TRENDS INTEL INDUSTRY COUNTRY PURSUITS PLASTICS BAN SHARED OFFICES REAL ESTATE RWANDA LUXURY LOG HOMES NOT FOR SALE

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.

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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. in Kenya stands at 4 per cent. have seen in the last few years a by 43.3 per cent from KShs215.2 There’s a deficit of about two It’s the highest in the region growth in the low income part billion in 2015 to KShs308.4 million houses yet only 50,000 with Rwanda coming close. of the business. From where I billion in 2016. houses are constructed every Uganda and Tanzania each has sit, I’m very bullish. I see high But there are segments year. The deficit indicates a a mortgage book to GDP ratio demand continuing after the where the housing sector is yawning gap. of one per cent. elections. Even the commercial experiencing challenges. According to government By contrast, South Africa has side of the business; I see “There are some areas statistics, the country has a mortgage to GDP ratio of 25 that growing as well,” said Mr where we have a glut in high- been experiencing an annual per cent, the highest in Africa. Muturi. end houses and this tends to shortfall of housing, exceeding In Europe, the ratio is 75 per According to the Economic confuse some analysts who say 250,000 units. There has cent while in Singapore the Survey 2017, the construction the bubble is about to burst. also been an occurrence of ratio is 90 per cent. industry grew by 9.2 per cent We have oversupply in some rapid urbanisation which is KCB Bank Director, in 2016 from an expansion specific areas but we do not as a result of devolution and Mortgages, Sam Muturi says of 13.9 per cent registered in have enough supply of houses,”

6 | EXPERT A view of the city that never sleeps from Globe Cinema Roundabout, Nairobi. | PHOTO:NAMUKS PHOTOGRAPHY COMMENTARY 76.2bn The reported value of new buildings completed in Nairobi in 2016. 61 Percentage of urban households living in slums, according to a World Bank report. The report also indicates Kenya has an urbanisation rate of 4.4%. 4% Kenya’s mortgage to GDP ratio according to the World Bank. By contrast, South Africa has a KCB Bank Director Mortgages, Sam Muturi. mortagage to GDP ratio of 25%. says Mr Muturi. growth in the medium- According to the to long-term,” said Ms World Bank, Kenya is Safavian. urbanising at a rate of 4.4 The supply of housing Also, the distribution per cent, which is pushing in Kenya is mainly of investment in the real 9.2 demand for housing in middle to upper estate market, says Mr Percentage by which the urban areas and leaving income brackets. But Muturi, is skewed. Data construction industry grew a huge segment without we have seen in the shows that about 35 per by in 2016, according to the affordable houses. last years a growth cent of housing supply Economic Survey 2017. To date, the in the low income is in the upper income government’s goal of part of the business. bracket while 48 per cent increasing the formal From where I sit, I’m is in the middle income very bullish. Even the supply of affordable bracket. commercial side of the housing is not being met. business, I see that The position is Kenya’s first medium going well.” buttressed by World term plan of the Vision Sam Muturi Bank findings published 2030 strategy had an in a recent report that initial target of providing said Mehnaz Safavian, says many Kenyans are 200,000 housing units Lead Financial Sector unnecessarily living in 200,000 annually for all income Specialist and co-author slum dwellings, because Number of housing units that government levels by 2012, but fell of the World Bank report of limited supply and lack had planned to be providing annually by short of this projection on housing in Kenya of affordability. 2012. However, only 3,000 units were since only 3,000 units titled Unaffordable and “There is a critical need provided between 2009 and 2012. were provided between Unavailable. to deliver housing at the 2009 and 2012. A second “With an urbanisation lower end of the income medium-term plan for rate of 4.4% and 61% of spectrum. Given Kenya’s 2013-17 has a similar urban households living growth and urbanisation target of housing units, in slums, the provision rates, the problem will particularly focused on of housing finance and only become more acute lower income households. new housing finance over the next decades,” “Kenya can make products can help unlock says the WB report. housing more affordable, the housing market to According to Mr which will in turn create address the pressing need Muturi, there’s a glut in new channels to boost for affordable dwellings, the office block segment overall economic growth create new jobs, deepen but the statistics show both at the national the financial sector, and there is an opportunity in and county levels,” catalyse overall economic the low-end segment. >>> | 7 EXPERT COMMENTARY

Upperhill standing tall at first light in Nairobi. | PHOTO:NAMUKS PHOTOGRAPHY >>> “The market is in the low huge deficit in infrastructure prevailing interest rates income bracket. The houses including rail, roads and regime. supplied in the market today ports present a significant With the interest capping are only affordable to a very case for continuing growth law in effect, there is a small segment. A very huge in the building and renewed air of affordability population of Nairobi that construction sector, which especially among has some form of formal employs at least one million developers. income cannot afford people. “The new rates at 14% houses. The problem we The rapid growth in have not been much of have here is on the supply population, which has led a shocker to us as for side,” says Mr Muturi. to a soaring demand for many years, we have “However, the real estate housing in most parts of the given mortgages at 12.9% market is generally doing country, presents a major and 13.9%. It is true that very well in this country opportunity for growth as margins have thinned but compared to other countries private developers keep up now it’s on us to ensure that in the region,” he added. with this demand, reports we move volumes to hit our “It’s a sector that people the journal. targets, says Mr Muturi. – businessmen, employed The emergence of interest Data from the Kenya people – look at as the in the low income housing National Bureau of Statistics ultimate investment, either sector now means that more shows that on the residential side or the people can own homes, commercial real estate.” especially with According to Construction the Online Review, a leading African monthly construction journal, the

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ANSWERING THE CALL KCB Bank’s plan for affordable housing

KCB Bank is already responding to Kenya’s housing deficit by partnering with investors in the real estate market. “There’s huge potential for investors and for a bank like us to invest. We see ourselves not just as a mortgage business but as a vessel to dignify the lives of Kenyans. We are not just looking at supporting the construction of houses for sale but also supporting the government to supply houses,” says Sam Muturi, KCB Bank Director, Mortgages. KCB Bank is already pursuing the KShs65 billion police housing project to supply 20,000 houses. The project will start in Nairobi where the bank plans to build 5,300 houses in the next two years. “We are the biggest in the market right now and we real estate and construction would want to support our customers and Kenyans at large have been drivers of economic to own houses,” says Mr Muturi. The bank has also created a Special Purpose Vehicle and growth in Kenya for the last is looking to work with land owners and saccos to create five years. joint ventures to drive the housing agenda,” said Mr Muturi. “As it stands, there is a pool To seamlessly implement this plan, KCB Bank set up the for everybody to dip into. Property Centre to make it easy to connect buyers, sellers From a supply side, there is an and the bank. opportunity to come in and “We have brought other players such as suppliers of borrow to build houses and furniture and carpets on board. It becomes very easy for from a demand side, we are a customer walking into the Property Centre to get end to seeing more people coming in end solutions. We want to be at the forefront of housing our to borrow to buy houses.” people,” he said. “With an increase in population, opportunities exist in the construction of residential, commercial and 5,300 industrial buildings, including Number of units we plan to build in prefabricated low-cost housing,” the next two years under the police reports the construction housing project. journal. “The economic outlook Sh65bn indicates that the construction Amount of money that industry presents one of the KCB Group is investing key areas that can, and is, to put up 20,000 units attracting investors to the under the police housing country.” project. The lender will first build 5,300 units in the next two years.

Do you have a dream? Contact : +254 (20) 3270199 corporateservice@KCB Bank.co.ke

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SUSTAINABILITY Local farmers turning tide on climate change The farmers have adopted For example, if a company is regulated off equipment at night, or having more sustainable agricultural land under a cap-and-trade system, they trees on your land. management practices most likely have an allowance of credits Small scale farmers in Western they can use toward their ceiling. Kenya are now benefiting from carbon enya, like her East If the company uses fewer emissions credits generated by improving farming African neighbours, (credits) than they are allocated, they techniques. These are the first credits is just getting out of can trade, sell or hold the credit. If it is worldwide issued under the sustainable K one of the worst sold, it is their allowance of emissions agricultural land management (SALM) droughts in five being sold to someone else. Likewise, carbon accounting methodology. years. Delayed rains, and in some cases, if they use more than they have been Philip Wesaya, a farmer in Kakamega a total failure resulted in near famine in allocated, they must purchase a credit adopted the carbon credits concept Eastern and Southern Africa. to comply. almost 10 years ago. “Some areas were worst hit because A credit therefore becomes a tradable “After years of land degradation, most of their dependence on traditional commodity, because of a very real of us struggled to grow enough for our forms of agriculture,” Francis Karin, a reduction in emissions, but often times families,” Wesaya said. researcher with the Tegemeo Institute the reduction is from an activity you “Now, we employ different methods said. “Our low resilience to even the may not have thought of, like changing that will improve the soil fertility. Better slightest change in weather grounds us.” a business practice, flying less, turning soil mean higher yields,” he said. Although he says there is nothing Researchers say that although farmers much we can do to return the world’s get monetary benefits, the credits are climate to where it was a hundred years ensuring a food-secure future. ago, there are some things we can “Payments made to farmers for carbon do to improve the resilience of 2004 credits vary substantially. For example, our farmers. Year when farmers adopted some projects pay about US$900 One such thing is the the concept of carbon (KShs90,000) to farmers to keep their adoption, by farmers, of credits in farming. land as a woodlot over the course of 10 carbon credits in their farming. years,” said Isaac Kalua.“Sustainable The concept, first introduced to land uses increase yields, diversify the country in 2004, continues incomes, increase fodder and fuelwood to help Kenya play her role and enhance farmers’ resilience to in the reduction of carbon Some projects pay about climate change through improvements emissions. KShs90,000 to farmers in the in soil health,” he said. A carbon credit is an course of 10 years to keep their Apart from Wesaya’s SALM project, instrument that represents land as a woodlot.” there are several other carbon credit ownership of one metric Isaac Kalua, an environmentalist programmes designed to support tonne of carbon dioxide farming that are more productive, that can be traded or sold. sustainable and climate-friendly.

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Café des 2 moulins located on the Nyanza, Bungoma and Kakamega. fashion forward city’s 15 rue Lepic, In the Rift Valley, it grows in a garcon will bring you a steaming Nakuru, Trans Nzoia, Kericho and cup of coffee and at that moment, Kajiado. the café and the Kenyan highlands Nearly all of Kenya’s coffee is will only be separated by the short arabica, mostly bourbon-variety breaths between sips of coffee. hybrids. Data from the Coffee The last two years have seen the Board of Kenya says much of Kenyan coffee industry emerge the country’s premium coffee is from a lull that threatened to bring produced on small farms ranging it down. from one-quarter-acre to three “But to reclaim this spot we have acres in size. had to go back to the basics of what Small holders account for 58 made us stand out, be creative to percent of total coffee production attract a wider clientele base,” Vava and 75 percent of total acreage. Angwenyi, Founder and Managing Director for Vava Coffee, a boutique Kenyan coffee company, said. The new clientele, she says, is made up of a crop of coffee lovers It is important to match the who want the best of the bean. appropriate grind to your “There is a growing number of brewing method.” coffee drinkers around the world - Barasa who want their coffee special. Special in taste and aroma,” she says. The term “Specialty coffee” was COMMODITIES first used in 1974 by Erna Knutsen 58 (one of the doyens of the specialty Percentage of coffee movement in the US) in an issue of grown by small holder A touch of Tea & Coffee Trade Journal. farmers in Kenya. The Specialty Coffee Association of America classifies specialty class in your coffee as one which scores 80 But before the specialty coffee points or above on a 100-point gets to your cup, a few more scale. Specialty coffees are grown in things need to be taken into coffee cup special and ideal climates, and are consideration. The unique taste and aroma of distinctive because of their full cup “You have to know the grind of Kenyan coffee, which is grown mainly taste and little to no defects. The the coffee. Is it fine, medium or by small-holder farmers spread out unique flavours and tastes are a coarse? It is important to match in the country, is a must have for result of the special characteristics the appropriate grind to your coffee lovers around the world and composition of the soils in brewing method,” Jefferey Barasa, which they are produced. a barista in a Nairobi coffee house aris, the city of love, Kenyan coffee fits this bill. Much chain said. life and good wine of it grows 1,500–2,100 metres Barasa also says that a lot of care is thousands of above sea level in nutrient rich, has to be taken while determining P kilometres away volcanic soil. The country’s main the dosage of a specialty cup of from Nairobi. Yet, growing areas—Nyeri, Murang’a, coffee. a brief sitting at one of the most Kirinyaga, Embu and Meru—are “Make sure the coffee to water recognised cafes in the city of love situated north and northeast ratio is maintained or else it will brings Kenya to one’s hands first, of Nairobi, in the highlands can either be too strong or too to the lips second and then to the surrounding Mt Kenya, the second- watery and taste horrible,” he mind. highest peak in Africa. said. “Your water quality and If you decide to go into the In the west, coffee grows in Kisii, temperature must also be spot on.”

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opening of a new plant. German company Volkswagen also opened a manufacturing plant in Thika. “Although the market is bad right now, Kenya is still a prime destination for carmakers in the long term. The new players know that the slump is seasonal,” she said adding that they had projected a recovery in sales by end of September this year. Projections from KMIA show that new car sales this year will catch up and surpass sales from last year by at least 14 percent to peak at 15,500. The report attributes this to partnerships and innovations within the industry. Kenya has the fourth highest nominal GDP in Africa, itself an attractive prospect for investors. “We expect a very robust end of year,” said Ms. Kavashe. Seeing a gap in mass transportation, German carmaker Daimler plans to FORECAST introduce two new bus models to the country. “This is Daimler’s response to the Car sales expected to rev ever-growing demand in East and Central Africa for comfortable and safe up as election fever dips buses for passenger transportation.

enya’s motor vehicle industry is currently in a sales slump, due 2,687 K to what industry New players know that the Number of new cars sold during players attribute slump is seasonal. the first quarter of 2017. to jitters over the elections. Data from the Kenya Motor Industry Association shows that during the first three months of the year, dealerships of General Motors East Africa told Both bus models will be built in sold 2,687 units, a dip from 3,699 units Venture. “Generally we have seen a 30 Nairobi in cooperation with local sales sold in the first three months of 2016. per cent decline in the industry,” she partner DT Dobie Kenya,” Daimler This mirrors the trend last year, said. said from its company headquarters in where sales went down 30.6 per cent to However, in spite of the low sales, Stuttgart at the announcement of the 13,535 units. several motor assembly plants continue initiative. “Buyers were holding on to their to set up shop in Kenya. Iveco, an The Kenya Daimler office will be money while others had suspended industrial vehicles manufacturer, has used as an operational base to not planned expenditure because of the returned to Kenya after exiting in 2007. only cover Kenya, but East, Central uncertainty around the elections,” In February, French carmaker and West Africa as well as opening up Rita Kavashe, the Managing Director Peugeot returned to Kenya with the other markets for the company.

