Investors in construction industry see real estate boom in Kisumu

Shajanand Holdings MD Chandrakant Devji Chabbadhia at his operating yard in Kisumu. The firm makes building materials and has residential and commercial houses. [Denish Ochieng, Standard]

The construction industry in Western Kenya is enjoying good prospects as investors eye the region.

Industry players say, despite the political upheavals that have slowed down activities in the sector, they are now witnessing increasing interest from investors.

Kisumu, for instance, has seen infrastructural developments in hospitality, real estate and shopping malls. However, players say they lack skilled workforce.

“One of the biggest challenges which require quick intervention is lack of skilled labour. There is an influx of unskilled labour, but no meaningful work can be done without skilled personnel. We had to import from other parts of the country,” said Shajanand Holdings Managing Director, Devji Chabbhadhia.

He said sourcing for skills increases the cost of project, a situation which makes it difficult for investors to realise the outputs of their investments.

Mr Chabbhadhia said there is an increasing taste for classy models, especially in residential buildings, which most local personnel cannot offer.

And with Kisumu County Government putting its final touches towards commencement of the famous Lakefront Development, the construction industry players foresee good prospects.

Warming up

In 2015, the county government signed an agreement with the UN Habitat, in a project which would see at least five kilometres of the lakeshore developed. Reports indicate that designs have been proposed for the project, which the county government said, would see the city face the lake.

Other major projects in the making are Sh4 billion French-Government-funded Kisumu Urban Project which targets to turn around the area’s infrastructure. These include; Kibuye, Jubilee and Otonglo market, community halls, hospitals and roads.

Area Chambers of Commerce and Industry chairman Israel Agina said investors are already warming up for opportunities set to change the city’s international image.

“The works of the construction industries are shaped by the needs of clients who are the investors, and as investors we are set for the roll-out of the project which we have been briefed should be commencing very soon,” said Agina.

He, however, said the cost of land has been the major problem. With this, development of single multi-faceted buildings remain key.

“Now most people would choose to live not far from where they work or do their businesses, so if you have a single building with both commercial and residential spaces, you are likely to have faster returns,” said Chabbhadhia.

Using locally made materials, he said, has been a major reliever in the cost of production.

Kisumu County boasts as one of the devolved units which have embraced e-construction permits, reducing the time required to have certification.

The system sponsored by World Bank and Department for International Development (DFID), is only accessible to companies and individuals certified and registered by the various professional bodies.

Entry point

Submission of applications for building permits now require valid title deeds, location plan, architectural plan, company’s certificate of registration from professional bodies such as National Construction Authority.

This has also helped weed out briefcase contractors.

“Kisumu is the capital city of the Western Kenya counties, and it is the entry point to countries in west of the country. It will soon be the focal point of the regional economy, and we must move fast to explore its potential, which infrastructure remains one of them,” said Chabbhadhia.