07.04.2018 Views

The Developer's Digest, Jan - Mar 2018 Issue

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

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

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

A Publication by the Kenya Property Developers Association<br />

JANUARY - MARCH <strong>2018</strong> ISSUE<br />

TOPIC OF THIS ISSUE:<br />

Best Practices in the Kenyan<br />

Construction Sector: What Every<br />

Investor Should Know


KPDA Koroga Event<br />

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

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

A Publication by the Kenya Property Developers Association<br />

JANUARY - MARCH <strong>2018</strong> ISSUE<br />

3<br />

26<br />

Invitation to the KPDA Corporate Networking<br />

KOROGA Event<br />

#KorogaNaKPDA<br />

Friday 4 th May <strong>2018</strong> at the Spice Roots Restaurant, Nairobi<br />

An interactive and informal networking event!<br />

WHERE: Spice Roots Restaurant<br />

(Located along Forest Rd, Nairobi)<br />

WHEN: Friday, 4 th May <strong>2018</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 />

Message from the CEO<br />

Focus on Policy<br />

1<br />

3<br />

Have Your Say 13<br />

KPDA Directory of Members 17<br />

NCCG Building Permitting Approvals 42<br />

Fatima Flats, Suite 4B<br />

<strong>Mar</strong>cus Garvey Road<br />

Off Argwings Kodhek Rd<br />

Nairobi, Kenya<br />

Tel: + 254 737 530 290<br />

+ 254 705 277 787<br />

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

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

KPDA SECRETARIAT<br />

Chief Executive Officer<br />

Elizabeth Mwangi – Oluoch<br />

Membership Relations Officer<br />

Cynthia Wakio<br />

Finance and Membership Support Officer<br />

Grace Hinga<br />

Finance and Administrative Assistant<br />

<strong>Mar</strong>vin Kamata<br />

Research Support Intern<br />

Powell Gwena<br />

36<br />

KPDA BOARD MEMBERS<br />

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

RAFFLE COMPETITION)<br />

Members Kshs. 2, 900 (incl. of VAT)<br />

Non Members Kshs. 4, 060 (incl. of VAT)<br />

THE DEADLINE TO RSVP (WITH PAYMENT) IS MONDAY 30 TH APRIL <strong>2018</strong>. Kindly send your<br />

confirmations to membership@kpda.or.ke and cc finance@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 />

- Cancellations are only refundable if the secretariat is notified on email by no later than<br />

Friday, 27 th April <strong>2018</strong><br />

Britam Centre, Upper Hill.<br />

DESIGN AND LAYOUT<br />

InsyncMEDIA Limited<br />

Devan Plaza . 1 st Floor . Suite 16<br />

Chiromo Road, Waiyaki Way .<br />

Westlands . Nairobi . Kenya<br />

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

Nairobi . Kenya<br />

Landline: (+254) 0775551090<br />

Email: info@insyncmedia.co.ke<br />

INSYNC<br />

MEDIA<br />

LIMITED<br />

Mucai Kunyiha<br />

Chairman<br />

Kenneth Luusa<br />

Board Director<br />

Palkesh Shah<br />

Board Director<br />

Gikonyo Gitonga<br />

Board Director<br />

Emma Achoki<br />

Treasurer<br />

<strong>Mar</strong>garet Kibe<br />

Board Director<br />

George Wachiuri Caroline Karugu<br />

Board Director Board Director<br />

Anne Muchiri<br />

Board Director<br />

Hamish Govani<br />

Immediate Past Chairman<br />

Ravi Kohli<br />

Board Director<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible


1 2<br />

Message from the CEO<br />

5<br />

Happy Belated International<br />

Women’s Day! ~ (8th <strong>Mar</strong>ch <strong>2018</strong>)<br />

I am about one month late, but better late than never.<br />

Magazine<br />

A painting by Julie Dillon - <strong>The</strong> daughter<br />

of the daughter of my daughter.<br />

KPDA wishes to<br />

welcome our<br />

newest members:<br />

• Akarora Ltd<br />

• Amazon Projects Ltd<br />

• Amboseli Court Ltd<br />

• Dahua Technology Kenya Ltd<br />

• Fairdeal Developments and Infrastructure Ltd<br />

• Golden Compass Ltd<br />

• Hazelnut Kenya Ltd<br />

• Kitchens and Beyond Ltd<br />

• KumKang Kind East Africa Ltd<br />

• Mlima Construction Company Ltd<br />

• Sohail Developers Ltd<br />

• Turner & Townsend<br />

• Username Investments Ltd<br />

Welcome to the<br />

KPDA Family!<br />

Welcome to the first issue of <strong>The</strong> Developer’s <strong>Digest</strong><br />

for the year <strong>2018</strong>. We apologize that we were unable to<br />

publish an issue in the last quarter of 2017 and hence<br />

our last issue was for the period July to September 2017.<br />

That being said, this issue is therefore packed within<br />

even more information, facts, articles of interest and<br />

updates on the Association. First on our agenda is<br />

to invite you to our upcoming AGM and Corporate<br />

Networking Koroga Events planned for Friday, 4th May<br />

<strong>2018</strong>. Ensure that you attend and use the opportunity<br />

to mingle with the management of KPDA, your fellow<br />

members as well as other industry compatriots. Our<br />

Koroga events are momentous and those who have<br />

been at even one from the past can attest to this!<br />

<strong>The</strong> focus of this issue is on construction<br />

industry guidelines. Our very own member,<br />

Oraro and Company Advocates give an<br />

insightful read on ‘Best Construction<br />

Practices in Kenya.’ <strong>The</strong>re is also<br />

an interesting read penned by the<br />

Architectural Association of Kenya who<br />

give a wholistic view of our sector.<br />

As we grapple with the fact that we<br />

are almost halfway through the year<br />

(time flies too fast!), let us remember<br />

that we should always be kind to<br />

one another, even as we go about<br />

the business of our businesses<br />

(both personal and for own<br />

sustenance).<br />

Have a kindhearted and<br />

compassionate month of<br />

April.<br />

Elizabeth<br />

19 YEARS<br />

of Publication<br />

Online Advertising<br />

Log in/Register<br />

to Advertise on<br />

www.kenya-real-estate.com<br />

• Property Listings<br />

• Property Developments<br />

• Property Essentials<br />

Magazine advertising space from Kshs. 5,000<br />

Cell: 0790 406 470<br />

Email: sales@kenya-real-estate.com<br />

Advertising on www.kenya-real-estate.com from Kshs. 1,000<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible


3<br />

4<br />

Focus on Policy<br />

Focus on Policy<br />

Best Practices in the Kenyan<br />

Construction Sector: What<br />

Every Investor Should Know<br />

Recent media<br />

reports of<br />

collapsed<br />

structures, often<br />

involving the<br />

loss of life, are<br />

equally alarming.<br />

Such incidences are<br />

often attributed<br />

to poor designs<br />

and defective<br />

construction<br />

works<br />

<strong>The</strong> international publishing, research and consultancy firm Oxford Business Group<br />

recently observed in the Construction & Real Estate chapter of <strong>The</strong> Report: Kenya<br />

2017 that the construction industry has been “accelerating at a rapid pace and<br />

making a substantial contribution to the country’s strong GDP growth figure”<br />

amid rising demand for residential developments.<br />

Be that as it may, homebuyers continue to face a number of risks ranging<br />

from delays in completion and handing over of construction projects, poor<br />

and defective workmanship and encumbrances on land titles to false<br />

representations, fraud and extortion by unscrupulous developers and other<br />

actors in the real estate and construction industry.<br />

Recent media reports of collapsed structures, often involving the loss of<br />

life, are equally alarming. Such incidences are often attributed to poor<br />

designs and defective construction works but other culprits include<br />

cost-cutting and use of substandard materials, non-compliance with<br />

construction requirements, lack of quality control and incompetence.<br />

This list is not exhaustive and there are many other issues that could<br />

seriously affect the use and enjoyment of property.<br />

This begs the question: what are the remedies available to<br />

homebuyers in such cases and what steps can they take to<br />

minimize the risks?<br />

CONSUMER PROTECTION<br />

Kenyan law appreciates the Latin principle of caveat<br />

emptor, which places the onus on the buyer to uncover<br />

potential issues, and the principle of freedom of<br />

contract, which dictates that parties are free to enter<br />

into binding contracts on their own terms with limited<br />

outside interference.<br />

Nevertheless, the law acknowledges that it remains<br />

necessary to police market failures and insufficiencies such<br />

as inequalities in bargaining power between consumers and<br />

suppliers of goods and services. For instance, homebuyers<br />

may not be as sophisticated as contractors and developers in<br />

matters of construction and are therefore in need of protection.<br />

CONSTITUTION OF KENYA<br />

<strong>The</strong> Constitution of Kenya, 2010 (the Constitution)<br />

recognises that consumer rights are human rights<br />

that can be legally enforced. In particular, article<br />

46 provides that consumers have the right to<br />

goods and services of reasonable quality and the<br />

right to information necessary to gain full benefit<br />

from such goods and services. Further, consumers<br />

are entitled to the protection of their health, safety<br />

and economic interests and to compensation for<br />

loss or injury arising from defects in goods and<br />

services. This provision is considered a notable<br />

milestone for consumer protection in the country.<br />

Pursuant to these express constitutional<br />

provisions, homebuyers may sue for damages<br />

with respect to goods and services provided by<br />

financiers, estate agents, contractors and other<br />

actors in the construction industry. It should be<br />

noted, however, that the Kenyan courts have<br />

been reluctant to apply the Constitution directly<br />

to private bodies and individuals where specific<br />

legislation exists that addresses the issues raised.<br />

CONSUMER PROTECTION ACT<br />

Part II of the Consumer Protection Act, 2012<br />

(the Act) has indeed given consumers a wide<br />

range of rights, including the right to full precontractual<br />

information to enable them make<br />

informed decisions, the right to raise a complaint<br />

with regards to quality, delays in provision of<br />

rectification and the price of goods and services,<br />

and the right to cancel the agreement.<br />

Consumers are also empowered under the Act to<br />

cancel agreements and sue for damages where a<br />

service provider engages in unfair practices, which<br />

include making false, misleading or deceptive<br />

representations.<br />

Representing that goods or services have<br />

certain characteristics that they do not have or<br />

representing that goods or services are of a<br />

particular standard or quality when they are not<br />

are all considered unfair practices and in such<br />

instances, the court is expressly permitted to<br />

award exemplary or punitive damages in addition<br />

to any other remedy that will have been available<br />

to the consumer.<br />

A notice is required where the consumer intends<br />

to rescind the agreement or to seek other forms<br />

of relief. <strong>The</strong> notice can be made verbally or in<br />

writing and may be expressed in any way as long<br />

as it sets out the reasons relied upon and complies<br />

with any requirements that may be prescribed.<br />

A major benefit of the Act is that it provides<br />

a low-cost mechanism for consumers to<br />

redress any wrongs inflicted on them<br />

without the need to go to court. However,<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible


