Chairman Mr Kairu Bachia on the road ahead

The Big Four Agenda

INDUSTRY OPINIONTRENDING

NCA QUARTERLYTHE

Regulation Trends

FINANCE

The Return of BRT

Joint Building Council

March 2018

Interest Rate Cap Effects

Enhancing and promoting the status of ADR mechanisms

Debunking the myths and misconceptions of using ADR to resolve

commercial disputes

June 5th-6th, 2018

Nairobi, Kenya

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CONTENT

Regeneration AfricaHow one Coast-based company is turning plastic

waste into construction gold

Main Feature: The Rebirth of The

Joint Building and Construction

CouncilNew Chair Qs. Kairu Bachia has big plans for

the organisation

Town and County Planners Association of

KenyaFounder Mairura Omwenga on the way forward

with planning our cities

12

18

26

Formalising Nairobi s Transport System Why BRT and LRT are the future

East Africa s Top 10 Most Valuable

ProjectsSee the mega construction projects that are shaping the

landscape (and economy) of the region

34

43

’

’

NCA QUATERLY

It’s an exciting time to be an East African citizen, especially with the massive billion-dollar infrastructural developments taking place across the region, opening up borders and with that, boosting trade and economies. Read about the impressive projects on page 43.

Our cover story is a conversation with the dynamic new chair of the Joint Building Council, who shares his plans about restoring the once formidable Council to its former glory. The team also spoke to Mairura Omwenga, current chair of the Town and County Planners Association, whose insights on the state of our cities and towns and make for an interesting read on page 18.

Editor

National Construction AuthorityP.O.Box 21046 - 00100

+254 709 126 102/172/173quarterly@nca.go.ke

www.nca.go.ke

Editorial Note

Sustainability is still a strong theme in the modern construction industry, with many manufacturers now embracing methods that reduce the carbon footprint of their products. Sam Nyamweya realized the value of plastic waste, and how it can profitably and sustainably be incorporated into construction. The story of his company Regeneration Africa is on page 12.

Our finance feature this issue examines the impact of the interest rate capping two years after the law was passed. Is the construction industry the better for it, or has it negatively impacted the economy? Find out on page 54.

Can the transport system in Nairobi be tamed? Bus Rapid Transit (BRT) and Light Rail Transit (LRT) systems have been successfully implemented in Africa, and Miracle Wachira examines the applicability of the same in our capital city on page 34.

We welcome your thoughts, opinions and contributions towards relevant issues within the construction industry. Have your say via quarterly@nca.go.ke and we will gladly publish.

Till next time,

We examine

the impact

of the

interest rate

cap two

years after

the law was

passed.

Is the

construction

industry the

better for it,

or has it

negatively

impacted

the

economy?

Wangui Kabala

EDITORIAL TEAM

Faith Wanjiku

Graphic Design

Mellany Muthui

Features

William Maranga

Features

Brighton Aamwayi

Features

Bonanza Timothy

Graphic Design

©No part of the contents may be reproduced without prior

permission from the publishers. All advertise-ments and non- commis-

sioned texts are taken in good faith. While every care is

taken to ensure accuracy in preparing the magazine, the publisher and NCA assumes no responsibility for effects

arising therefrom

THE March 2018 Edition

Kenya Green Building Society

Sustainable Cities in Africa: Are we ready?

Customising a Green Rating Tool for Kenya

Green Finance: how does it affect the bottom line?

New Chair Jane Michuki on the road ahead

JBC REBRANDS

INDUSTRY OPINIONTRENDING

URBAN PLANNING

FINANCE

3D PRINTING

Joint Building Council

CONSTRUCTION

ERRORS

26

04

06

An economist and policy analyst with more than ten years experience. He is currently a senior econo-mist at the office of the Director of Public Prosecu-tions. He has previously served in the national treasury as an economist where he was instrumen-tal and part of the task team that prepared the PFM act of 2012.

