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A new traffic management system for Nairobi is in the planning stage according to the Nairobi Metropolitan Services (NMS).

The Kenyan government through the NMS and Kenya Urban Roads Authority (KURA), plans to modernize traffic management in Nairobi.

President Uhuru Kenyatta yesterday revealed plans to construct a <a href="https://twitter.com/KenyanTraffic">traffic</a> management centre at City Cabanas, which will utilize cameras, sensors and anonymized data to manage traffic by providing synchronized signals at 100 new junctions within the city.

The President was speaking during the launch of the Nairobi Commuter Train system that will see residents enjoy faster transportation using the speedier Diesel Multiple Units which the government has started rolling out along certain routes.

He said the train system will increase the railway&#39;s capacity for daily commuters from 15,000 to 40,000 per day while additional infrastructure such as track lines and locomotives will see the number rise to 130,000 passengers per day.

NMS which is spearheading the project will oversee the new system, with the planned installation of additional traffic lights and signalization of 25 more intersections.

NMS has been maintaining, upgrading and repurposing roads within the city as part of its wider aim to improve non-motorized transportation. President Kenyatta said NMS has&nbsp;constructed a matatu terminus at the Nairobi Central Station to compliment bicycle lanes across the city as part of the Nairobi Urban Mobility Plan.

Phase one of the commuter train system will serve between the CBD and Kikuyu, Kitengela, Thika, Syokimau and Embakasi Areas while other parts of the city will be added in the subsequent two phases.

Housing and Urban Development PS Charles Hinga yesterday revealed that Kenya Railways is on course with the implementation of the Commuter Rail Masterplan covering the Nairobi Metropolitan Region.

The commuter rail system is envisaged to be the backbone of mass public transport within the Nairobi Metropolitan Region. The process of developing the masterplan was funded by the government of Kenya through financing credit from the World Bank.

“From the Commuter Rail Masterplan, we extracted what low hanging fruits and developed a quick wins plan which forms the immediate actions of what can be done within the limited resources but will have high impact. This is what we are now implementing,” said the PS

It has been estimated that currently the commuter rail is only responsible for carrying 1% of city passenger traffic during peak hours. Kenya Railways have estimated that just approximately 13,000 passengers use the network on a daily basis.

A Quick Win report of the master plan gives an overview of the problems and causes for the poor level of service on the current commuter railway network. The main problems highlighted include the low level of demand for commuter rail, substandard station facilities, low integration with other modes, low quality of service and the low level of supply with a fleet of only four old locomotives.

The report recommended five immediate actions by Kenya Railways and the Ministry of Transport estimated to cost about Ksh. 2.5 billion within 6 to 12 months.

Immediate actions include upgrading 20 mini stations, repair and maintenance of existing locomotives, modernization of Nairobi Central Station, and repair of critical sections on the current tracks. In addition, the plan recommended creation of a passing loop at Imara-Daima.

The first stage is to set up a Commuter Rail Unit within KR that will become a focal point for commuter services. This includes improving the five lines (to Siokymau, Embakasi Village, Thika, Kikuyu and line 5 to Kitengela).

The second stage is to be implemented over a much longer period as it involves building nine new stations including the upgrade of four mini stations (Kenyatta University, Umoja, Kibera and Thogoto) which will be built during the Immediate Actions programme.

In addition, it calls for the overall refurbishment of permanent way components, acquisition of new rolling stock, provision of train control systems for the network and building a new depot and workshops in Makadara.

The second stage, which could be implemented within 5 years, would follow the Immediate Actions programme and is estimated to cost a further Ksh. 28.4 billion. KR expects to increase the number of round trips will increase from the current 14 round trips per day to 81 round trips per day following these improvements.

According to the Housing PS. the government has already began executing the quick wins report.

“As we executed the quick wins report, it became abundantly clear that with SGR to Naivasha going live the extent of the metropolis had expanded to Nakuru. We thus harmonized the 2 networks with the following existing and planned stations to the year 2035,” he said.

Related; <a style="color: #ff6600;" href="https://estatecloud.co.ke/project-to-build-new-railway-station-for-githurai/">Project to build new railway station for Githurai</a>

The Kenya Ports Authority pension scheme is planning to build a 198-units housing development in Nairobi’s South C area.

The project will be built on a 1.2-hectare parcel of land located about a kilometer from Mombasa road, along South Park road which also serves Eka Hotel and Nextgen Mall.

The proposed project involves the construction of a gated community having three building blocks of 11 floors each composed of 66 three-bedroom apartments and DSQs.

In total, the project will contain 198 units and will be fitted with two high-speed lifts for each block, a 396 capacity parking bay and other salient and auxiliary facilities.

The buildings' ground floor level will be used as a parking bay by the residents with each residential package allocated two parking spaces.