5<br />

6<br />

Focus on Policy<br />

Focus on Policy<br />

Best Practices in the Kenyan Construction Sector:<br />

What Every Investor Should Know<br />

<strong>The</strong> Act only protects consumers of goods and<br />

services.<br />

<strong>The</strong> term “consumer” includes:<br />

• A person to whom particular goods or<br />

services are marketed in the ordinary course<br />

of the supplier’s business;<br />

• A person who has entered into a transaction<br />

with a supplier in the ordinary course of the<br />

supplier’s business; and<br />

• A user of particular goods or a recipient or<br />

beneficiary of particular services, irrespective<br />

of whether that user, recipient or beneficiary<br />

was a party to a transaction concerning the<br />

supply of those particular goods.<br />

A supplier is defined as a person who is in the<br />

business of supplying goods or services and<br />

includes an agent of the supplier or any person<br />

who holds himself out to be a supplier or an agent<br />

of the supplier.<br />

Homes are not legally recognised as goods and<br />

are usually purchased from private homeowners<br />

who are not in the business of selling homes and<br />

who would therefore not qualify as suppliers.<br />

Thus, the average homebuyer may not always be<br />

able to rely on the provisions of the Act. But this<br />

is not necessarily the case where the homebuyer<br />

is dealing with professional developers who<br />

are in the business of selling properties and<br />

the agents of such developers. <strong>The</strong>re are other<br />

low-cost avenues that homebuyers may pursue<br />

under various statutes, including the National<br />

Construction Authority Act, the Estate Agents Act<br />

and the Competition Act.<br />

NATIONAL CONSTRUCTION<br />

AUTHORITY ACT<br />

<strong>The</strong> construction industry is principally regulated<br />

by the National Construction Authority Act, 2011<br />

(the Act) which provides for the establishment,<br />

powers and functions of the National Construction<br />

Authority (the Authority) and connected purposes.<br />

<strong>The</strong> Authority oversees the construction industry<br />

and coordinates its development. <strong>The</strong> Authority’s<br />

further mandate of accrediting, registering<br />

and regulating professional undertakings of<br />

contractors is aimed at ensuring that consumers of<br />

construction industry services are protected from<br />

exploitation and unfair practices.<br />

<strong>The</strong> Authority has the responsibility of detecting<br />

errant behaviours, responding to the same and<br />

enforcing the National Construction Authority<br />

regulations in the interest of justice. <strong>The</strong><br />

regulations require that contractors, whether<br />

foreign or local, be registered under the category<br />

of construction works they propose to undertake.<br />

Additionally, the National Construction Authority<br />

Act, 2011 establishes a Board of the Authority (the<br />

Board) with powers to inquire into the conduct<br />

of a contractor on its own initiative and sets out<br />

suspension conditions for contractors. Consumers<br />

may also forward complaints to <strong>The</strong> Authority for<br />

appropriate action.<br />

Such complaints are made to the Board in writing<br />

to enable the Board investigate and prosecute<br />

the case. <strong>The</strong> Board proceeds to investigate and<br />

prosecute the case. <strong>The</strong> Act also establishes the<br />

Appeals Board which makes rules concerning<br />

the filing, hearing and disposal of appeals.<br />

While parties should ordinarily exhaust all the<br />

appeal avenues under the Act before resorting<br />

to court, this does not operate to limit the court’s<br />

jurisdiction.<br />

ESTATE AGENTS ACT<br />

Another statute that polices the Kenyan<br />

construction industry is the Estate Agents Act,<br />

2010, (the Act). <strong>The</strong> Act establishes the Estate<br />

Agents Registration Board, which is charged with<br />

the responsibility of registering estate agents and<br />

ensuring that the conduct of practicing agents<br />

is of a sufficiently high standard to ensure the<br />

protection of the public, including homebuyers.<br />

<strong>The</strong> Act sets out the qualifications and process<br />

required to register as an estate agent and<br />

prohibits unauthorised practice. Estate agents<br />

also owe clients fiduciary duties that include<br />

acting in the client’s best interest and disclosing<br />

to all concerned in whose interest one is acting.<br />

<strong>The</strong>se duties are geared towards ensuring that<br />

homebuyers are protected against unscrupulous<br />

intermediaries. While an estate agent’s main duty<br />

is to the vendor, some of the issues that arise in this<br />

context is the agent not telling homebuyers about<br />

issues with the home that they know of or ought to<br />

have known about, including misleading or false<br />

statements that are made regarding properties<br />

offered for sale.<br />

This is in breach of the Act, which prohibits<br />

dishonest practices and makes it a criminal<br />

offence to knowingly and wilfully make any<br />

statement, oral or written, which is false in any<br />

material way or misleading with a view to gaining<br />

an advantage or privilege under the Act whether<br />

for himself or for another. <strong>The</strong> Board is permitted<br />

under Part VI of the Act to institute an inquiry<br />

into an act or omission of an estate agent that is<br />

Estate agents also owe<br />

clients fiduciary duties<br />

that include acting in<br />

the client’s best interest<br />

and disclosing to all<br />

concerned in whose<br />

interest one is acting.<br />

<strong>The</strong>se duties are geared<br />

towards ensuring<br />

that homebuyers are<br />

protected against<br />

unscrupulous<br />

intermediaries.<br />

contrary to the public interest or the professional<br />

misconduct of estate agents on receipt of a<br />

complaint. If found guilty, the Board may suspend<br />

the estate agent’s registration, caution the<br />

individual, impose a fine or order that the name of<br />

the individual to be deleted from the register.<br />

<strong>The</strong> Act is currently under review and there is an<br />

ongoing push for the establishment of a code of<br />

conduct for real estate agents to eliminate fraud<br />

and restore public confidence. This is particularly<br />

true for investors in the diaspora who have fallen<br />

victims to scams by unscrupulous agents and<br />

fraudsters.<br />

COMPETITION ACT<br />

<strong>The</strong> Competition Act, 2010 works in line with the<br />

existing consumer protection laws. It establishes<br />

the Competition Authority of Kenya<br />

(CAK) whose mandate is to enforce the<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible


7<br />

8<br />

Focus on Policy<br />

Focus on Policy<br />

Best Practices in the Kenyan Construction Sector:<br />

What Every Investor Should Know<br />

Further, in offplan<br />

purchases,<br />

the homebuyer is<br />

usually provided with<br />

building plans and<br />

specifications of what<br />

the developer intends<br />

to build including<br />

floor plans and a<br />

schedule of finishes for<br />

the property.<br />

Competition Act with the objective of enhancing the welfare<br />

of the Kenyan consumers by promoting and protecting<br />

effective competition in markets, including the construction<br />

sector, and preventing misleading market conduct.<br />

A consumer may file a complaint with the CAK. However,<br />

prior to doing so, the consumer should attempt to settle any<br />

issues with the supplier of goods or service provider. This<br />

might be done via a telephone call, a complaint letter or a<br />

face to face meeting. <strong>The</strong> consumer should be prepared to<br />

furnish the supplier with any documentation that the supplier<br />

requires to assess the claim and the appropriate remedy.<br />

This will also serve as proof that the matter was raised with<br />

the supplier and could form the basis of a formal complaint<br />

to the Competition Authority. If the complaints mechanisms<br />

under the various statutes outlined above do not resolve the<br />

issues, the only avenue may be going to court. This may<br />

involve considerable expenses and the court process may<br />

take time. It is therefore essential that homebuyers carry out<br />

sufficient due diligence to avert some of the avoidable risks.<br />

BEST PRACTICES<br />

It is recommended that prospective homebuyers only deal<br />

with duly registered and accredited players in the industry<br />

and enlist the services of professionals such as lawyers,<br />

valuers and surveyors to safeguard their interests.<br />

Background Checks<br />

Prospective homebuyers have the option of purchasing<br />

property before construction begins or during the<br />

construction period. <strong>The</strong>se are commonly known as “offplan”<br />

purchases. <strong>The</strong> benefits of buying off-plan include<br />

discounted sale price, flexibility in terms of payment<br />

plans, low initial capital outlay and property appreciation.<br />

However, due to complex nature of off-plan purchases, it is<br />

important to perform background checks on the developer.<br />

Homebuyers should ensure that they review the company’s<br />

website and obtain information on the developer’s<br />

completed and ongoing projects.<br />

Prospective homebuyer may wish to look into who the<br />

directors are and can access online forums to find out if<br />

other investors have had negative experiences with the<br />

developer. <strong>The</strong>y should also request for the registration<br />

number of the contractors that have been hired to construct<br />

the property and conduct a check on them as well to<br />

determine whether they hold a valid license if there are<br />

any conditions on the license, and the outcome of any<br />

disciplinary actions or prosecutions. Further, in off-plan<br />

purchases, the homebuyer is usually provided with building<br />

plans and specifications of what the developer intends<br />

to build including floor plans and a schedule of<br />

finishes for the property. <strong>The</strong>se plans may not<br />

yet be approved, which makes them subject to<br />

change, and it is not uncommon for the developer<br />

to retain the right to alter the plans and finishes in<br />

the sale agreement. Homebuyers should therefore<br />

carefully review these documents before signing<br />

and ensure that they are satisfied with the level<br />

of disclosure provided and the standards of the<br />

finishes. Prospective purchasers should also check<br />

that the real estate agents they are dealing with are<br />

duly registered.<br />

Home Inspections<br />

Homebuyers should carry out the necessary due<br />

diligence that would enable them to detect all patent<br />

defects in the property. Patent defects are those<br />

that are not hidden and should easily be discovered<br />

by a reasonable inspection. It is thus recommended<br />

that prospective homebuyers hire an independent<br />

expert to inspect the property before proceeding<br />

with the transaction. While home inspections can be<br />

expensive, a home inspection report would reveal<br />

the true physical condition of the property and help<br />

ensure that the transaction is fair.<br />

Furthermore, it is highly recommended that<br />

homebuyers only accept clauses in standard sale<br />

agreements which provide that the property is sold<br />

“as is” if the vendor agrees to make the sale subject<br />

to a satisfactory home inspection. This would give<br />

the purchaser the option to withdraw or re-negotiate<br />

the contract if the home inspection report reveals<br />

defects in the property.<br />

On the other hand, while latent defects or faults<br />

that would not be readily revealed by a reasonable<br />

inspection ought to be disclosed by the vendor,<br />

there is no automatic right for a purchaser to claim<br />

against the vendor when they are discovered. In the<br />

instance of a development, the lease will usually<br />

provide a period within which to claim for latent<br />

defects and if a claim is not received within the<br />

period stipulated, the right to seek relief from the<br />

developer lapses. When buying an existing home,<br />

the prospective homebuyer cannot claim from the<br />

vendor absent an agreement in the contract.<br />

Property Valuations<br />

Homebuyers should seriously consider obtaining an<br />

independent valuation of the property they intend to<br />

purchase rather than relying on the representations<br />

of the vendor. <strong>The</strong> valuation report will usually<br />

contain detailed information on the property and<br />

comparisons with other similar properties. <strong>The</strong><br />

report will also set out the sale value of the property,<br />

which can guide homebuyers in determining what<br />

they should be paying.<br />

Valuations may also forestall real estate related<br />

risks by revealing whether the property is on a<br />

road reserve, riparian reserve or government land.<br />

<strong>The</strong> Valuers Registration Board is responsible for<br />

all valuation matters including professional fees to<br />

be charged under the Valuers Act, 2000. Valuers<br />

must adhere to the scale of fees provided under<br />

the Act and homebuyers may seek relief through<br />

the Institute of Surveyors of Kenya if the valuer<br />

engages in professional misconduct in relation to<br />

the fees charged.<br />

However, one of the issues with off-plan purchases<br />

is that the value of off-plan properties can be<br />

artificially increased to cater for commissions to<br />

the vendor’s agents and project marketers and<br />

other up-front costs. Furthermore, homebuyers<br />

do not have any means of comparing the property<br />

to similar properties in the market. In these<br />

circumstances, it is recommended that homebuyers<br />

investigate the price of comparable established<br />

developments to determine whether the price has<br />

been inflated.<br />

Professional Legal Advice<br />

<strong>The</strong> courts have found that where an offer for sale<br />

is subject to contract, the onus is on the purchaser<br />

to make sure that the proper enquiries are carried<br />

out. This makes it essential for homebuyers to bring<br />

lawyers on board and seek their advice prior to<br />

signing the sale agreement. This is especially true<br />

for off-plan sale contracts which are drafted quite<br />

differently to standard contracts.<br />

<strong>The</strong> lawyer’s role is to ensure that the purchaser’s<br />

interests are protected and he or she ends up<br />

with a good title to the property by conducting the<br />

relevant searches and advising on provisions of the<br />

contract documents that may be prejudicial to the<br />

purchaser.<br />

Financial Advice<br />

For off-plan purchases that are being financed, the<br />

financier will usually disburse the loan in trenches<br />

as the project progresses. This is to ensure that<br />

the loan amount is not misapplied or wasted if<br />

the project is delayed or fails to complete. <strong>The</strong><br />

risk to the borrower is that he is still required to<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible


