KENYA
Kenya’s Property Market
BY ILSE FRENCH
K
enya has a strategic location in East Africa,
and many companies looking to expand in
this region are looking at Kenya as a market
entry point.
Residential sector
The growth in Kenya’s middle class has led to an
increase in demand for residential real estate, and the
speed of urban population growth currently exceeds
the rate of development of new houses. Kenya’s
state-run National Housing Corporation estimates
the current housing shortage at 2 million units.
Current production of new houses is estimated at 30
000 units per year.
Kenya’s government is currently looking to the
private sector to address the housing deficit and in
2012, the government introduced new regulations
to allow PPPs to be used to develop new housing
projects. Three PPP housing projects for public
servants totalling 76 000 units are currently in the
development pipeline. In the private residential
market, urban developers in Kenya are currently
adopting a ‘high density’ approach to scheme design
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Offshore Handbook 2016
– such as apartments – and a bigger plot ratio in
order to make optimal use of available land.
The National Housing Corporation estimates the
current housing shortage at 2 million units. Current
production of new houses is estimated at 30 000
units per year.
Retail sector
The outlook for the retail sector is strong and Kenya
is starting to be seen as an ideal point of entry
for launching retail outlets and consumer goods
distribution into East and Central Africa. The
improved infrastructure facilitates the movement
of goods and means a wider variety is available at
lower prices. Kenya has a growing local market with
a consumer base whose wealth is increasing. Only
about 16.8% of the population currently falls into
the middle class, but this is growing fast.
Kenya’s ‘Vision 2030’ includes plans to improve
the efficiency of the retail market and further increase
potential investment opportunities. Malls are already
surpassing office space in profitability.
Foreigners seeking a foothold in the market have
www.reimag.co.za