The three-bedroom apartments will include detached servant quarters while the rooftop level of the buildings will be used to lay solar panels for heating water.

The total cost for the proposed project is estimated to be Kshs. 1,702,985,278.09

Kenya’s rapid population growth of 2.6 percent per annum, compared to the global average of 1.2 percent, and an urbanization rate of 4.4 percent against the global average of 2.1 percent has led to a high demand for affordable housing in urban areas.

Read; <a style="color: #ff6600;" href="https://estatecloud.co.ke/developer-to-put-up-ksh-3-9-billion-residential-development-in-kilifi/">Developer to put up Ksh. 3.9 billion residential development in Kilifi</a>

KPA to build Ksh. 1.7 billion housing development in South C

The heightened activity in private equity real estate funds which increased their cross-border investment by over 60% in 2017 according to the Active Capital report by Knight Frank, shows how the volume of investment capital has grown globally.

The accumulation of wealth in developed countries has enabled investors to chase returns beyond their borders resulting in cross-border capital flows.

Real estate is still one of the favourite investment avenues around the globe. As investors exchange capital for opportunities in the global market, it is clear that some countries get the lion’s share of the capital available. These countries received disproportionately high amounts of capital compared to the rest of the globe.

For instance, the report shows that cross-border transaction volumes have grown by 80% over the past five years, but the increase has been heavily concentrated within a limited number of locations. ‘In fact, the top five countries by capital inflows have typically accounted for well over 60% of total cross-border investment over the decade.’

The report sought to highlight the reasons why this unfair disparity in capital attraction happens.

The findings show that those countries benefit from a significant market size with large and high quality assets, good levels of transparency, consistency in the rule of law. Investors, especially first time overseas investors, also chose these markets for reasons such as familiarity with the locations.

Also Read; <a href="https://estatecloud.co.ke/capital-appreciation-for-nairobi-land-slowed-down-in-2017-report/">Capital appreciation for Nairobi land slowed down in 2017, report</a>

In addition, the income tax rate and the number of days it takes to complete a property deal were also indicators that investors considered when measuring a country’s economic health or level of development in the eyes of an investor.

Based on data, the report found that the US remained the major source of cross border capital on the planet with majority of it being spent in Europe.

Africa had the least capital outflows in real estate ($4.1bn) while established markets like Europe and Asia-Pacific each contributed at least $80bn into the global capital pool. From the report, Africa exported a large part of its real estate capital to Europe, North America and Asia-Pacific in 2017.

Despite economies contributing to global transactions outside their territories, domestic investments remained the larger part of real estate activity globally with 56% of the total investments compared to 44% of cross-border outflows

In general, variable factors such as transparency, economic growth and market liquidity will play a stronger role in determining the volumes of capital inflows to real estate.

Related; <a href="https://estatecloud.co.ke/dubai-investment-opportunities-attract-african-pension-funds/">Dubai investment opportunities attract African pension funds</a>

Africa invested $4.1bn in real estate outside the continent in 2017

Housing PS says Nairobi Commuter Rail Master Plan on course

The ministry of lands recently launched the Biometric Access Control System (BACS), a security technique to regulate the movement of people at the Ministry Headquarters at Ardhi House in Nairobi. Components of the BACS system, which has been installed at the main entrance includes a visible deterrent, biometric fingerprints and card readers to track the entrance of employees and visitors into the building as well as their exit. The system will identify, verify and allow entry, track time and deny access to restricted areas.

The system is a security measure to safeguard against the rampant theft or manipulation of land registration information from the ministry headquarters. Several instances of land theft and deprivation of land have been traced to loss of files and alteration of details in the lend registries. If the system works as intended, this will be a big boon for land security in the country. Prof. Jacob Kaimenyi also said that the system is also aimed at improving staff output by ensuring they report to work on time.

Staff will now use biometric access cards and fingerprints to access the restricted areas for security, time and attendance management. Visitors on the other hand will use access cards that will allow entry only into necessary areas and floors, and deny access to restricted areas. Further, the CS pointed out that the ministry is focused on serving Kenyans and this includes improving staff accountability and the capacity to fight graft.

The benefits of the BACS system include:

Accurate Identification

The system relies on biological characteristics of an individual’s fingerprint which is unique and an accurate identification method that cannot be easily duplicated unlike traditional systems which use personal identification cards and badges.

Accountability

In the case of breach of security, management can trace the responsible persons because the system leaves a definite audit trail of locations and floors accessed.

Enhanced Security

Undocumented access, ID swapping and manual badge checks are not applicable hence forgery is eliminated. Only biological features and access permissions strictly apply.

Improved Service Delivery

The system generates advanced insights and data on which areas are most frequented by the public and the time taken. This helps management to allocate resources to prevent delays.