9<br />

Focus on Policy<br />

Best Practices in the Kenyan Construction Sector:<br />

What Every Investor Should Know<br />

repay the principal amount with interest at the agreed intervals. A further<br />

risk is if the borrower’s income changes to the extent that the monthly<br />

loan repayments are no longer affordable. If the interest rate is variable,<br />

any increase down the road could also impact the borrower’s ability to<br />

service the loan. This is just the tip of the iceberg and there are many<br />

other financial risks to consider. It is therefore highly recommended that<br />

prospective homebuyers obtain proper financial advice prior to investing.<br />

Homebuyers who intend to borrow should also use the time between the<br />

initial deposit and completion of the project to build savings, which can be<br />

used to pay back the loan in the event that their circumstances change.<br />

CONCLUSION<br />

<strong>The</strong> advancement in the level of consumer protection in Kenya over<br />

the years is laudable and supports the construction industry’s efforts to<br />

restore and maintain public confidence. We have also seen the formation<br />

of various consumer focused agencies such as the Consumer Federation<br />

of Kenya (COFEK) whose primary purpose is to promote consumer<br />

rights and ensure that consumers get value for their money. COFEK,<br />

for instance, will intervene on behalf of consumers and will protect<br />

them against unfair practices. Homebuyers also have a role to play in<br />

ensuring that their interests are adequately protected and should give due<br />

consideration to all available options and determine what works best for<br />

them.<br />

AUTHOR<br />

Name: Angela Ogang<br />

Company: Oraro & Company Advocates<br />

Position Associate<br />

Tel +254 271 3 636/271 1 480<br />

Email angela@oraro.co.ke<br />

Address ACK Garden Annex, 6th floor,<br />

1st Ngong Avenue, Nairobi, Kenya,<br />

P. O. Box 51236-00200, Nairobi, Kenya<br />

DISCLAIMER<br />

<strong>The</strong> information in this article is for general purposes<br />

and guidance only and does not constitute legal or<br />

professional advice. For further information on this<br />

publication, contact insights@oraro.co.ke<br />

BIO<br />

Angela is a bilingual<br />

(English/French)<br />

international lawyer with an<br />

understanding of complex<br />

legal issues and the ability to<br />

frame effectively for clients and<br />

executive teams.<br />

She has a wealth of experience<br />

structuring, drafting and negotiating<br />

a wide range of agreements for<br />

business partners locally and abroad<br />

and was involved in M&A, Risk<br />

Management and Compliance activities<br />

while engaged in the financial services<br />

sector. Angela specialises in real estate<br />

and conveyancing, banking and commercial<br />

law and is a member of the firm’s<br />

newsletter editorial committee.<br />

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

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

A Publication by the Kenya Property Developers Association<br />

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

quarterly e-newsletter supported<br />

and published by the Kenya<br />

Property Developers Association<br />

and designed by Insync MEDIA<br />

Ltd. It targets the various<br />

players in the property industry<br />

in Kenya and highlights a wide<br />

spectre of issues affecting our<br />

members, other professionals,<br />

manufacturers and both private<br />

and public sector players<br />

in the industry. We seek to<br />

encourage positive dialogue and<br />

development<br />

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

filled with current industry news,<br />

updates on the Association’s<br />

ongoing activities, views,<br />

interesting facts and specialty<br />

advertising messages.<br />

ONLINE ADVERTISING<br />

TERMS & CONDITIONS:<br />

Payment is due within 15 days<br />

from when an invoice is issued.<br />

All payments should be made<br />

in the name of KPDA.<br />

Banner ads may be pulled if<br />

account balances are not paid<br />

by the due date. As space is<br />

limited, banner ads are sold on a<br />

first come, first served basis. All<br />

advertising is accepted subject<br />

to the publisher’s approval upon<br />

determination that the products<br />

or service advertised are in<br />

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

<strong>Digest</strong>’s philosophy.<br />

DIGITAL INPUT/MECHANICAL REQUIREMENTS — ADVERTS<br />

SIZE<br />

1/4 page ( horizontal)<br />

1/4 page (vertical)<br />

1/3 page (horizontal)<br />

1/3 page (vertical)<br />

1/2 page (horizontal)<br />

1/2 page (vertical)<br />

Full page (theme colour)<br />

Full page<br />

WHY ADVERTISE THROUGH<br />

THE DEVELOPER’S DIGEST?<br />

1. Our readership includes over 1, 500 of our contacts who are<br />

KPDA members and partners as well as other industry players<br />

2. We offer a unique, flexible, converged media mix that helps<br />

advertisers communicate their message effectively. This includes<br />

our website, e-newsletter, social media platforms and focused<br />

events (such as our training and networking forums)<br />

3. We keep track of our readership and are sensitive to emerging<br />

issues in the industry<br />

4. It is a free and interactive online publication<br />

5. It is a free downloadable Mobile App onto any mobile device<br />

6. We at <strong>The</strong> Developer’s <strong>Digest</strong> will work with you to create the<br />

most effective multi-platform advertising strategy that will ensure<br />

you reach your targeted consumer every direction they look.<br />

After all, the distance between you and your consumer, is no<br />

longer a straight line.<br />

<strong>The</strong> Developer’s <strong>Digest</strong> will also offer you advertising on our website<br />

with a direct link to you and your company’s website. Please contact<br />

the KPDA secretariat via email on admin@kpda.or.ke or call us on<br />

0737 530 290 or 0705 277 787 for more information.<br />

RATES PER TWO<br />

MONTH PERIOD<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 />

ADVERTISING<br />

RATE CARD<br />

WIDTH<br />

184.5mm<br />

90mm<br />

210mm<br />

68mm<br />

210mm<br />

105mm<br />

210mm<br />

210mm<br />

DEPTH<br />

65mm<br />

125.5mm<br />

90mm<br />

270mm<br />

139mm<br />

265mm<br />

247mm<br />

297mm<br />

300 dpi resolution; colour calibration RGB; not larger than 20MB;<br />

NOTE: jpg format OR pdf PRESS QUALITY format with outlined text.<br />

10<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible


11<br />

<strong>2018</strong> KPDA CALENDAR OF EVENTS<br />

II. KPDA WORKSHOP<br />

About the Event: Technical Training and<br />

Discussion on a local or global real estate<br />

topic<br />

Event Organizer: Kenya Property<br />

Developers Association<br />

Event Timing: 8.30am – 1.00pm<br />

Target Audience: Middle to high level<br />

management from KPDA membership<br />

Target Number: 80 – 100 pax<br />

Registration/Attendance Fees: To be<br />

advised<br />

Target Number: 90 – 120 pax<br />

Registration/Attendance Fees: Kshs. 3, 700<br />

inclusive of VAT (KPDA Members) and Kshs. 5,<br />

500 inclusive of VAT (Non KPDA Members)<br />

Opportunity for Sponsorship: Open and to<br />

be advised<br />

IV. KPDA KOROGA EVENTS<br />

About the Event: Informal corporate<br />

<strong>2018</strong> KPDA CALENDAR OF EVENTS<br />

networking event for guests to socialize and<br />

interact<br />

Event Organizer: Kenya Property Developers<br />

Association<br />

Event Organizer: Kenya Property Developers<br />

Association<br />

Event Timing: To be advised<br />

Target Audience: Public and KPDA<br />

12<br />

membership<br />

Target Number: To be advised<br />

Registration/Attendance Fees: To be advised<br />

Opportunity for Sponsorship: Open and to<br />

be advised<br />

DATE EVENT DETAILS ORGANIZER LOCATION EVENT SPONSOR<br />

Tuesday, 27 th <strong>Mar</strong>ch <strong>2018</strong> KPDA Workshop (8.30am – 1.00pm)<br />

<strong>The</strong>me: ‘Innovative Finance in<br />

Kenya’<br />

KPDA<br />

Tel: 0705 277 787/0737 530 290<br />

ParkInn by Radisson<br />

Hotel, Nairobi<br />

RHOMBUS<br />

<strong>Mar</strong>ch/April <strong>2018</strong><br />

Nairobi/Kiambu/Kajiado/Machakos City<br />

County Government/KPDA Roundtable<br />

Meetings<br />

13 th – 14 th <strong>Mar</strong>ch <strong>2018</strong> Inaugural SPACE<br />

(Sustainable Properties Africa) Conference<br />

KPDA<br />

Tel: 0705 277 787/0737 530 290<br />

Sally <strong>Mar</strong>waha – Event Director<br />

Email:<br />

sally.marwaha@benchevents.com<br />

Tuesday, 10 th April <strong>2018</strong> KPDA Roundtable with KRA KPDA<br />

Tel: 0705 277 787/0737 530 290<br />

24 th – 25 th April <strong>2018</strong> East African Property Investment<br />

Kfir Rusin – Managing Director<br />

Summit (EAPI)<br />

Email: krusin@apievebts.com<br />

Friday, 4 th May <strong>2018</strong> 6 th KPDA AGM and Koroga Event KPDA<br />

(6.00pm onwards)<br />

Tel: 0705 277 787/0737 530 290<br />

Kajiado County<br />

Offices, Kajiado<br />

Radisson Blue Hotel,<br />

Nairobi<br />

To be Confirmed<br />

Radisson Blue Hotel,<br />

Nairobi<br />

Spice Roots Restaurant<br />

KPDA<br />

SPACE<br />

KPDA<br />

EAPI<br />

OPEN TO<br />

SPONSORSHIP<br />

DATE EVENT DETAILS ORGANIZER LOCATION EVENT SPONSOR<br />

Tuesday, 27 th <strong>Mar</strong>ch <strong>2018</strong> KPDA Workshop SPONSORSHIP (8.30am – 1.00pm) CATEGORIES KPDA AND BENEFITS ParkInn by Radisson RHOMBUS<br />

<strong>The</strong>me: ‘Innovative Finance in<br />

WHY SHOULD YOU PARTNER Kenya’ WITH KPDA?<br />

Tel: 0705 277 787/0737 530 290 Hotel, Nairobi<br />

Attendance <strong>Mar</strong>ch/April at <strong>2018</strong> our events ranges Nairobi/Kiambu/Kajiado/Machakos from between 60 to 150 participants City drawn KPDA from both our membership, non-members Kajiado and County our partners KPDA<br />

All our events are professionally County managed, Government/KPDA well organized with Roundtable industry experience Tel: 0705 and 277 a proven 787/0737 platform 530 290 for engagement Offices, Kajiado<br />

Access to expert content and speakers Meetings from both the industry and its stakeholder organizations<br />

Opportunity 13 th – 14 th <strong>Mar</strong>ch for networking <strong>2018</strong> with Inaugural like-minded SPACE building and construction professionals<br />

Sally <strong>Mar</strong>waha – Event Director Radisson Blue Hotel, SPACE<br />

(Sustainable Properties Africa) Conference Email:<br />

Nairobi<br />

Provision of excellent business development platforms for your company to receive exposure<br />

sally.marwaha@benchevents.com<br />

Further<br />

Tuesday,<br />

exposure<br />

10 th April<br />

for<br />

<strong>2018</strong><br />

your brand<br />

KPDA<br />

through<br />

Roundtable<br />

the various<br />

with<br />

media<br />

KRA<br />

channels<br />

KPDA<br />

To be Confirmed<br />

Access to information that will bridge the gap between your company and the Tel: rest 0705 of Kenya 277 787/0737 530 290<br />

KPDA<br />

24 th – 25 th April <strong>2018</strong> East African Property Investment<br />

Kfir Rusin – Managing Director Radisson Blue Hotel, EAPI<br />

For more information on the KPDA Summit <strong>2018</strong> Calendar (EAPI) of Events, please email ceo@kpda.or.ke Email: krusin@apievebts.com<br />

or call 0705 277 787 or Nairobi 0737 530 290.<br />

Friday, 4 th May <strong>2018</strong> 6 th KPDA AGM and Koroga Event<br />

(6.00pm onwards)<br />

KPDA<br />

Tel: 0705 277 787/0737 530 290<br />

Spice Roots Restaurant OPEN TO<br />

SPONSORSHIP<br />

Tuesday, 22 nd May <strong>2018</strong><br />

Tuesday 26 th June <strong>2018</strong><br />

KPDA CEO Breakfast Forum (7.00am<br />

– 9.30am)<br />

<strong>The</strong>me: ‘Alternative Building Technology:<br />

Pros and Cons’<br />

KPDA Conference on Affordable<br />

Housing<br />

KPDA<br />

Tel: 0705 277 787/0737 530 290<br />

KPDA<br />

Tel: 0705 277 787/0737 530 290<br />

June/August <strong>2018</strong> National REITs Conference REITs Association of Kenya<br />

(RAK)<br />

c/o Nairobi Securities Exchange<br />

Tel: 020 2831000<br />

Tuesday, 21 st August <strong>2018</strong><br />

September <strong>2018</strong><br />

KPDA CEO Breakfast Forum (7.00am<br />

– 9.30am)<br />

<strong>The</strong>me: ‘Infrastructure for Kenya’s<br />

Economic Development’<br />

KPDA Exhibition on Affordable<br />

Housing<br />

KPDA<br />

Tel: 0705 277 787/0737 530 290<br />

KPDA<br />

Tel: 0705 277 787/0737 530 290<br />

To be Confirmed,<br />

Nairobi<br />

Safari Park Hotel,<br />

Nairobi<br />

To be Confirmed<br />

To be Confirmed,<br />

Nairobi<br />

To be Confirmed,<br />

Nairobi<br />

OPEN TO<br />

SPONSORSHIP<br />

OPEN TO<br />

SPONSORSHIP<br />

RAK<br />

OPEN TO<br />

SPONSORSHIP<br />

OPEN TO<br />

SPONSORSHIP<br />

Tuesday, 22 nd May <strong>2018</strong> KPDA CEO Breakfast Forum (7.00am KPDA<br />

To be Confirmed,<br />

– 9.30am) CATEGORIES Tel: AND 0705 BENEFITS<br />

277 787/0737 530 290 Nairobi<br />

PLATINUM: KSHS. 500, 000 <strong>The</strong>me: ‘Alternative Building Technology:<br />

Pros and Cons’<br />

BENEFITS: Tuesday 26 th June <strong>2018</strong> KPDA Conference on Affordable KPDA<br />

Safari Park Hotel,<br />

Event Brochure: Your organization’s Housing name will appear in all brochures (if produced). Tel: 0705 277 787/0737 530 290 Nairobi<br />

Newspaper Advertisements: Your organization will get prominent sponsor name recognition in all event press releases if published.<br />

June/August Event Program <strong>2018</strong> and Announcement: National REITs Your Conference organization’s name will be listed REITs in the Association event’s program of Kenya and will be recognized To be Confirmed as a sponsor.<br />