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Safaricom As the largest telecommunication 1company in East and Central Africa, the firm has new offerings ‘Safaricom Fibre to Home’ and Safaricom Fibre for Business that are bound to increase internet penetration even further.

Jamii Telecommunication Limited (JTL) 2The company is known for its animated Faiba Internet advertisements with the cantakerous Mbugua. Mbugua has a chain of businesses in different locations which are all connected to the internet, thanks to Faiba. JTL’s Faiba internet is popular with small, medium and large sized businesses for their fast and affordable internet packages.

Seacom Seacom was the first company to 3lay down undersea data cables in TECHNOLOGY Africa back in 2009. Thanks to SEACOM, we now have affordable and reliable Buckle up for the internet in Africa. ZUKU Zuku internet is among the internet revolution 4first players of home internet connectivity. They seized the opportunity ark Zuckerberg, Brett King internet has virtually reduced the world to long before their competitors leveraged and Jack Ma are from a global village. on this lucrative segment. They still different backgrounds The Communications Authority reported control a good portion of the market by allowing subscribers to connect to yet they all have one that for the period ending March 2017, M digital television and make calls. thing in common; internet services uses were an increasing Beyond the popular home they found success on indicator of the importance of data connections, they also serve small and the back of internet connectivity. services. According to CA, internet users medium sized enterprises. Zuckerberg of US built Facebook, stood at 40.5 million from 39.6 million which now boasts of 1.94 billion monthly recorded in the second quarter, while While this might not be the exhaustive active users worldwide. Brett King, is a wireless internet subscriptions saw a 21.5% list of ISP’s in the market, they definitely financial technology (FinTech) guru who jump from 29,724 in the previous quarter have helped grow internet penetration. has proved the importance of technology to 36,104. As much as 88% of Kenya’s Africa still has potential for growth in businesses. China’s Jack Ma founded population access the internet through which can only be realised if citizens utilise data beyond basic services as Alibaba, which by some measures, is the their phones. such as social media and storage; world’s biggest online commerce company. The numbers have set Kenya apart from if policy makers provide regulatory The three happen to have visited Kenya other African countries where only 18% of frameworks to expand Internet in various times recently and provided the total African population are defined access to under-served communities; insights about the opportunities that the as internet users. This has been made if entrepreneurs continue to churn internet provides. This holds true today possible by internet service providers relevant products and services and if because we are living in an era when and mobile operators who make massive the ISP’s continue improving Internet our jobs, entertainment, politics and investments and create multiple benefits infrastructure. even health care have moved online. The for the consumer.

Number of internet users in Kenya according to data from the 40 million Communications Authority.

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SGR Factsheet

1,200 Capacity of the passenger trains. 200m 327bn Land reclaimed from Amount of money in the Indian Ocean for the Kenya shillings used to tracks. construct the SGR. 700 23 Amount that passengers Number of railway pay for a trip between crossing stations. Nairobi and Mombasa for economy class and KShs3,000 for first class. 80km/h Average speed for cargo trains using 1.5% the line. Projected contribution to the economy. 10% Percentage of money 98 that the Kenyan Number of railway bridges government contributed. across the course of the China Exim Bank track. 2009 provided 90%. Year when the plan to construct the SGR was put on 472km paper by the Kibaki administration. In October of that 40,000 The full length of the year, the governments of Kenya and Uganda signed a Number of employees railway track. memorandum of understanding to construct the SGR who worked on various from Mombasa to Kampala. aspects of laying down the track.

Number of years that the China Communications Construction Company, the mother company to China Road and Bridge Corporation (which constructed the railway) will 10 years run operations of the line. Kenya Railways will then take over the operations.

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Village Market is committed to the environment and its community, we are proud to be the first mall in Kenya to embrace the new policy.

ENVIRONMENT 2M Amount of Hopping onto the money in KShs Kenyans will pay in fine if found plastics ban-wagon using banned plastic bags. Retailers, manufacturers, companies and the public are seeking alternatives

t’s official. which would be remodeled and the benefit of Kenyans will into shopping bags as they switching to have to waited. In 15 minutes, ragged, reusable bags. I kick out torn and old jeans were In June, their turned into trendy carry bags Safaricom addiction to plastic bags for free. discarded the use of following the ban that started So popular was the ‘Jeans plastic bags in their on August 28, 2017. in Bags Out’ campaign that shops and introduced And if safeguarding the there were long queues at the eco-friendly bags. KCB Bank environment is not motivation food court where tailors from too has complied with the enough, the steep fine of Kibera were at hand to do the ban. KShs2 million prescribed for needful. According to the UN body, 15 anyone seen in possession of In August, Garden City some 100 million plastic bags Number these bags will deter people Mall launched a campaign are handed out every year in of minutes from using them. dubbed ‘Going Green’ and Kenya by supermarkets alone. shoppers at the Since the government asked shoppers to drop their Kenya becomes the second Village Market announced the ban plastic bags. By the end of country in Africa after mall had to wait in February, retailers, the campaign, they hoped to Rwanda to impose a total ban to have their old manufacturers, companies collect 1,000kg of the bags in on the carry bags. In Rwanda, jeans turned and the public have been in a exchange for reusable bags enforcement of the ban was into shopping rush to seek alternative carry worth KShs50. effected in 2008. bags. bags. These are some of the many This is the third time in In July and August, initiatives that innovative a decade the government is shoppers at the Village Kenyans have undertaken attempting to ban the use of Market in Nairobi were asked to make people more aware plastic bags with two attempts to bring their denim trousers, of the plastic bag menace in 2007 and 2011 failing.

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Real Estate Special Report

16 | REAL ESTATE

Building the African dream

Real estate remains a booming opportunity for Africa-focused investors as the growth of Africa’s cities creates a demand for increased volumes of high-quality commercial and residential properties

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The

making airobi – the acclaimed, fast- paced financial capital of Eastern Africa - is a city of a N that almost never was. From the onset, when the colonial power sent its officials to administer the hinterland, vibrant the staging point was Machakos, where a semblance of an administrative town was established. To get a good staging point to tackle city the uphill construction of the rail to Limuru and thereafter the precipitous From the drop to the floor of the Rift Valley, the railway engineers, however, decided swampland to set up base in a desolate place the Maasai called Nakusontelon. that it was just This place, later called Nairobi, was, over a century according to one of the Britons who was put in charge of building the ‘Lunatic ago, Nairobi has Express’, a “bleak swampy stretch of soppy landscape, devoid of human become one of habitation of any sort, the resort of Africa’s most thousands of every species” and which “did not boast of a single tree.” vibrant cities, and In the book The Lunatic Express, will soon host the author Charles Miller says that one of the Protectorate’s administrators Sir continent’s tallest Charles Elliot, on being confronted with a view of Nairobi on arrival from building Mombasa exclaimed: “the beauty of a view of Nairobi depends on the more or less thorough elimination of the town >>>

18 | REAL ESTATE

Nairobi City by night. | PHOTO:SEBASTIAN WANZALLA

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>>> from the landscape.” The bazaar, where a semblance of businesses were starting to take shape, had houses that were built “so close together that they neutralised the natural advantages of air and light, and then allowed the most disgusting filth to accumulate.” This was the beginning of a city that now teems with a multitude of people, a city that never sleeps and one of the most vibrant cities on the continent. To hear Pulitzer-winning New York Times journalist Jeffrey Gettleman say it, “It’s a palpably multicultural place, encapsulating what is happening in Africa better than any other city on the continent.” And yet, for all its swanky modernity, upscale malls, coffee shops with aroma that wafts onto the streets, and a vibrant professional crowd as you can find anywhere in the world, the city

Above left: Kipande House, once the tallest building in Nairobi. | PHOTO:TEK PRODUCTION SERVICES Above centre: A view of The Hill from Nairobi’s City Centre. | PHOTO:NAMUKS PHOTOGRAPHY

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carries the exclusive distinction of being the only city in the world with a national park barely a few miles from the CBD. “Picture new construction, a lot of people, intense traffic, and more and more Western businesses,” writes Mr Gettleman. “Yet you can still feed giraffes and baby elephants from within the city limits and see Maasai warriors ordering lattes in red-checkered blankets.” Around the time the city was conceived, Indian architect Gurdit Singh built what was then Nairobi’s tallest building, the one-storied Kipande House at the junction of Kenyatta Avenue and Loita Street back in 1913. Packed with century-old history, Kipande House now houses a KCB Bank branch. Today, what was an “uninviting patch of ground” from a century ago is ready to take the prize for hosting Africa’s tallest building, The Pinnacle Towers, which will be 300 metres tall when completed. “Whatever happens in other parts of the world can happen in Africa Whatever happens in other parts of the as well,” says Abdinassir Hassan, world can happen in Africa as well. Nairobi chairman of Hass Petroleum and is a hub for East and Central Africa. Why managing director of the Pinnacle would we go anywhere else? Towers project in a CNN interview. “Nairobi is a hub for East and Central Africa. Why would we go anywhere else?” Apart from the business hub, Nairobi’s entertainment package reverberates through the night, keeping the city’s energies going round the clock. “Modern Nairobi is still the safari capital of the Africa, but the modern world has quickly caught up with the city. A frontier town no more, Nairobi has become one of Africa’s largest, and most interesting cities. Nairobi is a city that never seems to sleep. The entire town has a boundless energy, and is a thriving place where all of human life can be found,” says Kenya Tourism Board Top: Upperhill overlooking Nairobi’s CBD. Above:Sunset over the Westlands skyline. | PHOTOS:SEBASTIAN WANZALLA Managing Director Dr. Betty Radier. The vibrancy of the city, as >>>

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>>> evidenced by swinging by heavy infrastructural evidenced by 19.1 and 39.0 construction cranes visible development especially per cent increase in the from vantage points on the the construction of the quantities of imports of higher altitude side, Upper Standard Gauge Railway cement and steel products, Hill, keeps going round (SGR). The performance respectively, in the period the clock. was also driven by under review,” says the “The (construction) increased credit to the Kenya National Bureau sector’s performance has sector by approximately of Statistics Quarterly remained vibrant over 8 percent. The strong GDP Report released in time mainly supported performance was further September.

Indian architect Gurdit Singh built what was then Nairobi’s tallest building, the one storied Kipande House at the junction of Kenyatta Avenue and Loita Street back in 1913.

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Audit firm Deloitte entry of multinationals, shortages in urban middle estimates in an analysis growth of local enterprises class housing. Similarly, the that Nairobi will keep and an expanded Economist Intelligence Unit growing and there will be government increase N.A. Incorporation predicts higher and higher demand demand for office that by 2030, Kenya will for real estate. space,” the auditors say be a predominantly urban “Nairobi is expected to in a report, Grounding country with more than experience “phenomenal” Economic Growth. half of its population living growth in the commercial “The city of Nairobi in urban centres,” says the real estate market as the is heading for extreme report.

A panoramic view of Nairobi City from Upperhill. | PHOTO:SEBASTIAN WANZALLA 2019 Year when construction of the proposed Pinnacle Towers in Nairobi will end.

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Westlands skyline Urban Africa’s gets new addition high expectations Sanlam Kenya is set to establish its place in the Nairobi Pressure of land is pushing developers across Africa to skyline with the ongoing construction of the Kshs2.7 build ever taller skyscrapers billion eco-friendly 18-storey Sanlam Tower on Waiyaki Way. Jointly designed by Triad Architects and Gapp frica’s skyline has floors until it was closed down in 1998 Architects, the new building that features 140,000 square been undergoing a following a period of economic decline. feet of office space will be home for Sanlam Kenya, transformation with This building stands at 223 metres which will be moving to the new location by the end of buildings sprouting and has 50 floors and a below ground the year. A up every other day. shopping complex of about 180 shops. As part of the firm’s business integration strategy, Since the dawn of the new millennium, Located in downtown Johannesburg, all its business lines will be relocating to Sanlam the continent has witnessed high rates the Carlton Centre provides a panoramic Towers which will also feature a state of the art client of urbanisation. and it is estimated that view of the country and was only 40 service centre which will provide solutions to Wealth Management, Life, General insurance products all under half of Africa’s people will live in cities or metres away from making it to the one roof. towns by 2030. world’s top 100 skyscrapers list. “As part of our growth strategy, we are moving Kenya continues to witness this But Carlton’s reign is about to be over. forward to integrate and unify all our businesses under transformation especially in Nairobi. In three years, Kenya may well host one brand to afford our clients convenience in solutions As the capital city gets bigger to the tallest building in Africa, Pinnacle and services,” Sanlam Kenya Group CEO Mugo Kibati accommodate people – it has also been Towers, whose construction is ongoing. said. The firm will be relocating from the iconic Sanlam getting taller, with Upper Hill being The KShs20 billion project is funded by House in the city centre to the ultra-modern building.” home to some of the tallest buildings in Hass Petroleum and White Lotus. Constructed by Seyani Brothers, with project the country. The 300-metre tall building is expected management by Acorn Management, the Sanlam Tower Upper Hill hosts Britam Towers, to house 45 floors of the Hilton Hotel. spots a panoramic view of Nairobi city from the top floors and will enjoy generous natural lighting. the second tallest building in Africa. Pinnacle Towers will have the highest To guarantee its environmental sustainability, the The building, which is the regional helipad in Africa at over 800 feet to complex has been fitted with a range of automated headquarters of the British-American enable easy access for those looking to smart building amenities including occupation sensors Investments Company, stands at about avoid the city’s traffic. to reduce electricity consumption for lighting and air 200 metres tall and has 31 floors. Urban The building will place Kenya right conditioning systems among others. Designers and GAPP Architects designed next to cities such as Dubai which hosts the prism-shaped building. On the roof the Burj Khalifa, the tallest building in is a 196-foot mast featuring three wind the world at 800 metres and above the turbines that generate electricity. Eiffel Tower in Paris which is under 300 But the tallest building in Africa metres. since 1973 is the Carlton Centre in South The Ponte City Apartments, located in Tenants at Africa. The building takes its name from Johannesburg, South Africa, is Africa’s Sanlam Tower one of its original tenants, the Carlton third tallest building. Standing tall at 568 will also enjoy Hotel. The luxury hotel occupied 30 feet, the building holds the distinction ample parking with more than 400 reserved bays on its basement Lull in property market looms and mezzanine A slowdown in the Kenyan property market is likely to The retail market in Kenya has also faced challenges, levels. slow down through the rest of the year, especially on the with tenant demand being lower than the supply. The commercial front. report says the local retail scene has also been restricted Upper Hill continues to have the lowest occupancy by a narrow tenant base that is unable to support the rates among developments completed in the last two vacant spaces in the market. Additionally, tenant turnover years, according to a report from the commercial property is high with some retailers unwilling to commit to a space services, Broll. Slow pre-let uptake, an oversupply of for as long as five years, especially at newly completed space, and limited returns have resulted in the slowdown. properties. Broll has also cited the slowdown on lack of offices built to On the flip side, a wave of optimism remains in the international standards in the Kenyan market. sector with Cytonn investments recently announcing the

