Kenya: The Built Environment Report 2023, released by the Architectural Association of Kenya (AAK), has shed light on the dynamic interplay of achievements and challenges in Kenya’s construction industry this year.
According to Kenya News Agency, the National Construction Authority (NCA) received a total of 4,770 applications from January to October 2023, with 70.3 percent of these applications successfully registered. The majority of these were residential developments, accounting for 54 percent of total applications, indicating a continued demand for housing. However, the sector is grappling with significant challenges, notably the escalating costs of construction.
AAK President Florence Nyole, speaking at the report’s launch, stated that the cost of construction soared significantly from the beginning to the end of 2023. “The price of steel reinforcement bars, for instance, increased by 14.29 percent from December 2022 to December 2023, while cement prices rose by approximately 15.38 percent in the same period,” Nyole explained. These increases were attributed to higher costs of construction materials and fuel, exacerbated by the devaluation of the currency.
Nyole also highlighted the steep rise in land rates, particularly in urban centers like Nairobi, where values have surged dramatically since December 2007. “These rising construction and land costs are major obstacles to achieving affordable housing,” she noted.
The AAK President emphasized that the lack of essential planning and legal frameworks contributes to haphazard urban developments. These frameworks include Local Physical Development Plans, Zoning Regulations, Development Control Regulations, and Building Regulations.
To address these issues, AAK conducted a survey among its members focusing on development control applications in several counties, including Nairobi, Mombasa, Kisumu, Nakuru, Uasin Gishu, Kilifi, Tharaka Nithi, and Kiambu. The survey findings suggested that delays in construction permitting are often due to human actions and oversights rather than systemic or external factors.
In Nairobi, while 43 percent of AAK members reported improved approval times, with an average of 8 weeks, 7 percent experienced delays exceeding 32 weeks. In Mombasa County, a mere 16.7 percent of applications were approved, with a large majority remaining unapproved, often requiring facilitation by county officials.
AAK has also focused on the engagement of consultants in the Affordable Housing Program (AHP), part of the government’s Big Four Agenda. With a significant project pipeline, the government has made progress in housing unit completions and launches, yet issues remain in consultation fee negotiations and the need for feasibility studies.
Nyole called for more effective collaboration and planning to overcome these challenges, emphasizing the role of AAK members in contributing to the success of the Affordable Housing Program.