Thika Road makes way for more big-dollar projects
The completion of the Sh32 billion upgrade of Thika Road in September 2012 was a major construction feat as it was done when the road was still in use.
The 50km 8-lane highway that connects Thika to Nairobi was built by three Chinese companies; China Wu Yi, SinoHydro Corporation and Sheng Li Engineering Company.
The three companies received much commendation from both ordinary citizens and government officials for the quality of their work and the timeous delivery of the project.
Thika Road appears to have opened Kenya’s big-dollar project floodgates to China – with tens of Chinese companies currently involved in mega infrastructural project in East Africa’s largest economy.
China Bridge and Road Construction was, for example, recently chosen as the contractor of the now controversial standard gauge railway line project.
Chinese investors to create Dubai-like Kenyan city
The ambitious plan, which involves at least 100 Asian investors, is being fine-tuned ahead of an anticipated visit to Kenya by Chinese Premier Li Keqiang early next month.
It is understood construction may begin later in the year.
The project, to be developed on land in Athi River, Machakos County, about 30km from Nairobi, is styled as a Chinese-controlled economic zone that will host corporates from the Asian giant and serve as its hub for Eastern Africa.
The design by Chinese architects, the Sunday Nation, includes building at least 20 skyscrapers. Those familiar with the project say it is supposed to match the glamour of Dubai and is also expected to be a shopping destination that stocks Chinese and other global products.
Kenya’s low cost housing set to boom in 2014
The low cost housing sector in Kenya is set to see better days as developers and financiers begin to shift their attention to this segment of the market, which they previously viewed as unprofitable.
As the high-income housing market becomes saturated amid falling demand for high-end homes, many developers are now unveiling low cost housing projects targeting individuals earning less than 30,000 a month.
The Mortgage Company’s managing director Carol Kariuki says the focus on the lower end of the market is a natural shift by developers to generate a new income stream.
“The next market is the lower end of the pyramid. This is where most people who don’t own homes are, and many of these developers have realised that there is money in the numbers,” says Ms Kariuki.
Sh1.73 Billion AFDB Loan to Fund Construction in Kenya, Region
Shelter Afrique has signed a Sh1.73 billion loan agreement with the African Development Bank (AfDB), one of its primary shareholders.
The loan is intended to boost the trade finance instruments to small and medium enterprises involved in real estate and construction related activities in the country and Africa at large.
The AfDB's four-year facility will allow Shelter Afrique to expand its Trade Finance Program launched in June 2011, under a product diversification strategy to address the acute financing shortage facing real estate developers on the continent.
Shelter Afrique Managing Director Alassane Ba said the facility will contribute to addressing the critical shortage of building materials while creating jobs and income in the region.
"With strong partnerships with organisations like AfDB, we know we are not too far from finding lasting solutions," Ba said.
