners<br />

and professional growth of members<br />

through professional practice, advancing<br />

knowledge and technologies, research,<br />

championing the rights of town<br />

planners and conducting professional<br />

development programs.<br />

Our Mission<br />

To Promote and improve the awareness<br />

of green building design practices,<br />

programs, technologies and operations.<br />

To enable the objective measurement<br />

and recognition of green building<br />

practices by developing and operating a<br />

green building rating system.<br />

Why become a member?<br />

As a member of the Green Building<br />

Council SA, your company will play a<br />

critical role in transforming the South<br />

African built environment. You will<br />

become part of our network of industry<br />

leaders and pioneers, collectively<br />

championing the green building cause<br />

and accelerating the development and<br />

adoption of best practices.<br />

Visit Us<br />

Kenya Green Building Society<br />

Kiambu Road, Nairobi.<br />

Tel: +254 710 869 547<br />

Email: admin@<br />

kenyagreenbuildingsociety.co.ke<br />

Our Value Statement<br />

A responsive professional association<br />

of town, county and country planners<br />

which is professional, accountable,<br />

democratic and mutually supportive.<br />

Membership Options<br />

1. Honorary<br />

2. Fellow<br />

3. Corporate<br />

4. Graduate<br />

5. Technician<br />

6. Student<br />

7. Visitng<br />

8. Firm<br />

9. Institutional<br />

10. Associate<br />

For more information on TCPAK please visit<br />

Town and County Planners<br />

Association of Kenya<br />

Block 2, White Court, Galana Road,<br />

Kilimani, Nairobi<br />

P. O. Box 15692 – 00100 GPO Nairobi,<br />

Kenya<br />

Tel: +254 721 345 611<br />

Email: info@tcpak.com<br />

http://www.tcpak.com<br />

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

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

11<br />

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KPDA PARTNERSHIPS<br />

KPDA NCCG BUILDING PERMITTING APPROVALS REPORT<br />

ABOUT UHDA<br />

Upper Hill District Association (UHDA)<br />

is an association that represents the<br />

interests of property/ land owners,<br />

businesses and residents based in Upper<br />

Hill District.<br />

We are driven to improve the quality<br />

of life in Upper Hill by liaising with key<br />

authorities in the National and County<br />

Government.<br />

Our Vision<br />

Our vision is to see Upper Hill District<br />

become the financial hub of East and<br />

Central Africa.<br />

Membership<br />

To strengthen our lobbying voice, we<br />

need more members.<br />

Together with your support you are able to:<br />

• Play a part in initiating change for the<br />

better in Upperhill District.<br />

• Have pressing matters affecting you<br />

handled collectively as an Association.<br />

• Receive current and regular<br />

communication on recent developments<br />

in Upperhill through our mailing list and<br />

the UHDA Newsletter.<br />

• Have your company promoted through<br />

our publications.<br />

“<br />

ABOUT UPPER HILL<br />

<strong>The</strong> once small district that boasted to be<br />

a residential area for senior civil servants<br />

especially from Kenya Railways has<br />

transformed over the years to become<br />

one of the most sought after areas to set<br />

up a thriving business.<br />

Welcome to Upper Hill, the home of<br />

lucrative businesses with changing<br />

skylines thanks to the exquisite<br />

skycrapers that have popped up over<br />

the years.<br />

We boast to have key government<br />

parastatals and courts, Kenya’s public<br />

referral hospital, biggest private hospital,<br />

medical and dental centres, diplomatic<br />

missions, lavish hotels.<br />

For more information about us, write<br />

to us at upperhill@uhda.or.ke or simply<br />

visit our website and get to know us<br />

better on www.uhda.or.ke .<br />

Upperhill District Association<br />

2nd Floor, Royal Ngao Housem Upperhill<br />

Tel: 0739 584 765<br />

Email: Upperhill@uhda.or.ke<br />

www.uhda.or.ke<br />

We joined KPDA three years ago and as Optiven Group, we<br />

have no regrets. We have massively networked, participated<br />

in policy shaping. We have had opportunities to meet decision<br />

making individual's including the President, Cabinet secretaries,<br />

County Governor's and other key people to lobby on issues<br />

affecting the land <strong>Issue</strong>s.<br />

We had many events that presented opportunities to market<br />

our products.<br />

Being a member of KPDA is a yes yes. A lot of gains as an<br />

organization.<br />

We highly recommend any party out there to join this<br />