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The Tallest Buildings in Africa PINNACLE CARLTON BRITAM PONTE CITY UAP NECOM PSPF MARBLE PEARL SOUTH TOWERS CENTRE TOWERS APARTMENTS TOWERS Lagos TOWERS TOWER DAWN AFRICAN Nairobi Johannesburg Nairobi Johannesburg Nairobi Nigeria A&B Johannesburg Durban RECERVE BANK Kenya South Africa Kenya South Africa Kenya 160m Dar Es Salaam South Africa South Africa BUILDING 300m 223m 201m 173m 163m 32 floors Tanzania 152m 152m Pretoria 70 floors 50 floors 32 floors 54 floors 33 floors 1979 152.7m 32 floors 31 floors South Africa 2017 1973 2013 1975 2015 35 floors 1973 2010 150m 2014 38 floors 1988 of being the first circular skyscraper in Upcoming buildings in the region Africa. Most of its 54 floors house residential 2019 Mzizima 134 m (440 ft) 35 Under apartments. Commercial Tower Tanzania construction The UAP Tower in Nairobi, is the fourth Year when Under Prism Tower 133 m (436 ft) 34 tallest building in Africa at 535 feet tall. Its construction Kenya construction Under of Kenya’s Mzizima Residential 126 m (413 ft) 33 33 floors have 310,000 square feet of rentable Tower Tanzania construction Pinnacle office space. The building owner, UAP Old Under Parliament Tower 125 m (410 ft) 26 Mutual Holdings, financed its construction Towers will be Kenya construction Under with $40 million in private equity. completed. Kingdom Kampala 123 m (404 ft) 34 Centre Uganda construction NECOM House, in Lagos, Nigeria, is Under MNF Square 122 m (400 ft) 32 the fifth tallest building in Africa and the Towers 2x Tanzania construction tallest building in West Africa. It stands Upperhill square 290 m (950 ft) 66 Proposed Kenya at 520 feet in height and has 32 floors. It NSSF Convention 280 m (920 ft) 62- Proposed houses the headquarters of the Nigerian Centre and Hotel 70 Kenya

Telecommunications Limited. On the roof is a The One Nairobi 270 m (890 ft) 70 Proposed mammoth communication spire, which serves Kenya Hass Tower 2 201 m (659 ft) 40 Approved as a lighthouse navigational aid for the Lagos Kenya

Harbor. Hazina Trade Centre 180 m (590 ft) 39 On Hold Other buildings in the top 10 list reflects Kenya Site AVIC International 176 m (577 ft) 43 the continent’s diversity. They include the Africa Kenya Preparation 210-metre minaret – the tallest in the world Kakakuona Tower 170 m (560 ft) 36 Proposed – at the Hassan II Mosque in Casablanca Tanzania (Morocco), the 173-metre Bahia Centre in Oran Commercial Bank of Ethiopia 165 m (541 ft) 42 Ethiopia Proposed (Algeria), and the 153-metre PSPF Commercial Headquarters Dar es Salaam City Twin Towers in Dar es Salaam (Tanzania). Center Promise 165 m (541 ft) 35 Proposed Tanzania Come 2020, Kenya’s real estate profile will be Tower AVIC International 141 m (463 ft) 35 Site upgraded as it joins countries making it to the (Hotel) Kenya Preparation top 100 skyscrapers list. PPF Headquarters 134 m (440 ft) 35 Planned Tanzania

Abyssinia Bank Proposed Tower ~120 m (390 ft) 34 Ethiopia

Kampala Tower ~222 m (728 ft) 60 Proposed Uganda

Movement House ~100 m (330 ft) 27 Proposed construction of the 30-floor Cytonn Towers, a Ksh20 Uganda billion triplex building in Kilimani, Nairobi which will Kingdom Kampala ~100 m (330 ft) 34 Proposed consist of 174,139 square feet office and commercial Uganda space to let, 180 hotel rooms, 160 serviced apartments , Kampala Hilton ~100 m (330 ft) 26 Proposed three bedroom duplex apartments and penthouse suites Hotel Uganda NSSF Towers ~100 m (330 ft) 25 Proposed as well as three basement parking floors for 1,500 cars. Uganda Broll has noted in the report that investors are Mapeera House ~100 m (330 ft) 18 Proposed gradually taking a county based approach to “developing Uganda rental centres with the intention of tapping into the county based income” as well as the benefits of devolution.

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Commercial real estate

NATION I&M BANK TELEPOSTA NYAYO NSSF KICC NATIONAL CO-OPERATIVE TIMES PARLIAMENT PRISM CENTRE 99.1m TOWERS HOUSE 103m 105m BANK BANK TOWER TOWER TOWER 57.7m 18 floors 120m 84m 28 floors 28 floors 82m 83m 140m 125m 133m 17 floors 2001 27 floors 27 floors 1990 1974 21 floors 25 floors 38 floors 26 floors 32 floors 1997 2000 1982 1976 1981 2000 2018 *

Upper Hill: Kenya’s new financial district is born Financial services The streets that were once decentralised nodes are gaining envied addresses in the city traction as demand for office Blue chip firms trooping under the sun are no longer space moves out of the heavily companies had to set up new attractive. congested CBD to better to create their “Blue chip companies had to quality accommodation in own comfortable headquarters in create their own comfortable emerging business nodes such space with Upper Hill space with better amenities as Westlands, Upper Hill and better amenities and better possibilities,” Gigiri. and better Jamleck Butali, an architect “Multinational companies possibilities.” or the last decade, with BnK Designs says. “Upper such as Coca Cola, Standard Butali businesses have Hill area became the best bet Chartered Bank, GE and World been moving for companies willing to risk Bank have all made their South it all by moving away from corporate addresses in these Iconic buildings from the CBD to F West to a the country’s central nervous prime nodes, while older Grade Upperhill. | PHOTO:SAMUEL THUITA more organised location that system,” he said. B office space in the CBD is promises fresh air and most As a result, Upper Hill has largely occupied by smaller local importantly is away from the seen a boom in real estate. In corporates,” says the report. hustle and bustle associated its 2017 Nairobi City Report, Joining the exodus from the with a capital city that looks to real estate investment advisory CBD are insurance firms such have surrendered to chaos. firm JLL Africa said that as Britam and UAP Holdings as

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RAHIMTULLAH UAP OLD BRITAM KCB TOWER MUTUAL TOWER TOWERS 80m TOWER 200m 100m 18 floors 163m 32 floors 24 floors 1999 33 floors 2017 2014 2015

well as banks and investment southern tip of the borough previously owned by Kenya arms such as Old Mutual, which of Manhattan. FiDi comprises Railways, were dotted with old was among the first companies the offices and headquarters houses with stone grey walls to move to the area. KCB Bank of many of the city’s major and red earth roof tiles. A few of * Under construction has its new tower in Upper financial institutions, including those houses remain, with the Hill. Cooperative Bank and the New York Stock Exchange, one near the Radisson Blu hotel Equity Bank also call Upper Hill the world’s largest in terms of housing the Chief Kadhi’s office. home. Away from the financial market capitalisation and the “In the 1990s and early 700 institutions, foreign corps such Federal Reserve Bank of New 2000s, as land and office space Acres of land as the Japanese Embassy, the York. became scarce and exorbitantly that Upper British High Commission and Europe’s strongest priced in the central business Hill,occupies. the European Union have their economy, Germany prides district, more businesses offices in Upper Hill. itself in the possibilities that relocated to Upper Hill and But the migration of financial the Bankenviertel District Westlands, where land and services companies from the in Frankfurt represents. It office space were more readily CBD is not unique to Kenya. designated an area in the city available and less expensive,” “Globally, many of such centre where many banks, Butali says. decentralised nodes eventually insurance companies, and And so today, Upper Hill, form the centre of financial other financial institutions are which was a sleepy hill that As land and power and become the de located. groggily looked down towards office space facto financial base of their Upper Hill has not always the bustling CBD in awe and became scarce economies,” the JLL Investment been an assembly of well- admiration, is reaching for the and exorbitantly report says. planned well-spaced skyscrapers sky, and as it does so, Nairobi’s priced in the For instance, New York’s competing to kiss the sky. Two CBD can only look up to Upper CBD, more Financial District, known decades ago, the 700 acres that Hill, the small brother who businesses as FiDi, is located in the comprise Upper Hill that were became an over achiever. relocated to Upper Hill and Westlands.

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t the dawn of the 20th century, Kenya’s When population stood A at 2.5 million people. That infrastructure was according to an estimate by European Settlers in 1897. The number rose to 5.4 million and housing lag by 1948, according to the Kenya National Bureau of Statistics (KNBS). In that year, just before behind population the Mau Mau uprising, Kenya had 17 urban centres with an growth aggregate population of 285,000. Significant An urban centre was officially progress has defined as any compact and been made in gazetted town with a population meeting many of 2000 inhabitants and above. development By 1962 though, the number challenges. of urban centres had doubled Within the past to 34 and the urban population generation, increased to 747,000 people. hundreds of Projections of the size, millions of composition and distribution people have of population are important emerged for planning service delivery. from extreme Kenya’s population currently poverty.” stands at around 43 million and KIPPRA is projected by the United Nations Department of Economic and Social Affairs to reach 53 million by 2020. 70% “Seventy per cent of our urban population lives in Percentage slums and informal settlements shortage at 200,000 units, with migration? of the urban characterised by inadequate basic the poor constituting over 70 per The challenges brought about population that and essential infrastructure, poor cent of the deprived households. by the near chronic shortage of lives in slums and quality housing structures, over- On the other hand, only 23 per housing present opportunity. other informal crowding, insecurity of tenure, cent of the annual shortage can be “Significant progress has settlements. hazardous living environment and supplied formally, and only 20 per been made in meeting many high level of poverty and social cent of this annual formal supply development challenges. Within exclusion,” the UN Habitat in caters for low-income households the past generation, hundreds Nairobi reports. forcing Kenya’s urban poor to of millions of people have Supply of decent urban resort to informal housing. emerged from extreme poverty,” housing, especially for low-income So what does a country like reads a 2012 housing report households, has been constrained Kenya do to ensure the centre by Kenya Institute for Public in Kenya’s major urban areas. holds in its major cities of Nairobi, Policy Research and Analysis Official estimates from the Kenya Mombasa and Kisumu as well as (KIPPRA), arguing that there is an National Bureau of Statistics a host of other rapidly growing increasing number of individuals place the annual urban housing towns in the face of rural-urban currently able to afford a roof over

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Through the Kenya Vision 2030 economic blueprint, there is implementation of slum upgrading in Kibera, construction of new housing units in Mavoko Municipality, as well as other indirect interventions to promote decent and adequate urban housing, such as formation of housing cooperatives.

43M Kenya’s current their heads, thus presenting an housing cooperatives,” reads the strong indicator that investors are population which opportunity for developers, both KIPPRA report. responding to the surging demand. is expected to rise private and public in the form of Prudent investment is key for The government says that one of to 53 million by the national government or the those willing to plug the gap in the the ways of plugging the deficit is 2020. newly created county governments. inadequate Kenyan housing scene. by pursuing the affordable house “Through the Kenya Vision Real estate firm Hass Consult’s route. 2030 economic blueprint, there most recent price index shows that “Kenya is interested in is implementation of slum house prices continued the upward affordable houses and is upgrading in Kibera, construction cycle to record a 4.2 per cent studying the cheapest models for of new housing units in Mavoko growth on the quarter and 14.6 per implementation”, President Uhuru Municipality, as well as other cent increase over the year. Kenyatta said recently. indirect interventions to promote This represented the first decent and adequate urban double digit annual growth rate Do you have a dream? Contact : +254 (20) 3270199 housing, such as formation of in the housing sector since 2011, a corporateservice@KCB Bank.co.ke

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Sitting on marshland Sections of Nairobi sit on swampy ground making it one of the cities where wetlands have been claimed for infrastructure

efore the concrete and miles of such spaces have been tarmac took over, added to its land mass to date. before the sky The government has made this an B scrapers replaced important national objective since the the greenery and party came to power in the late 1940s. mist was replaced We must ensure that whatever Figures indicate that about 65 by smog, part of Nairobi was a reclaimation is done, it is done percent of the tidal flats around marshland. In fact, a huge percentage right. Not rushed to close the China’s Yellow Sea sit on reclaimed of the city’s prime real estate sits on housing gap, but carefully done. land. The Yangtze lowlands and many wetlands and riparian areas. parts of Shanghai and Wuhan have Wetland ecosystems play a critical, also had their areas expanded through yet underrated role in climate change reclaimed lands. Most of the land adaptation. They are critical in in Macau, a special administrative flood mitigation, storm protection, 2,700 region, has been sourced from prevention of salt intrusion and reclaimed sea. The largest airport in The area in square miles that mitigation of erosion which the Gateway city of Hong Kong sits on has been reclaimed from the sea significantly contribute to creating reclaimed land. in the Netherlands. increased resilience against impact of The Netherlands has for centuries climate change. been famed for its relentless efforts However, population explosion towards reclaiming huge sections of has led to the proper and legal such projects will also provide the sea to expand its territories for reclamation of some wetlands. economic opportunities for the infrastructural development as well From Asia to Scandinavia, country in terms of job creation and as agriculture. The country has about progressive green engineering has the opening-up of commerce and 2,700 square miles of land that has created possibilities that has seen trade. been reclaimed. entire cities built on land reclaimed China is one of the countries The Gulf states too are famed for from swamps and marshland. that has invested in marshland the reclamation of areas previously Apart from freeing up the land, reclamation. About 4,600 square under the sea. For example, Bahrain

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has reclaimed 122 square miles of land along its picturesque coastline, greatly boosting its liveable space which originally stood at a mere 257 square miles. Through reclamation, the country has increased its land area substantinably which allows space for infrastructure development. Kenya too has not been left behind such as the reclamation A view of Eldoret town. of flood plains in Budalang’i and Yala Swamps to create additional farmlands. Counties turn into hunting But reclaimation is not as grounds for investment easy as it sounds. However, the benefits of supervised and It is almost five years since sector. scientific reclamation outweigh the country embarked on the KCB Bank Director Mortgages, Sam implementation of a devolved system Muturi says with the coming of the perceived risks. of governance. Since then, the county governments, there has been a There are several ways dispersal of power and resources reversal of people moving from Nairobi to reclaim land, the most from the centre Nairobi to the to other counties. common being ‘infilling’, which grassroots has been creating a quiet “When people move, they require entails the filling up of an revolution. What appeared like a leap decent housing. We have seen a otherwise underwater area into the unknown in 2013 is quietly devolution of the real estate. There with rocks, cement, clay, and transforming many far flung areas and has been a growth in the real estate dirt. boosting business environment and market,” he says. Another method used economic activities there. According to experts, investing in especially when reclaiming If you happen to drive in the rural counties makes sense not only from an areas, you are likely to witness the investment perspective but also from a land for agricultural use is by mushrooming of buildings, tarmacked business perspective. Rental and land dredging and draining off the roads or murramed access roads. prices in Nairobi and its environs has water. Thanks to devolution, an influx of been skyrocketing making investments But environmentalists warn government workers in the devolved in the capital almost untenable. that for reclamation to be a units with rising disposable incomes Improved roads in the counties has success, things must be done has opened up opportunities for made these areas easier to operate right from the onset. investments. The rise in population from. “We must ensure that numbers creates the need for KCB Bank, which has a whole whatever reclamation is done affordable residential, subsidiary dedicated to real estate is done right, not commercial and development has seen a rise in rushed to close industrial demand for mortgage houses outside Nairobi. the housing gap, “Five years ago, mortgage business but carefully was mainly confined to Nairobi, done to ensure the buildings to meet Mombasa, Nakuru, Kisumu and environment remains emerging needs. As such, Eldoret. That was 98 per cent of the protected,” said Geoffrey counties have turned business. Today we are lending in over Wahungu, the Director General into a breeding ground 160 branches of KCB Bank and these of the National Environmental of opportunities, which branches are spread everywhere. Management Authority. provide a strong case for Nakuru is among the highest outside investing especially in the construction Nairobi now,” says Muturi.

