Blog – Page 2 – East African Modern Builder Magazine

September 11, 2025 - In News By EA MODERN BUILDER 0

Kenya’s Devki Group Empowers Regional Expansion with Purchase of 99.94% of CIMERWA Cement

Kenya’s National Cement Holdings is poised to take the reins at CIMERWA, Rwanda’s foremost cement producer, signaling a transformative shift in ownership. The strategic acquisition, announced on Friday, November 17, unveils National Cement as the new majority stakeholder, set to control an impressive 99.94% of CIMERWA through individual share purchase agreements with PPC International Holdings Proprietary Limited and Rwanda’s minority shareholders. This development marks a significant milestone for Rwanda’s cement industry, as the country’s sole integrated cement producer transitions into the hands of National Cement, a dynamic player with a robust presence in East Africa and ambitious plans aligned with the region’s infrastructure development goals. CIMERWA, majority-owned by PPCIH, is set for a transition that promises not only increased production but also sustained growth under National Cement’s committed ownership. With a 51% stake, PPCIH currently holds the majority share in CIMERWA, while the remaining 49% is distributed among minority shareholders, including Rwanda Social Security Board (RSSB), Agaciro Development Fund, Rwanda Investment Group, and SONARWA General Insurance Company Holdings Ltd. Over the years, CIMERWA has demonstrated notable improvements in operational efficiency and financial performance, thanks to the support of its leadership team and shareholders. Regis Rugemanshuro, Chairman of CIMERWA, expressed enthusiasm about the entry of National Cement into the Rwandan market, anticipating a positive impact on production and overall growth. Rugemanshuro extended gratitude to current shareholders and affirmed CIMERWA’s dedication to building on past successes and enhancing its regional influence. National Cement, a part of the Devki Group of companies, brings a wealth of experience from its diverse portfolio in cement, steel, roofing materials, fertilizers, and packaging materials. Operating integrated cement and clinker plants, as well as multiple grinding plants in Kenya, and a cement grinding plant in Eastern Uganda, the Devki Group is a key player in the East African cement industry. The acquisition of CIMERWA aligns seamlessly with the Devki Group’s expansion strategy and commitment to regional infrastructure development. Dr. Narendra Raval, Chairman of Devki Group, emphasized a long-term strategic partnership with CIMERWA, expressing confidence in the business’s potential and eagerness to contribute to regional infrastructure development. Meanwhile, Roland van Wijnen, CEO of PPC Ltd, highlighted the completion of PPC’s strategy to refocus on core Southern African markets, expressing confidence in National Cement’s ability to fill the void left by PPC in Central and East Africa. The transaction’s implementation is contingent on meeting or waiving conditions precedent typical of such transactions, with a targeted completion date by no later than February 29, 2024, as outlined in the official statement. Established in 1984, CIMERWA Plc brings four decades of experience as Rwanda’s premier integrated cement manufacturer, with its production plant located in Bugarama, Rusizi District, near the southwestern border of Rwanda.