association.<br />

George Wachiuri - CEO Optiven Group<br />

“<br />

THE KPDA NAIROBI CITY COUNTY GOVERNMENT BUILDING<br />

PERMITTING APPROVALS ACTIVITY REPORT<br />

JANUARY – JUNE <strong>2017</strong><br />

<strong>The</strong> <strong>2017</strong> half year KPDA NCCG Building<br />

Permitting Approvals Activity Report<br />

provides a summary of statistical<br />

information on planning permitting<br />

activity in Nairobi for the period between<br />

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

Only statistics received from the Nairobi<br />

City County Government, Urban<br />

Planning Department have been used<br />

as references.<br />

This report uses building permitting<br />

approval requests submitted to the<br />

Nairobi City County Government which<br />

are then analysed and approved by<br />

a specialist committee appointed by<br />

the Urban Planning Department of the<br />

Nairobi City County Government.<br />

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

applications that have been approved<br />

by the specialist committee highlighting<br />

development locations, types, values,<br />

application revenues and process<br />

performances.<br />

SUMMARY STATISTICS<br />

A total of 1,140 planning permit<br />

applications were approved from<br />

January to June <strong>2017</strong> with June having<br />

the highest number of approvals (204)<br />

and <strong>April</strong> having the least (153). Other<br />

key statistics from this report include:<br />

1. <strong>The</strong> value of approved permits (for<br />

the period January – June <strong>2017</strong>)<br />

represents over Kshs. 53.5 billion<br />

worth of development projects and<br />

permitting fees collected were over<br />

Kshs. 493.9 Million for the period<br />

January – June <strong>2017</strong>;<br />

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

buildings submitted for approval<br />

was Kshs. 5, 367, 000, 000 (Kshs.<br />

5.37 billion) by the Rossyln Property<br />

Holdings Ltd (Proposed Mixed Use<br />

Development) and the maximum<br />

submission fee paid was Kshs. 57,<br />

658, 610.<br />

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

building developments approved<br />

was Kshs. 47, 005, 492 and that of the<br />

submission fee was Kshs. 433, 629.<br />

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

from the statistics that most of the<br />

developments were carried out in<br />

Karen, Westlands, Industrial Area,<br />

Kilimani and the Central Business<br />

District.<br />

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

of 1997, this report depicts permits<br />

that were issued in the following<br />

average percentages in accordance<br />

to the named classifications below:<br />

• 80.9% (922) - Domestic Class<br />

(commercial developments,<br />

domestic buildings and offices)<br />

• 10.1% (115) - Public Class (social halls,<br />

religious buildings, libraries, schools,<br />

etc.)<br />

• 9% (103) - Warehouse Class<br />

(industries, factories, and go downs)<br />

• <strong>The</strong> statistics show that in the first half<br />

of the year <strong>2017</strong>, approved proposed<br />

developments of the Domestic<br />

Classification had the highest level of<br />

approvals issued.<br />

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

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

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

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

13<br />

14


KPDA NCCG BUILDING PERMITTING APPROVALS REPORT<br />

PERMIT APPLICATION ACTIVITY BY SUB-COUNTY<br />

KPDA NCCG BUILDING PERMITTING APPROVALS REPORT<br />

DWELLING RELATED ACTIVITY ACROSS NAIROBI<br />

1. Buildings approved included domestic<br />

buildings, commercial developments,<br />

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

libraries, schools, factories, industries<br />

and go downs. <strong>The</strong> following graph<br />

identifies permit applications that<br />

relate to various building classes.<br />

2. It can be noted that 80.88% of the<br />

planning submitted under the<br />

building class category were domestic<br />

class which includes domestic<br />

buildings, commercial developments<br />

and offices.<br />

<strong>The</strong>re are more development activities on the Western side of Nairobi compared to the Eastern side.<br />

<strong>The</strong> highest permits were approved in the areas of Karen, Westlands, Industrial Area, Runda and Eastleigh.<br />

1. Karen has the highest percentage of permits locality-wise.<br />

2. Riruta has the least number of permits amongst the top 10 areas of development.<br />

NB: Localities that do not appear in the graph had less than 1% permit approval activity.<br />

