Value of Nairobi building plans rises by 43 per cent in 2016

House plans Nairobi
House plans. The value of reported building plans increased significantly from Sh215.2 billion in 2015 to Sh308.4 billion in 2016. FILE
The total value of building permits issued in Nairobi last year rose by more than 40 per cent compared to the 2015 values as builders raced to meet the rising demand for housing in the Kenyan capital.

According to the 2017 edition of the annual Economic Survey, the value of reported building plans hit the Sh300 billion mark on account of increased investments in private residential developments.

“The value of reported building plans approved increased significantly from Sh215.2 billion in 2015 to Sh308.4 billion in 2016, representing an increase of 43.3 per cent,” the Economic Survey said.

According to the report, the value of buildings completed increased significantly from Sh61.5 million in 2015 to Sh3.8 billion in 2016. The increase in the value of completed buildings can be attributed to the increase in the number of completed public residential buildings in 2016, the report said.

On the other hand, the value of new private buildings grew by 7.5 per cent from Sh70.9 billion in 2015 to Sh76.2 billion in 2016, on account of an increase in the value of residential building.

“Expenditure on housing rose from Sh5.9 billion in 2014/15 to Sh6.0 billion in 2015/16, representing 82.2 per cent utilization,” KNBS said, adding that the increased utilization could be attributed to increased credit to real estate.

During the period, the National Housing Corporation (NHC), which is tasked by the government to implement housing policies and programmes, leveraged on its Expanded Polystyrene (EPS) building technology to deliver low cost housing.

“In 2016, [NHC] completed a number of housing activities in three counties; Nairobi, Kisumu and Kisii. These comprised of 100 units in Nairobi at a cost of Sh328.7 million; 100 units in Kisumu at a cost of Sh439.7 million and 40 units in Kisii at a cost of Sh109.5 million,” the KNBS report said.