MIP WEEKLY CONSTRUCTION INDUSTRY REPORT NO. 24

Period: February 1 to 7, 2016

Shelter Afrique and its local partner, Everest Park, have started building phase II of Everest Park which will see additional 200 housing units and a commercial centre put up by the end of the year.
The development in Athi River will have 40 – three bedroom units, 60 – one bedroom units and 100 – two bedroom units, prices ranging from Kshs. 2.5 million to Kshs. 6.5 million.
The partners are investing Kshs. 755 million more to the initial investment of Kshs. 735 million in phase I

A Canadian Company Mascon Construction system Ltd. Plans to build 20,000 low-cost apartments for the slum residents in Kibera and Mathare.
The projected cost of the project is kshs. 7.5 billion, distributed through it construction duration of July, 2016 to June, 2018.
It is estimated that 200,000 housing units are required every year in urban areas, but only 40,000 to 50,000 units are produced. Particularly, there is acute shortage of low cost housing units as only 6,000 units are produced annually, meeting only 20% of the demand.
Mascon Construction System uses cost-in-place (CIP) technology. Concrete walls are made using ready mix concrete, then placed into removable forms and erected on site. Reusable aluminum formwork that is fixed in highly organized construction schedules procedures is used.

A Kshs. 1.3 billion business hotel is set to be built in Westlands, offering competition to the likes of Kempinki and Sankara.
The development by Westland Sky Development Ltd. Will comprise of 18-floor towers, office and retail space besides the hotel.
The hotel will be built along Muthithi road, and comes months after Chinese firm, Avic International announced plans to build a 35-floor hotel as part of Kshs. 10 billion complex in the area.
The project is expected to take approximately 36 months from its design to operational phase. It will be constructed using a phased approach, with construction of one tower to completion before moving to a second tower, based on the availability of adequate financing.

According to the latest property index released by Hass Consult, the price of land in Karen is now about the same as that in less affluent areas like Langata and Donholm. While an acre of land is about Kshs. 49 million in such affluent areas, only an extra Kshs. 1 million is required to get an equal size in Karen.
Land in ‘East’ has more commercial use, such as but not limited to; putting up malls, office blocks and high rise apartments. Karen on the other hand allows for low density uses such as residential houses and thus less return on investment.
It is however argued that though land in this newer suburbs are likely to enjoy appreciation as they go through the growth phase, their value will not exceed that of the traditional suburbs. There is also a likelihood that tall apartments will continue to come up in order to realize optimum return on investments.

Vipingo Ridge golf estate in Kilifi has embarked on a new development within its 2,500 acre ranch, known as Vipingo Links.
The new homes comprises of 2-bedroom, 3-bedroom and 4-bedroom low lying houses located a few metres from the club house.
Like other homes in Vipingo, the links will have a commanding view of the picturesque baobab golf course, interior landscaping, communal gardens and water features.
The prices will range between Kshs. 25 million to Kshs. 45 million for 2 to 4 bedroom respectively.
The project will have a maximum of 17 villas.

Mombasa county government is set to roll out a housing project to redevelop its nine housing estates as well as set up new ones.
The project will involve a Public Private Partnership (PPP) where private investors will bring a total of Kshs. 5 billion, while county government will bring in land as equity.
The initial phase will involve redevelopment of 5 estates and is expected to benefit over 10,000 residents.