NUMBER OF APPROVALS BY ZONAL USER DENSITY<br />

BUILDING CLASS BY LOCALITY<br />

1. <strong>The</strong> graph indicates Karen being<br />

the area with the highest number of<br />

Domestic and Public Class approvals.<br />

This signals a new settlement area for<br />

Nairobi’s residents.<br />

2. Industrial area topped in approvals<br />

related to the Warehouse Class mainly<br />

because the area has a high number of<br />

industries as well as warehouses set up.<br />

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

accounted for 74.21% of the<br />

approvals.<br />

2. Commercial Class buildings<br />

accounted for 5.44% of the<br />

approvals.<br />

3. Public Class buildings<br />

accounted for 9.04% of the<br />

total approvals.<br />

4. Industrial Class buildings<br />

accounted for 10.43% of the<br />

total approvals.<br />

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

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

15<br />

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

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

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

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

16


KPDA NCCG BUILDING PERMITTING APPROVALS REPORT<br />

GRAPH DEPICTING PERIOD OF APPROVALS ON A MONTHLY BASIS<br />

KPDA NCCG BUILDING PERMITTING APPROVALS REPORT<br />

GRAPH DEPICTING LENGTH OF TIME TAKEN FOR PROJECT APPROVALS<br />

<strong>The</strong> Month of June had<br />

the highest number<br />

of approvals, with 204<br />

approvals and March<br />

had the lowest at 153.<br />

1. Most of the permits<br />

took over a month to<br />

be approved.<br />

2. On average, the<br />

number of days taken<br />

for approvals to be<br />

issued is 52 days which<br />

is slightly below 2<br />

months.<br />

BUILDING CLASS BY LOCALITY<br />

COMPARATIVE ANALYSIS BETWEEN THE SIX MONTHS OF <strong>2017</strong><br />

868 buildings presented<br />

for approvals were<br />

valued between Kshs.1<br />

million and Kshs. 50<br />

million while only 3<br />

buildings were valued<br />

over Kshs. 1 billion.<br />

Most of these buildings<br />

were in the residential<br />

category.<br />

It can be noted that<br />

there has been an<br />

increase in the worth of<br />

developments approved<br />

by XXXX. Domestic<br />

buildings continue<br />

to have the highest<br />

number of approvals.<br />

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

KENYA PROPERTY DEVELOPERS ASSOCIATION<br />

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

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

Off Argwings Kodhek, Kilimani Area<br />

Email: ceo@kpda.or.ke<br />

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

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

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

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

17<br />

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

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

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

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

18


KPDA DIRECTORY OF MEMBERS<br />

KPDA DIRECTORY OF MEMBERS<br />

KPDA DIRECTORY OF MEMBERS IN GOOD STANDING AS AT 23 RD AUGUST <strong>2017</strong><br />

