Intel Industry Country Pursuits Trends
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TRENDS INTEL INDUSTRY COUNTRY PURSUITS PLASTICS BAN SHARED OFFICES REAL ESTATE RWANDA LUXURY LOG HOMES NOT FOR SALE NOT Corporate Magazine | September - November, 2017 PROPERTY REPORT Bridging Prefabs the housing rewriting the deficit in the rules of home region Building the construction Technology How exposure that is African dream trips abroad turning youth are helping into green It was an uninhabited swampland teeming with wild animals grow local entrepreneurs just over a century ago. Today, Nairobi is a regional economic SMEs hub bustling with real estate opportunities. In three years, the city will host Africa’s tallest building 2 | 52 CHANGING FACE OF KINOO Michael and Winfred Warui have put up 31 two-bedroom units and 30 three-bedroom units which they believe is a solid bet. 6 BUILDING THE AFRICAN DREAM The housing deficit in Kenya and in the EA region offers investment opportunities for discerning investors. 66 THE HYDROPONICS GEM Weather patterns can be unpredictable. But KCB Bank’s 2jiajiri has a solution. 18 46 REGION’S 24-HOUR ECONOMY Nairobi takes the cake as PAST, PRESENT AND FUTURE East and Central Africa’s real Father and daughter team of Stephen Gichohi and estate capital. From a swamp Wachuka Gichohi driving Blueline Properties tell why the just over a century ago, it’s firm has been going strong for four decades and their now bustling with life. plans for the future. Lording it over the Lake Cornel Osano has been in the hospitality industry for many years. We 62 tell you about his spanking new hotel which is nestled in the foothills of Kisumu and why he’s particulary proud about it. | 3 WORDFROM THEEDITOR Property key to unlock region’s growth potential here exists popular. The market is also a direct witnessing the growing relationship popularity of concepts such as KCB Group Head of Corporate and between log homes. T Regulatory Affairs the pace To spice up the magazine, we Our special report Judith Sidi Odhiambo of growth of the construction have also talked to some of our therefore focuses industry and a country’s clients in this sector who are Director Marketing and on the state of the Communications economic well-being. building their dreams with the regional real estate Angela Mwirigi A booming real estate support of KCB Bank. sector. We have looked sector – be it for residential or In Rwanda, we have featured Brand Manager Marketing and at the key drivers Communications commercial – has a multiplier Ubumwe Grande Hotel which is for the sector, the Charity Wanjau effect on the economy because turning out to be one of the top challenges facing the of the direct and indirect business hotels in the capital. KCB Group Corporate and Regulatory sector and the linkages Affairs, Kencom House, Nairobi employment created and Mr Sam Muturi, KCB Bank with economic growth. Tel:+254 (20) 3270199 or the amount of money that Director Mortgages, gives +254 (20) 2229685 oils other support sectors. insights about the Bank’s www.kcbbankgroup.com Construction is a key driver of footprint in the property market Facebook: KCB Group Twitter: @KCBGroup economic growth. and what it will take to move Instagram: @KCBGroup In East Africa, we have the number of mortgages in the witnessed mixed growth country from the present 23,000 Give us your feedback at: [email protected] or patterns in the countries that to at least a million in line with [email protected] we operate in, with Rwanda, global trends. Kenya and Tanzania recording Our property division carries KCB Venture is published for KCB particularly good growth rates. out extensive research into Group by Oxygène MCL [email protected] Uganda has posted average the sector which informs www.oxygene.co.ke growth while Burundi’s growth many of our lending has remained level. South decisions. Our customers Editor and KCB Bank Corporate Communications Manager Sudan’s real estate sector is still can tap into this Peter Mwaura in its nascent stages of growth. research in making their Our special report therefore investment decisions. Project Editor focuses on the state of the We also traveled all Mutahi Mureithi regional commercial real estate the way to Bel Air – via Production Editors Mugumo Munene, sector. We have looked at the the internet – to view one of Vanessa Wanyee, Esther Karuru key drivers for the sector, the the most expensive homes in Contributing writers Wambui challenges and linkages with the world. At a jaw-dropping Odhiambo, Trudy Natabona, economic growth. US$250 million (KShs25 Ritah Nyawira, Eugene Ng’ang’a,Mutave As a result of rapid billion), the 14-bed mansion Mutemi, Margaret Wahito, Rose Kamau, James Karanja technological changes in the is nothing short of packaged construction industry, this heaven on