MIP WEEKLY CONSTRUCTION INDUSTRIAL REPORT NO.26

PERIOD: FEBRUARY 15 to 21, 2016

Nairobi is the darling of investors, with researchers putting the city in the category of global powerhouses. These reports miss out the fact that the reality on the ground is daily traffic jam, poor services and mounds of garbage.
The reports are not balanced as there is over supply of houses in the upper income areas while there is acute shortage of houses for the low income earners who are the majority.Read more

Kenya leads the East African region in terms of mega construction projects. The country has 20 ongoing large projects followed by Ethiopia at 12.
Basic infrastructure such as transport and energy, are top on the Kenyan development agenda, with transport taking the lion’s share of 51% and energy at 30%.
Big international financiers are favouring Kenya as a destination for their investment,among other countries in the region.Read more

The rising population in towns calls for cheaper building technology to meet high demand for descent, secure & affordable housing.
There is also need for improved public policies that reduce the costs of land and improve access to finance, which will promote the building and trades sectors.
Promoting policies that encourage formal private sector housing developers to meet demand for all segments of the market is less expensive and more efficient in the long run than upgrading slums.Read more

As the country continues to experience a housing boom, developers are looking for unique strategies to make home ownership easier and attract buyers.
That is what has led Kings Pride Properties Ltd to allow potential home owners to buy homes without paying any deposit. They only pay monthly installments which is as low as Kshs. 70,000/=
Under the scheme, potential home buyers walk into the firm’s offices and say whether they are interested in the homes under construction or those yet to be started. The buyer is then presented with options, including the monthly installment plans, after which he or she signs a deal with the company Read more

As the country continues to experience a housing boom, developers are looking for unique strategies to make home ownership easier and attract buyers.
That is what has led Kings Pride Properties Ltd to allow potential home owners to buy homes without paying any deposit. They only pay monthly installments which is as low as Kshs. 70,000/=
Under the scheme, potential home buyers walk into the firm’s offices and say whether they are interested in the homes under construction or those yet to be started. The buyer is then presented with options, including the monthly installment plans, after which he or she signs a deal with the company Read more

Kenya’s retail market has taken the number one spot in mall development in sub-Saharan Africa. This is according to a report by Knight Frank’s Shop Africa 2016, which looked at a number of African cities namely Accra, Lagos, Lusaka, Luanda, Kampala, Maputo, and Dar-es Salaam.
The retail market is dominated by local operators leading to slow entry of international chains who fear the strength of the local competition. However, retailers from outside Africa are taking a growing interest in Kenya after the launch of Game; a retail store with a South African origin that opened its doors at the Garden City Mall. Such include Carrefour; a French supermarket chain in both Two Rivers and The Hub. Read more

Major infrastructural developments in Changamwe are turning the area into a major location for high-end shopping malls. One such development is the Airport Centre Mall, located at the heart of the densely populated Changamwe area.
The mall will sit on 2.5 acres a kilometre from the airport turn-off as one drives towards Magongo. The Sh700 million investment will have a ground and first floor, with the built up area measuring about 172,000 square feet. It will have more than 250 parking slots on the ground floor and basement.Read more

KCB has placed a bid to redevelop 3 estates in Nairobi namely; Old Ngara Estate, New Ngara Estate and Jeevanjee, with a total estimated cost of Kshs. 25 billion.
The project which is still at the proposal stage, will have 40 – floor apartments becoming among the tallest structures in East Africa.
The relatively high land prices, coupled with increasing housing deficits and scarcity of development land in Nairobi, has led to developers focusing on high – rise apartment buildings to fill in the evident market gap.Read more