The Architectural Association of Kenya has today released the Status of Built Environment 2022. Construction industry is among the main contributors to the growth of Kenya’s economy.
A report by Globaldata indicated that in 2021, the Kenyan construction market yielded $16.6 billion with an expectedannual average growth rate of up to 5% between 2023 and 2025. The Kenya National Bureau of Statistics (KNBS) reported that Kenya’s economy recorded a better performance in the first quarter of 2022, compared to thecorresponding quarter of 2021 at 6.8 % expansion compared to 2.7 % in the first quarter of 2021. This was largely attributed to the lifting of restrictions and measures instituted during the COVID-19 pandemic.
Cost of construction materials
The prices and availability of essential construction materials like steel, paint, aluminium, cement and PVC continue to remain unreliable in Kenya. The average price of a 50kg cement bag was Ksh 550 as of June 2021 compared to Ksh650 in June 2022. Locally, a kilo of steel rose from Ksh 100 to Ksh 180 late last year. The Russia – Ukraine waraccounted for the majority increase in steel prices in Kenya and globally. Increase in fuel and transport costs have also impacted construction costs. Transport industry directly influences construction material prices; as fuel prices go up so do material prices. There was considerable increase in fuel prices up to 39% between June 2021 and December 2022. This led to an overall 6.11% increase in construction costs in 2022.
The capital-intensive nature of real estate development requires alternative sources of capital. The government needs to on incentivizing the private sector and creating a favourable environment for development of affordable housing.This includes intensive research on alternative construction materials that can be used across different regions in Kenya.
Development applications approvals
In 2022, the National Construction Authority (NCA) received a total of 8,154 applications for project registration and approved 4,377 (53.7%) of the projects. NCA also inspected 26,060 construction projects in this period. NCA also suspended 18,192 (69.8%) of the projects due to non-compliance.
Affordable housing
The affordable housing project, launched under the BIG 4 AGENDA, sought to meet the demand of housing by a supply of at least 250,000 units annually. However, the Project has not achieved its target with under 14,000 units out of theproposed 500,000 units built during the first five years after its launch. According to the 2022 State of Housing Report bythe Economic and Social Rights Center – Haki Jamii, only a total of 13,529 units have been developed with minimal delivery in the social housing category. COVID-19 and inadequate supply of affordable serviced land are some of thechallenges that have hindered the success of the project. Past housing initiatives have also been hampered high cost ofconstruction, and long approval processes
Collapse of buildings
The collapse of buildings has tragically become a common occurrence in most major cities in developing countries. According to the 2019 NCA Audit Report, there have been over 87 reported cases of collapsed buildings since2015. This had led to loss of lives with an estimated 200 people dead and more than 1000 people injured. From the recorded 87 cases, 66% of the buildings collapsed after completion while 34% were under construction. Of the 87buildings, 65% were residential buildings, 25% were commercial buildings and 10% were mixed-use developments.The Nairobi Metropolitan Region has been the hotspot for these incidents with approximately 13 recorded cases of collapsed buildings in 2022.
Healthy homes
The COVID-19 Pandemic revealed how unhealthy and unsafe most homes are, especially in informal settlements, making it difficult for inhabitants to adhere to the government’s measures. AAK, in partnership with Habitat for Humanity International, has developed and published a Healthy Homes Guidelines and Checklist. The framework provides for and demonstrates a pathway to achieving healthy and resilient housing at a household, environmental, and community level in simplified manner. The framework is applicable when building, improving, or maintaining a house, formulating policies and investment decisions.
Climate change
The adverse effects of climate change are manifesting considerably more quickly than scientists anticipated less than adecade ago. With the built industry contributing up to 39% of climate change as reported by the UN, there is now a need more than ever to stop viewing Green Building as a buzzword and implement innovative ideas to reduce theeffects of climate change. AAK developed the Safari Green Building Index (SGBI), the first of its kind in Africa. Itpurposes is to aid in assessing projects in the built environment to establish their environmental performance and toprovide leadership in sustainability through subsequently reduced energy loads and minimized ecological footprintsand carbon emissions.
About The Architectural Association of Kenya
Established in 1967, the Architectural Association of Kenya (AAK) is Kenya’s leading Association for professionals in the built and natural environment in Kenya incorporating Architects, Quantity Surveyors, Town Planners, Engineers, Landscape Architects and Environmental Design Consultants, Construction Project Managers and Interior Designers.
The Association is registered under the Societies Act and brings together professionals from the Private Sector, Public Sector and Academia. The Association also acts as a link between professionals and stakeholders in the construction industry: Including policymakers, manufacturers, real estate developers and financial institutions.