Due to the rise in prices of materials, construction in the real estate sector has not been easy lately. There has been a rise in cost in labour, equipment, transport, and civil engineering. Data from the Economic Survey 2021 shows that the overall construction index increased by 0.3 percent from 102.37 in the third quarter to 102.64 in the fourth quarter of 2020. There were evident increases in the indices of materials and labour that grew by 0.1 percent and 0.5 percent, respectively, while the index of equipment remained constant at 99.80 in the same period. The Kenya National Bureau of Statistics (KNBS) confirmed that the rise in the material index was as a result of the increase in prices of steel bars, machine cut stones and timber. When the demand for the materials increases especially post- Covid- 19, the index will rise higher. Steel has gained a high demand this year causing its price to rise sharply by 50 per cent globally. Real estate owners are shocked by the sudden increase which has been caused by high demand and supply chain disruptions in India and China due to Covid-19. A ton of steel bars that was initially Sh40,000 is now Sh81,000. This is according to data from the London Metal Exchange. On the other side, in the status of the built environment report, the Architectural Association of Kenya (AAK) said that a kilogramme of construction metal had risen to Sh125 from the initial Sh85. This will automatically lead to higher costs for builders, developers, real estate owners and real estate builders, especially those who had already signed contracts that puts into account the previous lower prices of the materials. Steel is an important component in the construction industry and must be used in the construction process. It is used to make roofing sheets, reinforcement bars, steel beams and columns, windows, and doors, and other products, since it is widely used, it means that any change in the price of steel, means a change in the cost of projects. In this case, the change is an upward increment which will lead to higher cost of construction, which will in turn weigh down the real estate sector.

The Sh62 billion Nairobi Expressway is now 64 percent complete and is expected to be fully in use by April 2022.The Transport Cabinet Secretary (CS) James Macharia confirmed that it is now 64 per cent complete, and will be commissioned by the president in 6 months. According to the CS, the expressway is headed toward the right direction and his confidence in the project clearly states that it is progressing well and it will be ready for use early next year. He said that test runs on the road will be in March 2022 since the contractors are expected to complete the construction work by February 2022. After visiting the site to check the progress of the project, Macharia stated that the work will be completed in two years instead of the earlier stated four years. The contractors worked very hard, 24 hours a day, under tight security and this helped shorten the project period. The Expressway is a big progress project and it should not be seen just as an infrastructural project. When infrastructure and especially roads are developed in a country, many sectors benefit and most operations of a country become easier, this is what the expressway is about. It will not only ease transportation but will also move labour and capital much faster from one point to another. Nobody feels good when almost half of their productive time is spent on the road, well, the 27.1 KM Highway from Mlolongo through Uhuru Highway to the James Gichuru junction in Westlands, Nairobi Expressway is just about to help you save your time. Immediately it is completed, the time taken to travel from Ruaka to JKIA (Jomo Kenyatta International Airport) will take a maximum of 30 minutes instead of the normal two to three hours. Agricultural produce from Kiambu will take less than an hour to get to JKIA and to markets in the city. It should be noted that the backbone to every economy is good infrastructure and the project is worthy of praise as the citizens will reap the benefits. Kenyans should appreciate the good work that the government is doing in developing the transport sector with no debt incurred as the Expressway construction is purely Public-Private partnership. The China Roads and Bridge Corporation(CRBC) is  responsible for designing, financing and building the expressway, and will maintain and operate it during the whole period. One cannot crave or enjoy the roses and avoid the thorns that come with it. Similarly, the Expressway project which commenced in late 2020, has come at a cost for businesses and residents along Mombasa Road. In order to get access to the expressway land by KeNHA (Kenya National Highway Authority) residents, property owners and business owners had to be evicted. This disrupted their day-to-day lifestyles. Motorists using both Uhuru Highway and Mombasa Road have also been forced to use alternative routes as construction work continues to create tragic traffic. This is a challenge especially during the rush hour to get home before the curfew time that was imposed in 5 counties, a move to help curb the spread of Covid- 19. The situation is however temporary as the project will ensure easy flow of traffic. So far, the contractor has spent Sh40 billion of the Sh62 billion budget which is meant for completing the whole project. This is a commendable achievement since the project started late last year.        

In Kenya, real estate developers are increasingly turning to innovative construction methods to address the mounting costs of building projects while upholding structural quality. Among these pioneering techniques is the utilization of Expanded Polystyrene (EPS) construction, a process that involves the assembly of houses by incorporating EPS panels sandwiched between steel wire mesh and enveloped with concrete on both sides. EPS panels, composed of solid beads of polystyrene, are produced in a factory and then transported to the construction site for assembly, significantly curbing material wastage and thereby reducing costs. A typical 100-square-meter, two-bedroom house requires approximately 70 panels, each weighing 15 kilograms, which means an entire house can be transported in a single lorry load. Construction Efficiency According to Kenrick Miako, a director at Mikooh Exquisite Ltd., a company that has successfully utilized EPS panels in the construction of flats in Rongai, this innovative technology has allowed them to slash their construction expenses by 25% while halving the construction timeline. Miako emphasizes, “This technology not only reduces labor costs and construction time but also demands less reinforcement due to its lightweight nature. Additionally, it offers savings in the foundation phase.” These lightweight panels are employed in erecting walls, stairways, floors, and perimeter walls. Bricks are only used in the foundation, with EPS panels taking over from there up to the slab, resulting in superior structures and enabling high-quality finishes. Multi-Story Structures Remarkably, despite their lightness, modular houses built with EPS technology are robust enough to withstand natural disasters more effectively than those constructed with traditional materials. EPS technology can be extended to the construction of buildings up to 20 stories high. Mike Juma, an engineering technologist at the National Housing Corporation (NHC), explains, “Buildings collapse primarily due to their own weight. EPS is exceptionally lightweight and possesses a superior strength-to-weight ratio compared to conventional building blocks.” With a 35mm concreting of EPS panels and 15mm plaster finishes on both sides of the wall, the result is a thickness equivalent to a standard 9×9 building block. Juma further states that a four-story building without columns or a double wall panel project ranging from 11 to 20 stories without columns can be accomplished. “For buildings with frame structures,” he adds, “the height can be virtually limitless as EPS panels can be used as filler materials.” In 2011, NHC established an EPS panel manufacturing facility in Mavoko, Machakos County, and has since employed EPS technology in the construction of residential flats nationwide. They have also collaborated with private investors across the country who have adopted this cost-effective technology. Construction Costs Regarding the cost of EPS building technology in Kenya, Juma notes that panels are produced in various modules and variations of wall and slab panels, each with differing price points. For instance, a builder can construct a wall using EPS panels for approximately KES 1,800 per square meter and a slab for about KES 2,350 per square meter. This translates to approximately KES 600,000 for a studio flat and around KES 1.5 million for a standard two-bedroom house. While the adoption of EPS panels as a construction method is relatively new in Kenya, it has been widely utilized in developed countries for years due to its durability, lightweight nature, ease of installation, and cost-saving advantages. Other benefits include thermal insulation, maintaining comfortable temperatures, high resistance to fire and other hazards, and structures that are soundproof and impervious to termites, rodents, and other pests due to the material’s lack of nutritional value. Drawbacks Nevertheless, one notable drawback of EPS technology is that polystyrene is an oil-based product that isn’t easily recyclable on an industrial scale. Consequently, EPS foam waste often finds its way into the environment, where it remains non-degradable, breaking down into harmful particles over time, posing risks to both humans and animals.