Construction & Real Estate
From The Report: Kenya 2018
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Kenya’s construction and real estate sectors experienced slower growth in 2017 than in previous years, owing in part to uncertainty surrounding the contested August general elections, which translated in part, to no major government-led infrastructure projects being announced in the second half of the year. However, while the construction sector grew by less than the 9.8% recorded in 2016, healthy expansion of 8.6% was seen in 2017 for the sector to constitute 6.4% of that year’s GDP. Steady tendering activity is continuing, particularly for irrigation, transport and housing projects that are outlined in Vision 2030, the government’s long-term strategic planning document. Specifically, the real estate sector was marked by softening prices for prime residential and commercial properties. However, the outlook is brighter for the short-to-medium term, due to the government’s commitment to housing and the post-election resumption of normal commercial activity.

This chapter contains an interview with Mucai Kunyiha, Chairman, Kenya Property Developers Association.

Articles from this Chapter

Overview

Building momentum: Progress made on cross-country transport works, but challenges remain in relation to land, competition and labour
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Kenya’s construction sector experienced slower growth in 2017 than in previous years, owing in part to uncertainty surrounding the contested August general elections, which translated to no major government-led infrastructure projects being announced in the second half of the year. However, while the construction sector grew by less than the 9.8% recorded in 2016, healthy expansion of 8.6% was seen in 2017 for the sector to constitute 6.4% of that year’s GDP, according to the “Economic…

Overview

Back to business: Outlook brightens after a period of slower economic activity, softer demand and prolonged electioneering in 2017
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The domestic real estate environment in 2017 was shaped by slower economic growth as compared to 2016, stagnating prices and shifts in the retail scene. The Kenyan property market experienced strong performances in 2014-16, with high occupancy seen in the office segment, in particular. However, both commercial and residential real estate activity declined in 2017, with marginal performance rebounds seen in the first half of 2018. The slowdown was attributed in part to the high volume of new…

Analysis

No place like home: Increased availability of low-cost housing, coupled with healthy credit growth, is set to support the market over the medium term
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Bridging Kenya’s affordable housing deficit was one commitment made by President Uhuru Kenyatta when he announced his Big Four agenda in 2017. Specifically, a goal was laid out to add up to 500,000 affordable housing units to the nation’s stocks during this second term in office, which ends in mid-2022. The policy could prove to be a key driver of change, according to Palkesh Shah, director of local real estate firm Chigwell Holdings. “The new plan from the federal government to build…

Interview

Under one roof: Mucai Kunyiha, Chairman, Kenya Property Developers Association, on aligning public and private priorities on housing
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Interview:Mucai Kunyiha How can government and construction companies come together to implement the Big Four agenda? MUCAI KUNYIHA: There are various opportunities for the private sector to work with the government to achieve the agenda’s housing goals. On one side, the public sector is in charge of the development of the counties’ spatial and urban master plans, as well as different incentives like stamp duties, tax rebates and infrastructure. The state is also taking action on the…

Overview

Sustainable urbanisation: As urban populations undergo rapid growth around the globe, planners are striving to create efficient spaces
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In 2008, for the first time in history, more than half of humanity was living in urban areas. Perhaps the most remarkable observation about this trend is the speed at which it has happened: as recently as 1900 urban areas accounted for 13% of the global population. Towns and cities are seen as the crucibles of opportunity for many rural dwellers. The UN estimates that by 2030 urban areas will host 60% of the world’s population – up from 54.5% in 2016 – with the pace of urban growth especially rapid across Africa and parts of Asia. Urban areas are home to more than 470m people in Africa, accounting for 40% of the continent’s population,…