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Right and below: Exterior and interior views of the Mojapod, a normal shipping container customised either into offices or homes fitted with a kitchen, bathroom and living room.

Rewriting the rules of home construction

Use of prefabricated technology, which is catching on in Kenya, cuts the cost and time of building and can provide a solution to the housing shortage

wind of change is sweeping across the housing industry as builders continuously seek affordable but quality housing options. 500,000 A This has given rise to prefabricated technology, whereby some materials used The amount in Kenya in construction are manufactured in a factory. Once the shillings required to put up a foundation is set, the pre-engineered framing system is put up. container home. The amount The foundation is built just like one would for a traditional goes up depending on the size brick and mortar house. and design of the structure. Isaac Kuria, an architect, says not only does prefabricated technology lower costs and wastage of materials, it also allows faster build time. There are many players in the prefabricated market offering products that range from interlocking blocks, containers, fibre panels and expanded polystyrene (EPS) panels. Two by Four is one such company, which converts a normal

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shipping container into high quality structures called Mojapod. Mojapod customises either 20 or 40 foot containers into offices or homes fitted with a kitchen, bathroom and living room. The homes cost as low as KShs500,000 for the smallest unit with prices varying depending on sizes and modifications. According to the company, a one-bedroomed house can be modeled from a 40-foot container and cut 40 to 50 percent off normal construction costs. “The structures have numerous benefits including speed and quality of build. We go one up by also building furniture to fit the desired space. The fact that the structure can be moved from one place to another seals the deal for most customers,” says Kwekwe Kivutha, Director, Mojapod. Containers Kenya is another player in this market. “New homeowners are looking for cheaper housing options and want to enjoy a hassle-free experience New homeowners are looking for cheaper housing options and want when building their dream homes. to enjoy a hassle-free experience when building their dream homes. We assist clients with the design and - Moses Ndura, Co-Director,Containers Kenya construction and interior design of the project within 14 to 30 days. That’s why this is a very lucrative option,” says Moses Ndura, a co-director at Containers Kenya. The container houses are equipped with heat reflectors and a proper ventilation system to cater for weather changes. They can be joined to create more space or stacked on top of each other to create larger structures. The National Housing Corporation has been promoting the use of expanded polystyrene (EPS) panels in construction. EPS is made from polystyrene (the white material used in the packaging of electronic good). Koto Housing is another company that uses EPS panels. According to NHC, EPS can deliver stronger structures compared to conventional stone houses while slashing construction costs by up to 30 percent. Far left and above: A completed KOTO housing project in Kericho.

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BUSINESS Plug and pay office: Nairobi embraces shared office spaces Young professionals, especially those who are starting out on their own, and even freelancers are giving rise to co-working and the best part, they say, is that it’s cost effective

tarting a business is no doubt a liberating and exciting experience S be it for a rookie or veteran entrepreneur. It’s probably what most people dream of, being your own boss and having a fancy office. But achieving this success is no mean feat. The starting off part is the hardest. Wangechi Wambui found this out when she set out to start her company providing digital data backup. Getting a place to start off was not easy. Like most start-ups, her resources were limited and could An interior view of the planned shared office space at KCB thus not afford to rent an office in the Towers in Upperhill. city. “I was chatting with my friend who works in the US on Skype, telling I was alone, with my laptop but two Jeremy Muiru, the proprietor of her how hard it was getting office years down the line, I have three Sapphire Office Suites, which lets out space and she mentioned co-shared partners, and we all met at this place. space, says start-ups and millennials spaces, which are popular there. So account for a huge chunk of their I went online and checked it out.” clients. The information she got was life but two years down the line, I have “We sign long-term contracts with changing. three partners, and we all met at owners of commercial spaces and Armed with her laptop, cup of the place. I have grown my business convert them into tastefully designed, coffee and ideas swirling in her head, from this office,” she adds. inspirational and productive work she set off to rent space at a shared Wambui says she has saved close environments, which are sub-leased office, which came with a desk, power to 75 percent of the cash she would to individuals,” says Muiru. source, internet, printer, shelves and have used to rent an office, and has Eric Ohaga found success from boardroom services. All she had to no reason to move out. “My business working from a shared office. He do was pay a monthly fee to access is mainly online, so I do not need to was tempted to try out the idea after all these. But there was a catch. She have a huge office,” she says. seeing the owners of Ghafla, an had to share this space with total Wambui is not alone and is part online publication, succeed. strangers. of a growing number of young “I wanted an office to run my “I started off Sync Pro at a shared professionals, freelancers and tech deliveries business but I did not have office space on Ngong Road”, says startups who have embraced the co- money to rent an office. I didn’t even Wambui. “I was alone, with my laptop working trend. have the cash to run my first online

Daily cost of renting out space at some shared offices. At other places, the cost KShs500 can go up to KShs2,000 per day.

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test, so I booked a shared office at Nairobi Garage,” he says. Nairobi Garage for a few hours and The affordable rates offer small used the time to take my first orders and medium sized companies a space and make calls.” to conduct business with limited 7,000 “It took me a year or so before overhead costs. This has helped The average monthly fee an investor put in some cash which Ohaga save more. in Kenya shillings for a helped me expand. I probably would Erick Hershman probably started ‘community desk’ at IHub. have run into debt if I had started this explosion in March 2010 when he renting an office and buying office founded the IHub, which gave birth equipment,” he adds. to companies like Zuku and Eneza He says M-Changa, an online Education, an e-learning startup that fundraising platform was launched allows students to access revision while he was there. But the success lessons and questions on their mobile that became Ghafla is what really phone. It has also become a great way drove him there. “The owners literally for entrepreneurs and startups to link built everything from there. They up with mentors and other resources even got their initial funding through that would otherwise not be available interactions with the people at the in traditional workspaces.

“The affordable rates offer small and medium sized companies a space to conduct business with limited overhead costs.

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Opening up the hinterland

The impact of the SGR is The Mariakani Standard Gauge Railway Station. projected to be exponential lasting for decades to come. The benefits include Planes, trains and construction and operations jobs as well as manufacturing and supply chain opportunities. automobiles: opening The SGR has opened up previously remote places and expanded business up of opportunities opportunities. This will see such remote Real estate attracts social services like moth follow light and areas form economic ties with their more advanced the building of rail and road is birthing new opportunities counterparts which will ultimately boost the overall enyans on social Nairobi. The actual distance is President Uhuru Kenyatta economy of the country. media were about 500 kilometres. said at the commissioning of recently But the advertisers saw a Phase 1 of the KShs327 billion K treated to a great opportunity that massive railway line in May this year. humorous infrastructure presented for The impact of the SGR is advert showcasing houses for their property in Mombasa. projected to be exponential sale in Syokimau. “Live Only The value of real estate lasting for decades to come. The With the SGR, we Four Hours From the Beach” is driven by several factors benefits include construction expect that there the advertisement called out. but there are two main ones; and operations jobs as well will be centres that It turned out to be a play who your neighbour is and as manufacturing and supply will come up around on the launch of the Standard available infrastructure. chain opportunities. the stations. People Gauge Railway – Kenya’s “This is a historic moment “The economic benefits of can live outside the largest infrastructure project we are witnessing today the standard gauge railway capital and come to whose first phase stretches because this project will project will increase with its work in Nairobi. from Miritini in Mombasa transform the economy of extension from Nairobi to County to Syokimau in this country and all Kenyans,” Naivasha and eventually to

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Kisumu and Malaba. A railway There are many investors who academics James M. Gatauwa peak time and 15 minutes off corridor of the type that the are waiting for a good road, and M. Murungi examined the peak and subsequently a rapid project will create, works as a water, electricity, sanitation effects of the construction of increase in the real estate system and its full potential services and they go in and Thika Road in their academic values of properties in the can only be realised when all develop,” says KCB Bank paper on the Effects of area,” the academics wrote. the components have been Director Mortgages, Sam Infrastructure Development. They say that the more fully laid out, constructed and Muturi. “2010 to mid-2012 the travel dispersed infrastructure commissioned,” Transport “With the development of time to Kiambu from Nairobi development is, the narrower and Infrastructure Cabinet the SGR, we expect that there CBD was more than two the cost of real estate becomes Secretary James Macharia will be centres that will come hours during peak hours due between rural and urban real wrote in the Daily Nation. up around the stations. People to traffic jams and ongoing estate.“The development of a “While the Mombasa- can live outside the capital and construction of the Thika transport network can lead to Nairobi line is already up and come to work in Nairobi. With super highway transport a reduction in property values running, with a scheduled changes in infrastructure, we network on that route. After especially if it leads to easier passenger service being the expect demand to follow the completion of the super accessibility to the properties first offering, the endgame development,” he said. highway, travel time was near the transport network,” of what is easily East Africa’s Kenya Methodist University reduced to half an hour during the academic paper says. most ambitious infrastructural project, is eventually a link to Kampala, Uganda and on to Kigali, under the East African Railway Master Plan,” he wrote. The SGR has opened up previously remote places and expanded business opportunities. This will see such remote areas form economic ties with their more advanced counterparts which will ultimately boost the overall economy of the country. This phenomenon is evident from past infrastructure projects of much smaller magnitude that have played a key role in driving real estate development, the best example being the construction of the 50-kilometre Thika superhighway that saw a burst of investments out of Nairobi and into Kiambu County. The construction of the eastern, southern and northern by-passes around the capital as well as the ongoing expansion of Ngong Road have opened up previously marginal suburbs into bustling residential and trading centres. “Investors follow infrastructure development. The Isiolo-Moyale Highway, a key section of the Lamu Port-South Sudan-Ethiopia (LAPSSET) Corridor Project.

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STATISTICS KCB Bank Finding a sweet spot for mortgages a treasure your next investment If you dream of building or buying a house, filling it up with tenants in the shortest trove of time possible and have them pay a premium, then you need to be armed with the right information information of where, when, how and why you should settle on certain locations

Before investing, an investor needs to understand such important factors as the trends, the general prices and the regulatory environment.

Understand where there is oversupply and where there is demand. If you are an investor who wants to come in and develop houses for sale, you need to understand which area you are targeting and what type of real estate.

The mistake that most investors make is that they go into projects without the benefits of market intelligence leading to slow uptake of their products and low returns on investment.

To avoid this pitfall, KCB Bank Mortgages Division has different statistics for atest market “At present, the largest to make good projections on different investors and intelligence shopping centre market in the quicker and better returns on segments. These statistics indicates area covered by this report is investment. have been collated over a L that Nairobi, with nearly 400,000 “The key thing is to period of 40 years. The bank Nairobi is square metres of shopping understand where there is has advisors across the a leading centre space,” says the report. oversupply and where there country who are able to advise real estate investment choice. “Within the cities that are is demand. If you are an investors. The 2017 Knight Frank already major focal points investor who wants to come in Wealth Report indicates for retail activity, such as and develop houses for sale, “We tell you areas in this that Sub-Saharan Africa Nairobi and Lagos, selecting you need to understand which city and across the country – is experiencing a wave of the right micro locations for area you are targeting and fueled by the establishment of modern mall development, on development will become what type of real estate,” says county governments – where the back of the growth of the increasingly crucial to the KCB Bank Director Mortgages, you will find tenants waiting region’s consumer markets. success of new schemes.” Sam Muturi. for you to get the final touches The report identifies But according to experts, an “We have different statistics done. This is crucial for any Nairobi as one of the investor needs to answer the for different investors and investor,” says Mr Muturi. significant markets in Sub- 5Ws and a H (When, Where, segments. We have all these Saharan Africa after South Who, What, Why and How) as statistics because we have Africa. accurately as possible in order been in the market for 40

38 | REAL ESTATE years. We have advisors across STATISTICS the country who are able to advise investors,” says Mr Muturi. Rules for The real estate expert says building that often, investors go into construction projects without the benefit of market intelligence leading to slow uptake of their products and low returns on The collapse of buildings in Kenya has investment. resulted in death, injury and loss of “The fact that you own investments. property on a specific street The worrying trend has raised or neighbourhood does questions on the quality of buildings not necessarily mean that and enforcement or lack thereof, of regulations. it will be a success. There In 2015, the National Construction are pockets where you find Authority carried out an audit of oversupply.” buildings and found that 58% of “But we shall certainly tell buildings in Nairobi were unfit for you areas in this city and habitation. across the country – fueled by It is critical for investors to understand the establishment of county and follow the various regulations that governments – where you must be applied when constructing a will find tenants waiting for building. Here are some of them; you to get the final touches done. This is crucial for any Building Application investor,” says Mr Muturi. Section 4 of the Local Government The Knight Frank Wealth Building Code provides that a person Report indicates that despite who intends to erect a building shall the high levels of construction submit a written application to the activity in Nairobi, there are council. still opportunities for the development of well-located, Registration of Construction Works well-positioned malls across All construction works, contracts Nairobi. or projects must be registered with “Several neighbourhoods the National Construction Authority. The application should be made in remain undersupplied and writing within 30 days from the date shopping centre space and on which a tender for construction of retail demand will continue The KCB Property Centre at Kencom House. works, contract or project is awarded to be driven by the growth of to a contractor registered under the Nairobi’s consumer classes,” National Construction Authority Act. it says. landmarks, learning “While the total Ultra Mr Muturi says that before institutions, shopping malls,” High Net Worth Individuals The Energy (solar water heating) investing, an investor needs he says. (UHNWI) population in these regulations 2012 to understand such important Aside from the intimate African countries is starting The regulations apply to residential factors as the trends, the knowledge of a city, there from a relatively low base, premises, educational institutions, general prices and the are also the macro factors wealth is expected to increase health institutions, laundries, hotels regulatory environment. identified in the 2017 Wealth all the way up the chain, with and restaurants. All premises within “It is important for you to Report which give key 7,500 new millionaires set the jurisdiction of local authorities with get the statistics in order to indicators to investors in to be created over the next hot water requirements of a capacity know where the demand is commercial real estate. decade in Kenya alone,” says exceeding 100 litres per day shall and where infrastructure is The report says that the the report, which indicates a install and use solar heating systems. coming up. Before the Eastern growth in ultra-wealthy promising future for investors. The Regulations compel any electric bypass was put up, land there populations in Africa (33%) power distributor or supplier against was very affordable. Now it and Latin America (37%) will supplying electricity to premises where Do you have a dream? a solar water heating system has not is very expensive. It is good also outpace that in Europe Contact : +254 (20) 3270199 to know about infrastructure, and North America. corporateservice@KCB Bank.co.ke been installed.