CONTRIBUTORS

Brighton Amwayi

A communications graduate with a wealth of expe-rience in the field. He is passionate about strategic and development communication and has previ-ously worked with the Kenya Institute of Curricu-lum Development and the Kenya News Agency.Mr. Aamwayi also has a keen interest in ICT appli-cations especially videography and media studio management.

Holds a Bachelor of Commerce Degree with a concentration in Marketing and Communication. He is also pursuing a Bachelor of Mass Media and Communication with a concentration in Corporate Communications. He has gained vast experience in media relations, public speaking and presentation, communication strategy formulation and advanced writing.

Joash Mosomi

William Maranga

18 A multi-skilled professional with experience in communication, marketing and supply chain man-agement. She is passionate about digital busi-ness-to-business (B2B) communication and content strategy formulation and execution.She holds a Bachelor’s Degree in Procurement and Supply Chain Management and a Diploma in Sales and Marketing.

Mellany Muthui

Regulation Trends in the ConstructionIndustry: A Financial Analyst s View

Infrastructure is one of the key sectors that have been identi-fied under the economic pillar of the Kenya Vision 2030 with the potential to trigger econom-ic growth and contribute immensely towards transform-ing Kenya into a newly industri-alized middle income country with a high quality of life and a safe environment. The building and construction sector stands out as one of the most crucial, profitable and fundamental sectors of Kenya’s economy, utilized by almost every individual. Although the industry has not yet fully attained its objectives and intentions in the most ideal way, there are great strides and milestones already achieved. At the same time there are areas within the industry that are in dire need of streamlining and actualization.

We can promote the growth and enhancement of the industry by guaranteeing the quality and safety of projects, upgrading the level of construction and responding to existiing issues. All this must be done within the framework of modern technolo-gy and best global practices.

It has been totally reassuring and life affirming to see the progressive and dynamic improvements in the construc-tion sector. These are an indica-

tor of economic improvement as well as good business perfor-mance. This in turn comes with increased business opportuni-ties. Actual data and reports can confirm a marked improvement compared to some ten years ago.

The bodies mandated with regu-lation of construction in the country ought to diligently strengthen the quality and safety

aspects of project management through the harmonization of rules and regulations on survey and quality of designs. These entail upgrading the safety supervision system.

The rate at which buildings are collapsing in our country is worrying. Potential investors and visitors may have a tainted picture of our construction indus-try, which shouldn’t be the case. Strict rules on quality and safety control should be put in place with dire consequences to the transgressors.

Modernizing the current develop-ment model for the Kenyan construction industry is a thing that can be actualized. Adopting a well laid out model based on engineering, construction and procurement is a proposal that could be looked into. This will eliminate the constant search for foreign contractors when design and construction of mega projects is required. The techni-cal capacity of the Kenyan construction industry would be enhanced such that we are able to compete globally.

In regard to the search for techni-cal personnel for the work, labor subcontracting should be priori-tized as the main source of employment while labor dispatching regarded as a supplement. General and specialized contractors should

OPINIONThe NCA Quarterly

4

Infrastructure is the key to catapulting Kenya into middle-income status, but

we need strong regulation to do so, says Joash Atandi

This needs to persist so that an understanding of

the risks involved is

clearer and a balance

subsequently achieved

’

therefore have a precise number of techni-cal workers on a permanent basis. This would go a long way in narrowing the unemployment gap in our country.

Working with the government to manage the pricing is also crucial for stakeholders in the sector since there needs to be flexibility in the adjusting of costs for even the common mwananchi who are either buying or renovating a home.

The dominance of men in the construction industry is something that needs to be addressed. Women are now more empow-ered, and they need to be accommodated in the building and construction arena. There being over 150 different construction roles, women cannot fail to fit in at least one third of them. As the industry keeps evolving, opportunities will keep arising and women should benefit. This begins with encouraging women to pursue careers in the industry.

Adoption of affirmative action into the Kenyan construction industry will see us soaring to heights in innovation and devel-opment.