Leo Capital Holdings Ltd<br />

Parmalen Investments Ltd<br />

Thika Greens Ltd<br />

Coulson Harney Advocates<br />

PREMIUM MEMBERS<br />

Ali Fabrication Solutions Ltd<br />

Bamburi Cement Ltd<br />

Britam<br />

Diamond Property Merchants<br />

Fusion Capital<br />

HF Development and Investment Ltd<br />

Imaran Real Estate Ltd<br />

KCB Bank<br />

Savannah Cement Ltd<br />

Synthesis Systems Ltd<br />

Tandem & Stark Ltd<br />

Vaal Real Estate Ltd<br />

Yasian Technology Company Ltd<br />

CORPORATE MEMBERS<br />

Acorn Management Services Ltd<br />

Actis Africa Ltd<br />

Boleyn Magic Wall Panel Ltd<br />

Camelot Cosultants Ltd/Lantana Homes Ltd<br />

Century City Property Ltd<br />

Cheriez Properties Ltd<br />

Chigwell Holdings Ltd<br />

Coral Property International Ltd<br />

County Home Developers Ltd/Runda<br />

View Ltd<br />

Enkavilla Properties Ltd<br />

Fedha (Management) Ltd<br />

Glamart Properties Ltd<br />

Hass Consult Ltd<br />

Heri Homes Properties Ltd<br />

Homescope Properties Ltd<br />

Ijenga Ventures Ltd<br />

Lordship Africa<br />

Manrik Group<br />

Meera Construction Ltd<br />

Mentor Management Ltd (Mml)<br />

Moad Capital<br />

Mugumo Developments Ltd<br />

PDM (Kenya) Ltd<br />

Pediment Developers<br />

Pentagon Properties Ltd<br />

Pioneer Holdings (Africa) Ltd<br />

Property Reality Company Ltd<br />

Rozana Properties Ltd<br />

Sayani Investments Ltd<br />

Shreeji Development Ltd<br />

Unity Homes Ltd<br />

Urban Nirvana Property Solutions Ltd<br />

Vishwa Developers Ltd<br />

ASSOCIATE MEMBERS<br />

Anjarwalla & Khanna Advocates<br />

Aspenn Global Mobility Consultants<br />

Axis Real Estate Ltd<br />

Davis & Shirtliff Ltd<br />

DLR Group Africa Ltd<br />

Emerge Developments Ltd<br />

Focus On Property Ltd<br />

Galaxy Heritage Ltd<br />

Geokarma Construction Ltd<br />

Global Property Advice<br />

Kone Kenya Ltd<br />

Mabati Rolling Mills Ltd<br />

State Department For Housing And<br />

Urban Development<br />

Mmc Africa Law<br />

Africa Reit Ltd<br />

Africa Infrastructure Development<br />

Company (Aidc)<br />

Ahcof Investments (Kenya) Ltd<br />

AMS Properties Ltd<br />

Cytonn Real Estate<br />

Daykio Plantations Ltd<br />

Dream Home Construction<br />

Company Ltd<br />

Dunhill Consulting Ltd<br />

INFPAC Ltd<br />

Jabez Properties<br />

Kamhomes Investment Ltd<br />

Karibu Homes<br />

Mwanzoni Ltd<br />

Nanyuki Mall Ltd<br />

Natureville Homes<br />

Oakpark Properties Ltd<br />

Sigimo Enterprises Ltd<br />

Simba Corporation Ltd<br />

Spartan Developers Ltd<br />

Superior Homes Kenya<br />

Tatu City Ltd<br />

Broll Kenya Ltd<br />

Buy Rent Kenya Ltd<br />

Cemex Holdings Ltd<br />

CFL and Company Advocates<br />

Green Kenya Corporation Ltd<br />

Honeywell Technologies (K) Ltd<br />

Intex Construction Ltd<br />

Jones Lang Lasalle (Pty) Ltd (Jll)<br />

Kanaga & Associates<br />

Newline Ltd<br />

Bahati Ridge Development Ltd<br />

Edifice Ltd<br />

Karume Holdings Ltd<br />

Kings Developers Ltd<br />

Optiven Limited<br />

Tilisi Developments Ltd<br />

CITY ENGINEERING WORKS (K) LTD<br />

Karanja Njenga Advocates<br />

Newmatic Africa Ltd<br />

Blueline Properties Ltd<br />

Elm Ridge Ltd<br />

Kzanaka Ltd<br />

Paradigm Projects Ltd<br />

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

Classic Mouldings Ltd<br />

K.Mberia and Partners Advocates<br />

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

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

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20


KPDA DIRECTORY OF MEMBERS<br />

KPDA DIRECTORY OF MEMBERS IN GOOD STANDING AS AT 23 RD AUGUST <strong>2017</strong><br />

