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Kenya Urban Roads Authority (KURA) yesterday announced plans to construct the Umoja-Innercore road project as part of an intended 408 kilometres upgrade of city roads.

KURA said it has so far accomplished 22 Kilometres of the project which mainly targets to improve access roads in the informal settlements. The Umoja-Innecore project will involve the rehabilitation of eight roads including Ruaraka Crescent Road, Kangundo Moi Drive link, Malewa-Mwangaza Road, Nasra Estate Road, Kifaru-Mutindwa Road, Kangundo Service Road, Mowlem Link Road, and Outer Ring Road links.

&ldquo;As of Friday last week we had done 22 kilometres and works are in progress to continue with the project which will be a game-changer of infrastructure in city informal settlements,&rdquo; Kura Director-General Silas Kinoti said.

<a href="https://kura.go.ke/" style="color: #ff6600;">KURA</a> officials said the Umoja-Innercore project will upgrade the road to seven-meter-wide two-lane carriageway into bitumen standards, as well as the construction of two-meter footpaths, bus bays, and drainage facilities.

Other areas set to benefit from the project include Kawangware, Riruta, parts of Dagoretti North, Mathare, Kangemi, and Mukuru, &nbsp;as well as Kibera, parts of Githurai 44 and 45, Mwiki, and Zimmermann.

&ldquo;Most of these areas have suffered from poor road network making accessibility of critical services and other essentials a challenge. This has led to difficulties in emergency and disaster response including fire outbreaks and other emergency services hampered by inaccessibility,&rdquo; he said.

The&nbsp;Nairobi Metropolitan Services (NMS)&nbsp;recently collaborated with KURA for the construction of a 28-kilometer road in Kibra.

Nairobi has grown into the largest shopping centre in Sub-Saharan Africa outside of South Africa with 6.5m square feet of retail space. The city accumulated more than 4.5m square feet over an 8-year period growing from 2m sqft in 2010 to 6.5m sqft in 2018 and is projected to reach 7.8m sqft by 2020.

According to Knight Frank Shop Africa report for 2018, growth in retail space has proceeded at a compounded annual growth rate of 15.9% over the past eight years. Growth in the city’s population and a growing middle class who are increasingly shopping in malls has raised the demand for retail space.

However, developers have been churning out malls at a higher pace than the market can take in, leading to an oversupply. The developers have been encouraged by the city’s improving infrastructure and changing lifestyles as more Kenyans gain access to disposable incomes.

A wealth report released yesterday by global wealth monitoring group Wealth-X ranked Kenya as one of the top 10 countries with the fastest growth in the number of ultra-high net worth individuals, a reflection of the changing income dynamics in the Kenyan populace.

In their latest retail <a href="https://www.cytonn.com/downloads">report</a>, Cytonn Investments project that supply of retail space will have grown to over 7.8m sqft with a 2-year CAGR of 9.8% for the two years and 14.3% CAGR for the 10-year period since 2010. The projected declining growth in supply shows developers reaction to the current oversupply.

In the past, Kiambu and Limuru road areas have been favourites for investors seeking to supply retail space to Nairobi’s residents due to accessibility and good roads, and proximity to middle and high income suburbs. Currently, the two locations account for 22% of total retail space in the market with 1.3 million sqft according to the report.

Related; <a href="https://estatecloud.co.ke/one-of-nairobis-most-iconic-malls-is-in-the-works/">One of Nairobi’s most iconic malls is in the works</a>

Mombasa road and Eastlands have also accumulated substantial retail space amounting to 14% of the total. So far, CBD and areas around Kilimani, Kileleshwa and Lavington have seen the least intrusion by shopping malls with 1.3% and 5.6% of the total respectively. However, the proposed construction of <a href="https://estatecloud.co.ke/one-of-nairobis-most-iconic-malls-is-in-the-works/">The Beacon</a>, to be completed in the next 3 years is expected to increase mall space near the CBD.

Kiambu County has the largest supply of mall space with 667,000 sqft of space and a deal pipeline of 60,000 sqft due to the upcoming Limuru mall. The county, which has been ranked the wealthiest in the country, boasts a large urban population and a booming real estate market.