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KCB towers over The Hill Climate change and its negative effects has spurred interest in green buildings, which incorporate technologies that aim to cut energy use, water use and most importantly cut green house emissions

KCB Towers in Upper Hill, Nairobi. any companies representing the most efficient developers are making use of are increasingly and least disruptive use green building technologies. The green incorporating of land, water, energy and UNEP’s headquarters in sustainability resources. Nairobi has been designed KCB M as a According to the United with the environment in mind. business Nations Environment Right from the entrance, the Towers practice. Programme, more than 30 pathways are dotted with all Different aspects were Business managers are percent of global greenhouse manner of plants. incoporated in construction alive to the fact that for their gas emissions are buildings- The building’s rooftop is of the KCB Towers in Upper businesses to grow, they have related, and emissions could covered with more than 5,000 Hil, Nairobi. One such aspect to take steps to reduce their double by 2050 if we carry square metres of solar panels is the waffle floor systems environmental footprint in all on business as usual. UNEP that provide enough energy for which help regulate room their operations. also estimates that buildings those who use the premises. temperature. Now more than ever, are responsible for a third of The building has a KCB Towers has large companies are committed to global energy use. rainwater harvesting system windows allowing natural sustainable use of resources The UN body advocates that provides water for the light and ventilation and and also to the manufacture of low-energy, renewable and a gardens. solar power backup. green products. rethink of solutions to reduce KCB Bank Kenya is also Rainwater collection Other organisations are emissions. setting the pace for other (and treatment) and a water taking it a notch higher and The 2015 Conference of corporates and is going beyond recycling plant ensures low have embraced sustainable Parties (COP 21) formed the pursuit of profits to reduce running costs for water and construction, which is giving the basis for developers its impact on the environment at the same time provides rise to green buildings. to incorporate the use of and the planet. water for the A green building is one environmentally friendly The bank’s Towers in Upper gardens located on three whose construction and methods of construction. Hill, Nairobi has incorporated floors. operation assure the healthiest This can be seen in the latest sustainable architecture that possible environment while structures being put up, where help save on water, cut energy

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KCB Group’s green financing KCB Group introduced green financing as a core element of the banking practices which was made possible through embedding the environment into financing decisions in the Social and Environment Management System (SEMS) framework for lending to Corporate Banking clients. The bank achieved 100% integration of SEMS in the loan application and evaluation process by the end of December 2015 which is a definite positive improvement from 2014 when the The carpot at the Garden City mall is fitted with multiple solar panels that help cut electricity costs. integration process was only able to penetrate Below; UNEP’s headquarters in Nairobi. 50% of the application and evaluation process. KCB Group has since commenced SME loans use and provide a conducive fitted with about 3,300 solar panels exposure of up to Kshs 100M (USD 1M). work environment. that provide solar energy during Last year, KCB Group screened Kshs 268 To regulate temperature the day meaning that less is used billion in loans for social and environmental risks naturally, the building has from the national grid. And when as part of its tougher stance in managing climate concrete waffle floor systems electricity goes off, the system change and commitment to green finance. which provide what is called reduces the consumption of costly adequate thermal mass which diesel back-up generators. helps absorb heat during the The Strathmore Business School, day and gets cooled during the which was awarded the Best night. Green Building Development in KShs268bn The building has large Africa by the African Real Estate Amount of money that the Group windows to allow natural light and Housing Finance (AREHF) screened and gave out as loans for and adequate ventilation. Academy Awards and the Pope social and enviromental risks. The building has gardens on Paul VI Learning Resource Centre three floors, which helps bring at the Catholic University of East a flash of greenery on the brick Africa have adopted green building and mortar. Experts say such technologies. gardens also help to offset the The United States International building’s footprint by filtering University - Africa has also fully pollutants and carbon dioxide implemented green structural and aid in heat absorption. design in its new building The building also has a infrastructure. rainwater collection system The new administration block at and a water recycling plant to the University of Nairobi and the ensure efficient use and reuse ultra-modern library and students of the resource. learning centres at the Kenyatta The Garden City mall too is University are also walking the fitted with a range of energy sustainable talk. saving solutions. The mall is

For a building to be classified green, it should be designed to improve building efficiency by minimising energy and water consumption, reduce pollution and have waste water treatment measures.

| 41 ‘Ubumwe’ in the land of a thousand hills

Sitting at the rooftop bar of the Ubumwe Grande Hotel, which is tucked right in the middle of Kigali, I had a clear view of the architectural gems studding the city’s skyline

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he sweeping beauty of the landscape is the first sign you’ve entered a new T country. Rwanda, which is slowly reemerging from a tragic past, is synonymous with mountains and scenic landscapes, celebrated for its gorgeous national parks, historical and cultural attractions, the undulating beauty of the city is revealed to those craving a cultured palette. Whether you fancy dipping your toes in Lake Kivu or immersing yourself in the experience of a lifetime with the Mountain Gorillas - the gentle giants of the Virunga Volcanoes - the sceneries are guaranteed to intoxicate you and tug at your heartstrings. Its capital, Kigali, offers much more; from stunning architecture, museums, shopping, amazing restaurants and hotels, to elegant cuisine. Its friendly people are without doubt the icing on the cake. You get an unfettered view of the city’s skyline from the Ubumwe Grande Hotel. Sitting at the Rendezvous Bar and Grill, situated at the rooftop, I had full view of the city in all her splendor. The hotel takes great pride in its name, Ubumwe, which means “unity” in Kinyarwanda – the official language. “Initially, there were questions about the name Ubumwe. People wondered why we didn’t go for a more modern or contemporary marketing savvy name but we went with our gut. It is a representation of an important component in the Rwandese set up, given the history of the genocide,” says the hotel’s General Manager Kenn Munyeki. The hotel, which is managed by Acacia Properties Development Ltd, also pays homage to the country’s national motto: “Ubumwe, Umurimo, Gukunda Igihugu” which means, “Unity, Work, Patriotism.” “Not only has the name been a great selling point but also if you ask anyone >>>

Night lights over the land of a thousand hills. | PHOTO:NAMUKS PHOTOGRAPHY

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>>> where Ubumwe is, they all know because hotel which opened in July 2016. the growing economy. There is incredible it is synonymous with Kigali now,” says Mr With 153 rooms, six conference rooms support from the government, which Munyeki. and retail space, the hotel can host up to has enacted policies to attract and grow This is true because Ubumwe Grand 500 guests for business or leisure. investments and tourism,” he says. Hotel is the tallest building in the city with The government has been at the But entry of new players in the hotel its closest competitor standing at only 12 forefront of supporting foreign investments. business means owners have to think floors. Its location, right in the middle of The recent opening of three international outside the box to attract clients. the city, is not only strategic but also adds hotel chains in one year - The Marriot, “You must keep renewing. That is why to the growing list of hotels inspired by the Radisson Blu and Park Inn by Radisson- is Ubumwe, which is a four-star hotel, offers fast growing tourism sector in Rwanda. testament to this. unparalled service in terms of conferencing, With close proximity to the State House, “Many multinationals are choosing to F&B and accommodation,” says Mr government offices, banks and only a set up offices here to take advantage of Munyeki. 20-minute’s drive from the airport, the hotel The hotel is also keen on employing a boasts of a superior location. large number of local workforce. “Our prime location has seen us host “At Ubumwe, we believe in growing and hundreds of business guests. We also offer 2016 giving back to the society. That is why we accommodation to travelers on transit to Year when the 153-room hotel was are currently at 97 percent local staffing,” the national parks,” says Mr Munyeki of the opened. It also has six conference says Mr Munyeki. rooms.

44 | In terms of partnership,KCB Bank came in as a project partner for financing. “KCB Bank Rwanda offered the best interest rates and we also considered that they had the financial muscle to support such a project. We have a great relationship with them as a banker and project financier.” “They gave us the opportunity to expand and it was an opportunity for KCB Bank Rwanda to demonstrate that it is keen on local investments,” he says, Like is synonymous with a growing economy, Kigali is a city that is undergoing a transformation. From the road snaking from Kigali International Airport to the city center, there are numerous buildings under construction, which points to a thriving construction industry. 97 “People love the city and they now call it the Percentage of local African light,” Mr Munyeki says. staff at the hotel.

“KCB Bank offered the best interest rates and we also considered that they had the financial muscle to support such a project. We have a great relationship with them as a banker and project financier.” - Kenn Munyeki, General Manager,Ubumwe Grande Hotel.

Do you have a dream? Contact : +254 (20) 3270199 corporateservice@KCB Bank.co.ke

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Why we’ve been going strong for four decades Stephen Gichohi developed his interest in real estate and road construction in 1979. Now joined by his daughter Wachuka, he tells of his latest project, Savuti

ature is a great Tucked away in picturesque inspirer. Kitisuru, one of Nairobi’s A person most sought after locations, N who is this gated community sits on attuned 7.5 acres and consists of five to nature, and six bedroom homes each wrote the poets of yore, is on half an acre. attuned with the practice of The homes are set among living. an abundance of large trees Down south in Botswana, with footpaths throughout the sits Savuti, a Game Reserve estate. tucked inside the Chobe Savuti offers the home National Park. buyer the choice of three The park teems with designs. popular wildlife amid flora Each house has a lounge and fauna that envelopes the with fireplace, dining room, touring traveler. family room, a spacious It is the enthralling charm kitchen, scullery, study, of the Savuti that has inspired en-suite bedrooms, master a real estate project by bedroom with a lounge, walk- Blueline Properties, a Kenyan in closet, a detached servants’ company. The Nairobi project quarter with two bedrooms, goes by the same name. kitchen and bathroom and >>>

46 | REAL ESTATE 30 Number of years that Blueline Properties has had a relationship with KCB Bank.

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>>> terraces that allow one to perspective of this period, completing Savuti which had according to your needs; they appreciate the stunning views. he recalls that a brand new its fair share of challenges as is help you come up with a way to Savuti is the handiwork of a Peugeot 504 would cost in the with projects of its magnitude. sort out whatever challenge you team of father and daughter – range of KShs 70,000 while a It is the Tswana who say if have,” said Mr. Gichohi. Mr. Stephen Gichohi and Ms. house in Buruburu was close to you want to go fast, walk alone, This partnership saw the Wachuka Gichohi. It’s the latest KShs 90,000. but if you want to go far, walk company receive a KShs200 feather in their cap. Blueline’s first project, with others. million loan to cover part of the The brains behind the completed in 1980 brought in It is with this in mind that construction costs. four-decade old business, Mr. KShs98,000. Blueline partnered with KCB “Thanks to KCB Bank, we Gichohi, is a calm speaker and Over the next 15 years, the Bank for financing. Their have managed to complete and undoubtedly a nature lover company undertook various relationship dates back 30 hand over the project” said Ms. thanks to the influence of his projects, including road years. Gichohi, who is overseeing the wife who is a conservationist. construction. “KCB Bank is different from Savuti project. And her father He says he ventured into But the changing times other banks because they listen couldn’t be prouder. the construction industry in dictated that they shift from to your ideas, then sit down “In the last two years, I have the 70s, initially roads, when road construction to the with you to customise solutions been pushing work to Wachuka things were much easier. It was housing industry, says Mr. and I sometimes leave her in a time when the Government Gichohi. the deep end so that she can try was deliberately supporting The beginning of this and swim out. I am happy to indigenous contractors to journey was subtle and started 1979 say that she is doing very well,” grow, an opportunity that Mr. off by constructing houses for Year when Mr Gichohi said Mr. Gichohi. Gichohi readily took up. rent and then later for sale. ventured into construction He says it took years to To give an economic The Gichohi’s are now business. groom his daughter into the

48 | Wachuka Gichohi at the Savuti Homes construction site in Kitisuru.

“In the last two years, I have been pushing work to Wachuka and I sometimes leave her in the deep end so that she can actually try and swim out. I am happy to say that she is doing very well. Mr Gichohi

hardworking and creative individual she is her since high school; she worked for the and is happy his hard work has paid off. company during school holidays which Other than finances, the other problem instilled business skills and a love for the 200m they had to overcome was the level real estate industry. Amount of money in of workmanship that even saw them Today, Wachuka says she’s up to the task KShs that Blue Line terminate a contractor at the last stages of of growing the company while honouring construction received the project. the dreams and fulfilling the ambitions of from KCB Bank. The site where the Savuti houses stand her father. was very steep, which set them back a To make her mark, Wachuka hopes to few steps as they had to redesign the embrace technology into future projects, to houses to sit comfortably on the slope and allow home owners to enjoy the dynamic introduce several reinforced concrete walls advantages of the Internet of Things (IoT). which increased the construction cost “Coming from the tech-generation, I considerably as this was not in the original have a different way of working due to my plan. exposure to technology. Implementing the They say that market research has use of technology into the business will stirred them to put up houses for the ensure things run more efficiently and growing middle class population who now will allow the company to handle larger have a high purchasing power. This is the projects and handle more than one project next project expected to be built off Lower at a time, says Wachuka. “I am excited Kabete Road in Kiambu County. about the future of our projects and our Mr. Gichohi has prepared his daughter company.” for the road ahead and has been mentoring

Do you have a dream? Contact : +254 (20) 3270199 corporateservice@KCB Bank.co.ke | 49 REAL ESTATE Norwich Union: Gracing the Nairobi skyline since the 1990’s The company, which owns properties in Nairobi’s CBD, has weathered downturns ranging from financial shortfalls to market saturation and is still going strong

orwich Union, the property sector, which sits right we progressed into opposite Hilton development,” Mr Hotel in Maina says in an N the CBD, interview. is owned The company has by a group of friends. Like several properties any other chama, the group in the city such as used to meet regularly and Southern House, Lyric contribute money. The group House in the CBD, started small but later opened Libra House along the doors for other members. Mombasa Road and As the chama grew, so did their Ratna apartments in contributions. Lavington. They are In 1996, the members, who currently developing houses in But they were not the only “KCB Bank came were about 30 in number, Athi River. ones facing challenges; it was a through for us. decided to formalize their But what has been the secret trying time for the construction Throughout the chama. This gave birth to the to their success? sector. The US housing-market years they are Critical Mass Group Limited “Before investing, we go crash triggered a financial always ready to (CMG) Limited which later through a thorough investment crisis globally and the effects support us because changed to Norwich Union analysis. Every investment reverberated far and wide. they understand our Property Limited. Their big needs to make sense for our “I remember everyone business and our break came in 1999 when they investors and show potential started running away from the needs.” purchased the eight-storey for returns and growth,” said real estate industry especially Michael Maina, Norwich Union house. Mr Maina of the company that the banks. None of them GM Norwich Union “We got into real estate now has close to 150 members. wanted to finance real estate Property Ltd when it wasn’t as popular as According to the GM, there projects,” recalls Mr Maina. it is right now. Back then, we is low supply of residential “We had sold some property focused on buying existing and commercial properties but we were still short of property, renovating it and and which, for them, means KShs500 million. This was a then rent it out,” says the growth opportunities. large amount that we needed 30 General Manager of Norwich “The growth is supported to increase our asset portfolio,” Initial number of Union Property Limited, by a real demand which is why he recalls. members. The Michael Maina, adding that the talk of there being a bubble in “Fortunately, KCB Bank company now company has since ventured the market is untrue.” came through for us. And has close to 150 into developing their own But it has not always throughout the years, they members. properties. been smooth sailing for the have been ready to support “Our focus was mainly in company. Their rough patch us because they understand creating cash flow. But after came in 2010 at a time the our business and our witnessing the growth of company was trying to expand. needs. Because of this great

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Left: Norwich Union House. Below: Ratna apartments in Lavington.