earth. Or, looked Art Director Dennis Makori publication also looks at at another way, the epitome some of the new trends in the of opulence with a touch of KCB Venture is available at all corporate branches and at select hotels industry. Gone are the days decadence. and businesses in Nairobi. when permanent houses had to A digital copy is available free at be exclusively made of bricks Enjoy the read. venturemagazine.com. and mortar. ©2017 No part of the contents may be New trends in the reproduced without prior permission construction sector, driven from the publishers. All advertisements by technology, are becoming and non-commissioned texts are Editor-in-Chief taken in good faith. While every care is taken to ensure accuracy in preparing the magazine, the publisher and KCB Venture assume no responsibility for effects arising therefrom. 4 | OPINION Making affordable housing a reality KCB Group plans to build 10,000 low cost homes in three years and also give financial support to developers interested in social housing projects By Moezz Mir far from ideal. ver the past High cost of land, lack of 10 years, there information about mortgages has been a and a high unemployment significant rate are some of the factors O increase creating pressure on housing in demand for the lower-middle the value and number of income earners. investments in the real estate According to the World sector- both residential and Bank, Kenya’s population commercial properties across increases by one million East Africa. people every year. But our A report by Knight Frank housing needs don’t increase indicates that a growing in tandem. The number of volume of capital is targeted new housing units is less than at real estate investments in 50,000 units annually which is Sub-Saharan Africa, leading to way below the estimated target a resurgent property market of 200,000 housing units per trend. year. According to a Hass Consult To bridge this gap, Kenya Housing Pricing Index, the can borrow a leaf from huge demand for property in Turkey, which struggled with Kenya driven by the middle a housing deficit due to rapid and upper class segments urbanisation. But this changed interested in social housing increased by 4.24 times. in 2012, after the Turkish projects. The average value for a government began a social According to the World property going for KShs7.1 housing project targeting the Bank, improving access to Improving access million in December 2000 low-middle income. housing finance can have to housing finance shot up to KShs30.4 million in Last year they built numerous benefits including can have numerous June 2017. Unfortunately, those residential units valued at economic growth, job creation, benefits including in the lower income brackets US$2.5 billion. Turkey’s goal is and deepening of the financial economic growth, cannot afford these houses. to build 7.5 million homes by sector. job creation, and This has given rise 2023 for families in the lower The UN’s Sustainable deepening of the to informal settlements income bracket who currently Development Goal 11 advocates financial sector. and slums where a large live in informal settlements. access to adequate, safe and percentage of the urban But it’s not all doom and affordable housing. This is why population lives. gloom. Last year, KCB Bank KCB Bank took the bold step The Constitution establishes announced a plan to construct of supporting social housing the right to housing as an 10,000 low cost houses by projects both by public and enforceable socio-economic 2019 that will be priced private institutions. right, and provides that between KShs1 million to “every person has the right KShs3 million. The mortgages The writer is the Director, to accessible and adequate arm of the bank hopes to give Corporate Banking at KCB Bank housing ....”. But the reality is financial support to developers Kenya Number of housing units that are required to be built annually for all income levels. However, production of 200,000 housing units is currently at less than 50,000 units annually. | 5 EXPERT COMMENTARY Bridging the housing deficit frica lags behind improved infrastructure. the lacuna in low-cost housing 2015. It shows that the value in housing its One of the tools that offers an excellent opportunity of reported new buildings people. measures the level of housing at for investors eyeing the real completed in Nairobi registered A In the national level is the ratio of estate market. a growth of 7.6 per cent to Kenya, the mortgage book to the GDP. “The supply of housing in KShs76.2 billion in 2016. The East Africa’s economic World Bank statistics show Kenya is mainly for middle to value of reported building plans powerhouse, the statistics are that the mortgage to GDP ratio upper income brackets. But we approved in Nairobi increased stark.