Other counties with significant market share in the Nairobi metro region include Machakos with 463,000 sqft and Kajiado with 120,000 sqft.

Read; <a href="https://estatecloud.co.ke/retail-sector-under-pressure-as-industrial-property-presents-opportunities/">Retail sector under pressure as industrial property presents opportunities</a>

The increase in retail space has created demand for other real estate sectors especially logistics property but it has also resulted in a drop in rental yields as retailers compete for tenants. In 2017, the rental yield dropped by 1.9% with increasing vacancy rates which was compounded by the exit of Nakumatt from many locations.

Lands Cabinet Secretary Farida Karoney has revealed that half of Kenyans don’t have land title deeds for their parcels.

She was speaking during a government initiative to resettle more than 1,300 families on a 91-acre piece of land at Mikanjuni, Kilifi County.

The lands CS said the government had acquired the land from a private investor and repurposed it for resettlements subject to surveying and adjudication.

“The land was purchased this year following a directive issued by the President in 2017. Because of the purchase, more than 1,300 families will no longer be termed as squatters,” she said.

Accompanied by officers from the county’s land department, CS Karony said the government will subdivide the land including space for social amenities.

She further said the government has issued more than 70,000 titles to residents from the coast region since 2016 and emphasized that at least two-thirds of residents from the region should be titled by 2022.

Securing land titles will enable the owners to carry out further development on their parces of land providing economic development.

In 2019 a study by Prindex, an organization which carries out continuous research on land rights, revealed that 61% of Kenyans feel they have the security of land tenure while another 11% remained indifferent.

According to the study, only 39% of the Kenyan respondents said they possess formal documents to prove ownership or rights-use of at least one of their properties at the time.

In any jurisdiction, the strength of property rights is measured by the level of citizens perception of them.

Read; <a style="color: #ff6600;" href="https://estatecloud.co.ke/only-61-of-kenyans-feel-their-property-rights-are-secure/">Only 61% of Kenyans feel their property rights are secure</a>