Every investment needs to make sense for our investors and show potential for returns and growth.” Mr Maina partnership, seven years later, our timing, planning and availability of According to a 2017 Knight Frank company value stands at KShs2.5 cash. Report, the growth of Africa’s cities, billion,” says Mr Maina But Mr Maina says patience is crucial combined with stable economic growth, Like any other company, Norwich has for real investors to succeed. “It pays is expected to create demand for faced serious competition from other off,” he says. And this has enabled both quality and greater volumes of players in the industry. the company to continue thriving. commercial and residential real estate “Everyone now knows there’s a good “Liquidity is also a great advantage. over the long term. thing in real estate and wants to get Because if you have the money you are The company plans to introduce into the market. This has resulted in able to demand a lot of things and KCB REIT-Real Estate Investment Trust. overcrowding. We started with a return Bank affords us that liquidity.” REITs give the public a chance to invest of 12 percent but this has slowly been For many years property prices in in the company the same way they going down.” Nairobi and cities just outside it have invest in other companies by buying The investor says that the biggest been soaring. This has seen a rush to shares. challenge for property developers is invest in property. “Through REIT, it means that you actually own a small piece of a big pie. When you have shares with Norwich Union it means you own a portion of every property that we have,” says Mr Maina. Maina hopes to steer the company into even greater heights “In five years, we plan to become a 6-billion-shilling company but most importantly we hope to continue giving value to our clients.”

Left -Right: Libra House along Mombasa and a housing project in Athi River.

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The town, which is bisected by the Nairobi- We’re giving Nakuru highway, is popular with the working good old Kinoo a class of Nairobi. It is here that a husband and wife team decided to put up whole new look their pet project

52 | REAL ESTATE

ichael and be executing what we believe Winfred Warui presents a great medium talk with the to long term investment M confidence opportunity given the growth of of two Nairobi and need for quality yet generals with a secret army affordable residential spaces,” ready to be deployed when the he says. Phase 1 of the project enemy thinks the war has been entered its 88th week with won. full completion expected in The couple is behind a September. project that they hope will Overall, Storehouse Holdings “More than 90% of change the Kinoo skyline Company Limited, which they the project has been forever. own, is constructing 31 two- completed. Liza The town, which enjoys bedroom units and 30 three- Heights is a very proximity to the capital city bedroom units. Off plan prices sound investment and relatively low house rent, are KShs10.15 million and opportunity that is where a significant number KShs9.75 million respectively. promises to offer a of people who work in Nairobi And the company believes lot to our prospective retire to every evening. that their development is a clients.” But this was not always so. solid bet. Winfred A few years ago, Kinoo was “We are building to a a busy market centre. But it specification that is higher than slowly witnessed a construction the surrounding real estate explosion transforming it into a developments. The national 2016 modern ‘village’. government will be expanding Year when they broke It is in this town that the Naivasha Road (A8) to a 6-lane ground for the Liza Warui’s decided to put up their highway and market prices for Heights project in modern housing project. property along this road are Kinoo. Liza Heights, which has 61 rapidly appreciating,” Winnie units, is only a 10-minute drive says. from Westlands and 15 minutes She says that towards the from The Hub in Karen. They end of 2018, their company Sh9m are happy with the progress so hopes to construct a Average price of their far. shopping/office complex on apartments which “We broke ground on the a plot situated less than 200 consist of 31 two- 4th of January 2016, and more metres from Liza Heights bedroom units and 30 than 95% of the project has that will result in significant three-bedroom units. been completed. Liza Heights appreciation of the apartments. is a very sound investment Many real estate opportunity that promises to developments in and around offer a lot to our prospective the city have no control over clients,” Michael says. their surroundings. An excellent For him, nothing could be collection of apartment blocks more exciting than getting into might be surrounded by real estate with his wife. uncontrolled developments of “Winnie and I are excited to shacks, garages or unplanned >>>

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>>> shops. But not Liza heights. “The family owns additional land KCB Bank came through for us and provided the financing we around Liza Heights that will also be developed to high standards over the next need. Apart from the money we have accessed, they have given us five to seven years resulting in even greater exceptional service. We will never forget the gesture from one of KCB value,” says Michael, who is also a minister Bank’s officers who consistently worked to meet the end of the bank’s of the gospel. bargain although she had just lost her father. We will never forget The couple, who met through a that.” - Michael mutual friend and have three children were perfectly matched to delve into the business of real estate. Winfred is a lawyer showed a static performance in asking dropped by 0. 2 per cent in the quarter who after years of conveyancing and prices despite strong buying interest in while semi-detached houses recorded a 0.4 helping clients unlock the value of their the quarter. per cent drop as this segment is dominated properties took to the family business like a “Interest in the property market is by buyers who purchase the properties to fish to water. being sustained by investors looking live in and as of now are postponing buying Michael, a Wharton School graduate has for attractive rental and capital growth decisions as the general elections approach. a background in real estate management prospects often achieved in the apartment “The property market is currently being and entrepreneurship. segment of Kenya’s real estate market,” held by the investor buyer, looking for safe “We decided to combine our skillsets and reads the company’s report. but strong returns over competing asset try our hands in property development,” According to the report, this sustained classes such as stocks and Treasury bills Michael says. “And we do not regret that interest produced a 0.4 per cent rise in which have been on a bear run over the decision.” asking prices over the quarter even as same period,” the report quotes Sakina Real estate firm Hass Consult property other segments witnessed minor price Hassanali, Head of Development Consulting price indices for the first quarter of 2017, falls. Asking prices for detached houses and Research at the company.

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The total returns on Michael says it took close to apartments average 11.7 a year to get funding. They per cent compared with a say they approached about return of 8.78 per cent on seven financial institutions 91-day Treasury Bills and but to no avail. a negative 2.92 per return “We broke ground for at the Nairobi Securities the project in January Exchange (NSE). The 2016 and financing was return on let apartments is approved in October,” still superior to competing Michael says. asset classes despite the In those ten odd months, quarters 3.3 per cent bank after bank turned drop in asking rents on them down. It was a tough apartments. time for these developers Home owners in the to be in the market for adjacent Fahari Gardens, financing a large project. who bought their units However, when good off plan, have already fortune struck and KCB experienced a KShs2 Bank came through it Michael Warui of Storehouse Holdings Company Limited at the Liza Heights coincided with the capping million appreciation in construction site in Kinoo. their property values. of bank interest rates that Fahari Gardens was gave even greater meaning the first real estate to the maxim that patience development in the area. It is owned by an is a virtue. aunt and uncle to the couple. “KCB Bank came through for us and The Waruis are a close-knit family. In provided the financing we needed,” Michael fact, Liza Heights was named after Michael’s says. grandmother. And for the two, family “Apart from the money, they have given remains at the centre of what they want Liza us exceptional service. They have helped us Heights to represent. market the apartments and been responsive “We want to create a space that will make to our customer’s needs for mortgage you feel like you are home. You open the financing. We will never forget the gesture door, feel the warmth and never want to go from one of KCB Bank’s officers who out,” Winfred says. consistently worked to meet the end of the In a few weeks Liza Heights will be ready bank’s bargain although she had just lost her for occupation. The grassed playing areas, father. We will never forget her commitment the well spaced and cabro surfaced parking beyond her call to duty..” spots, the motion sensors put around the They are grateful that the loan from ground floor units, the intercom system in KCB Bank enabled them achieve their every house connected to the main gate, plus dreams and hope that the bank will partner a Japanese built Johkasou water treatment with them in Phase 2 of the project as unit all mask the initial hiccups they faced. well as future ventures in their real estate The biggest was access to financing. development pipeline.

11.7% 10 2018 Total returns on apartments Number of months last year the Projected completion year for according to Hass Consult. 91-day couple looked for financing. the Liza Heights property. T-Bills have a 8.78 percent return.

Do you have a dream? Contact : +254 (20) 3270199 corporateservice@KCB Bank.co.ke | 55 REAL ESTATE

How AMS Properties sparked the real estate revolution Park Inn by Radisson is the latest creation of AMS Properties. Whichever side you turn your gaze while standing on the rooftop of the hotel in Westlands, it is possible to see one of the many properties associated with the company

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itting on the top floor of the spanking new Park Inn by Radisson Hotel in the S heart of Westlands, one gets an almost panoramic view of the city of Nairobi. You soak up the view of the fast developing Westlands suburb, with its skyscrapers and high end residential homes over the north westerly side. On the other side, the view is that of Above:Fortis Suites in Upperhill. the City Centre and Upper Hill, which Below: Five Star Meadows, Kiambu Road. is fast developing as the new business district, complete with some of the tallest buildings in Kenya. Whichever side you turn your gaze to however, there is one constant: there is a property associated with AMS properties, KCB Bank has helped us the company that owns Park Inn by grow exponentially. They Radisson. have actually financed There is Fortis Office Park and Fortis majority of our projects, Tower in Westlands; then there is One including Park Inn. When Riverside Drive and slightly off Waiyaki we face challenges in way, there is One General Mathenge business, they will come on General Mathenge Drive, where discuss with us. the company has built million-dollar apartments that have redefined Kenya’s luxury living. A good number of these apartments have already been booked and paid for and as the project is nearing 140 completion. The firm had a planned open Number of rooms at the house event at the end of September. Park Inn by Radisson in Further afield, there are other Westlands. residential, industrial and office blocks that the company developed and which are all iconic and architectural masterpieces. The 140 room 4 Star hotel is the venue for Venture’s interview with Ronal Samani, a Director of AMS Group. It is bustling with activity right from the reception, something that fills Samani with pride. “We have come a long way from that first project we did in South C,” he says, referring to the plunge the company took in the mid 90s in building 300 maisonettes near Nairobi’s Wilson Airport. >>>

| 57 REAL ESTATE

The inside view of one of the One General Mathenge apartments.

>>> “The country was going architectural footprint but in the pipeline,” says Samani. Radisson, we spent time and through some economic bound together by the quality But it is the Park Inn by resources identifying the right challenges, with interest rates of workmanship and finishes Radisson that Samani is most location. Getting the right at an all-time high making that has set a benchmark for proud of. It is, says Samani, in partner in the Rezidor group it difficult for buyers to fulfil the rest of the industry. the perfect location and serves also helped the hotel take off their obligations. But we “To date, we have added a market that had remained quite quickly”. succeeded because it was a over 8 million square feet of under served for a long time. One General Mathenge unique development with real estate into the market, Since the hotel opened in is another project that the high end finishes and we were with larger developments still April, it has enjoyed a steady Samani family is proud of. It is able to accommodate certain improvement in bookings, opulence redefined. Designed buyers who were hard hit by and clients who have stayed by one of New York’s master the interest rate spike,” says there have given it exceptional architects, Albert Angel, the Samani. 2016 ratings. development comprises 43 Since then, it has been a Year when Park Inn “We do careful feasibility units on a three-acre prime journey of one project after by Radisson was studies before we venture into piece of land. another, all unique in their recognised as the ‘Best any business. For Park Inn by The largest unit is a five new hotel in Africa’.

Interior and exterior views of the One General Mathenge apartments.

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Projects by AMS Properties

Five Star Meadows Kiambu Road

0ne General Mathenge Five Star Paradise General Mathenge Drive Kiambu Road 0ne WestPark Mpaka Road, Westlands

Park Inn by Radisson Fortis Tower Waiyaki Way, Westlands Woodvale Grove, Westlands

One Riverside Drive Riverside Drive Fortis Office Park Muthangari Drive Olive Point Villas Riverside Drive Ashton Court Masanduku Lane, Lavington

Merlin Court Mbaazi Avenue, Lavington Fortis Suites Hospital Road, Upper Hill

Five Star Gardens 1 Fortis Industrial Park Mombasa Road Mombasa Road

bedroomed duplex penthouse that Star Estate in South C area – was comes with 2 DSQs and stretches over fully absorbed by Kenyans hungry for We have added eight 8,900 square feet. It also comes with planned developments. million square feet a private lift lobby as standard and That is the time that the company of real estate in the parking for four cars. Samani refers built a name for itself as a trustworthy market. to them as “ultra-luxury apartments” partner. For customers who were having which is clearly reflected in the one some challenges completing their million dollar price tag. purchases, they were refunded all their AMS was founded in the mid 90’s, deposits without forfeiting a penny. at a time when many more Kenyans “This created a lot of loyalty and 200m had just started realizing that they goodwill forming the basis for our Amount of money could buy their own home despite the future success. It has been a good in USD they plan to crazy interest rate regime that reigned journey,” says Samani. invest in a mixed at the time. At one time, interest rates In the works is a USD200 million development project shot past the 80 percent mark, but the mixed development project in Upper in Upper Hill. company’s first major project – Five Hill; a luxurious 218 exquisite villa >>>

| 59 REAL ESTATE

>>> development on a spectacular its myriad challenges, and it 40-acre site on Kiambu Road, is affected by factors such as a new office park in Karen contractor turnaround time, to cater for those who would cost overruns, interest rates, rather have their offices in high prices for land and poor a less congested and serene infrastructure among others. neighbourhood and further Consolidation is required in afield in Kisumu, the first order to professionalise the high end office suites and industry. apartments overlooking Lake “Over time, only Victoria. professional developers will The property developers remain in the market while do not just take a dive the average size of projects into any development, but will probably increase going rather, careful analysis and forward. There is a lot of feasibility is carried out before potential in the market but we committing funds to any have to approach the market development. in a more professional way,” Like any other industry, says Samani. Samani says real estate has Many developers, think

Ronal Samani, Director AMS Group.