September 11, 2025 - In Housing & Finance By EA MODERN BUILDER 0

Housing financier Shelter Afrique approved to become a development bank

Pan-African housing development financier, Shelter Afrique has been elevated into a development bank in a historic move that promises to reshape the landscape of African housing and urban development. This follows the approval by its shareholders during the Extraordinary General Meeting (EGM) in Algiers, Algeria between 4th -5th of October. The renaming of Shelter Afrique, according to a statement, “solidifies its status as a transformative and sustainable development bank” that is completely committed to developing urban housing and related infrastructure development throughout Africa. The transition will be visible, according to managing director Thierno-Habib Hann, through greater housing unit finance and construction as well as better access to decent, sustainable, and affordable housing. The bank said that the change will also bring it into compliance with international norms and put it in the forefront of financiers for the housing sector. “This will also place us at par with peer Development Finance institutions (DFIs),” the company stated. Some of the key highlights of the financier’s transformation are as follows; International Alignment The new Agreement aligns the Bank to international standards granting the institution a leading position among housing sector financiers and placing it at par with peer Development Finance institutions (DFIs). The diversification of the shareholding and Board composition into Class A (African States), Class B (African Institutions) and Class C (International and Private sector) will ensure financial sustainability and best-in-class Corporate Governance. Enhance Housing Development Impact and Shareholder Value The Bank will generate and maintain robust positive financial returns by posting and monitoring key performance indicators on liquidity, profitability, asset quality, efficiency, and productivity. ShafDB’s strategic vision is also to expand its portfolio offering to include thematic areas across the housing value-chain, such as Green/Climate/Resilience, Gender, Jobs (SMEs/Trade), Trunk Infrastructure, Islamic finance, IDPs (Migrants/Refugees), and Diaspora. This will be achieved via specialized funds in the Asset Management business. Improve Organizational Sustainability The repositioning of ShafDB through the revision of its Statutes will further strengthen its adherence to the highest standards of Corporate Governance and align the Bank’s structures to international frameworks and best practices. The inclusion of an Advisory Board composed of representatives of the Ministry of Finance and international experts will strengthen the strategic and financial management capabilities of the Bank. Generally, the core mandates include delivery of financial solutions and associated services that support both the supply and demand aspects of the affordable housing value chain focusing on addressing Africa’s housing crisis through financial institutions, project finance and public-private partnerships. Shelter-Afrique Development Bank (ShafDB) is a Pan-African institution solely dedicated to financing and promoting housing, urban & related infrastructure development across the African continent. ShafDB operates through a partnership involving 44 African Governments, as well as the African Development Bank (AfDB) and the Africa Reinsurance Corporation (Africa-Re). It delivers financial solutions and associated services that support both the supply and demand aspects of the affordable housing value chain. As a premier provider of financial, advisory, and research solutions, ShafDB focuses on addressing Africa’s housing crisis through financial institutions, project finance and public-private partnerships, striving to achieve sustainable developmental impact.

September 11, 2025 - In Housing & Finance By EA MODERN BUILDER 0

Mi Vida to sell 200 low cost apartments at Garden City to IHS in a partnership deal

Real estate developer Mi Vida Homes has signed an investment deal with International Housing Solutions (IHS) to develop the ‘237 Garden City’ housing project, pointing towards timely delivery. Under the agreement, which is subject to regulatory approvals, IHS Kenya Fund will acquire two hundred units within the project. The project is the third by the property developer at Garden City, which is a 47-acre mixed-use development situated along Thika Road. Speaking during the announcing ceremony in Nairobi, Mi Vida Homes CEO Samuel Kariuki, said the purchase agreement, at an undisclosed fixed price, will enable the developer mitigate market risk, which is a challenge to scaling for the wider housing market. “Through this partnership, we have a guaranteed market for the apartments we are building. Our main goal is to guarantee timely delivery and sustainability at every stage of the project, including planning, building and project management,” Kariuki said. IHS Kenya managing director Peter Mayavi reiterated the purchase agreement will guarantee Mi Vida Homes a ready market, thus boosting the confidence of both the developers and other stakeholders. He added that the pact is timely because Kenya has a pressing need for housing that is not only affordable, but offers the quality that ensures users get a dignified living. “A key way of ensuring this goal is removing the market risk for developer partners because this will now catalyze the development of large-scale projects such as 237.” Kenya faces a shortage of about two million housing units every year, against a current supply of only 50,000 new housing units. The units in the 237 development are a mix of one-bedroom and two-bedroom apartments. IHS is a private equity fund manager investing in green affordable housing across Sub-Saharan Africa. It additionally partners with other financial institutions, development financiers, investors, land owners and developers to increase the stock of quality, affordable green housing in the Kenyan market. It intends to build sustainable city communities where residents will live close to public transportation, create jobs through their developments, and work with non-profits to solve inequality in the real estate industry. Within the next seven years, IHS Kenya intends to provide up to 4,000 affordably priced apartments for both sale and rental. Further, IHS is an asset manager of six affordable housing funds in the Southern African region and manages a listed REIT on the Johannesburg Stock Exchange. It boasts of a solid track record in the African affordable housing space with operations across four countries in the Sub-Saharan African region (South Africa, Namibia, Botswana and Kenya), and is a wholly owned subsidiary within the US- Hunt Companies group, a real estate and infrastructure fund manager. On the other hand, Mi Vida is a residential developer created through a joint venture between Actis, a leading growth markets investor who have been active in the region for over 70 years and Shapoorji Pallonji Real Estate (SPRE), the real estate arm of one of India’s largest conglomerates. Was officially launched in July 2019 to address the shortage of middle-income housing that families can afford, by delivering a minimum of 3,000 middle-income housing units over the next five years. It is embodied in works of innovative design, modern engineering, trusted construction, on-time delivery and an impeccable record.