Finally, establishment of a unified and open construction market would do well to curb corruption in the country. Several barriers including price rigging, affiliated contracting and illegal subcontracting as well as localized market entries and bid collusions are stumbling blocks that stag-nate the growth of the industry. Awarding of projects to duly qualified contractors, adherence to procedures , safety and qual-ity would benefit every stakeholder. Elimi-nation of market exclusions and unreason-able conditions attached to the bidding of state-invested projects should be aban-doned. All this would be a stepping stone to global competitiveness.

The construction industry is one of the most regulated sectors, and effective governance will be to the benefit of us all.

The NCA Quarterly

33%

National Buildings Inspectorate Commences Demolitions

in Nairobi

TRENDSThe NCA Quarterly

by William Maranga

The proposed joint demolition exercise of unsafe buildings and structures by the and Exhibition National Building Inspectorate (NBI) commenced on Wednesday, 14th March, 2018 in the Imara Daima area.

Since then, further demolitions have taken place in Sinai and Zimmerman on 15th March and 21st -23rd March, 2018 respec-tively. Heavy rainfall experienced

across the country in the last two weeks caused delays in completion of the exercise.

NBI was formed through a presidential directive to inspect already occupied buildings in order to ensure that they do not pose a danger to residents. The National Construction Authority is a member of NBI, as are the National Environment Manage-ment Authority (NEMA), Nation-

al Disaster Management Unit (NDMU) and the National Police Service (NPS), Kenya Power, Kenya Railways and Kenya Pipeline Company.

Illegal structures set up under high voltage power lines, adja-cent to the pipeline and along railway lines were part of the demolitions, and over 5,000 of them were brought down.

TRENDSThe NCA Quarterly

7

Residents of the demolished sites had previously been notified of the intended demoli-tion. Kenya Railways has provid-ed alternative housing through a World Bank funded project in order to re-settle those affected by the demolitions.

The recent demolitions are part of an ongoing exercise that commenced in 2017, shortly after the formation of NBI. . An audit recently conducted by the Inspectorate revealed that half of the 2,260 buildings evaluated in selected estates in Nairobi were in utmost need of inspec-tion, 6,108 buildings have been audited across the country with 654 of them requiring immedi-ate testing and 2,028 classified as unsafe for habitation. The

summary of the audit is as below:NB: The following are the regions where the audits were conducted: Huruma, Pipeline, Umoja/Kariobangi, Thika Road, Dagoretti, Babadogo, South B, Nairobi West, Ruiru, Mathare, KahawaWest, Kiambu, Kitui, Kisii, Malindi, Mombasa, Mazer-as, Kilifi – Mtwapa (Buildings under power lines), Temporary structures on Railway reserves, Pipeline reserves and KPLC Reserves.

Also based on the data pertain-ing to the collapsed buildings in Kenya since 1990 through to 2015 and the causative factors, the graphs below expressly demonstrate the latter: Last year, NBI demolished 34 buildings after tests conducted concluded they were a danger to human life. 13 buildings were earmarked for demolition at the beginning of this yea , of which two have already been brought

Graph 1: A graph showing the levels of safety of buildings against

locations across the country

KeyDangerous: These are buildings that are unsound based on visual observation and need an immediate action that includes evacuation if they are occupied. These require further scientific tests to ascertain their structural integrityUnsafe: These are buildings that may be rehabilitatedFair: These are buildings which need minor repairsSafe: These are buildings considered to be structurally sound

Above figure showing sunken ground on a building in ruai

TRENDSThe NCA Quarterly

Collapsed building in nairobi

down. The remaining ones include 2 in Zimmerman, 5 in Huruma, 1 in Mathare, in Umoja and I in Kariobangi. More demolitions are set to be scheduled as the test results of audited buildings continue to trickle in.

NBI Secretary Moses Nyakiongora discussed the need for demolitions. “These buildings have been constructed with weak materials, they have inadequate compacting, the designs are full of flaws –basically, they are ticking time bombs and need to be brought down. Many of them lack essential facilities such as fire escape routes, sewage disposal systems and ventilators among others,” he said.

