Fragmented regulations, high costs holding back Kenya’s property sector

Nairobi, Kenya - Kenya Property Developers Association (KPDA) has highlighted the challenges faced by the property sector in Kenya, citing fragmented regulations, unpredictable policies, high development costs, and inadequate infrastructure as major obstacles. KPDA asserts that regulatory uncertainty, lengthy development approval processes, and a lack of long-term financing are stifling investment in real estate, despite increasing demand for housing, commercial property, and supporting infrastructure.

The association is advocating for reforms focusing on development approvals, property taxation, land administration, and infrastructure planning. KPDA Chairman Zoravar Singh emphasizes the need for a more predictable operating environment to boost investor confidence and expedite project delivery. He stresses the importance of stronger collaboration between developers, regulators, and public institutions to streamline approval procedures and ensure consistent implementation of development policies across various levels of government.

KPDA calls for enhanced policy predictability, more efficient approval processes, improved infrastructure planning, and innovative financing solutions to attract investment and foster sustainable urban growth. On financing, the association urges greater involvement from pension funds, institutional investors, banks, and development finance institutions to mobilize long-term capital for property development.

It suggests alternative financing structures to support investments in residential, commercial, and industrial projects, especially given developers' struggles with high initial costs and lengthy project timelines.

The association also advocates for better alignment between land-use planning and infrastructure provision, arguing that coordinated investment in supporting infrastructure is crucial for the viability of new developments. Regarding taxation, KPDA is engaging policymakers to establish a more certain regulatory framework for property investment.

Additionally, the association is pushing for access to financing for decarbonization and sustainable building initiatives as the sector addresses the need for climate resilience and resource efficiency.

These proposed reforms are set to be a focal point at the KPDA@20 Annual Conference in Nairobi, where developers, government officials, investors, and financial institutions will gather to discuss the challenges facing the built environment. Singh emphasizes the industry's need for stronger partnerships to transform policy discussions into tangible improvements.