Construction & Real Estate
From The Report: Kenya 2014
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Following several years of sustained growth, the outlook for Kenya’s construction sector remains positive as the industry benefits from the elevated levels of public spending outlined in the Vision 2030 development strategy. Although a slowdown in capital inflows into infrastructure and real estate projects between 2009 and 2011 impacted real growth rates, the sector as a whole has delivered average annual growth rates of 15.26% between 2008 and 2012. With a host of infrastructure projects planned, as well as increased housing demand, contractors are set to profit from a continuation of the robust upward trajectory of recent years. Backed by regulatory reform under the newly formed National Construction Authority (NCA), the industry should also see improved enforcement of standards and training.

This chapter contains an interview with Mohamed Hassanali, CEO and Director, HassConsult Real Estate.

Articles from this Chapter

Overview

At the centre of the country’s economic ambitions, the sector eyes continued expansion
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Following several years of sustained growth, the outlook for Kenya’s construction sector remains positive as the industry benefits from the elevated levels of public spending outlined in the Vision 2030 development strategy. With a host of infrastructure projects planned, as well as increased housing demand, contractors are set to profit from a continuation of the robust upward trajectory of recent years. Backed by regulatory reform under the newly formed National Construction Authority (NCA),…

Analysis

New regulations encourage foreign companies to partner with local firms
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Kenya has a fragmented domestic construction industry, mainly populated by small and medium-sized contractors who may not always have the capacities and capabilities required for large infrastructure projects. As a result, foreign contractors have long played a sizeable role. In East Africa, European and US contractors make up roughly half of the market in terms of current project build, according to Deloitte, and in Kenya, Chinese firms have long had a visible presence. The government has taken…

Overview

Sector prospects broaden as economic devolution accelerates
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One of Africa’s best-performing markets for investors, in the past 14 years Kenya’s property prices have increased three-fold, including a 9.6% year-on-year leap from 2011 to 2012, according to HassConsult, a local property development and services firm. Investment returns are in excess of 28%, figures from the Kenya Property Developers Association show. The sector is dominated by Nairobi, which delivers two-thirds of Kenya’s $47bn economic output. Yet economic development blueprints for industrialisation…

Interview

OBG talks to Mohamed Hassanali, CEO & Director, HassConsult Real Estate
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Interview:Mohamed Hassanal What factors lie behind Kenya’s real estate boom, and to what extent can a bubble be avoided? MOHAMED HASSANALI: The first part of the real estate boom was prompted by economic growth during the administration of former President Mwai Kibaki and was facilitated by the use of the off-plan sales model. This was augmented by a pent-up demand for real estate. Historically, Kenya has had a real affinity for property ownership, and the sector has outperformed other…

Analysis

Land policies: Regulatory and legislative reforms are providing more equitable land access
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Prior to the 2009 National Land Policy (NLP), Kenya’s real estate sector had been governed by complex and often incompatible administrative mandates. A consequence of the 2004 UN-HABITAT reform initiative, the 2009 NLP is the government’s first attempt to streamline national laws. It is also the first policy to provide a single and clearly defined national land policy since independence and has been the basis for legislative frameworks as codified in the 2010 constitution. Colonial Reformation Kenya’s…