September 11, 2025 - In Construction By EA MODERN BUILDER 0

Lobby calls on architects to focus on sustainable cities as urban population rises

The percentage of Africans who live in cities is predicted to rise by almost 60% by 2050, thus governments in emerging metropolitan centers should start embracing collaborations and skilled architectural practices. During this year’s congress, which was co-hosted by Sweden and Kenya, the International Federation of Landscape Architects (IFLA) issued this urgent request. The forum, which took place over two days on September 28 and 29, aimed to improve landscape architecture in light of Agenda 2030 for Sustainability. This will be accomplished by investigating novel approaches to group problem-solving, cross-border tactics, and potential networks of collaboration, all the while putting the pressing concerns of social injustice, climate change, and biodiversity loss front and center. According to data from the UN Department of Economic and Social Affairs, the percentage of Africans living in urban areas increased from 27% in 1950 to 40% in 2015. According to the UN, “the population is expected to increase by at least 60% by 2050, which will exacerbate the climate change crisis and highlight the urgent need for collaboration towards building sustainable cities.” Chief Architect Lawrence Mochama, speaking at the convention as a representative of the CS of the State Department for Public Works, stressed the government’s commitment to making cities sustainable in accordance with the debates from the African Climate Summit. “We cannot save our biodiversity alone; cooperation is necessary. According to Mochama, the administration is dedicated to transforming urban areas into places where people may live with dignity as well as a hub for economic growth. Caroline Vicini, the Swedish ambassador to Kenya, praised the efforts of the built environment professionals in both nations to exchange knowledge and address climate change. “It is important to build smart, healthy and efficient cities where people can integrate, communicate and move freely. Landscape architecture plays an important role in shaping sustainable development,” she said. President of Architectural Association of Kenya (AAK) Florence Nyole, stressed on the significance of cooperation within the built environment, as it enabled the professionals to reach shared environmental goals that rest on a foundation of social sustainability. “Such congresses provide an opportunity to promote learning and collaboration among built environment professions to find solutions to the major global challenges,” Nyole said. “The city of Nairobi for instance, relates very closely to the congress theme, ‘Emergent Interaction’, with rapid urbanization, dealing with climate change and adequate housing as priority issues.” She however says the country faces a huge gap in the incorporation of required professionalism in architectural work, saying only 20 percent of the buildings in the country have been built with the input of environmental specialists who enforced sustainability measures. “The remaining 80 per cent is a clear gap that needs a tap in, hence the need for more collaborative frameworks in sharing of ideas and solutions in betterment of our cities.” The International Federation of Landscape Architects (IFLA ) is a global body of landscape architects represented through national member associations spread through Africa, the Americas, Europe, Asia Pacific and the Middle East. IFLA’s mission is to promote the landscape architecture profession within a collaborative partnership of the allied built-environment professions, demanding the highest standards of education, training, research and professional practice, and providing leadership and stewardship in all matters.

