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Building and Construction in Kenya


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BUILDING AND CONSTRUCTION INDUSTRY

1.  Construction of Low Cost Houses

Although there has been a robust growth in housing development during the last five years, there remains a very high and unmet demand particularly in the urban areas across the country. Under the Vision 2030, a target of over 200,000 units per year is required. This is largely expected to be met by the private sector investments with the government’s main role being that of a facilitator As such, the government is ready to work out modalities of partnering with private sector to construct and sell houses, including low cost houses to 54 Kenyans. For example there are 100 ha available at Athi River, which is about 20 km from Nairobi city for this purpose. The area is potential and attracts upper-middle and middle class. The market rate per house in the area ranges from Ksh. 2 million to 4 million. Investors can partner with National Housing Corporation to put up houses on their parcels of land situated in Embakasi, Nairobi and other parts of the country. Other opportunities within the sector include:

2.  Kibera Housing Scheme.

The Government has developed 600 housing units at Langata Decanting site for relocation of those currently staying in the Kibera slums to create space for redevelopment. Approximately 5000 housing units will be required to be developed in Soweto East village after relocation. The residents have already organized themselves into cooperative groups in readiness to acquire the houses to be developed. Similar developments are also envisaged in other villages of Kibera and other towns.

3.  Pangani

There is land measuring approximately 44 acres and is located in an up-market residential area. There is an opportunity for an investor to develop walk up flats, town houses, commercial centre, complete with infrastructural services and well planned play areas and open recreational spaces.

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4.  Starehe

There is land measuring approximately 17 acres and is located in a middle class residential development area and currently consist of sparsely developed old and dilapidated residential structures. There is therefore an opportunity for an investor to build high density walk up flats, commercial and educational facilities complete with infrastructural facilities and recreational/open play areas.

5. Park Road

There is land measuring about 9.0 acres and is located within a middle class residential development. The land currently  accommodates old bungalows. There are opportunities to develop high density walk up flats, commercial and educational facilities complete with infrastructural facilities and recreational/open play areas.

6. Shauri Moyo

The land is located in middle/low grade residential area and measures approximately 5 ha and is about 3 Kilometers from the Nairobi City Centre. There is therefore an opportunity for an investor to construct high density walk up flats, commercial and educational facilities complete with infrastructural facilities and recreational/open play areas. Land can also be purchased around the urban areas from private owners at a reasonable market price for housing projects. Returns on investment in this sector have been very attractive.

7. Police Housing 55

The Government is interested in partnering with investors to construct 48,000 housing units in Nairobi and in the Provinces for the police force. 173 police division’s headquarters need to be constructed within the next 3 years. These can be developed under PPP arrangements with government providing the land and other requisite incentives. The Government faces budgetary constrain due to massive funding required and lacks local construction capacity.



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