KN Associates LLP<br />

Knight Frank Kenya Ltd<br />

Koto Housing Kenya<br />

Laser Property Services Ltd<br />

Mahida And Maina Company Advocates<br />

Mboya Wangong’u & Waiyaki Advocates<br />

Mehta Electricals Ltd<br />

Menezes And Partners Advocates<br />

Mereka & Co. Advocates<br />

Mohammed Muigai Advocates<br />

Murimi And Company Advocates<br />

Nabo Capital Ltd<br />

Nanchang Foreign Engineering<br />

Company (Kenya) Ltd<br />

Nomadic Tents (K) Ltd<br />

O & M Law Llp<br />

Oraro & Company Advocates<br />

KPDA MEMBER TESTIMONIAL<br />

Pam Goldings Properties Ltd<br />

Paragon Architects<br />

Private Sector Development Trust<br />

Property Link Africa Ltd<br />

Questworks Ltd<br />

Ratemo & Company Advocates<br />

Re/Max Heritage<br />

Rhombus Concrete Ltd<br />

Saj Ceramics Ltd<br />

Secureman Services Ltd<br />

ecureman Services<br />

Limited<br />

S<br />

“ Your Security, Our Duty”<br />

Soita & Associates Advocates<br />

Spearhead Africa Ltd<br />

Stanlib Kenya Ltd<br />

Steel Africa Limited<br />

Sterling & Wilson Private Ltd<br />

Town And County Planners Association<br />

Of Kenya (TCPAK)<br />

Usafi Comfort Ltd<br />

Paragon Architects has been a member of KPDA since our<br />

first project in Nairobi went into construction. Even though<br />

we are based outside of Kenya, the industry news, regulatory<br />

news and property-related news items distributed<br />

regularly are of great value to our business. Without the<br />

KPDA, we would have a much less developed insight into<br />

the functioning of the local market and its dynamics. In<br />

addition, the networking opportunities are very valuable.<br />

Henning Rasmuss, Director<br />

– Paragon Architects<br />

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

e-newsletter supported and published<br />

by the Kenya Property Developers<br />

Association and designed by Insync<br />

MEDIA Ltd. It targets the various<br />

players in the property industry in<br />

Kenya and highlights a wide spectre<br />

of issues affecting our members, other<br />

professionals, manufacturers and both<br />

private and public sector players in the<br />

industry. We seek to encourage positive<br />

dialogue and development<br />

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

current industry news, updates on<br />

the Association’s ongoing activities,<br />

views, interesting facts and specialty<br />

advertising messages.<br />

WHY ADVERTISE THROUGH THE<br />

DEVELOPER’S DIGEST?<br />

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

media mix that helps advertisers<br />

communicate their message effectively.<br />

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

social media platforms and focused events<br />

(such as our training and networking<br />

forums).<br />

We keep track of our readership and<br />

are sensitive to emerging issues in the<br />

industry.<br />

It is a free and interactive online<br />

publication.<br />

It is a free downloadable Mobile App<br />

onto any mobile device.<br />

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

with you to create the most effective<br />

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

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

A KPDA PUBLICATION<br />

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

multi-platform advertising strategy that<br />

will ensure you reach your targeted<br />

consumer every direction they look.<br />

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

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

line.<br />

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

you advertising on our website with a<br />

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

website.<br />

Please contact the KPDA Secretariat via<br />

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

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

more information.<br />

ADVERTISING RATES<br />

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

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

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

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

DIGITAL INPUT/MECHANICAL<br />

REQUIREMENTS — BANNERS<br />

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

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

PRESS QUALITY format with outlined text.<br />

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

PDFs. PDFs exported from Photoshop are<br />

discouraged and can lead to less than<br />

desirable results.<br />

DIGITAL INPUT/MECHANICAL REQUIREMENTS — ADVERTS<br />

SIZE WIDTH DEPTH<br />

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

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

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

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

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

1/2 page (vertical) 105mm 265mm<br />

Full page (theme colour) 210mm 247mm<br />

Full page 210mm 297mm<br />

ADVERTS SUBMISSION:<br />

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

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

ONLINE ADVERTISING TERMS & CONDITIONS:<br />

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

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

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

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

in keeping with <strong>The</strong> Developer’s <strong>Digest</strong>’s philosophy.<br />

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

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

21<br />

22


PROUDLY SPONSORED BY<br />

Invitation to the End of Year KPDA Corporate<br />

Networking KOROGA Event<br />

#KPDAKorogaOct<strong>2017</strong><br />

Friday 27 th October <strong>2017</strong> at the Spice Roots Restaurant, Simba<br />

Union Club, Muthaiga Nairobi<br />

An interactive and informal networking event!<br />

WHERE: SPICE ROOTS RESTAURANT, SIMBA UNION CLUB<br />

(Located along Forest Road, Muthaiga, Nairobi)<br />

WHEN: Friday, 27 th October <strong>2017</strong><br />

TIME:<br />

6.00pm onwards<br />

<strong>The</strong> Koroga will run from 6.00pm onwards. Drinks will be<br />

served at a cash bar.<br />

TICKETS FOR THE KOROGA (AUTOMATIC ENTRY INTO THE<br />

RAFFLE COMPETITION)<br />

Members Kshs. 2, 500<br />

Non Members Kshs. 3, 500<br />

Companies wishing to register for the cooking competition are allowed to do so and<br />

participate in cooking vegetarian or non-vegetarian starter meals or main meals.<br />

One company may only register to cook one meal.<br />

THE DEADLINE TO RSVP (WITH PAYMENT) IS THURSDAY 19 TH OCTOBER <strong>2017</strong>. Kindly send your<br />

confirmations to m.mbogo@kpda.or.ke and cc ceo@kpda.or.ke<br />

NB:<br />

- Please note that registration fees once paid are non-refundable and cannot be transferred<br />

to cater for the cost of attending future events.<br />

- Participants who attend this event without an RSVP will be surcharged at the door<br />

- Non Members will not be allowed to participate in this event without prior payment<br />

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

23

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