September 11, 2025 - In Energy By EA MODERN BUILDER 0

AHI Carrier announces Kenyan market entry on rising data centers demand

Gulf based tech firm AHI Carrier, that offers modern and innovative heating, air conditioning and refrigeration integrated solutions has announced its plan to set a base in the country, geared towards data centers venture. A data center is a sizable cluster of connected computer servers that is often utilized by businesses to process, store, or distribute vast volumes of data remotely. According to the firm’s regional business manager Ajay Garg, the strategic move is in line with the company’s expansion bid while leveraging Kenya’s robust digital industry with the rise in data centers demand. “The rise in demand for data centers in Kenya provides an excellent opportunity for the carrier solutions to emerge prominently as a leading provider of extensive data center solutions,” Garg said. “We want to showcase our proficiency in high-density, energy-efficient cooling solutions, air cooling systems, and the seamless integration of data centers into smart city infrastructures. Our ultra-high efficiency, low global warming potential chillers are specifically designed to cater for diverse capacity requirements of all data centers.” The announcement comes at a time the country is wooing international tech giants with green energy data centers in the race towards sustainability goals 2030. The potential for Kenya to attract technology companies with environment-friendly data centers has been described to be immense in the recent past. More than 70 per cent of Kenya’s grid power is from green energy, which means that firms that set up business in Kenya already have a head-start in terms of meeting their sustainability objectives. The greening of Kenya’s grid is courtesy of geothermal power, a renewable energy source that is turning into a magnet for firms on a mission to decarbonise. In line with this, the firm affirmed that it plans to tap in the market by offering state-of-the-art data center solutions, to empower businesses to thrive in an ever-evolving digital landscape. “This comes on the backdrop of the government’s enactment of a data protection act to safeguard and protect people’s and company’s data where they have seen a surge in many firms racing to comply with data protection requirement laws,” Garg added. He reiterated that the carrier solutions will contribute to the growth of data in the region as it will be driven by digital transformation, emerging fintech solutions, and overall infrastructure success. Carrier Solutions stands as the premier provider of comprehensive data center solutions, specializing in design, construction, and consultancy services. With a strategic focus on high-density cooling solutions, air cooling systems, and smart city data center integration, Carrier Solutions is dedicated to charting new standards of excellence in Kenya’s data center industry. AHI Carrier FZC (AHIC) is a fully owned subsidiary of Air-Conditioning & Heating International which became a Carrier Joint Venture Company on December 18th, 2008. The partnership between Carrier and AHI dates back to December 1997 when the first agreement was signed for distribution of Carrier products in Russia and CIS countries. In 1999, Carrier and Toshiba Air-conditioning entered into a joint venture and the Toshiba range of air-conditioning products was added for distribution in AHIC territories and in 2000, AHIC distribution rights were expanded to include East and Central Africa. Today, AHI Carrier FZC is the largest Carrier joint venture company outside the USA and has operations in 108 countries spanning 5 continents. AHI Carrier’s commitment to exceeding customer expectations by offering energy efficient products with cutting edge technology, the highest levels of quality and market leading after sales service has enabled it to achieve a significant and satisfied customer base since its inception.

August 13, 2025 - In Construction By EA MODERN BUILDER 0

Nitrogen-Infused Concrete: A Breakthrough in Reducing Construction Pollution New Study Reveals Potential of Nitrogenated Concrete to Cut Construction Emissions

A groundbreaking study from the University of Birmingham suggests that the construction industry could significantly reduce its environmental impact by incorporating nitrogen into concrete. Published in the esteemed journal Nature, the research indicates that this innovative approach could cut nitrogen oxide (NOx) emissions by 3.4 to 6.9 megatonnes (Mt), equivalent to a 6-13% reduction in industry-related emissions as recorded in 2021. NOx is a notorious pollutant known for its role in forming acid rain, depleting the ozone layer, and contributing to severe respiratory issues. The study’s findings are particularly promising, as they propose a method that could potentially remove the construction sector from the list of high-emission industries. The Promise of Nitrogenation Nitrogenating concrete could offer a solution to one of the most pressing environmental challenges of our time. The research team, led by Ning Zhang, projects that by 2050, this method could reduce global NOx emissions by 131-384Mt. This reduction translates into the preservation of 75 to 260 years of life in terms of disability-adjusted life years, which accounts for years lost due to premature death and diminished quality of life. “Rapidly urbanizing and emerging industrial regions stand to benefit immensely from this technology,” says Zhang. “Nitrogenated concrete not only addresses air pollution but also offers a viable way to manage construction waste in developed countries.” A Global Perspective on NOx Emissions Cities across the globe, especially in the Global South, are experiencing unprecedented levels of urbanization and industrial growth. This expansion has led to a sharp increase in construction-related pollution. According to co-author Dr. Yuli Shan, global NOx emissions nearly doubled between 1970 and 2018, rising from 70Mt to 120Mt. “Managing these emissions is critical for improving urban health, promoting sustainable industrial practices, and safeguarding our environment,” Shan explains. Challenges and Future Outlook Despite the promising potential of nitrogenated concrete, there are significant logistical challenges to consider, particularly regarding the transportation of large volumes of materials and gases. To overcome these hurdles, experts suggest leveraging industrial concrete carbonation systems to streamline logistics and enhance the feasibility of the process. Additionally, the study advocates for the creation of an emissions trading system tailored to NOx, similar to existing carbon trading frameworks. Such a system would enable more precise quantification of the environmental benefits associated with NOx sequestration, further incentivizing the adoption of nitrogenated concrete. As the construction industry continues to evolve, nitrogen-infused concrete could emerge as a pivotal innovation in reducing pollution and fostering more sustainable building practices worldwide.