Complimentary Advertisements:<br />

(RAK)<br />

c/o Nairobi Securities Exchange<br />

- KPDA Website: Your organization’s name will be listed on the KPDA website<br />

Tel: 020<br />

as a<br />

2831000<br />

sponsor for the period<br />

Tuesday, of one 21 st (1) August year <strong>2018</strong> KPDA CEO Breakfast Forum (7.00am KPDA<br />

To be Confirmed,<br />

Complimentary advertisement – 9.30am) in one issue of the KPDA E-Newsletter Tel: 0705 277 787/0737 530 290 Nairobi<br />

<strong>The</strong> opportunity to include literature <strong>The</strong>me: at the ‘Infrastructure event and get for two Kenya’s (2) tables to display your organization’s products<br />

Branding within and outside the Economic room Development’<br />

September Opportunity <strong>2018</strong> for a presentation KPDA Exhibition on Affordable KPDA<br />

To be Confirmed,<br />

Complimentary attendance of six Housing (6) staff representatives<br />

Tel: 0705 277 787/0737 530 290 Nairobi<br />

OPEN TO<br />

SPONSORSHIP<br />

OPEN TO<br />

SPONSORSHIP<br />

RAK<br />

OPEN TO<br />

SPONSORSHIP<br />

OPEN TO<br />

SPONSORSHIP<br />

Friday, 12 th October <strong>2018</strong><br />

Friday, 27 th November<br />

<strong>2018</strong><br />

I. COUNTY ROUNDTABLE<br />

MEETINGS<br />

About the Meeting: Discussion on the<br />

engagement of KPDA members with the<br />

various county governments<br />

Meeting Organizer: Kenya Property<br />

Developers Association<br />

Meeting Time Frame: 2 hours<br />

Target Audience: High level<br />

management/decision makers from KPDA<br />

membership<br />

Target Number: 20 – 25 pax<br />

Registration/Attendance Fees: NIL<br />

Opportunity for Sponsorship: NIL<br />

II. KPDA WORKSHOP<br />

About the Event: Technical Training and<br />

Discussion on a local or global real estate<br />

topic<br />

Event Organizer: Kenya Property<br />

Developers Association<br />

Event Timing: 8.30am – 1.00pm<br />

Target Audience: Middle to high level<br />

management from KPDA membership<br />

Target Number: 80 – 100 pax<br />

Registration/Attendance Fees: To be<br />

advised<br />

KPDA Corporate Networking Koroga<br />

Event (6.30pm onwards)<br />

KPDA CEO Breakfast Forum (7.00am<br />

– 9.30am)<br />

<strong>The</strong>me: ‘<strong>The</strong> Role of Ethics in Running a<br />

Successful Business in Kenya’<br />

KPDA<br />

Tel: 0705 277 787/0737 530 290<br />

KPDA<br />

Tel: 0705 277 787/0737 530 290<br />

EVENT DESCRIPTION<br />

Opportunity for Sponsorship: Open and to<br />

be advised<br />

III. CEO BREAKFAST FORUMS/CEO<br />

MORNING LEARNING SESSIONS<br />

About the Event: Discussion on policy matters<br />

and advocacy of real estate issues<br />

Event Organizer: Kenya Property Developers<br />

Association<br />

Event Timing: 7.30am – 9.30am/7.30am<br />

11.00am<br />

Target Audience: High level<br />

management/decision makers from KPDA<br />

membership<br />

Target Number: 90 – 120 pax<br />

Registration/Attendance Fees: Kshs. 3, 700<br />

inclusive of VAT (KPDA Members) and Kshs. 5,<br />

500 inclusive of VAT (Non KPDA Members)<br />

Opportunity for Sponsorship: Open and to<br />

be advised<br />

IV. KPDA KOROGA EVENTS<br />

About the Event: Informal corporate<br />

networking event for guests to socialize and<br />

interact<br />

Event Organizer: Kenya Property Developers<br />

Association<br />

To be Confirmed,<br />

Nairobi<br />

To be Confirmed,<br />

Nairobi<br />

OPEN TO<br />

SPONSORSHIP<br />

OPEN TO<br />

SPONSORSHIP<br />

Event Timing: 6.30pm onwards<br />

Target Audience: High level<br />

management/decision makers from KPDA<br />

membership<br />

Target Number: 120 – 150 pax<br />

Registration/Attendance Fees: Kshs. 2,<br />

820 inclusive of VAT (KPDA Members) and<br />

Kshs. 3, 980 inclusive of VAT (Non KPDA<br />

Members)<br />

Opportunity for Sponsorship: Open and to<br />

be advised<br />

V. KPDA CONFERENCE<br />

About the Event: To be advised<br />

Event Organizer: Kenya Property Developers<br />

Association<br />

Event Timing: To be advised<br />

Target Audience: Public and KPDA<br />

membership<br />

Target Number: To be advised<br />

Registration/Attendance Fees: To be advised<br />

Opportunity for Sponsorship: Open and to<br />

be advised<br />

GOLD: Friday, KSHS. 12 th October 350, 000 <strong>2018</strong><br />

KPDA Corporate Networking Koroga<br />

Event (6.30pm onwards)<br />

KPDA<br />

Tel: 0705 277 787/0737 530 290<br />

To be Confirmed,<br />

Nairobi<br />

OPEN TO<br />

SPONSORSHIP<br />

BENEFITS:<br />

Friday, Complimentary 27 th November KPDA Website KPDA Advertisements: CEO Breakfast Forum Your organization’s (7.00am name KPDA will be listed on the KPDA website To as be an Confirmed,<br />

event sponsor for the OPEN period TO of<br />

<strong>2018</strong> marketing the event – 9.30am)<br />

Tel: 0705 277 787/0737 530 290 Nairobi<br />

SPONSORSHIP<br />

Event Announcement: Your <strong>The</strong>me: organization ‘<strong>The</strong> Role will be of recognized Ethics in Running as a sponsor. a<br />

Complimentary attendance of three Successful (3) staff Business representatives in Kenya’<br />

Branding within and outside the room<br />

Opportunity for a presentation<br />

EVENT DESCRIPTION<br />

One table to display products<br />

SILVER:<br />

I. COUNTY<br />

KSHS. 200,<br />

ROUNDTABLE<br />

000<br />

Opportunity for Sponsorship: Open and to<br />

Event Timing: 6.30pm onwards<br />

MEETINGS<br />

be advised<br />

Target Audience: High level<br />

BENEFITS:<br />

management/decision makers from KPDA<br />

Complimentary About the Meeting: Website Discussion Advertisements: on the Your organization’s III. CEO BREAKFAST name will be FORUMS/CEO<br />

listed on the KPDA website as an membership event sponsor for the period of<br />

engagement of KPDA members with the<br />

MORNING LEARNING SESSIONS<br />

Target Number: 120 – 150 pax<br />

marketing the event<br />

various county governments<br />

Registration/Attendance Fees: Kshs. 2,<br />

Branding within and outside the room<br />

Meeting Organizer: Kenya Property<br />

About the Event: Discussion on policy matters<br />

820 inclusive of VAT (KPDA Members) and<br />

Opportunity for a presentation<br />

Developers Association<br />

and advocacy of real estate issues<br />

Kshs. 3, 980 inclusive of VAT (Non KPDA<br />

Complimentary<br />

Meeting Time<br />

attendance<br />

Frame: 2<br />

of<br />

hours<br />

two (2) staff representatives<br />

Event Organizer: Kenya Property Developers<br />

Members)<br />

Target Audience: High level<br />

Association<br />

Opportunity for Sponsorship: Open and to<br />

BRONZE: Kshs. 100, 000<br />

management/decision makers from KPDA<br />

Event Timing: 7.30am – 9.30am/7.30am<br />

be advised<br />

membership<br />

11.00am<br />

BENEFITS:<br />

Target Number: 20 – 25 pax<br />

Target Audience: High level<br />

V. KPDA CONFERENCE<br />

Branding<br />

Registration/Attendance<br />

outside the room<br />

Fees: NIL<br />

management/decision makers from KPDA<br />

Mention<br />

Opportunity<br />

as a sponsor<br />

for Sponsorship: NIL<br />

membership<br />

About the Event: To be advised<br />

Complimentary attendance of one (1) staff representative<br />

Target Number: 90 – 120 pax<br />

Event Organizer: Kenya Property Developers<br />

II. KPDA WORKSHOP<br />

Registration/Attendance Fees: Kshs. 3, 700<br />

Association<br />

*KPDA PREMIUM MEMBERS ARE ENTITLED TO A 15% DISCOUNT OFF SELECTED CATEGORIES<br />

inclusive of VAT (KPDA Members) and Kshs. 5,<br />

Event Timing: OF SPONSORSHIP<br />

To be advised<br />

For About more information the Event: on Technical the KPDA Training <strong>2018</strong> Calendar and of Events, 500 please inclusive email ceo@kpda.or.ke of VAT (Non KPDA or call Members) 0705 277 787 or 0737 530<br />

Target<br />

290.<br />

Audience: Public and KPDA<br />

Discussion on a local or global real estate<br />

Opportunity for Sponsorship: Open and to<br />

membership<br />

topic<br />

be advised<br />

Target Number: To be advised<br />

Event Organizer: Kenya Property<br />

Registration/Attendance Fees: To be advised<br />

Developers Association<br />

IV. KPDA KOROGA EVENTS<br />

Opportunity for Sponsorship: Open and to<br />

Event Timing: 8.30am – 1.00pm<br />

be advised<br />

Target Audience: Middle to high level<br />

management from KPDA membership<br />

Target Number: 80 – 100 pax<br />

Registration/Attendance Fees: To be<br />

advised<br />

About the Event: Informal corporate<br />

networking event for guests to socialize and<br />

interact<br />

Event Organizer: Kenya Property Developers<br />

Association<br />

SPONSORSHIP CATEGORIES AND BENEFITS<br />

WHY SHOULD YOU PARTNER WITH KPDA?<br />

Attendance at our events ranges from between 60 to 150 participants drawn from both our membership, non-members and our partners<br />

All our events are professionally managed, well organized with industry experience and a proven platform for engagement<br />

Access to expert content and speakers from both the industry and its stakeholder organizations<br />

Opportunity for networking with like-minded building and construction professionals<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible<br />

SPONSORSHIP CATEGORIES AND BENEFITS<br />

WHY SHOULD YOU PARTNER WITH KPDA?<br />

Attendance at our events ranges from between 60 to 150 participants drawn from both our membership, non-members and our partners<br />

All our events are professionally managed, well organized with industry experience and a proven platform for engagement<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible<br />

Access to expert content and speakers from both the industry and its stakeholder organizations<br />

Opportunity for networking with like-minded building and construction professionals


13<br />

HAVE YOUR SAY<br />

STATUS OF THE<br />

REAL ESTATE<br />

HAVE YOUR SAY<br />

14<br />

BUILT ENVIRONMENT<br />

December<br />

2017<br />

• Prime residential rents in Nairobi declined<br />

over the 1st half of 2017 albeit at a slower<br />

rate of -2.75% compared to -4.36% over the<br />

first half of 2016. <strong>The</strong> decline was resultant<br />

of an oversupply and corporate budget cuts<br />

by multinationals.<br />

• Prime residential prices decreased by 0.9%<br />

over the 1st half of 2017 compared to an<br />

increase of 1.3% over the same period in<br />

2016. Prevailing market conditions, high<br />

capital values of prime residential homes<br />

and the introduction of interest rate capping<br />

during the 2nd half of 2016 led to most<br />

financial institutions being reluctant to lend<br />

to private individuals<br />

• Nairobi experienced a 2% decline in the<br />

absorption of office space in the 1st half of<br />

2017 compared to the 2nd half of 2016<br />

• <strong>The</strong> anticipated release of approximately<br />

240,000 sqm of office space in Nairobi in<br />

2017, up from about 210,000 sqm in 2016,<br />

is expected to continue exerting a downward<br />

pressure on rents in the short term<br />

• <strong>The</strong> 1st half of 2017 saw logistic parks<br />

gaining momentum, responding to the<br />

growing demand for high quality international<br />

standard warehousing space with modern,<br />

high-specification facilities to suit varied<br />

occupiers.<br />

<strong>The</strong> migration of industrial firms to satellite<br />

towns is attributed to availability of affordable<br />

land for development, improved infrastructure,<br />

the need for more space for storage, expansion,<br />

parking and circulation and cheaper rents.<br />

240,000 sqm<br />

release of office space in Nairobi in<br />

2017<br />

STATUS OF THE BUILT ENVIRONMENT • ISSUE NO. 1 • DECEMBER 2017<br />

<strong>The</strong> construction sector is a key<br />

driver of economic growth in Kenya.<br />

It contributes at least 7% of GDP.<br />

Compared to other GDP economic<br />

contributors, it is important to<br />

note that the construction sector<br />

recorded the biggest increase in<br />

contribution to GDP, gaining 0.4% of<br />

the share.<br />

<strong>The</strong> construction sector contributes<br />

economic growth in Kenya<br />

7 % of GDP<br />

0.4<br />

STATUS OF THE BUILT ENVIRONMENT • ISSUE NO. 1 • DECEMBER 2017<br />

<strong>The</strong> Kenya National Bureau of Statistics highlights that:-<br />

In Q1 (<strong>Jan</strong>uary to April 2017), the construction sector experienced a slowdown<br />

expanding 8.4% compared to 10.2% over the same period in 2016. <strong>The</strong> decreased<br />

growth in the sector was a consequence of significantly scaled-down activities in<br />

construction of Phase 1 of the Standard Gauge Railway (SGR) as it neared completion.<br />