In majority of the cases, developers put up the buildings without the supervision of a contractor or the necessary consultants. In other cases the developers put up additional floors that were not in the approved plans.

Graph: A pie chart illustrating the causative factors of

the collapsed buildings for the period between 1990

and 2015

Be Sure, Jenga Smart

2. Affordable housing

President Uhuru Kenyatta in his Jamhuri Day speech unveiled a new development blue-print for the county, now being referred to as The Big Four.

In the celebrations marking Kenya’s 54th year of independence, the President noted that his administration will be focused on four major areas: food security, affordable housing, manufacturing and affordable healthcare.

Ministries, Departments and Agencies have been tasked to prioritize investments towards the realization of The Big Four Plan, now aligned to the Third Medium Term Plan of the Vision 2030.

Under affordable housing, the President said he wants to make every Kenyan a property owner. “The same amount you pay today as rent, you will be able to own your home, and it will be a decent house,” he said.

The plan, the President says, will be enabled by reduced mortgages as well as raising low-cost funding from both public and private investors. The Kenya Mortgage Refinancing Company will issue bonds to local capital markets and extend longer-term loans to financial institutions in order to secure those mortgages.

Other plans underway to make affordable housing a reality include Public Private Partnerships (PPPs), standardized mass housing and reduced tax rates for developers who construct more than 100 houses a year.

A pilot scheme is being set up in Mavoko, and will see construction of over 8000 houses which will retail at an average of 1.5 million shillings. The housing sector is also projected to create 350,000 jobs.

1. Food security

2. Affordable housing3. Manufacturing

4. Affordable healthcare for all

1 Million houses set to be built by 2022

TRENDS

7-9 November

2018

About ICoRCE

Theme

The International Construction Research Conference and Exhibition (ICoRCE) (formerly the Annual Construction Research Conference & Exhibition-ACoRCE) is a biennial event organised by the National Construction Authority, the biggest event of its kind in the region. This year’s conference will take place at the Kenyatta International Convention Centre (KICC), Nairobi.

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REGENERATION

AFRICAOne Coast-based company is turning plastic waste into construction gold.

Words by Mellany Muthui

The NCA Quarterly

14

We’re meeting Sam at the NCA Headquarters in Nairobi to discuss his company Regeneration Africa, a fully Kenyan owned company whose mission is to ‘regenerate’ waste, particularly plastic, into high quality and valuable eco-construction products. Sam is passionate about sustainable construction, and is more than happy to make a business out of it. “There’s a recycling and waste management wave that has hit the country. People are calling us from all over Africa; Mauritius, South Africa, Ghana…..there’s a lot of interest and good will surrounding this issue right now, and there couldn’t be a better time for these efforts.”

Waste management isn’t new to Kenya, Sam says, we just have to manage it better. “What we need to do now is create opportunities and systems for people to know what to do with their rubbish. Recycling must begin at the source by separating our waste into organic and inorganic categories (plastics, foil and cans, newspapers) from an individual level at home all the way to mega factories,” he urges.

Regeneration Africa begun when Sam moved back home from the United States in 2011 where he had been living for a number of years. He was looking for a business opportunity, specifically within

We’re creating a product that lasts for close to a century. Basically, we’ve turned one of the biggest drawbacks of plastic-the length of time it takes to bio degrade-into a positive

manufacturing, one that was unique to the market. While searching for an original idea, he realized just how much plastic was strewn all over the city. And the idea finally came. “I had watched a video of someone in Malindi melting plastic and mixing it with sand. The end result was a reinforced slab. After experimenting with the same concept at home with my wife and brother, we made our first slab. From there, I realized this is something I could potentially commercialize.” The company was born.