August 13, 2025 - In Energy By EA MODERN BUILDER 0

KenGen Unveils Sh32.2 Billion Olkaria VII Geothermal Plant to Boost Renewable Energy

KenGen is spearheading a major expansion in Kenya’s renewable energy sector with a Sh32.2 billion investment in the Olkaria VII Geothermal Power Plant. This new facility, situated within the Olkaria geothermal field in Naivasha, is set to add 80.3 megawatts (MW) to the national grid. The Olkaria VII project is a central component of KenGen’s strategy to enhance its renewable energy capacity by an impressive 3,000 MW over the next decade. Once operational, the new plant will increase KenGen’s geothermal capacity from 799 MW to 879.3 MW, moving the company closer to its target of 1,000 MW for the Olkaria zone. According to KenGen’s regulatory filings, the plant will utilize steam to generate an estimated output of 80.3 MW. The project involves drilling 19 wells at a site located 220 meters from the southern boundary of Hell’s Gate National Park, following an evaluation of seven potential sites within the Olkaria field. KenGen emphasizes that Olkaria VII will play a crucial role in stabilizing Kenya’s power supply and reducing reliance on costly thermal power sources, which are planned for phase-out by 2035. The company has warned that failing to proceed with this project could lead to a power deficit of 65 to 100 MW. The environmental impact of the project is also significant. According to West Japan Engineering Consultants Inc., the Olkaria VII plant will reduce CO2 emissions by replacing electricity produced by fossil fuel-fired power plants. The project is projected to generate up to Sh3.77 billion annually in carbon credits. KenGen currently earns carbon credits from six other power projects, including Olkaria IAU, Olkaria II, Olkaria IV, Tana, Kiambere, and Ngong. The investment in Olkaria VII, along with other geothermal initiatives, underscores KenGen’s role in advancing Kenya’s renewable energy goals. In addition to Olkaria VII, KenGen is developing three other geothermal projects that will collectively add 326 MW to its geothermal output. These include the Olkaria I Rehabilitation (6 MW), Olkaria IV and IAU Uprating (40 MW), and the Olkaria Public-Private Partnership project (140 MW). These efforts will bring the total geothermal capacity in the Olkaria zone to nearly 1,000 MW. KenGen’s revenue grew by 14% to Sh53.964 billion for the year ending June 2023. The company’s investment in new projects and upgrades reflects its commitment to increasing its generation capacity and solidifying its position in the energy sector

