Kenya: Construction Trends for 2013

Any enterprise is built by wise planning, becomes strong though common sense, and profits wonderfully by keeping abreast of the facts. (Proverb)

Today we highlight the top construction trends for 2013. We also go a step further to examine the potential threats that are anticipated in Kenya.

The Trends

For construction,  some of the top trends are:

  • Create large space by removing walls and eliminating obstructions
  • Construct buildings that can be easily converted to commercial office space or residential homes. For example, when building a residential home, make sure the wall elements are non-structural to enable future demolitions. The same applies to other elements such as windows.
Bamboo Flooring
Bamboo floor tiles
  • Move to hardwood and/or bamboo floors instead of traditional carpet flooring. They are sustainable, affordable and easy to maintain.
  • Transform areas into multi-function areas, for example open plan kitchen tops can be converted  into dining/bar areas
  • Use deeper sinks instead of double bowl sinks
  • Add living spaces to accommodate elderly family that are not able to afford a single unit
Solar Tiles being installed
Solar Tiles being installed
  • Install solar tiles or energy generating thin glas
  • Use sustainable concrete
  • Apply paper-based insulation
  • Install super-efficient triple glazed windows

Location, Location, Location….

In terms of location for development, these are our top locations:

  1. Thika road and surrounding areas
  2. Ruaka
  3. Ruai and Utawala areas
  4. Naivasha and Nakuru (For secure neighborhoods)
  5. Mlolongo/Syokimau area

Threats to Future Performance
Potential hazards in 2013 lie on various factors. These factors are socio-economic and political/Legal ones.

The socio-economic threats are various and are both local and international economic conditions. These may affect the interest rates and therefore the cost of construction among other factors. The political threats are largely due to the upcoming general elections in Kenya which may slow down business in general. Legal matters pertain to the approval and implementation of the new Built environment regulations (2012) which may affect general construction operations.

Worth noting, many contractors have experienced positive growth in 2012. This has been boosted in part by the reduced interest rates, influx of Foreign Direct Investments and general economic stability. These conditions lead to an increase in the number of residential units under construction. The margins may begin to shrink in anticipation of the general elections (IMF report, 2012).

Anecdotal evidence suggests contractors have been passing along a larger share of materials cost increases to project owners, a symptom of economic rebound. But if backlog begins to shrink again, pricing power would be compromised as decreasingly busy contractors begin to chase work more aggressively. The reverse may also hold true for the construction sector in 2013.

We are your thoughts on this?




Buying property for FREE

It’s sounds unbelievable but every entrepreneur knows that it does not take money to make money.


Today we are sharing ideas on how to buy property ( Real Estate) with no money down.

Many real estate investors think that money will make or break a real estate deal. A lack of funds can stop a potential purchaser from bidding on a property. However, it is possible to purchase real estate with no money from the buyer’s pockets. If the deal is right, the funding can easily fall into place.
Although there are many ways an investor can purchase real estate without handing over a down payment at settlement, it’s important to understand the pros and cons of each type of agreement before signing on the dotted line. Here are some examples of no-money-down real estate deals:
Probably the easiest way to purchase a property with no money down is by borrowing the down payment. Either find a lender offering a low interest rate, or use a home equity or other line of credit loan (friends, family, other network) or you can also borrow from your real estate broker – arrange to borrow the broker’s commission for a short time and use those funds for the down payment.

In Kenya, banks are the typical lenders but there also exists hard money lenders. You may be limited by the amount or the interest rates may be too high. The key however, is to to determine beforehand whether the income from the property can be able to equal or exceed the monthly (or annual) loan repayments.
Some purchasers can use a “subject to” contract, where the buyer uses the seller’s existing financing for part of the purchase price. Using the seller’s existing financing is especially successful if the current loan has a low interest rate. The buyer receives the title to a property in return for making payments on the seller’s mortgage.
Many purchasers do not realize that they may be able to rent a property from the owner with an option to buy. Under the terms of the lease/option agreement, the buyer and seller negotiate a sum to be paid at regular intervals for use of the property. This agreement allows the lessor to purchase the property at a predetermined price during the term of the lease. Usually, a portion, and sometimes all, of the rental payments will be credited toward the purchase price.

Lakemont frnt1 sm


Along with everything else in a real estate contract, the amount of the down payment and who pays it is almost always negotiable. A buyer may elect that the seller pay the down payment, or give credit at closing for the buyer’s down payment. A buyer could also request to pay the down payment in installments, whether in monthly installments or as a balloon payment at the end of the year.

Real estate transactions, like all other business transactions, can be customized


Anything you own may be useful as a cash substitute for a no-money-down deal. For example, if the seller is planning to retire, your unused motor home would probably be much more valuable than a cash down payment. Cars, furniture and appliances are all acceptable replacements for a cash down payment.

A buyer may be able to offer skills instead of cash. Accountants, contractors, mechanics, plumbers, doctors, lawyers, and so on, all have tradable skills that would be useful in lieu of a cash down payment.

Finding other cash buyers is another way to purchase a property with no money down. However, this could get messy as other hands get into the deal. To simplify this process, you can organize the deal on a smaller scale by bringing in one or two more people at the most. In return for their financing, you can promise to take on the responsibilities of putting together the deal and managing the real estate investment.


Again, Real estate transactions, like all other business transactions, can be customized. Some owners may be willing to accept a higher price for the property, even if it comes in installments, in lieu of accepting a down payment.

If you already own property, you may want to exchange it for another property. You could either exchange the property with a buyer, or use it in combination with a small amount of cash to obtain the property you want.

it does not take money to make money

The key to getting these kind of deals is research and actively searching for such opportunities. You must also think outside the box and remember, NEVER make the first offer.


Email us at for consultation.