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We are focused on giving our they can put up Grade A for investment. received over the years from customers apartments or office blocks “We need to start focusing KCB Bank. world-class but this is not the case. It’s on the low-income segment “Our relationship properties. all in the location, design and – the Ksh5 million to Ksh7 started from our very first The lower end finishing. “We are focused on million range – which the development. The relationship of the market giving our customers world- government is doing a good just bloomed from them. Their which is class properties,” says Samani. thing in supporting by giving working ethos is without lagging behind He adds that the lower end of tax incentives,” says Samani. equal. I genuinely mean this in terms of new the market which is lagging He adds that the success but the way they work, it feels and affordable behind in terms of new and of AMS is anchored on the like a family,” says Samani houses is affordable houses is now ripe support the company has adding that the Bank has now ripe for worked hand in hand with the investment.” developer for the quarter of a Samani century that AMS has been in the real estate business. “It really means something. It’s about getting things done and KCB Bank has excelled in this. The bank has helped us grow exponentially. They have actually financed majority of our projects, including Park Inn by Radisson. When we face challenges in business, they will come discuss with us about the next steps that we ought to take.” “When they approve a project, they do it as a partner who is ready to walk with us, not just a financier. We are truly grateful to the team at KCB Bank for what they have done for us,” says Samani. AMS’ work has been globally recognized, with the International Property Awards going to some of the company’s projects. For instance, in 2015-2016, Park Inn by Radisson was recognized as the “Best new hotel development in the whole of Africa” while One General Mathenge won the Regional Award for Africa for Best Apartment, Kenya in the 2017-2018 Africa & Arabia Property Awards.

Do you have a dream? Contact : +254 (20) 3270199 corporateservice@KCB Bank.co.ke

| 61 REAL ESTATE

Lording it over the Lake

ornel Osano has Forty-four year old Cornel Osano has whatever they can do, we can bought a bag of do too,” he says as he goes back cement every put up a 124-room hotel in Kisumu. to the funny story of how he C day for The project represents emergence of a found himself owning a hotel the past chain made up of five hotels all 21 years of his life. It is not an city that has for too long lagged behind under the Royal City Group of obsession or a compulsion. other towns in construction Hotels brand name. It is simply because he is “It is funny how I got into in the business of buying, this,” says the slim, 6 foot demolishing and building district. conference area, a near Osano. His clean-shaven face things. Things that later In another world, the 124- Olympic sized swimming pool. takes years off his narrow flourish into profitable hotels room hotel, with its white All these might seem normal face. His well-kept physique in the lakeside resort city of washed walls and chromium for a hotel in any other part of takes another couple of years Kisumu. poles, would stand out like a the world, but for Kisumu, a off. He would easily pass for a “It takes hard work,” he sore thumb from the plush city from which investors shied 35-year-old. But the wisdom says. “And some brains.” green background of farms away from for years especially from his counsel betrays his The 44-year-old did not set all around it. Instead, it sits after the 2007 post-election actual years. out in life fixated on the path majestically. Unobtrusive. violence, it represents the When he was 19 years, he that has led him to where he “We boast of the biggest emergence of a town that had accompanied his friend to is now. For him, being a hotel room capacity and the best for too long been forced to sit the offices of a once powerful mogul came to him by chance. conference facilities in Western in the shadows of somewhat politician from Western Kenya. His latest creation, the Kenya,” Osano says. “And we peaceful but underachieving They arrived well before their Grand Royal Swiss Hotel, sits are proud of it particularly siblings. appointed time because when majestically at the apex of one because it is all locally owned.” “And for me it also a big man summons you to an of the numerous Riat Hills, Three different restaurants. represents the fact that we, as early morning appointment, some 8 kilometres North-West A spa. A gym. A VIP lounge. Kisumu residents, can stand you hardly get a wink the of Kisumu’s central business A 2,000 sitting capacity proud and tell the world that night before.

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As they waited, he overheard a conversation. A contractor was taking the old man for a ride. “From the conversation, I knew that the old man “We boast of the biggest room capacity and the was not getting value for his best conference facilities in Western Kenya. For money. The contractor who me it represents the fact that we, as Kisumu was managing the old man’s residents, can stand proud and tell the world that properties was giving him hell. whatever they can do, we can do too. - Osano I could tell there were a lot of things he was keeping from the house owner,” he says. And that was his Damascus moment. “I imagined how far I could Number of rooms at go if I were to get into the real the Grand Royal Swiss estate management business 124 Hotel in Kisumu. and thrive on honesty,” he says. And that is what he did. A few months later, after >>>

Exterior and interior views of the Grand Royal Swiss Hotel in Kisumu. | 63 REAL ESTATE

Royal City Group of Hotels Director, Cornel Osano.

>>> doing some freelance work, the Kenya That initial dallying in real estate Polytechnic trained architect had some got him hooked. Buying and selling KShs25,000 coming his way. But he property was like a drug to him. He realised he could make much more from couldn’t stop and he loved it. one of his client’s. In 2010, an opportunity too good to “I told him I would let him keep his resist presented itself to him. He heard money in exchange for a tiny corner of from the grapevine that someone was his office. Luckily, he agreed,” Osano selling an ideally located property in says. Kisumu for a price he could afford. He A month later, he had got his first bought it. Today, one of his hotels stands property to manage. Word of mouth there. went around and before the year was In a span of five years and through over he had close to a dozen properties a series of loans from banks, he has under his name. managed to construct four hotels. “In a few years, I had an office of my Although it takes hard work, tact and own with my own employees,” he says. brains to get to where he is, financial By the time he turned 22, he had muscle goes a long way in cutting become a landlord. through the hurdles that occasionally “That is when I bought my first pop out of the ground like jumping property in Nairobi’s Kayole Estate,” he jacks in the cut throat hospitality says. industry.

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“Very few banks can afford to give you financing of up to a billion shillings,” he says. And when KCB Bank came calling, I could not say no,” he says. “KCB Bank has walked with us from inception. They have been our main bankers and have lent us support any time we have needed it. They are our bankers, financiers and credit card provider,” he says. And for the Royal City Group of Hotels, of which Osano serves as Director, there could not be a better fit. “As they became the largest bank in the region, so have we become the largest hotel in the region. In a way, we understand each other as our ambitions are aligned and they were ready to finance our projects when no one else wanted to,” Osano says. Apart from providing the financial backing to all their “As they (KCB Bank) became the largest bank in the dreams, Osano says KCB Bank region, so have we become the largest hotel in the also provides them with overdraft region. In a way, we understand each other as our facilities, crucial in the running ambitions are aligned and they were ready to finance and managing of hotels. our projects when no one else wanted to. - Osano “Hotels are cash intensive businesses. You need the overdrafts to deal with everyday bills,” he says. His vision is not done yet. The group of hotels is currently negotiating for franchises with other international brands to expand into Kisumu, and Osano, the boy who grew up in Kano plains next to Ahero and went to school barefoot, believes he will achieve it all. As he sits pensively on a bar stool at the main bar at the Grand Royal Swiss Hotel with nothing in front of him other than his two cell phones ringing constantly and a whole world to conquer, it is clear he will still be buying cement over the next 21 years of his life.“We are not there yet,” he says. Eyes firmly set on his next project. A mixed development on 180 acres facing Lake Victoria.

Do you have a dream? Contact : +254 (20) 3270199 corporateservice@KCB Bank.co.ke

| 65 KCBNEWS

AGRICULTURE Turning youth into green entrepreneurs nthony, 14, is a happy The two are among 367 beneficiaries income generating skills. teenager. He believes that who went through a three-month training “We can transform the agricultural he will one day be the in a new farming method referred to landscape of our country and return to A best farmer in town. hydroponic farming. The training was a situation where it is the young and His joys comes facilitated by the Miramar International energetic who grow the food that sustains from knowing that a few years ago, he College (MIC) and the KCB Foundation. the elderly and feeble among us,” says Ms was living in the streets with no hope for Hydroponics is a unique method Mwangi. the future. At the age of nine, he was part of growing plants that uses water According to Moezz Mir, KCB Bank of a criminal gang that eventually saw him and nutrients to grow crops through Director, Corporate Banking, hydroponic spend time at a government rehabilitation a sustainable method. Soil is not a farming can help the country to be food centre. requirement. reliant. Unlike conventional farming, this Faith, 14, is another teenager who is Although this technique relies primarily type of farming requires minimal amount bent on turning her life around. She had on water, it is efficient in managing the of water and is hence suitable for arid and a difficult childhood which saw her run resource. semi-arid areas, and also requires a small away from home at the age of nine. She Jane Mwangi Executive Director, KCB piece of land. too was rescued from the streets and Foundation, is happy with the role they Faith and Anthony say hydroponic rehabilitated. are playing with equipping youth with farming will help them in the future.

KCB Bank Director, Corporate Banking Moezz Mir, with KCB Foundation Executive Director Jane Mwangi being taken through the processes involved in hydroponic farming.

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Hydroponic farming at the Miramar International College.

For Faith, she hopes to earn enough KShs34,000 every month,” he said. money to join college. The revenue projections are “The skill that I have learnt in the calculated based on 12 metres by 20 last three months will help me earn We can transform the agricultural metres sheds. money and help my parents,” says landscape and return to a “Given our unreliable weather and Anthony. situation where it is the young the resultant food shortages and high Mr Mir is happy that the bank is and energetic who grow the food cost of food, then we can begin to view part of a life-changing programme that sustains the elderly” - KCB hydroponic farming as a saviour. If we that will transform the youngsters into Foundation Executive Director, instill in our young people that farming agribusiness entrepreneurs. Jane Mwangi. is profitable, then most of them can “They enrolled in this programme take up hydroponic farming. From not knowing what to expect, they what I have seen here, any Kenyan can grappled with exciting new concepts do farming,” Mir adds. and ideas, they stayed up late at night 367 But to really value the potential of studying and debating on what they hydroponics, we need to examine some Number of young entrepreneurs had learnt, they worked with their early adopters of the technology. who underwent hydroponics hands, their minds and their hearts to In Tokyo for example, land is training at the Miramar master a modern miracle; the art of extremely valuable due to the surging International College under hydroponic production; how to grow population. To feed the citizens, the the KCB Foundation 2Jiajiri crops without soil,” says Mr Mir. country has turned to hydroponic rice programme. He says that if each of the 367 production. Farmers there now have young entrepreneurs apply themselves four cycles of harvest instead of one. fully to the practice of hydroponic Hydroponics also has been used in production to grow vegetables, that collective monthly income is estimated Israel which has a dry, arid climate. would translate into a monthly income at KShs12.5 million. In other words, Farmers grow berries, citrus fruits and of KShs6.8 million. each of them has been positioned bananas, all of which couldn’t normally “If they decide to grow tomatoes, the to earn between KShs18,000 and grow under Israel’s climate.

| 67 Members of the KCB Biashara Club during a trip to the Negev training institute in Israel.

AGRICULTURE Biashara Club is exposing What we pride ourselves in at KCB Bank SME’s to best practices is proper Tel Aviv, Israel support and Bank’s Biashara Club, a which opened my eyes to ensuring that networking platform that KCB different technologies in civil our turnaround ally Sakwa makes Bank operates in lieu of a full- engineering. That has helped time for a livelihood fledged SME unit. me compete for bigger jobs customers out of the It’s a unit that was created and even tarmac some of the is quick and construction by the bank to specifically grow roads in Kakamega County,” Ms efficient. We S business. SMEs which was established Sakawa said after a recent trip want them She’s back in 2008. to Israel. to be able the proprietor of Mumias- Through the Club, the She was on the Israel trip to finance based Sayyda Trade, a young bank has brought together – along with 34 other SME whatever ideas business that is now growing entrepreneurs not only to entrepreneurs - to find out how they have robustly. offer financial support but also she could diversify her business quickly. It wasn’t a rosy path provide a networking platform interests to cutting edge building the business. and exposure trips. dairy farming from a nation Before 2011, Ms Sakwa Members like Ms Sakwa considered a powerhouse of kept finding it difficult to get have been on familiarisation agricultural innovation. the business going. One day, trips to countries such as Cumulatively, Biashara she reluctantly applied for a Germany, Turkey, Germany, Club has trained more than construction tender under China and the US to 42,000 customers on various the 30 percent set aside for expose them to technology, business areas with over 29 women, youth and persons opportunities and best international trips with six with disability. practices that can be replicated local trips. In 2016 alone, the She got her first contract to back in their businesses. Club held 55 business trainings build culverts in Mumias that It was during one of such across the country and trained set her on a path to growth. trip that became the turning over 5,200 customers. But her real turning point point for Ms Sakwa’s business. “This year, we have came when she joined KCB “My first trip was to China conducted 28 workshops in

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Quarter 1 with a target of doing 75 workshops by end of Quarter 4. The feedback on the topics was very good, most of them felt they were not only timely but they were very relevant to their businesses,” says KCB Bank Kenya Western Regional Manager Metric Mukhalasie. “What we pride ourselves in at KCB Bank is proper support and ensuring that our turnaround time for customers is quick and efficient. We want them to be able to finance whatever ideas they have quickly,” said Mr Mukhalasie. Ms Christine Wasike, a Biashara Club member, says that “small businesses run the world.” Mrs Wasike says why most SMEs fail is because they run before they can walk rather than building the businesses organically and appreciating KCB Biashara Club members at the Kibbutz Dairy farm in Israel. the different facets of growth. of IT accessories with great they opened Studio Six Bank for the last 13 years and Her big moment came success making rapid inroads. Interiors. since joining the Biashara Club during a trip to Turkey However things changed from While he ran that part of we have been able to network which she says changed her late 2007 when the market the businesses, Mrs Kung’u and open ourselves up to new perception of the role played became overly saturated. concentrated on the textile opportunities,” he said. by SMEs. “We were pushed out of the industry, winning contracts According to Mr Mukhalasie, “I was fascinated by the market because of the massive to supply different arms of helping SMEs flourish is fact that most big businesses imports from China,” Mr government with uniforms. crucial for the economy, in Turkey have very humble Kung’u said. They attribute their because it creates a growing beginnings. It is something The Kungu’s later turned growing success to the ability middle class with disposable that we must encourage their attention to the to network and meet both income, in tandem with our young people to do and construction sector before partners and clients that market opportunities for new introduce them to the concept deciding to specialise in helped grow their business. investors. of small business,” Mrs Wasike interior design in 2014, when “We have banked with KCB The bank plans to increase said. “A mama mboga doesn’t the contribution of SMEs to a need a million shillings to fifth of its loan book by 2019. boost her business. Banks need “It’s been an amazing to realise this and offer trade journey. The customers advise loans that help a business us where they would want to grow. go and we facilitate those trips. Mrs Wasike is not alone in 1,500 We encourage them to bring learning. Samuel Kung’u and Number of entrepreneurs under Biashara Club who back technology and not just his wife Monica thought they not only get financial support from the bank, but buy products in an effort to had struck gold in 2004 with also get a networking platform and exposure trips. support the local economy,” Mr advent of the internet age. Mukhalasie said. They started off as suppliers