Improved Staff Management

The system generates reports showing staff movement and time records which can be used to manage staff output.

Scalability

The system is very flexible and easily scalable to higher level of security with more discriminable features to increase identification accuracy and security within the building. During the launch, NLC Chair, Prof. Muhammad Swazuri said that the new system is not meant to discourage the public from accessing the building, but to ensure security of records, hasten service delivery and ensure genuine visits.

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Markets can be deceiving and it is not always the case that what you see is what you get. Consider the cyclic nature of real estate markets. Often, the rush to supply the market demand may occasion an oversupply leaving developers staring at financial daggers in the face. This may be a difficult situation to be in, depending on your establishment or lack of it in the market. The standard process is that your property gets to hang around in the market for longer and when you finally get a tenant, you do so at sub-optimal prices.

The effect is that it takes longer to get a return on investment. To be wishful, it had better be a short-term problem. Typical reactions to an oversupplied market include waiting for a market come-back, increasing marketing efforts, standing out from the crowd and price adjustments. Still, developers may find more creative ways to deal with their abundance of extra space. Here are a few tips on how to go about being innovative in the market.

Subdivision of Spaces

Generally, a glut in the market begins its affection with the high-end segment because investors are lured to invest in high-end properties following high returns. Demand is speculative and the result is that there are not so many wealthy tenants to go around. Usually there are more middle income earners and even more down the pyramid. An innovative way for property owners with large units to deal with this is to subdivide the units, especially for office and commercial space, into smaller ones according to market demand. This doesn’t have to be expensive because there are cheaper alternatives of accomplishing this without massively altering the structure of the building. This can help generate cash flows while you wait for market corrections to take effect. Even for rental properties, this is possible to do.

Conversion of Usage

Another way is to convert the properties from one use into another. For instance, it may be so that the market of office space is oversupplied but there is a shortage of conference rooms and demand for exhibition halls and theatres. Thus, a block of offices can be turned into commercial halls for conferences or exhibitions. Alternately, a residential block may be used for commercial purposes such as a community social welfare centre or a school. The key is to observe the market and look for opportunities that may offer the next best alternative under the prevailing conditions.

Incorporate Non-Profit Uses

Sometimes it is better to forgo a little profit in order to get a lot of profit. For example, giving space for a book club in an office apartment block or inserting room for a social centre in a commercial building may be a strategic move to bait the right tenants. The goal of such a strategy is to create the right environment for tenants to want to use your space. Such not-profit activities are viewed by many as corporate social responsibility which imputes approval ratings in the eyes of the society and market participants.

There is absolutely no limit to the extent of innovation that can help you milk some cash out of an unfavourable market. There are still risks involved, however the up side is quite attractive.

How to Get Returns in an Oversupplied Market

Kenya’s construction industry is expected to record a compound annual growth rate (CAGR) of 10.4% to reach KES 1,023.4 billion by 2024 according to a new report by Research and Markets

Based on the research, construction of residential properties increased at a CAGR of 9.0% in value terms between 2015 and 2019.

The commercial building construction market in value terms is estimated to record a CAGR of 10.9% over the forecast period while infrastructure construction was estimated to be KES 339.3 billion in 2019, posting a CAGR of 10.2% during the review period.

Similar to other parts of the globe, the construction industry in Kenya has been severely impacted by the COVID-19 outbreak.

Latest data from KNBS Leading Economic Indicators covering the period to May 2020, shows that that in the month of May the value of approved residential buildings in Nairobi dropped by more than four-fold compared to a similar period in the previous year as the influence of the pandemic grew in the country.

The pandemic is expected to impact the growth across key sectors over the short to medium term and recovery is expected to be slow.

Residential and commercial construction sectors are expected to be worst affected though infrastructure construction sector is expected to maintain growth momentum, supported by public spending.

KNBS data also shows that the quantity of cement produced increased from 510,919 metric tones in June 2020 to 514,233 metric tones in July 2020. Consumption of cement dropped from 508,298 metric tones in June 2020 to 447,902 metric tones in July 2020

The report covers top 10 cities in Kenya including Nairobi, Mombasa, Nakuru, Kisumu, Eldoret, Ruiru, Kikuyu, Thika, Mavoko, Garissa.

Read; <a style="color: #ff6600;" href="https://estatecloud.co.ke/construction-of-nakuru-airport-nears-start/">Construction of Nakuru Airport Nears Start</a>

See Also; <a style="color: #ff6600;" href="https://estatecloud.co.ke/nca-puts-developers-of-stalled-projects-on-notice/">NCA puts developers of stalled projects on notice</a>

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NMS Plan New Traffic Management System For Nairobi

By Estate Cloud - over 2 years ago - Kenya

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