• The Chinese company that will operate business on the standard gauge railway has committed to employ up to 3,000 Kenyans when it starts commercial operations in January 2018.
• The firm will employ drivers, technicians and station operators, offering employment to those laid off by Kenya Railways when it transferred rail operation to Rift Valley Railway (RVR).
• Transport principal secretary Irungu Nyakera told MPs on Monday that the operator will start hiring between 2,000 and 3,000 Kenyans after February when the government expects to ink an operation deal with the firm.
• Kenya gave China another sweetheart deal through contracting a Chinese company to operate business on the SGR without public bidding.
• RVR, which operates the Kenya-Uganda railway, is expected to face competition from the new railway being built with Chinese financing from Mombasa to the Ugandan border.
• “They directed that the contractors for the Mombasa-Kampala section undertake operations in the interim as the two partner states build their local capacities,” read an agreement signed at the summit of East African Community heads of state.
• Kenya Railways expects the tracks for the Mombasa to Nairobi line to be ready next year and the rail opened for commercial traffic in January 2018. RVR, which operates the ageing narrow-gauge track, will be the biggest loser. Read more

• An animated video of Deer Park estate in Karen has been making the rounds on the Internet.
• The development comprising 10 town houses has sold several of its Sh100 million units off-plan through the clip uploaded on YouTube.
• The virtual tour of the houses starts with an aerial 360 degrees view of the project area and suburb, followed by a drive through the gated community, giving the viewer a feel of what to expect as you enter the estate.
• Walk through the living room, or step into the bedroom in real time—the video takes you through the front door into every single room before moving outside to the pool area and gardens. Every intricate detail inside and outside the house is shown.
• Jonathan Chirchir and Ancent Odindo are the minds behind this virtual tour of the Karen development through their company —Vertex Studios.
• Both graduates of architecture from the University of Nairobi, the two were intrigued by how the real estate sector is changing from plain architectural drawings to 3D renderings and animation and started the company that solely works on interior and exterior visualisation of property, walk-throughs, 3D plans and scaled models
• The duo says demand is high for architectural animation in Kenya as developers have identified the value-added benefit it gives when marketing a property.
• “Previously many would get these services from companies outside the country, which gave us a leeway to start the business that focuses on architectural visualisation,” says Mr Chirchir.
• Most of their projects are off plan; however they still have on-site projects and buildings which need architectural visualisation.
• “Investors want to have a feel of what the house looks like on the inside and the outside and getting a visual walk through into the house is the best marketing strategy for real estate developers,” says Mr Odindo, adding that potential buyers want to see all the features of the home.
• Eddy Matu a photographer with 360 Tours, the company behind the Green Park and English Point Marina virtual tours says the trend in real estate sector is big as more developers seek to market their properties to a wider audience.
• “Most developers are using them in housing expos and sending links to people in the diaspora,” he says
• Mr Matu says unlike still photography, virtual tours show all aspects of the house as well as a 360 view of the house through the hot spots and navigation arrows.
• Companies doing the virtual tours work with interior designers to bring out the best images of the house, including interior design, fittings inside the house as well as lighting.Read more

• Finnish private equity fund and financial services group Taaleri Plc plans to invest Sh10 billion ($100 million) in East and South African real estate projects.
• Taaleri, in partnership with local private equity firm Cytonn Investments, has so far invested about Sh4 billion in the Kenyan real-estate market.
• The two companies are exploring more investment opportunities in both real estate and renewable energy sectors.
• “East Africa is the area where we have been active. There are tremendous opportunities in the region. We started with about $50 million with the first fund. We are going to raise new funds, double the first funds, by beginning of next year,” said Taaleri Plc chief executive Juhani Elomaa.
• Mr Elomaa also announced the firm was considering venturing into regional green energy projects from early next year. The two firms have projects in Nairobi, Kiambu and Meru counties.
• They invested Sh1 billion in Amara Ridge, a high-end residential development in Karen, Nairobi. It sits on five acres and consists of 10 five-bedroom houses, each of which had a sale price of Sh95 million.
• Cytonn has also ventured into other areas including the fast-growing middle income town of Ruaka on the outskirts of Nairobi where it is building 400 units in a gated community at Sh2.5 billion.
• The project is scheduled for completion within three years and targets middle- to lower-income earners looking for modern apartments.Read more