Construction sector recorded the<br />

biggest increase per share<br />

%<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible<br />

LAND<br />

Land prices within the Nairobi<br />

Metropolis, especially in the satellite<br />

towns such as Thika, Ruiru and<br />

Murang’a, continued to be on an<br />

upward trend, backed by improved<br />

infrastructure and urban population<br />

growth.<br />

INVESTOR AND DEVELOPER SCENE<br />

Investors spent<br />

Sh<br />

107.2 B<br />

On residential led developments<br />

Compared to<br />

Sh<br />

61 b<br />

Invested in commercial development<br />

Galvanized iron<br />

145.1 M<br />

Tonnes consumed in the first seven months<br />

of 2017<br />

Compared with<br />

155 M<br />

Tonnes consumed in the first seven months<br />

of 2016<br />

• Residential developments led in investment.<br />

Investors spent KSh88.6 billion during the<br />

first seven months of 2017, compared<br />

with KSh61 billion invested in commercial<br />

development<br />

• According to the Kenya National Bureau of<br />

Statistics (KNBS). This was a drop compared<br />

to 2016 when Sh107.2 billion was spent on<br />

residential development and Sh76 billion on<br />

commercial development.<br />

• 145.1 million tonnes of galvanized iron<br />

sheets were consumed in the first seven<br />

months of 2017 compared with 155 million<br />

in 2016, indicating a slowdown informed by<br />

reduced activity as investors adopted a waitand-see<br />

attitude in the run-up to the August<br />

8th General election.<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible<br />

STATUS OF THE BUILT ENVIRONMENT • ISSUE NO. 1 • DECEMBER 2017


15<br />

POLICY<br />

HAVE YOUR SAY<br />

National Construction Authority<br />

Made it mandatory for foreign<br />

contractors to work with local<br />

contractors by ceding at least<br />

• NCA, NEMA and Land Rate Fees<br />

were scrapped off<br />

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

Authority (NCA) made it<br />

mandatory for foreign<br />

contractors to work with local<br />

contractors by ceding at least<br />

30% of the contract sum. This<br />

is in a bid to cushion local<br />

contractors from their foreign<br />

counterparts.<br />

INFRASTRUCTURE<br />

<strong>The</strong> Kenya 2017/<strong>2018</strong> National Budget<br />

Statement announced that the government<br />

would invest KSh640.8 billion in infrastructure<br />

development, up from KSh415.7 billion in the<br />

2016/2017 fiscal year.<br />

30 % Sh<br />

640.8 B<br />

CONTRACT<br />

SUM<br />

a. Urban mobility<br />

Ministry of Transport, Infrastructure,<br />

Housing and Urban Development through<br />

the Nairobi Metropolitan Area Transport<br />

Authority (NaMATA) is currently designing<br />

a Rapid Bus Transit (BRT) for the larger<br />

Nairobi Metropolitan area for a sustainable<br />

urban mobility.<br />

b. National Spatial Plan<br />

We have a National Spatial Plan 2015-<br />

2045. This plan will guide the sustainable<br />

management of land resources in this<br />

country as well as development and<br />

implementation of county plans. This will<br />

align the use of the land with the resources<br />

available at the county level for social and<br />

economic development.<br />

National Budget Statement<br />

Government would invest in<br />

infrastructure development<br />

STATUS OF THE BUILT ENVIRONMENT • ISSUE NO. 1 • DECEMBER 2017<br />

NO. OF PROJECTS ACCORDING<br />

TO CLIENT TYPES<br />

HAVE YOUR SAY<br />

0.04% - CDF<br />

0.6% - County<br />

Government<br />

5.1% - Religious/<br />

Social Organisations<br />

2% - Parastatal/<br />

Governmenr<br />

Agencies<br />

92.3% - Private<br />

NO. OF PROJECTS ACCORDING<br />

TO TYPE OF WORKS<br />

97.9% - Building Works<br />

16<br />

PROJECTS COST RANGE<br />

0.4% - Electrical Works Below KSh5 million<br />

0.07% - Mechanical Works<br />

KSh5 to 50 million<br />

0.59% - Office<br />

KSh50 to 200 million<br />

0.59% - Others<br />

KSh200 to 500 million<br />

0.22% - Road Works<br />

Above Sh1 billion<br />

0.3% - Water Works<br />

KSh500 million to 1 billion<br />

STATUS OF THE BUILT ENVIRONMENT • ISSUE NO. 1 • DECEMBER 2017<br />

According to KNBS<br />

<strong>The</strong> value of approved<br />

buildings declined by<br />

BUILDING PERMIT APPROVALS<br />

From the Kenya National Bureau of Statistics (KNBS), the value of approved<br />

buildings declined by 16.3% in between <strong>Jan</strong>uary and May from KSh126.3<br />

billion in 2016 to KSh 105.7 billion in 2017.<br />

Residential building approvals declined by 28.2% from KSh74.2 billion in<br />

2016 to KSh58.1 billion in 2017 with commercial office building approvals<br />

declining by 9.3% from KSh52 billion in 2016 to KSh47.6 billion in 2017.<br />

Residential building<br />

approvals declined by<br />

16.3 % Sh<br />

74.2 B<br />

Sh 52 B<br />

28.2 % 9.3%<br />

From<br />

Commercial office building<br />

approvals declining by<br />

From<br />

Status of the Built Environment 2017 is an<br />

article authored by the Architectural Association of Kenya<br />

(AAK). AAK is a body that brings together professionals<br />

from the Private Sector, Public Sector and Academia.<br />

For more information, please contact:<br />

<strong>The</strong> AAK Secretariat<br />

Blue Violets Plaza, 6th Floor, Rm 605<br />

Off Kindaruma Road, Off Ngong Road<br />

Tel: 020 2224806/0721 691 337<br />

www.aak.or.ke<br />

Blue Violets Plaza, Kamburu Drive, off Ngong Road.<br />

P.O. Box 44258 Nairobi, 00100<br />

Telephone: +254-020-2420806, 2420582 | Mobile: +254 721 691 337<br />

Email: aak@aak.or.ke • Website: www.aak.or.ke<br />

STATUS OF THE BUILT ENVIRONMENT • ISSUE NO. 1 • DECEMBER 2017<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible<br />

ArchKE @arch_ke arch_ke<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible


17<br />

18<br />

KPDA Register of Members<br />

KPDA Register of Members<br />

KPDA Directory of Members in Goodstanding as at 4 th April <strong>2018</strong><br />

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

submitted to the KPDA Secretariat:<br />

1. Fill the KPDA Membership Application<br />

Form and sign the KPDA Code of Conduct;<br />

2. Attach a copy of your company’s<br />

Certificate of Registration or Certificate of<br />

Incorporation<br />

3. Attach a copy of your company’s KRA PIN<br />

Certificate; and<br />

4. Make the relevant payment<br />

Submission may be made either physically or<br />

electronically.<br />

Kindly contact the Membership Relations Officer,<br />

Cynthia Wakio through the telephone number<br />

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

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

Kenya Property Developers Association<br />

Fatima Flats, Suite 4 B<br />

<strong>Mar</strong>cus Garvey Road off Argwings Kodhek Road,<br />

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 />

DAYKIO PLANTATIONS<br />

LTD<br />

DUNHILL CONSULTING<br />

LTD<br />

ELM RIDGE LTD<br />

ENDLESS AFRICA LTD<br />

PROPERTY DEVELOPERS<br />

FAIRDEAL DEVELOPMENT<br />

& INFRASTRUCTURE LTD<br />

FEDHA (MANAGEMENT)<br />

LTD<br />

GOLDEN COMPASS<br />

LTD<br />

HERI HOMES<br />

PROPERTIES LTD<br />

INFPAC<br />

LIMITED<br />

ACORN MANAGEMENT<br />

SERVICES LTD<br />

AHCOF INVESTMENTS<br />

(KENYA) LTD<br />

AKARORA LTD<br />

AMAZON PROJECTS<br />

LTD<br />

HF DEVELOPMENT AND<br />

INVESTMENTS LTD<br />

HOME AFRIKA LTD<br />

IJENGA VENTURES LTD<br />

INFPAC LTD<br />

KARUME<br />

HOLDINGS<br />

LIMITED<br />

AMBOSELI COURT<br />

LTD<br />

AMS PROPERTIES<br />

LTD<br />

BAHATI RIDGE<br />

DEVELOPMENT LTD<br />

BLUELINE PROPERTIES<br />

LTD<br />

JABEZ PROPERTIES<br />

KARIBU HOMES<br />

KARUME HOLDINGS LTD<br />

KINGS DEVELOPERS<br />

LTD<br />

BOLEYN MAGIC WALL<br />

PANEL LTD<br />

CAMELOT CONSULTANTS<br />

LTD<br />

CENTURY CITY<br />

PROPERTY LTD<br />

CHERIEZ PROPERTIES<br />

LTD<br />

KZANAKA LTD<br />

LASER PROPERTY<br />

SERVICES LTD<br />

LEO CAPITAL HOLDINGS<br />

LTD<br />

LORDSHIP AFRICA<br />

CHIGWELL HOLDINGS<br />

LTD<br />

CORAL PROPERTY<br />

CONSULTANTS LTD<br />

CORAL PROPERTY<br />

INTERNATIONAL LTD<br />

CYTONN REAL ESTATE<br />

MANRIK HOLDINGS<br />

LTD<br />

MEERA CONSTRUCTION<br />

LTD<br />

MLIMA CONSTRUCTION<br />

COMPANY LTD<br />

MML TURNER &<br />

TOWNSEND<br />

MUGUMO<br />

DEVELOPMENTS LTD<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible


19<br />

20<br />

KPDA Register of Members<br />

KPDA Register of Members<br />

NANYUKI MALL LTD<br />

NATIONAL COOPERATIVE<br />

HOUSING UNION (NACHU)<br />

NATUREVILLE HOMES<br />

OAKPARK PROPERTIES<br />

LTD<br />

USERNAME<br />

INVESTMENTS LTD<br />

VAAL REAL ESTATE<br />

VISHWA<br />

DEVELOPERS<br />

LIMITED<br />

VISHWA DEVELOPERS<br />

LTD<br />

THIS COULD<br />

BE YOU<br />

-JOIN KPDA<br />

Kindly contact the Membership Relations Officer, Cynthia Wakio through the telephone number<br />

0737 530 290 or 0705 277 787 or by email ceo@kpda.or.ke. / Website: www.kpda.or.ke<br />