Half of Kenyans don't have land titles, says Lands CS

East Africa has over the past few years maintained steady economic growth, being the fastest growing region in the continent. Economic growth and growing demand for infrastructure services has seen countries in the region undertake mega projects. According to the National Construction Authority quarterly report, the following are the top ten most valuable projects in the region.
<ol>
 	<li>The Grand Renaissance Dam</li>
</ol>
The massive dam on the Blue Nile River has been under construction since 2011 and is on course to become the largest hydroelectric power plant in Africa upon completion. It is estimated the dam will have the capacity to inject 6450 MW into Ethiopia’s electric grid. In addition, the dam will be able to absorb all flood causing run off, irrigate 500,000 acres of land and supply water to the region all adding to its usefulness.
<ol start="2">
 	<li> Lake Turkana Wind Power Project</li>
</ol>
Located in Loyangalani District of Marsabit County, the Lake Turkana Wind Power farm uses 365 wind turbines each with a capacity to generate 850KW bringing the total potential to over 310MW of power when the wind farm becomes operational. The project includes a high voltage substation which will be connected to the national grid.
<ol start="3">
 	<li> Koysha Electric Dam</li>
</ol>
Another one of Ethiopia’s latest infrastructure drive is Koysha Dam, located along the Omo River, which flows out of Lake Turkana in Kenya, near the Southern Ethiopian border. The dam will generate about 2000MW of power besides irrigation water.
<ol start="4">
 	<li> Kigali Innovation City</li>
</ol>
Launched in 2016, Kigali Innovation City is envisioned to provide a conducive ecosystem for local and international technology and innovation companies to thrive. The African focused innovation city aims to drive Africa’s digital transformation agenda, moving from agrarian to knowledge-based economies to boost economic productivity using three platforms; the digital innovation platform, human capital development platform and innovation friendly financing platform. The cost of putting up the city is estimated at $1.9 billion.
<ol start="5">
 	<li> Mtwara Gas Project</li>
</ol>
Commissioned in 2016, the undertaking involved the construction of a 542 Kilometre gas pipeline that connects natural gas reserves in Mtwara, Lindi and Dar-es-Salaam. The country, which has some of the largest natural gas reserves in the region is initiated the project to diversify its energy sources. The project has an installed capacity of 18MW and is the only power source for Mtwara and Lindi regions.
<ol start="6">
 	<li> Central Railway</li>
</ol>
The 202 Kilometre Standard Gauge Railway that runs through he country from the Capital, Dar-es-Salaam to Rwanda and Burundi. When complete, the project is expected to contribute positively to the economy of Tanzania, Rwanda, Burundi, Uganda and DRC Congo.
<ol start="7">
 	<li> Mieso-Dire Dwa-Dewanle Railway Line, Ethiopia</li>
</ol>
Linking Ethiopia’s capital, Addis Ababa to Djibouti’s capital, the project will cover 740 kilometers. The project is part of a network of railway projects extending over 4774 Kilometres and creating a series of trade routes to Kenya, Sudan, South Sudan and the port of Djibouti.
<ol start="8">
 	<li> Karuma Hydro-Power Plant</li>
</ol>
The government of Uganda is undertaking the construction of the largest dam in Uganda, located at Karuma. The $1.7 billion Karuma dam project which is funded and built by the Chinese, has a capacity of producing 600MW of power. Work on the dam is set to be completed before the end of this year.
<ol start="9">
 	<li> Awash-Woldia-Hara Gebeya Rail Project</li>
</ol>
The projects whose main purpose is to connect Northern and Central Ethiopia with the Port of Djibouti serves several cities of the Amhara region directly. The railway line also connects industrial zones with neighbouring countries. The project will connect approximately a third of Ethiopia’s expansive population with mobility, export and import efficiency, and boost economic activity.
<ol start="10">
 	<li> Standard Gauge Railway Project</li>
</ol>
A flagship project under Kenya’s Vision 2030 development agenda, the Standard Gauge Railway was designed to enhance transportation within and across the country’s borders. The first phase of the project which involved the construction of a 472 kilometre long single track standard gauge railway between Mombasa and Nairobi is complete while the second phase from Nairobi to Naivasha is ongoing. The project is expected to open up the country’s trade, manufacturing, tourism and hospitality sectors.

&nbsp;

&nbsp;

&nbsp;

East Africa’s Top 10 Most Valuable Projects

Developers to decrease supply of retail space

UN-Habitat and the Nairobi City County Government released the Nairobi City County Public Space Inventory and Assessment <a style="color: #ff6600;" href="https://unhabitat.org/nairobi-city-county-public-space-inventory-and-assessment">Report</a> this month revealing the status of the city’s public spaces.

“The pandemic has exposed critical gaps in the accessibility, flexibility, design, management and maintenance, connectivity and equitable distribution of public space in Nairobi,” it says

The report shows that only 19.8 per cent of the 826 public open spaces in Nairobi have inclusive infrastructure. Despite the fact that over 47 per cent of Nairobians meet their daily commute needs by walking, only 75 of the 826 public open spaces have dedicated walkways connected to them.

This report highlights the gaps in the distribution, accessibility and quality of public open spaces in Nairobi, and provides a starting point to develop an evidence-based strategy and policy for the protection, revitalization, creation, enjoyment, and restoration of the city’s image as the ‘Green City in the Sun’.

Public spaces in Nairobi largely remain under-protected, underdeveloped and inaccessible especially by people with disabilities, women and children.

A mere 46 of the 826 public spaces are in the 130 informal settlements where over sixty per cent of Nairobians live. Just under half of all public spaces are too noisy or dirty from uncollected garbage to be places of serenity.

All of Nairobi’s green public spaces together is still 10-15 per cent less than the global average for successful cities.

“We cannot leave this to the Environment Ministry, Nairobi Metropolitan Services and the County Government of Nairobi to fix,” said the authors.

With the amount of urban land used and experienced as public spaces currently standing at 3,106 Ha, the report has called on Nairobi Metropolitan Services, Nairobi City County Government in collaboration with other national government agencies to urgently initiate an in-depth audit of all lands in the city county to establish the ownership of public spaces.