• Underwriter UAP Old Mutual Group is banking on home insurance covers during the festive travel rush to drive up premium sales.
• UAP Old Mutual General Insurance managing director James Wambugu says his firm will target homeowners keen on preventing holiday-related disasters by protecting their homes from losses linked to break-ins, burst piping and overflowing water among other perils.
• “Most people go on holiday around this period, leaving their houses vacant, which increases the likelihood of burglaries.
• “Additionally homeowners face potential losses from leaked pipes and other accidents since they are not present to take immediate action when such disasters occur,” said Mr Wambugu.
• “The covers are also meant to offer protection against fires, riots, injuries and illness to domestic staff.”
• The yearly Christmas rush is marked by mass travel upcountry or to holiday destinations. Most Kenyans leave their homes unattended, exposing them to risk of burglary and theft.
• Mr Wambugu also expects interest in the travel insurance products to peak around this period.Read more

• Kenyan manufacturer Tononoka Steel says it has earned Sh400 million from the supply of metal to the standard gauge railway project.
• The firm is a division of Tononoka Group of Companies owned by Kenyan billionaire industrialist Navin Savla.
• “We have supplied 6,000 tonnes of steel worth over Sh400 million to date,” said Tononoka Steel chief executive officer Mahesh Pathak in an interview.
• According to the Tononoka Group chief executive Rajagopalan Sathyamoorthy, the mandatory local quota for Kenyan suppliers has boosted the steel manufacturer’s fortunes coming at a time when steel makers in the country are battling the impact of downgraded prices globally. “This has been a boon for us,” said Mr Sathyamoorthy at the firm’s Dandora steel plant in Nairobi.
• The new standard gauge railway is expected to ease transport of goods and people from Mombasa to Nairobi, and later on to the Malaba border and onwards to Kampala.
• The Sh327 billion Mombasa to Nairobi SGR section being built by China Road and Bridge Corporation (CRBC) is set for completion by end of June next year.
• Reports earlier this year that foreign suppliers had received Sh167 billion from the SGR project implied that only a small share had gone to local firms, prompting President Uhuru Kenyatta to fault the Chinese contractor for failing to honour an agreement to buy up to 40 per cent of materials and services locally.
• Four other Kenyan steel manufacturers which are also supplying the Chinese contractor include Devki Group, Apex, Steel Makers and Prime Steel.
• Tononoka Steel says it hopes to make more money in the second phase which covers the Nairobi to Naivasha section and whose construction is underway.
• The 120km stretch is expected to consume large volumes of steel and other raw materials with its 74 bridges and seven tunnels in the rugged Rift Valley terrain.
• To deal with projected increased demand Tononoka Steel, whose market has primarily been driven by the local construction industry, has set aside Sh2 billion for expansion of its factory.
• The manufacturer produces steel bars from industrial scrap. It has bought a 12-acre piece of land to upgrade its production capacity.
• Its plant, bought from Citi Engineering in 2005, employs 500 workers.
• “We hope to complete the new plant by end of 2017, which will allow us to upscale our production from 250 tonnes per day to about 600 tonnes,” said Mr Sathyamoorthy.
• “The new plant will also employ an additional 300 taking our group staff total to 1300.”
• The firm has another plant in Embakasi. Steel rails are not produced locally and hence local firms are supplying steel for bridges and civil works such as culverts.
• Earlier, CRBC raised questions on the quality of locally made steel, a factor which it noted had seen most players lose out on supply contracts.Read more

Best Western opens high-end serviced apartments in Nairobi

07/12/2016 : Business Daily, page 7