REAL ESTATE MANAGERS / AGENTS<br />

OPTIVEN LTD<br />

PANDA DEVELOPMENT<br />

COMPANY LTD/ABERDARE<br />

HILLS GOLF RESORT<br />

PDM (KENYA) LTD<br />

PENTAGON PROPERTIES<br />

LTD<br />

AXIS REAL ESTATE<br />

LTD<br />

BROLL KENYA LTD<br />

KNIGHT FRANK KENYA<br />

LTD<br />

RE/MAX HERITAGE<br />

PIONEER HOLDINGS<br />

(AFRICA) LTD<br />

ROZANA PROPERTIES<br />

LTD<br />

SAYANI INVESTMENTS<br />

LTD<br />

SCION REAL ESTATE<br />

LTD<br />

PROFESSIONAL FIRMS / ADVISORY SERVICE PROVIDERS / INDUSTRY SUPPLIERS<br />

LAW FIRMS<br />

SHERRY BLUE<br />

PROPERTIES LTD<br />

SHREEJI DEVELOPMENT<br />

LTD<br />

SIGIMO ENTREPRISES<br />

LTD<br />

SJR PROPERTIES LTD<br />

ANJARWALLA & KHANNA<br />

ADVOCATES<br />

CFL AND COMPANY<br />

ADVOCATES<br />

COULSON HARNEY LLP<br />

EMERGE<br />

DEVELOPMENTS LTD<br />

SOHAIL DEVELOPMENTS<br />

LTD<br />

SPARTAN DEVELOPERS<br />

LTD<br />

SUPERIOR HOMES KENYA<br />

LTD<br />

TATU CITY LTD<br />

KANAGA AND<br />

ASSOCIATES LTD<br />

KARANJA NJENGA AND<br />

COMPANY ADVOCATES<br />

KN LAW LLP<br />

MEREKA & CO.<br />

ADVOCATES<br />

THIS COULD<br />

BE YOU<br />

THE EPIC PROPERTIES<br />

LTD<br />

TILISI DEVELOPMENTS<br />

LTD<br />

UNITY HOMES LTD<br />

URBAN NIRVANA PROPERTY<br />

SOLUTIONS LTD<br />

MMC AFRICA LAW<br />

MURIMI AND COMPANY<br />

ADVOCATES<br />

ORARO & CO.<br />

ADVOCATES<br />

-JOIN KPDA<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible


21<br />

22<br />

KPDA Register of Members<br />

KPDA Register of Members<br />

ARCHITECTURAL FIRMS<br />

PARAGON ARCHITECTS<br />

PROJECT MANAGERS<br />

BUY RENT KENYA<br />

LTD<br />

DLR GROUP<br />

AFRICA LTD<br />

TANDEM<br />

AND STARK<br />

LIMITED<br />

TANDEM AND STARK<br />

LTD<br />

FINANCIAL<br />

BRITAM<br />

FUSION CAPITAL<br />

LTD<br />

HAZELNUT KENYA<br />

LTD<br />

KENYA COMMERCIAL<br />

BANK LTD<br />

ROOFING PRODUCT<br />

BUILDING MATERIAL<br />

QUESTWORKS<br />

RHOMBUS CONCRETE<br />

LTD<br />

DAHUA TECHNOLOGY<br />

KENYA LTD<br />

MABATI ROLLING MILLS<br />

LTD<br />

INTERIOR DESIGNERS<br />

ALUMINIUM FORMWORK<br />

GLOBAL PROPERTY<br />

ADVICE<br />

SAVANNAH CEMENT<br />

LTD<br />

KITCHENS<br />

AND BEYOND<br />

LIMITED<br />

KITCHENS AND BEYOND<br />

LTD<br />

ALI<br />

FABRICATION<br />

SOLUTIONS<br />

LIMITED<br />

ALI FABRICATION<br />

SOLUTIONS LTD<br />

ASSOCIATIONS<br />

SECURITY PROVIDERS<br />

TOWN AND COUNTY<br />

PLANNERS ASSOCIATION OF<br />

KENYA (TCPAK)<br />

AIAL GROUP<br />

LTD<br />

NEWLINE LTD<br />

KUMKANG KIND EAST<br />

AFRICA LTD<br />

CERAMIC SUPPLIERS CEMENT PRODUCERS<br />

EPS PANEL PRODUCERS<br />

CONSTRUCTION<br />

BAMBURI CEMENT<br />

LTD<br />

SECUREMAN SERVICES<br />

LTD<br />

SAJ CERAMICS<br />

LTD<br />

CEMEX HOLDINGS<br />

LTD<br />

SPEARHEAD AFRICA<br />

LTD<br />

Access to<br />

potential<br />

investors<br />

Increase<br />

your<br />

business<br />

profit<br />

THIS COULD BE YOU - Join KPDA<br />

WHY JOIN THE KPDA FAMILY?<br />

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

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

Kenya. It is an emerging Business Member Organisation which works in proactive partnership<br />

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

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

Working<br />

closely with<br />

government<br />

institutions<br />

KPDA<br />

MEMBER<br />

Strategic<br />

partnerships to<br />

ease land<br />

processes<br />

Working<br />

closely with<br />

regulatory<br />

authorities<br />

Opportunities for<br />

forming joint<br />

ventures with<br />

national and<br />

international<br />

industry players<br />

CLASSIC MOULDINGS<br />

LTD<br />

GALAXY HERITAGE<br />

LTD<br />

STEEL STRUCTURES<br />

LTD<br />

FOCUS ON PROPERTY<br />

LTD<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible


23<br />

24<br />

from KPDA Partner<br />

from KPDA Partner<br />

Solutions staff will be present during day time.<br />

<strong>The</strong> Adopt A Road Faqs<br />

Upper Hill District Association(UHDA) have forged a partnership with Taka Taka Solutions, a waste<br />

management company, to bring to Upper Hill the Adopt A Road Initiative. It is a sustainable solution towards<br />

making Upper Hill a litter free zone.<br />

1. How does Adopt-A-Road work?<br />

TakaTaka Solutions, in partnership with UHDA and NCC, will offer the following:<br />

• Public area (street) waste collection and recycling services<br />

• A building (or multiple buildings/companies) can adopt a section of a public road<br />

• TakaTaka Solutions will offer the following services for the adopted road section<br />

1. Installation of recycling bins (with branding and signage)<br />

2. Daily waste collection and subsequent recycling of the waste<br />

3. Street cleaning for the adopted road section<br />

4. Quarterly reports detailing waste collected and<br />

recycled<br />

the<br />

<strong>The</strong> bins will be<br />

1. Bin as a whole:<br />

1.8m high (bin +<br />

sign), 60cm wide<br />

2. Sign only:<br />

58x82cm<br />

2. Is there a limit on the extent<br />

of road one can adopt?<br />

<strong>The</strong>re is no limit. However, the minimum road<br />

section should not be less than 500m.<br />

3. How many bins will be on a<br />

road and what are the sizes?<br />

<strong>The</strong> number of bins will depend on the amount of<br />

waste produced. For example, if food vendors are<br />

in the vicinity, more bins will be needed. Generally<br />

speaking, one bin for every 100-200 meters is<br />

planned. Sizes:<br />

• Bin as a whole: 1.8m high (bin + sign),<br />

60cm wide<br />

• Sign only: 58x82cm<br />

4. Can the bins be customized<br />

according to a property owner's<br />

liking?<br />

<strong>The</strong> bin itself cannot be customized. <strong>The</strong>re is<br />

some level of flexibility with regards to the sign.<br />

5. Is there a way to ensure that<br />

bins are not vandalized?<br />

cemented into the ground. Moreover, TakaTaka<br />

6. Who will cater the cost when the<br />

bins have been vandalized?<br />

Maintenance and repairs of bins will be managed by<br />

TakaTaka Solutions.<br />

7. Is the Adopt-A-Road limited to<br />

property owners only?<br />

Adopt-a-Road is also open to tenants or other organisations.<br />

8. With the ban of plastic bags,<br />

will the bins be lined with garbage<br />

liners?<br />

<strong>The</strong> bins will not be lined with garbage liners. However, they<br />

will be regularly cleaned by TakaTaka Solutions.<br />

9. Will the property owner have<br />

to pay Nairobi City County for<br />

sponsoring the bins?<br />

Adopt-a-Road works similarly to the concept of maintaining<br />

public roundabouts. As a public service is offered and no<br />

direct advertisement is done (only the logo displayed), there<br />

should be no fees to NCC.<br />

This is why its important that the content of the sign does<br />

not go into a marketing direction (beyond acknowledging the<br />

adopting of the road).<br />

10. Other than keeping the road<br />

clean, how else does a property<br />

owner benefit?<br />

• All the waste collected will be recycled<br />

• Quarterly recycling reports will be sent to each<br />

sponsor detailing waste quantities collected and<br />

recycled.<br />

• Sponsorship opportunity<br />

11. What is the duration of the Adopt-<br />

A-Road?<br />

Any contract will be signed for an initial period of one year.<br />

However, the idea is to make this a continual initiative so that<br />

Upper Hill’s road remain clean.<br />

12. How will property owners<br />

monitor the progress of the roads?<br />

• Step out of your building<br />

• Recycling reports<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible


25<br />

26<br />

from KPDA Partner<br />

from KPDA Partner<br />

align leadership, improve cross-sector collaboration, and build new models of inclusive governance to drive<br />

effective planning and project delivery.<br />

Cities now contribute to a vast and growing equity gap. Globally, a number of complex issues are<br />

colliding: income, education, and health disparities that sit at the root of social unrest; blight and ecological<br />

degradation; and the growing threat of climate change. Neighborhoods are the Soul & Lifeblood of the city.<br />

Sustainability Needs<br />

To Be Scaled From A<br />

Neighbourhood Level<br />

It has been a tradition in Kenya for developers to Master plan their development projects into gated<br />

communities and mixed-use developments-a recent phenomenal. Gated communities convey a sense of<br />

place and social exclusivity, perceptions the developers have capitalized on to fuel their greatest desire at<br />

this point which is to sell as many units as possible in the development and as fast as possible in order to<br />

move on to the next project development and so on.<br />

Now, when you take Nairobi as a benchmark and sift through property marketing material, you will notice the<br />

prominence of exclusivity in addition other unique selling features like security, internet & cable connectivity,<br />

sense of place, green infrastructure and sustainability features. This was not the case some years ago.<br />

<strong>The</strong>se selling propositions are an improvement to overcome deficiencies that have seen yesteryear flagship<br />

estates like Buruburu and Woodley end up in premature decay. Although property values have gone up with<br />

time in these neighbourhoods for example, these values have failed to reflect the true picture of what would<br />

have been their actual values at this point in time.<br />

As developers continue to build houses to cater for the housing deficit that currently plaques Kenya, they<br />

will have to integrate sustainability from a neighbourhood scale. Sustainability and resilience are becoming<br />

major drivers of property investment decision because of their ability to future proof real estate investments.<br />

With hundreds of millions of people moving into cities worldwide and trillions of shillings being spent to<br />

accommodate this growth over the next 30 years, Developers and investors should see this as a major<br />

opportunity to promote a range of neighborhood-scale sustainability best practices that simultaneously<br />

address equity, resilience, and climate protection.<br />

In order for sustainable neighbourhood to thrive, developers will have to look beyond the physical<br />

environment. <strong>The</strong>y will have to look at the people who live around their neighbourhood developments<br />

and those who will live in those upcoming neighbourhoods under their development. This will mean doing<br />

more than just having a facilities or property management company on board. Rather, it will necessitate<br />

establishing community engagement and governance structure for a development that will be able to<br />

address equity, resilience and climate protection. Developers will have to embrace and incorporate new<br />

models of urban regeneration to empower just, resilient, sustainable neighborhoods for all.<br />

This is because, for far too long, urban regeneration has been primarily about brick-and-mortar solutions<br />

to building and rehabilitating neighborhoods. <strong>The</strong> world of city building has drastically changed, and it<br />

requires a more diverse and more integrated range of solutions to empower social vibrancy and<br />

restore ecological health. Success hinges on building robust public-private-civic partnerships to<br />

Neighborhoods sit at the heart of some of the most complex challenges facing city makers today. But they<br />

can also become the building blocks of sustainable cities. Neighborhoods provide a uniquely valuable scale<br />

to introduce and accelerate investments that can achieve profound improvements in equity, resilience, and<br />

climate protection. Neighborhoods are the right scale to accelerate sustainability because they are small<br />

enough to innovate and big enough to leverage meaningful investment and public policy impact. How we<br />

build our cities — from the neighborhood up — is the biggest challenge of our lifetime.<br />

To foster this new model and era of urban regeneration and property development, developers will have<br />

to accept a new rigorous sustainable urban development framework for achieving people-centered,<br />

economically vibrant, planet-loving, neighborhood- and district-scale sustainability. Such a<br />

framework puts a comprehensive lens on every urban regeneration decision, drives the delivery of<br />

meaningful performance outcomes, and sets the conditions for sustainable, collective impact.<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible


27<br />

28<br />

from KPDA Partner<br />

Sustainability Needs To Be Scaled<br />

From A Neighbourhood Level<br />

Free Accreditation is now on until<br />

31st <strong>Mar</strong>ch <strong>2018</strong><br />

At the moment, some neighbourhoods in major cities in Kenya have already outlived their builders. <strong>The</strong><br />

builders are no longer there to witness the inefficiencies and inequalities their developments have left in their<br />

wake and the fertile grounds for avarice and corruption they created within the land development ecosystem.<br />

In conclusion, it is time that developers start to integrate performance-based frameworks like Green Star<br />

Communities to build resilience and sustainability in their neighbourhood-scale projects because that will be<br />

a key driver to strong sales. After the recent desertification warnings, property buyers will want to know tree<br />

cover ratio vis-à-vis a development, sustainability and other green infrastructure features before investing in<br />

certain properties. <strong>The</strong> investing public no longer want to buy into a neighbourhood development that will,<br />

in less than 15 years, end up like the Buruburus and Woodley estates that were the glamour estates of the<br />

early 1980s.<br />

<strong>The</strong> writer, John Kabuye Kalungi is a Building Surveyor<br />

and sustainability consultant at BESIC Group ltd. He<br />

is also the Vice Chairperson & Head of Advocacy<br />

Committee at the Kenya Green Building Society.<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible


29<br />

30<br />

Photo Gallery of 2017 KPDA Events<br />

Photo Gallery of 2017 KPDA Events<br />

KPDA Learning and Development Symposium<br />

at the Bowmans (Coulson Harney) Advocates –<br />

ICEA Lion Centre, West Wing on Monday 4th<br />

and Tuesday 5th December 2017<br />

<strong>The</strong>me: ‘<strong>The</strong> JBC Contract: What Every Developer Should Know’<br />