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Home buyer or builder, we have your solutions under one roof At KCB Bank, we shoulder the burden to ensure your dream to owning a house is hassle-free

any aspire make each customer feel right seekers, developers and to build or at home. suppliers. It also gives purchase Another big part of our customers a platform to KCB Insurance has a house. role is getting customers off view properties they may a special product; M However, to the best possible start in be interested in as it allows Mortgage Protection this journey is not a walk in the constructing their homes. We developers to showcase their Insurance which is park and often this dream is know that for many prospective property. Moreover, customers a Life Assurance hampered by limited finances, homeowners, the process benefit from advisory services Policy that pays lack of access to knowledge and can be an intimidating and from experienced mortgage out the mortgage guidance and exorbitant land disconcerting experience. experts stationed there. balance if a certain prices. That’s why as KCB Bank, The bank has also explored event such as This is why KCB Bank is we are keen to play our role at various avenue of partnership death, disability, dedicated to simplifying the each point in the process by to add even more value to the retrenchment or process for our customers to providing support and advice. home ownership experience. critical illness enable their progress. Part of To do this, the bank has For the best roofing options, occurs.” our responsibility as solution tailored solutions to cater for KCB Bank and Mabati providers lies in helping our each step in the journey. Rollings Mills enable KCB customers find the perfect Here are some ways the Bank Bank customers to purchase home. is aiding the process: coloured mabati at 18% 8.5% Whether this assistance The KCB Property Centre is a discounted prices and with Interest rate offered to comes in the form of one stop property information Ideal Ceramics, customers account holders of the financing or all round project shop for potential homeowners purchase tiles and sanitary KCB Goal Account. management, we work hard to that mutually links property ware and other decoration

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solutions at 10% discounted is a Life Assurance Policy strategic partners by way of discounted rates. prices. that pays out the mortgage joint Venture Partnerships, From real estate investment Aligned to the Bank’s balance if a certain event Project Finance Structures, to home owning to building sustainability agenda which such as death, disability, and also Asset Securitization savings to insuring your encourages minimal resource retrenchment or critical Structures. future, you can count on KCB consumption, top notch solar illness occurs.” And for the dreamers, those Bank to cover you through a heating equipment and power For investors, KCB Capital just starting on their journey one-stop shop. backups at a discount of up is strategically positioned to homeownership, there’s the If this is your dream, walk to 25% are available through to assist companies and KCB Goal Account offering in to the nearest KCB Bank the partnership with Chloride individuals to raise both debt the best market rate of up to branch near you or chat with Exide. and equity funding from the 8.5% p.a. interest in savings us on Social Media to kick The other partnerships capital markets as well as and allowing borrowing of start the fulfilling journey to include discounted prices privately from financial and up to 100% of savings at homeownership. for decoration solutions with Crown Paints Kenya Ltd, Furniture Elegance and Doshi Group. KCB Insurance offers home owners comprehensive insurance packages which provide indemnity against loss or damage to properties caused by fire, lightning and explosion. The policy has been extended to cover damage to the building resulting from all thinkable impending dangers and better yet also covers commercial buildings that may still be under mortgage. Additionally, there’s Mortgage Protection Insurance which pays out the mortgage balance if a certain event such as death, disability, retrenchment or critical illness occurs. What is more interesting is the fact that, if any of the insured events occur, the policy benefit will be paid directly to the lender leaving the borrower’s dependents with a home unencumbered by mortgage debt. KCB Bank provides home loans with competitive interest rates and flexible repayments and the bank’s mortgage division has a wide selection of home loans to purchase or refinance. KCB Insurance has a special product; Mortgage Protection Insurance which

| 71 PURSUITS The business of life

EXPENSIVE HOMES 12–bed house for sale. Price: Only KShs25 billion

f you have a spare KShs25 houses in the market today, and it is a study couple of swimming pools. The swimming billion or thereabouts, in opulence, decadence and a touch of over- pools have a large pop-up screen that you there is a house that you the-top excesses. can watch Game of Thrones, or whatever may want to consider. The 12-bedroomed house comes with 21 your favourite series is, while swimming or I The house, in Bel bathrooms (yes, 21), a 40-seater theatre for lounging on the sun beds. Air, California, has those moments when you need to watch The 38,000 square foot house is built on been touted as one of the most expensive a blockbuster with your buddies and a four levels, with access via a ‘floating’ glass

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As part of the package, the house comes with a couple of Lamborghinis, Ferraris, Bentleys and even a Formula One car for the adrenaline junkie.

staircase that weighs four tonnes and putting out a fire in the house, you can cost KShs200 million. The staircase take a break from the tiresome work can buy you several apartments in the of fire-fighting to imbibe the world’s upper end of Lavington. number one champagne, all from the As part of the package, the house same hose. comes with a couple of Lamborghinis, Ferraris, Bentleys and even a Formula One car for the adrenaline junkie. In case you love biking, the developer has thoughtfully thrown in six top-of the-range motorbikes. The vehicles are worth a cool KShs3 billion. For visitors who love candy, the house comes with a KShs20 million in-built candy wall where all manner of sweets are available in jars that are several feet tall. Of course there is a KShs20m wine cellar stocked with some of the rarest wines in the world. Cost of the in-built candy As for the fire extinguishers, which wall where all manner are strategically positioned all over the of sweets are available building, they are not filled with your in jars that are several traditional foam or carbon dioxide but feet tall. with, wait for it, Dom Perignon! While

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GETAWAY Africa’s most expensive homes he real estate sector in growth; which has resulted to a growth in investment and development. In the past we Africa has been growing demand for high quality commercial and have been amazed by the quality housing steadily; with the residential housing. in other continents. However, African key drivers being A 2017 Knight Frank report shows that a countries are catching up with the trend. T urbanisation and huge volume of capital from sub Saharan Here are some of the most valuable rapid population countries is being diverted to real estate homes in Africa.

1. Kenya - Magnolia Hills, House No 12 Kenya’s most expensive home is located at the Magnolia Hills Estate in the suburbs of Kitsuru, Nairobi. The home is estimated to cost $6,500,000 (KShs600 million). The house has three floors and five bedrooms. The luxurious home includes indoor and outdoor jacuzzis and swimming pools.

4.34 According to real estate agents Hass Consult, residential property value in Kenya has increased 4.34 times between 2000 and 2016.

2. Uganda – ‘The Ham’ Mansion The mansion that faces Lake Victoria sits on five acres of land and is estimated to be worth KShs12.3 billion. This mansion is reportedly owned by businessman Ham Kigundu. The luxurious mansion, which is mainly black and white, has among other amenities, an Olympic size pool with a pier that goes several metres into Lake Victoria allowing for his family to go fishing.

$7,000 According to real estate agents Knight Frank, Uganda’s capital Kampala is the most expensive in terms of housing with apartments retailing for a little over $7,000.

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3. Nigeria – Mike Agenuga’s Mansion

Nigerians are popular for their larger than life attitude. Well, the same attitude is applied when it comes to their homes. Most of the high end homes are owned by politicians and celebrities. Nigerian business mogul and billionaire Dr Mike Adenuga owns what is arguably the most expensive home in 4. South Africa –Bantry 5. Angola- Castello 6. Cairo, Egypt- Nigeria. Estimated to be worth Bay Home, Cape Town di Lago (Castle by the Katameya Heights Villa over $21 million, the estate The most expensive home ever sea) The most expensive home is has eight duplexes, a mosque, sold in Africa was in Cape Town. The most expensive property estimated to be worth $17.3 a church and a multipurpose The home is constructed on a listing in Luanda, the capital million. It is a spacious villa hall that can sit 200 people. It ridge above the Atlantic Sea and city of Angola was a property sitting on 4,200 sqm of land is located in Banana Island in is estimated to be worth $23,2 with a rustic old world charm and located at Katameya Lagos- the most prestigious million. The location gives the known as ‘Castle by the Sea’ Heights. The villa has seven island in the country. occupant a 360 degree view of that was built in 2007. The bedrooms, a private pool and However, the most expensive various sceneries among them property has been listed for a garden. property ever recorded was Table Mountain and Robben $959,000 and sits on 5,474 owned by Aliko Dangote, Island. sqft of land. It has 16 rooms Africa’s richest man. It was The three-storied home has 10 including a 86 feet of lake put up for sale for $30 million bedrooms and eight garages. It frontage. The luxurious 8% when he relocated to the UK. sits on 2,800 sqm of land, and master bedroom is said to The sale of apartments The house is also in Banana has won international awards for have a bathtub fit for a queen. increased in Cairo by 8% Island. its magnificent architecture. in 2015, whereas villa sale decreased by 1%. The rental market in 18.17% 1.95% 35 Cairo is growing steadily, and the amount of House prices in Lagos By the end of 2016, the In 2015, a report by rent charged per sqm have been dropping since house prices in South Knight Frank ranked increased to between $7 2015, as a result of the Africa had fallen by 1.95 Luanda as the city with and $9, up from $6. economic recession. percent; as a results of the most expensive In 2016 alone, there was high interest rates which real estate-based on an an 18.17% decrease in the pushed investors and average of rents from house prices in Lagos. homeowners away. across 35 countries.

India – Antilia But the most expensive house worldwide is in Mumbai, India. Named the ‘Antilia’ it is estimated to be worth $1 billion. It a 27-story skyscraper owned by Indian business tycoon, Mukesh Ambani. The unique features about the Antilia are the multistory garage that can fit 168 cars, three helipads, a ballroom and a home theatre that can fit 50 people. The property sits on 400,000 square feet.

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PRECIOUS JEWELS Timepieces that tell more than time

atches have been a status Mombasa Governor Hassan Joho was recently symbol ever since they were spotted with a Hublot Bigbang Rosegold invented. I am not talking estimated at KShs2.1 million. about the mass produced An article in a past issue of Forbes says W watches that everyone these luxury watches are mostly worn for can afford. I am referring ‘social peacocking’. The article outlines some to the luxury timepieces whose hallmark top brands that would suit in various occasions. are rich history, design and quality. These To impress your business colleagues, the timepieces not only tell the time, they say a lot Patek Philippe brand is probably your best bet. about the wearer, about his/her style, status The article says that although the watch might and of course wealth. They also cost an arm not look exciting at first, it is well regarded by and a leg. watch aficionados. President Uhuru Kenyatta is one of the To show wealth, casually, those in the Kenyans known for his penchant for luxury ‘leisure class’ can settle for a high-end steel timepieces. A photograph of him wearing what sports watch. A Rolex is always a popular appears to be a watch from the Arnold & Son choice and the Submariner or Explorer II model royal collection created quite a buzz on social are perfect picks. media recently. And for a good reason because If you want to catch the eye of watch lovers, the handcrafted HM Perpetual Moon model, then go with a Jaeger-LeCoultre. which has an 18-carat red gold casing, will set To help lure a lady. It is widely believed that you back well over KShs2 million. some settle for flashy cars to catch the eye of According to various media reports, the the ladies. The same applies to watches. But if President’s watch collection would amount not careful, too much colour, may just send the to more than KShs12 million. He has been wrong signal. For example, a watch that is too photograhed wearing a Parmigiani Pershing classic in taste may mean the wearer is a snob, series, a Rolex Submariner an Audemars aloof and boring. A bright coloured, sporty Piguet Royal Oak and a Patek Philippe Nautilus watch may mean you are showy. A good choice estimated to cost KShs2.6 million. is an Italian Panerai. These watches are bold But he is not alone in this enviable league. yet elegant and will not scare the ladies away.

The Cartier Tank - Patek Phillipe & Co: Omega Watches: Longines; 1917 – 2017 – 100 Years 1851 – 2017 – 166 Years 1848-2017 – 169 Years 1832 – 2017 – 185 Years Watches that are ‘You never actually Made by a Swiss Longines company not round in shape are own a Patek Phillipe. watchmaker, Omega started as a family somewhat a rarity. The You merely look after it watches have a rich business in France in Cartier Tank is one for the next generation” history. The watches were 1832. This timepiece has such watch that usually This is the tag line for used by NASA astronauts evolved but still has the rectangular or square. Swiss watches. Patek going to the moon in 1969. class it humbly exudes. When creating the Phillipe & Co created On 27 occasions since The watchmaker timepiece in 1917, Louis the first wrist watch for 1932, OMEGA has been is the oldest brand Cartier drew inspiration a woman, the countess the Official Timekeeper at name registered with from the Renault of Hungary: a lavish, the Olympic Games and the World Intellectual military tanks. rectangular, yellow-gold has also been the choice Property Organisation piece set with diamonds. for James Bond film (WIPO) since1889. character since 1995. Rolex 1905 – 2017 – 112 years Rolex spells luxury elegance and class. Forbes 2016 ranked Rolex as the 64th World’s Most Powerful Brand. Rolex is the father of firsts. It was the first waterproof wristwatch “Oyster” back in 1926. It was the first wristwatch to come up with an automatically changing date on the dial in 1945. In 1954, Rolex was the first wrist watch to show two time zones at once.

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The solid log walls are resistant due to their mass and they aren’t prone to attacks by termites because of the large quantities of wood especially dry wood.”

GETAWAYS Luxury log homes

e all love spending time For development companies that dare in places where we can to venture into the construction of log- truly be ourselves. homes, like the Othaya Group, they have I fancy the moments to import the logs from the Finnish forest W I get to sit in front in Finland, which has an abundant supply of a crackling fire of trees. surrounded by warm, honey-hued logs The rustic elegance of these log- with a book in hand. And the one place homes paints a picture of what the 21st that I long to be at the end of a hectic day century contemporary homes look like. is my quaint little apartment. However, apart from the aesthetic value, Today’s cabin homes are synonymous using renewable building material is with luxury and comfort, and the rustic better for the environment as opposed style appears to be gaining popularity to constructing with concrete, steel and in Kenya. But these homes may not stone. attract first time buyers. They target Log-homes are also known to be people looking to invest in holiday homes, durable, and in Europe they last as long as recreational facilities and boutique hotels. 150 years. The solid log walls are resistant The concept of log homes was due to their mass and they aren’t prone to introduced in Eastern Europe 200 years attacks by termites because of the large ago and is popular in countries where the quantities of wood especially dry wood. pine and spruce trees are easily available. Fireplaces, large walls of glass, Today modern amenities are incorporated dramatic exposed beam timber ceilings, into the traditional log design, an and covered porches all tell a story of a ensemble tastefully put together like the very different connotation of what a log Swiss chalets. home is in 2017.

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