August 13, 2025 - In Glass manufacture By EA MODERN BUILDER 0

The Struggles of Kenyan Glass Manufacturers: Battling the Tide of Cheap Imports

The bustling industrial landscapes of Kenya, where manufacturing has long been heralded as a cornerstone of economic growth, a quiet crisis is brewing in the glass industry. Local glass manufacturers, including Milly Glass Works and Consol Glass Kenya, are finding themselves in a precarious position, struggling to stay afloat amidst a surge of cheap imports from neighboring countries. The impact is far-reaching, threatening not only the survival of these businesses but also the broader industrial landscape that depends on their success. The Rise of Imports The East African Community (EAC) and the Common Market for Eastern and Southern Africa (COMESA) trade agreements were designed with the noble intention of fostering regional trade, creating a seamless market across borders, and bolstering economic cooperation among member states. However, for Kenya’s glass manufacturers, these agreements have had unintended consequences. The open trade policies have inadvertently allowed a flood of low-cost glass products from Egypt and Tanzania to enter the Kenyan market. These imported goods, often priced significantly lower than locally produced items, have become a major challenge for Kenyan manufacturers. The competitive pressure has been relentless, pushing local companies to the brink as they struggle to match the prices of these cheaper imports. The Impact on Local Manufacturers Milly Glass Works and Consol Glass Kenya, two of the country’s leading glass manufacturers, have been particularly vocal about the adverse effects of these imports on their businesses. Alongside Kioo Ltd in Tanzania, they represent the only three glass container and tableware manufacturers in the East African region. Yet, despite their established presence and significant contributions to the local economy, they are now grappling with a downturn in business. These companies argue that the current trade environment is skewed against them, making it nearly impossible to compete on a level playing field. The cost structures in Kenya, compounded by higher production expenses, have placed local manufacturers at a disadvantage. The influx of cheap imports has not only eroded their market share but has also led to reduced production levels, job losses, and stunted growth in an industry that was once poised for expansion. The Need for Support Kenya’s glass manufacturers are now calling on the government to re-evaluate the trade agreements that have opened the floodgates to these cheap imports. They are advocating for policies that would protect local industries from being undercut by foreign competitors who benefit from lower production costs and more favorable economic conditions in their home countries. Furthermore, there is a growing call for the implementation of measures that would level the playing field, such as imposing tariffs on imported goods or offering subsidies to local manufacturers. These interventions could help restore balance and ensure that the glass industry in Kenya remains viable and competitive. The Broader Economic Implications The challenges facing Milly Glass Works, Consol Glass Kenya, and the wider glass manufacturing industry are symptomatic of a larger issue within the region’s industrial sector. If left unaddressed, the decline of local manufacturers could have far-reaching consequences for the Kenyan economy, leading to a reduction in industrial output, loss of jobs, and decreased economic resilience. Moreover, the situation raises important questions about the long-term sustainability of trade agreements that, while beneficial in many respects, may also inadvertently harm local industries. As Kenya continues to pursue economic integration with its regional neighbors, finding the right balance between fostering trade and protecting domestic industries will be crucial. The plight of Kenya’s glass manufacturers is a stark reminder of the complex dynamics at play in today’s globalized economy. As Milly Glass Works and Consol Glass Kenya struggle to navigate the challenges posed by cheap imports, their future—and that of the entire Kenyan glass industry—hangs in the balance. It is a moment that calls for decisive action, both from industry leaders and policymakers, to ensure that Kenya’s manufacturing sector does not become a casualty of its own open-door trade policies.

August 13, 2025 - In Housing & Finance By EA MODERN BUILDER 0

Nairobi’s Soaring Real Estate: A Closer Look at the Rising House Prices

Nairobi’s real estate market has seen significant changes, with house prices recording a notable increase. This surge is a reflection of global economic shifts, particularly in response to fluctuating interest rates. As Kenya’s capital continues to climb the ranks in global property markets, understanding the factors behind this growth is crucial for potential investors, homeowners, and the general public. Nairobi’s Rapid Climb: Nairobi has made a remarkable leap in the global real estate market, moving from 19th to 6th place in terms of property price growth. According to a quarterly report by Knight Frank, the city recorded a 6.6% increase in house prices over the past 12 months. This rise places Nairobi among the world’s top cities for property price growth, alongside metropolises like Manila, Mumbai, and Los Angeles. Globally, house prices increased by 2.6% in the year leading up to June 2024, a slowdown from the 4.2% growth seen in the previous quarter. The slower global growth is largely attributed to the rising interest rates that have dampened spending power across 44 major cities. However, Nairobi’s resilience amidst these global economic pressures highlights its growing appeal and the robust demand for housing in the city. Interest Rates and Their Impact: The rise in Nairobi’s house prices can be closely linked to changes in interest rates. After a sharp decline in housing markets in late 2022, the mid-2023 period marked the beginning of a recovery, driven by a decline in bank interest rates across various countries. For Nairobi, this shift played a crucial role in boosting the property market. On August 6, 2024, the Central Bank of Kenya (CBK) cut its base rate from 13% to 12.75%. This reduction in interest rates is expected to make borrowing more affordable for potential homebuyers and investors, thereby stimulating further growth in the housing market. CBK Governor Kamau Thugge highlighted the previous high lending rates as necessary to stabilize the Kenyan shilling and curb inflation. The strategy appears to have paid off, with inflation dropping from 8.1% in October 2023 to 4.3% in July 2024, according to the Kenya National Bureau of Statistics (KNBS). Global Comparisons: Nairobi’s impressive performance in the real estate market is part of a broader global trend. Manila, Philippines, topped the list with a staggering 26% annual increase in property prices, followed by Mumbai and Delhi in India, with price hikes of 13% and 10.6%, respectively. The United States also saw significant gains, with Los Angeles and Miami recording price increases of 8.9% and 7.1%. Despite the general slowdown in global price growth, experts like Liam Bailey, Knight Frank’s global head of research, suggest that the situation could improve with further interest rate cuts. “The biggest influence on future price growth lies in the hands of central banks and their confidence to cut rates further over the next 12 months,” Bailey noted in the report. Looking Ahead: As Nairobi continues to climb the global rankings, the city’s real estate market is poised for further growth. The recent interest rate cuts by the CBK are likely to fuel this trend, making it an opportune time for investors and homebuyers to explore opportunities in Nairobi’s property market. For those considering entering the market, understanding these economic dynamics is crucial. With Nairobi now firmly established as a key player in the global real estate scene, the city offers both challenges and opportunities for those looking to invest in one of Africa’s most vibrant and rapidly growing urban centers. Nairobi’s real estate market is on an upward trajectory, driven by a combination of local and global factors. The city’s rising house prices, buoyed by favorable interest rates and strong demand, have positioned it as a top destination for property investment. As Nairobi continues to grow and evolve, its real estate market is set to offer even more exciting prospects for investors and homeowners alike