KPDA End of Year Corporate Networking<br />

Koroga Event at the Mint Shack Restaurant,<br />

Nairobi, Thursday, 19th October 2017<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible


31<br />

32<br />

Photo Gallery of 2017 KPDA Events<br />

Photo Gallery of 2017 KPDA Events<br />

KPDA End of Year Corporate Networking Koroga Event at the<br />

Mint Shack Restaurant, Nairobi, Thursday, 19th October 2017<br />

KPDA CEO Breakfast Forum at the Hotel Royal<br />

Orchid, Nairobi, Tuesday, 23rd May 2017<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible


33<br />

34<br />

Photo Gallery of 2017 KPDA Events<br />

Photo Gallery of 2017 KPDA Events<br />

KPDA CEO Breakfast Forum at the Hotel Royal Orchid,<br />

Nairobi, Tuesday, 23rd May 2017<br />

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

at Koroga Country Club - Nyali, Mombasa,<br />

Thursday, 27th April 2017<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible


35<br />

36<br />

Photo Gallery of 2017 KPDA Events<br />

Photo Gallery of 2017 KPDA Events<br />

5th KPDA AGM and Koroga Event,<br />

Friday, 31st <strong>Mar</strong>ch 2017<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible


37<br />

38<br />

Photo Gallery of 2017 KPDA Events<br />

Photo Gallery of 2017 KPDA Events<br />

5th KPDA AGM and Koroga Event,<br />

Friday, 31st <strong>Mar</strong>ch 2017<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible


39<br />

40<br />

Photo Gallery of 2017 KPDA Events<br />

Photo Gallery of 2017 KPDA Events<br />

KPDA Learning and Development Symposium<br />

at the offices of Bowmans (Coulson Harney)<br />

Advocates – ICEA Lion Centre,<br />

Tuesday, 7th <strong>Mar</strong>ch 2017<br />

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

Construction Health and Safety Breakfast<br />

Forum at the Crowne Plaza Hotel, Nairobi,<br />

Tuesday, 21st February 2017<br />

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

in the Kenyan Construction Industry’<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible


41<br />

42<br />

Photo Gallery of 2017 KPDA Events<br />

NCCG Building Permitting Report – <strong>Jan</strong> – FEB <strong>2018</strong><br />

CEO Breakfast Forum at the Crowne Plaza<br />

Hotel, Nairobi, Tuesday, 17th <strong>Jan</strong>uary 2017<br />

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

Registration Platform’<br />

THE KPDA NAIROBI CITY<br />

COUNTY GOVERNMENT (NCCG)<br />

BUILDING PERMITTING<br />

APPROVALS REPORT<br />

JANUARY TO FEBRUARY <strong>2018</strong><br />

<strong>The</strong> value of<br />

approved permits<br />

(for the period<br />

<strong>Jan</strong>uary– February<br />

<strong>2018</strong>) represents<br />

over Kshs. 23.6<br />

billion worth<br />

of development<br />

projects and<br />

permitting fees<br />

collected were<br />

over Kshs. 134.9<br />

Million for the<br />

period <strong>Jan</strong>uary –<br />

February <strong>2018</strong><br />

<strong>The</strong> <strong>2018</strong> KPDA NCCG Building Permitting Approvals Activity Report provides a<br />

summary of statistical information on planning permitting activity in Nairobi for the<br />

period <strong>Jan</strong>uary to February <strong>2018</strong>. Only statistics received from the Nairobi City<br />

County Government, Urban Planning Department have been used as references.<br />

This report uses building permitting approval requests submitted to the<br />

Nairobi City County Government which are then analysed and approved<br />

by a specialist committee appointed by the Urban Planning Department<br />

of the Nairobi City County Government. <strong>The</strong> report contains information<br />

on applications that have been approved by the specialist committee<br />

highlighting development locations, types, values, application revenues<br />

and process performances.<br />

SUMMARY STATISTICS<br />

A total of 390 planning permit applications were approved from<br />

<strong>Jan</strong>uary to February <strong>2018</strong> with <strong>Jan</strong>uary having the highest<br />

number of approvals (232) and February having the least (158).<br />

Other key statistics from this report include:<br />

<strong>The</strong> value of approved permits (for the period <strong>Jan</strong>uary –<br />

February <strong>2018</strong>) represents over Kshs. 23.6 billion worth<br />

of development projects and permitting fees collected<br />

were over Kshs. 134.9 Million for the period <strong>Jan</strong>uary –<br />

February <strong>2018</strong>;<br />

During this period, the highest value of buildings<br />

submitted for approval was Kshs. 3,000,000,000 (Kshs. 3<br />

billion) by Soma Properties Ltd (Proposed Alterations And<br />

While every reasonable effort is made to ensure that the information<br />

provided in this report is accurate no guarantee for the currency or<br />

accuracy of information is made. <strong>The</strong> permitting data was provided to the<br />

KPDA by the Nairobi City County Physical Planning Department.<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible


43<br />

44<br />

NCCG Building Permitting Report – <strong>Jan</strong> – FEB <strong>2018</strong><br />

NCCG Building Permitting Report – <strong>Jan</strong> – FEB <strong>2018</strong><br />

Additions - Shops, New Lifts Wells, Fire Escapes<br />

Stairs, Washrooms & Loading Bays to App Plan<br />

Sarit Centre Shopping Mall) and the maximum<br />

submission fee paid was Kshs. 7,656,680 by Ever<br />

Forgarden Company Limited.<br />

On average the estimated value of building<br />

developments approved was Kshs. 60,462,689 and<br />

that of the submission fee was Kshs. 346,003.<br />

Based on the Kenyan Building Code of 1997,<br />

this report depicts permits that were issued in the<br />

PERMIT APPLICATION ACTIVITY BY SUB-COUNTY<br />

following average percentages in accordance to the<br />

named classifications below:<br />

• 78.2% (305) - Domestic Class (commercial<br />

developments, domestic buildings and offices)<br />

• 13.6% (53) - Public Class (social halls,<br />

religious buildings, libraries, schools, etc.)<br />

• 8.2% (32) - Warehouse Class (industries,<br />

factories, and go downs)<br />

<strong>The</strong> statistics show that approved proposed<br />

developments of the Domestic Classification had<br />

the highest level of approvals issued.<br />

BUILDING CLASS BY LOCALITY<br />

<strong>The</strong> graph indicates Karen<br />

being the area with the<br />

highest number of Domestic<br />

Class approvals. This signals<br />

a new settlement area for<br />

Nairobi’s residents.<br />

DWELLING RELATED ACTIVITY ACROSS NAIROBI<br />

Buildings approved included domestic<br />

buildings, commercial developments,<br />

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

libraries, schools, factories, industries and<br />

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

permit applications that relate to various<br />

building classes.<br />

<strong>The</strong> highest permits were approved in the areas of Westlands, Langata, Dagoretti North, Embakasi East,<br />

Roysambu and Kasarani.<br />

• Westlands has the highest percentage of permits locality-wise.<br />

• Dagoretti South, Makadara and Kamukunji have the least number of permits amongst the top<br />

10 areas of development.<br />

It can be noted that 78.21% of<br />

the planning submitted under<br />

the building class category were<br />

domestic class which includes<br />

domestic buildings, commercial<br />

developments and offices.<br />

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

accuracy of information is made. <strong>The</strong> permitting data was provided to the KPDA by the Nairobi City County Physical Planning Department.<br />

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

accuracy of information is made. <strong>The</strong> permitting data was provided to the KPDA by the Nairobi City County Physical Planning Department.<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible


45<br />

46<br />

NCCG Building Permitting Report – <strong>Jan</strong> – FEB <strong>2018</strong><br />

NCCG Building Permitting Report – <strong>Jan</strong> – FEB <strong>2018</strong><br />

NUMBER OF APPROVALS BY ZONAL USER DENSITY<br />

GRAPH DEPICTING VALUE OF PROJECTS APPROVED<br />

1. <strong>The</strong> Residential Class accounted for 78.46% of the approvals<br />

2. Commercial Class buildings accounted for 2.821% of the approvals<br />

3. Public Class buildings accounted for 11.28% of the total approvals<br />

4. ndustrial Class buildings accounted for 7.179% of the total approvals<br />

5. One development was unaccounted for (N/A) at 0.256%<br />

259 buildings presented for approvals were valued between Kshs.1 million and Kshs. 50 million while only<br />

1 building was valued over Kshs. 1 billion. Most of these buildings were in the residential category.<br />

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

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

Most of the permits took<br />

less than a month to be<br />

approved.<br />

<strong>The</strong> Month of <strong>Jan</strong>uary<br />

had the highest number<br />

of approvals, with 232<br />

approvals and February<br />

had the lowest at 158.<br />

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

accuracy of information is made. <strong>The</strong> permitting data was provided to the KPDA by the Nairobi City County Physical Planning Department.<br />

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

accuracy of information is made. <strong>The</strong> permitting data was provided to the KPDA by the Nairobi City County Physical Planning Department.<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible


47<br />

48<br />

NCCG Building Permitting Report – <strong>Jan</strong> – FEB <strong>2018</strong><br />

NCCG Building Permitting Report – <strong>Jan</strong> – Dec 2017<br />

COMPARATIVE ANALYSIS BETWEEN THE TWO MONTHS OF JAN - FEB <strong>2018</strong><br />

MONTH<br />

JAN (KSHS)<br />

FEB(KSHS)<br />

ESTIMATED VALUE 13,502,513,826 10,077,935,149.40<br />

SUBMISSION FEE 73,827,473 61,113,934<br />

BUILDING<br />

CLASS<br />

APPROVALS<br />

DOMESTIC<br />

PUBLIC<br />

WAREHOUSE<br />

187<br />

29<br />

16<br />

Domestic buildings continue to have the highest number of approvals.<br />

118<br />

24<br />

16<br />

FOR MORE INFORMATION, KINDLY<br />

CONTACT THE KPDA SECRETARIAT<br />

Kenya Property Developers Association<br />

Fatima Flats, Suite 4B<br />

<strong>Mar</strong>cus Garvey Road<br />

Off Argwings Kodhek, Kilimani Area<br />

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

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

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

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

THE KPDA NAIROBI CITY<br />

COUNTY GOVERNMENT (NCCG)<br />

BUILDING PERMITTING<br />

APPROVALS REPORT<br />

JANUARY TO DECEMBER 2017<br />

SOURCE<br />

<strong>The</strong> 2017 KPDA Building Permitting Activity Report provides a summary of<br />

statistical information on planning permitting activity in Nairobi from <strong>Jan</strong>uary to<br />

December 2017. During this reporting period, only statistics from the Nairobi City<br />

County Government are used as references. This report uses standardized<br />

data submitted to the Nairobi City County Government. <strong>The</strong> report highlights<br />

information on applications received, development locations, types and<br />

values, department revenue from applications and permit processing<br />

performance.<br />

STATISTICS<br />

A total of 2,120 building permit applications were approved from<br />

<strong>Jan</strong>uary to December 2017 with the last quarter having the highest<br />

number of approvals attributed to the long electioneering period.<br />

Other key statistics from this report include:<br />

Value of approved permits represents over Kshs.108.7<br />

billion (108,666,025,515) worth of development projects and<br />

permitting fees collected were Kshs.951.99 Million (951, 987,<br />

789.1);<br />

During 2017 the highest valued building submitted<br />

for approval stood at Kshs. 5,367,000,000 (Proposed<br />

amendment to mixed development) by Rossyln Property<br />

Holdings Ltd and the maximum submission fee paid was<br />

Kshs. 57,658,610.<br />

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

accuracy of information is made. <strong>The</strong> permitting data was provided to the KPDA by the Nairobi City County Physical Planning Department.<br />

BRITAM Towers, Nairobi<br />

While every reasonable effort is made to ensure that the information<br />

provided in this report is accurate no guarantee for the currency or accuracy<br />

of information is made. <strong>The</strong> permitting data was provided to the KPDA by the<br />

Nairobi City County Physical Planning Department.<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible


49<br />

50<br />

NCCG Building Permitting Report – <strong>Jan</strong> – Dec 2017 NCCG Building Permitting Report – <strong>Jan</strong> – Dec 2017<br />