“It is imperative that the idea of public space is anchored at the core of urban planning, air quality and wider climate action, urban regeneration, slum upgrading and regeneration of Nairobi river,” it says.

Prime residential prices in Nairobi slid by 6.5% in the 12 months to March 2019, according to the Knight Frank Prime Global Cities Index (PGCI) for the first quarter.

This is the most significant reduction in values in a 12-month period that Nairobi has ever recorded since the index commenced recording data. The trend has been occasioned by continued oversupply, with large numbers of new properties coming into the market, and relatively few transactions in the high-end residential market.

In the three months to March, luxury home prices softened by half a percentage point, continuing a trend that has seen prices drop or remain unchanged in the city for the eighth consecutive quarter since the second quarter of 2017.

The price decline saw Nairobi drop in ranking to 42nd out of the 45 locations tracked by the global index. Cape Town, the only other African city in the PGCI, is ranked 19th with a 2.1% increase in the 12-month period and a marginal 0.1% price decline in the quarter.

Prime residential values in Nairobi peaked in the first three months of 2016 and have since fallen by a cumulative 9.2% over the last three years. However, luxury home values are still about 38% higher than in 2010, representing decent capital gains in the high-end market segment.

"Data tends to lag the market and we believe we will see further drops in the coming months as the market has continued to soften. Owing to the high values of the properties tracked and the current supply levels, plus the ongoing credit crunch, transactions will remain few and staggered unless vendors become realistic on pricing," said Anthony Havelock, Head of Agency at Knight Frank Kenya.

The build-up in supply has also resulted in high vacancy levels in the rental segment, piling pressure on rents in the top end of the market with further reductions expected.

Generally, luxury home price growth has slowed worldwide in recent years with the PGCI now averaging 1.3%, the lowest annual rate since the final quarter of 2009 when the world was in the grip of the financial crisis.

Berlin and Moscow were the exceptions in the index, recording double-digit annual price growths of 14.1% and 12% respectively in the year to March 2019, ranking them first and second on the PGCI. The two cities are among those riding on limited supply and relative affordability.

Canada’s Vancouver was the worst performer in the 12-month period with prime residential prices falling by 14.5%, followed by a 9.9% drop in Istanbul, Turkey.

Related; <a href="https://estatecloud.co.ke/africa-property-investments-supported-by-domestic-capital/">Africa property investments supported by domestic capital</a>

Nairobi’s luxury home prices to soften further

Kenya Methodist University(KeMU) is expediting a building project in Nairobi’s Central Business District. Showcasing the project on their website, the designer, DLR Group says they have designed the building to serve ‘our client's mission of creating affordable residential accommodation for the up-and-coming middle-class, mainly younger, people working in the city, as well as affordable office space for businesses just starting out’.

The ground floors going down to the basement will consist of retail units and a plaza that stretching out to the street. The plaza will be occupied by a small collection of kiosks that will activate the space and make it a vibrant place to eat, socialize, and spend time under the huge Jacaranda trees that have been there for decades.

Consisting of 375,000 square feet of mixed-use development, the building will rise to 32 floors. The base of the building is a multi-story retail and entertainment environment that engages the new public space. Above it will be an automated parking garage with twin car-lifts, which presents an unusual solution driven by necessity, since there is not enough site area to create ramps, and bedrock is just beneath the surface, allowing only a single level basement.

The building’s basement will be the holding area for the automated parking system to ensure smooth operation and minimal wait times. These levels can be converted to further accommodation should the need for parking decrease in the future.

On top of the building will be a roof bar that for easy viewing of the surrounding area. DLR Group is undertaking the planning and architectural design of the building in conjunction with a partner firm, Tectura International.

The project will be supposedly located on Utalii street in the location currently occupied by City Center Car Park.

Next Read; <a href="https://estatecloud.co.ke/nairobi-commercial-office-report/">Nairobi Commercial Office Report</a>

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Umoja-Innercore Road to Get New Upgrade by KURA

By Estate Cloud - over 2 years ago - Kenya

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