August 13, 2025 - In Housing & Finance By EA MODERN BUILDER 0

Prefab Houses: Revolutionizing Kenya’s Housing Sector

As construction costs in Kenya continue to rise, the demand for affordable housing solutions is increasing. Prefabricated houses, commonly known as prefabs, are emerging as a viable option for homeowners seeking faster, cost-effective, and sustainable building alternatives. While this technology has gained widespread acceptance in developed countries, Kenya is gradually catching on to the benefits of prefabricated housing. Understanding Prefab Technology Prefabricated homes are constructed in a factory setting, where the components are built and then transported to the site for assembly. This process helps reduce costs, prevent material wastage, and speed up construction times, allowing homes to be completed regardless of adverse weather conditions. One of the key advantages of prefab houses is the ability to cut costs without compromising quality. With construction work largely taking place indoors, delays caused by rain or other weather conditions are avoided. Prefab technology is quickly becoming a solution to the high construction costs plaguing the industry, but it still faces a challenge—many Kenyans remain unfamiliar with how it works. Prefab Construction: A Step-by-Step Guide Building a prefabricated house follows a streamlined, efficient process that starts with the homeowner acquiring a plot and securing the necessary approvals. Once this is in place, the following steps are involved: Floor Assembly: Construction begins with the floor structure. A wood frame is placed under the floor to support the wall panels that will later be installed. Wall Panels Installation: Pre-insulated wall panels are attached to the floor frame with bolts and nuts. Windows and door openings are created in the panels before attachment. Wiring and Plumbing: After the structure is in place, electricians and plumbers install the necessary systems. Drywall, ceilings, and interior fixtures are also added. Roofing: Depending on the design, the roof can be installed either at the factory or after the house is assembled on-site. Finishes: Both interior and exterior finishes are completed, including cabinets, vanities, siding, and painting. Transportation: The house is transported in modules to the plot, and careful planning of the transportation route is required to avoid obstacles like power lines or narrow roads. Installation: Once on-site, the modules are checked for any damage and then assembled. Special attention is given to the “marriage walls,” which bind the structure together. Staircases, decks, and other features are then added, and the entire installation can be completed in a single day. EPS Panels: A Game-Changer for Affordable Housing To further promote affordable housing, Kenya’s National Housing Corporation (NHC) is advocating for the use of expanded polystyrene (EPS) panels. These panels, made from polystyrene, offer a strong, lightweight alternative to conventional stones and can reduce construction costs by up to 30%. Manufactured at NHC’s factory in Mavoko, Machakos County, EPS panels are becoming a key component in Kenya’s effort to meet the growing demand for affordable homes. Each panel costs approximately KSh 5,000, translating to KSh 1,111 per square meter. Despite the additional costs of transportation and concrete plasterwork, EPS panels are seen as a cost-effective solution to the housing shortage. The Future of Housing in Kenya As prefab technology and EPS panels gain traction, there is hope that these innovations will play a pivotal role in addressing Kenya’s housing crisis. While educating the public about these technologies remains a hurdle, the advantages of affordability, efficiency, and durability could make prefabricated housing the future of construction in Kenya.