On average the estimated value of building<br />

developments approved was Kshs. 51,281,749 and<br />

that of the submission fee was Kshs. 450,538.<br />

Building permits that were issued in accordance<br />

to the named classifications below:<br />

• 80.1% (1699) - Domestic Class (commercial<br />

developments, domestic buildings and offices)<br />

• 11.2% (237) - Public Class (social halls,<br />

religious buildings, libraries, schools, etc.)<br />

PERMIT APPLICATION ACTIVITY BY SUB-COUNTY<br />

• 8.7% (184) - Warehouse Class (industries,<br />

factories, and go downs)<br />

<strong>The</strong> statistics show that in the year 2017 Domestic<br />

classifications were most approved proposed<br />

developments due to the ever increasing need<br />

for housing by Kenyans and especially affordable<br />

housing and ownership of homes by the middle<br />

class.<br />

DWELLING RELATED ACTIVITY ACROSS NAIROBI<br />

Buildings approved included<br />

domestic buildings, commercial<br />

developments, offices, religious<br />

buildings, social halls, libraries,<br />

schools, factories, industries<br />

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

graph identifies permit<br />

applications that relate to<br />

various building classes.<br />

It can be noted that 80.14% of<br />

the planning submitted under<br />

the building class category were<br />

domestic class which includes<br />

domestic buildings, commercial<br />

developments and offices.<br />

BUILDING CLASS BY LOCALITY<br />

<strong>The</strong> highest permits were approved in the areas of Karen, Westlands, Lang’ata, Starehe and Roysambu.<br />

• Karen has the highest percentage of permits locality-wise. This is as a result of the revised zoning<br />

policy that allowed construction of apartments.<br />

• <strong>The</strong> Neighborhood has an organized road network, with the Southern Bypass being the key. <strong>The</strong><br />

high number of permits in the Karen area are also very likely due to the fact that rent or property<br />

owning in Karen attracts high revenue. This is a likely factor that developers considered in achieving<br />

better return on capital;<br />

• Muthaiga had the least number of permits amongst the top 18 areas of development regardless of<br />

being very close to the CBD. Embakasi, Mathare and Kibra areas attracted fewer developments due<br />

to traffic and building congestion and civil unrest especially during the election period.<br />

<strong>The</strong> highest<br />

development<br />

permits in the<br />

year 2017 were<br />

approved in Karen,<br />

Industrial Area,<br />

Westlands, Runda<br />

and Eastleigh<br />

with domestic<br />

infrastructures<br />

dominating in these<br />

areas except from<br />

the Industrial area<br />

where most of<br />

them were factories<br />

and warehouses.<br />

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

accuracy of information is made. <strong>The</strong> permitting data was provided to the KPDA by the Nairobi City County Physical Planning Department.<br />

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

accuracy of information is made. <strong>The</strong> permitting data was provided to the KPDA by the Nairobi City County Physical Planning Department.<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible


51<br />

52<br />

NCCG Building Permitting Report – <strong>Jan</strong> – Dec 2017 NCCG Building Permitting Report – <strong>Jan</strong> – Dec 2017<br />

NUMBER OF APPROVALS BY ZONAL USER DENSITY<br />

MONTHLY PERMIT PROCESSING GRAPH<br />

<strong>The</strong> Residential Class accounted<br />

for 74.91% of the approvals due<br />

to an increase in the middle aged<br />

working population who consider<br />

owning a home more crucial than<br />

renting one and also high demand<br />

by Kenyans to own homes. Most<br />

of developers have invested more<br />

on Residential developments which<br />

are more profitable due to the<br />

growing demand. <strong>The</strong>re has been<br />

an improvement in security within<br />

the nation which has resulted in an<br />

influx in foreign residents in Kenya<br />

thus increasing the demand for<br />

residential houses (in particular wellfurnished<br />

residential infrastructures)<br />

mostly in the high end areas.<br />

Commercial Class buildings<br />

accounted for 4.67% of the<br />

approvals.<br />

• <strong>The</strong> Month of<br />

November recorded<br />

the highest number of<br />

approvals, with 363<br />

approvals.<br />

• <strong>Jan</strong>uary recorded the<br />

highest number of<br />

approvals in the first<br />

quarter.<br />

• <strong>The</strong>re were no<br />

permitting in the<br />

months of August,<br />

September and<br />

October due to the<br />

electioneering period.<br />

This explains the high<br />

number of permitting<br />

that took place in<br />

November as there<br />

was a backlog.<br />

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

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

TO CARRY OUT BUILDING PERMITTING<br />

60.17% of the<br />

buildings presented<br />

for approval were<br />

valued between<br />

five million and one<br />

hundred million.<br />

Only a paltry 0.28%<br />

of the buildings<br />

were above one<br />

billion shillings.<br />

It took more than a<br />

month for most of<br />

the building permit<br />

applications to<br />

be approved with<br />

most being done<br />

between 31 and 90<br />

days. This delay<br />

in the approval<br />

process can be<br />

attributed to the<br />

long election period<br />

witnessed last year.<br />

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

accuracy of information is made. <strong>The</strong> permitting data was provided to the KPDA by the Nairobi City County Physical Planning Department.<br />

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

accuracy of information is made. <strong>The</strong> permitting data was provided to the KPDA by the Nairobi City County Physical Planning Department.<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible


53<br />

54<br />

NCCG Building Permitting Report – <strong>Jan</strong> – Dec 2017<br />

NUMBER OF APPROVALS BY ZONAL USER DENSITY<br />

-<br />

SUBMISSION FEE<br />

ESTIMATED VALUE<br />

BUILDING<br />

CLASS<br />

APPROVALS<br />

600<br />

500<br />

400<br />

300<br />

200<br />

100<br />

0<br />

426<br />

DOMESTIC<br />

PUBLIC<br />

WAREHOUSE<br />

2017 QUARTERS<br />

1 st QUARTER 2 nd QUARTER 3 rd QUARTER 4 th QUARTER<br />

Kshs241,603,260<br />

426<br />

54<br />

53<br />

Kshs251,512,600.1<br />

487<br />

60<br />

50<br />

Kshs203,200,176<br />

Kshs255,671,753<br />

Kshs25,925,816,662 Kshs27,303,406,213 Kshs20,826,088,818 Kshs34,610,713,822<br />

<strong>The</strong> highest estimated value was recorded during the October to December quarter<br />

of the year with the least average value being July to September Quarter.<br />

Building Class Approvals by Quarters<br />

487<br />

54 53 60 50<br />

Building Class TOTAL<br />

D P W<br />

Q1 426 54 53 533<br />

Q2 487 60 50 597<br />

Quarter<br />

235 32 23 290<br />

Q3<br />

551 91 58 700<br />

Q4<br />

TOTAL 1699 237 184 2120<br />

235<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible<br />

551<br />

Q1 Q2 Q3 Q4<br />

D P W<br />

32<br />

23<br />

91<br />

58<br />

235<br />

32<br />

23<br />

552<br />

91<br />

58<br />

Domestic buildings have<br />

the highest number of<br />

approvals and most were<br />

approved in the fourth<br />

quarter (551). Public<br />

amenities such as social<br />

halls came in second<br />

with most approvals<br />

taking place in the fourth<br />

quarter (91).<br />

FOR MORE INFORMATION,<br />

KINDLY CONTACT THE<br />

KPDA SECRETARIAT<br />

Kenya Property<br />

Developers Association<br />

Fatima Flats, Suite 4B<br />

<strong>Mar</strong>cus Garvey Road<br />

Off Argwings Kodhek,<br />

Kilimani Area<br />

P. O. Box 76154 – 00508<br />

Nairobi, Kenya<br />

Telephone: +254 737 530<br />

290/0705 277 787<br />

Email: ceo@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<br />

accuracy of information is made. <strong>The</strong> permitting data was provided to the KPDA by the Nairobi City County Physical Planning Department.<br />

THE KENYA PROPERTY DEVELOPERS ASSOCIATION<br />

POLICY POSITION PAPER MATRIX, <strong>2018</strong><br />

NO. ISSUE (S) PROPOSED SOLUTION (S) ACTION (S) BEING<br />

TAKEN/PROGRESS<br />

REPORT<br />

1. LAND REFORMS<br />

a. Lack of efficiency and<br />

corruption in land<br />

processes<br />

b. Pending Policy, Legal and<br />

Institutional Reforms<br />

c. Lack of land reforms<br />

d. Lack of adherence to<br />

service charters<br />

2. URBANIZATION ISSUES<br />

Integrated Development<br />

Plans<br />

1. Complete the modernization of all the Land<br />

Registries;<br />

2. Provide direction on the change of user process;<br />

3. Develop, implement and operationalize the<br />

National Land Information Management System<br />

(NLIMS);<br />

4. Complete and operationalize the CORS and<br />

modernize the Geodetic Reference Framework;<br />

5. Develop, complete and operationalize the National<br />

Land Use Policy and where necessary realign or<br />

develop relevant legislations;<br />

6. Complete the updating of topographical maps;<br />

7. Completion of the development of the land law<br />

regulations to operationalize the Land Registration<br />

Act 2012, Community Land Act and the Land Act<br />

2012;<br />

8. Anchor the 2009 Revised Building Code in an Act;<br />

9. Complete the Land Valuation Index Act;<br />

10. Provide direction on Extension and<br />

Renewal of Land Leases;<br />

11. Complete the Land Adjudication Program and issue<br />

relevant land titles;<br />

12. <strong>The</strong> Central Project Planning Unit of the Ministry<br />

work with the private sector to address the issue of<br />

strengthening monitoring and evaluation (M & E);<br />

13. Review the 1987 Sectional Properties Act and the<br />

National Land Policy;<br />

14. Fast track the Physical Planning Bill;<br />

15. Develop Regulations for the Land Laws Amendment<br />

Act, Community Land Act and Land Registration<br />

Act;<br />

16. Develop a Land Valuation Index;<br />

17. Review the Survey Act CAP 299;<br />

18. Review the Valuers Act CAP 532;<br />

19. Review the Estates Agents Act CAP 533.<br />

i. Lack of adequate human resources in terms of<br />

professionals in the counties<br />

ii. Lack of prioritization of the issue by Country<br />

Governments<br />

i. Develop a technical<br />

assistance and<br />

support programme<br />

to County<br />

Governments in<br />

planning,<br />

urbanisation and<br />

infrastructure<br />

development<br />

ii. Establish the status<br />

of Physical<br />

Development Plans<br />

for Resort Cities<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible


54<br />

3. HOUSING ISSUES<br />

a. Lack of adequate housing<br />

for Kenyans<br />

b. Lack of an adequate<br />

number of affordable<br />

houses<br />

c. Lack of adequate policy,<br />

legal and institutional<br />

reforms<br />

d. Lack of uptake of REITs<br />

in Kenya<br />

4. COUNTY GOVERNMENT ISSUES<br />

a. Incomplete Nairobi City<br />

County Zoning Policy<br />

b. Counties lack Spatial<br />

Plans<br />

1. Jointly lobby for changes to the Act (proposal to<br />

apply for exemption of special purposes vehicles<br />

owned by REITS which CMA is now taking up with<br />

KRA)<br />

2. Develop and implement innovative housing finance<br />

issues<br />

3. Establish a secondary Mortgage Finance Corporation<br />

4. Development of the Metropolitan Policy<br />

5. Implementation of the Sessional Paper No. 3 of 2012<br />

on Population Policy for National Development<br />

6. Formulation and implementation of the Urban<br />

Development Policy<br />

7. Review and harmonization of legal and institutional<br />

framework governing urbanization<br />

8. Enactment of the amendments of the Urban Areas<br />

and Cities Act No. 13 of 2011<br />

9. Enactment of the Urban Areas and Cities<br />

Amendment Bill 2015<br />

10. Creation of the Urban Development Fund<br />

11. Creation of the Nairobi Metropolitan Transport<br />

Authority (NAMATA)<br />

12. Continue to develop supportive legislation and<br />

implementation of the National Housing Policy No. 3<br />

of 2004<br />

13. Enactment of the Housing Bill 2017<br />

14. Review and adoption of the National Building<br />

Maintenance Policy 2012<br />

15. Adoption of the National Building Regulations 2012<br />

to replace the Building Code<br />

16. Formulation of the following policies; National Slum<br />

Prevention and Upgrading Policy, Housing<br />

Infrastructure Framework, Leasing and<br />

Accommodation<br />

17. Establishment of the National Housing Development<br />

Fund<br />

18. Enactment of the Built Environment Bill 2012<br />

19. Enactment of the Landlord and Tenant Bill<br />

1. Implement the National Spatial Plan;<br />

2. Complete and implement County Spatial Plans and<br />

to ensure that they are in line with the National<br />

Spatial Plan and provide necessary legislation;<br />

iii. Continued<br />

development of the<br />

24 hour economy<br />

5. TAX AND TAX ADMINISTRATION ISSUES<br />

Poor administration of taxes 1. Remove or lower VAT on sale of commercial<br />

property<br />

2. Exempt Capital Gains Tax for transactions between<br />

related parties.<br />

3. Remove/lower compensating tax for developers<br />

4. Tax incentives for affordable housing (list from the<br />

taskforce)<br />

For more information, kindly contact the Membership Relations Officer, Cynthia Wakio through the<br />

telephone number 0737 530 290 or 0705 277 787 or by email membership@kpda.or.ke.<br />

Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!