“The work at Regeneration Africa is three-fold,” Sam explains. “For starters, we create recycling systems. Without those we don’t have a good supply chain. It needs to be large enough to create the needed quantities and have enough capacity to produce good quality end products. This is why we want to create recycling franchises: standardized methods of recycling in different parts of town. Eventually, we would like to establish a Regeneration Africa recycling center.”

“Secondly,” Sam continues, “we convert waste into valuable products. We’ve started with plastic but we’re looking into other waste materials to re-work.”

Regeneration Africa’s primary products are cement posts and concrete slabs. “Our unique value proposition is that we use plastic as the bonding agent instead of cement to make our construction products. Thus, we have a mix of sand and plastic. There are different kinds of plastics with varying strengths and weaknesses and therefore

used for different products depending on the requirement. Plastics vary when it comes to compression strength, length and flexibility,” Sam explains. Seeing the vast amount of plastic waste spurred Sam on. “The reason we’re manufacturing construction products is because it gives us the chance to re-purpose large volumes of plastic, making a considerable environmental impact. We’re creating a product that lasts for close to a century. Basically, we’ve turned one of

The NCA Quarterly

15

the biggest drawbacks of plastic-the length of time it takes to bio-degrade-into a positive,” he says. “To think that the same plastic bottles that litter the pavement can be used to re-pave the very same area.”

Sam quickly got down to business. “We started in a small office where we did most of our research and development then moved to a larger office in May, 2017. Our current factory is based in Malindi.”

What exactly goes into the manufacturing process? “Well, the process begins with procuring the plastic,” Sam says. “There are people who collect it, and we are happy to pay for their good service as it is a source of revenue for the community. It is important for them to see the value in the work that they do, and we eventually want to convert them into environmentalists. We give them uniform, a hat and a branded bag to bring a sense of dignity to the whole collection process. They bring us the plastic by about 10:00am.”

From there, the plastic is sorted by a different team, usually into seven different piles by type, but they only use for four. “The women are very good at this and are often able to sort three times what the men have by the end of the exercise,” Sam says, laughing. “We’ve trained them on how to identify the different plastics by the numerical values shaped into the mold and

sometimes even by color and sound. The sorting is done by hand to ensure consistency in the final product.”Next, the plastic is shred into flakes then washed, after which it dries in the sun and is taken to a mechanical drum. A few additives are added to aid the melting process and get it to flow easier. Then, depending on what is to be made, the mixing begins.

Fencing posts, for example, have a different mixture from signage posts. “The plastic is melted in an extruder then poured into molds. The curing period lasts anything from fifteen minutes to twenty-four hours. Thereafter it is coated with UV protection and is ready for the market.”

To clean the machines, they run it through with neutral plastic before a different mixture for a different product is placed.

Who is buying the product? “Our biggest customers are those with high interest in environmental stewardship. Our paving blocks and the conventional option are priced about the same. The fencing posts are priced are a little higher but only by about 10-15%. They are superior because we don’t use metal rebars inside them meaning they cannot rust and neither will they be vandalized. They are also 2.8 times stronger than their concrete counterparts in terms of factual strength. And because they are not made of wood,

termites are not an issue either. The advantaged are numerous.”The company started selling its products in 2016. “The period prior to that had been purely for research and development. It was all self-sponsored, as investors need you to prove that you have a viable product before they make an investment, and this is what has kept the growth of other locally owned recycling business low.”

The challenges, as with any business, are there. People associate anything recycled or plastic with cheapness. Our products are not wholly composed of plastic,that is just a reinforcing material. In fact they are just as good if not superior to the competition. My vision is to see my products become main stream with a seamless, cost effective value chain,” Sam says.

Sam’s background has helped him when it comes to handling the business side of things. In the US, he was a Domino’s Pizza franchisee, a company he had worked for in the 1990s after graduating from Walla Walla College with a Bachelor of Science in Bio Engineering. “While in college, I started working part-time delivering pizzas and when I graduated, they refused to let me go and made me their training director,” he says. He worked with Dominos Pizza for a while before deciding to go into business for himself in 1995. “I became a franchisee

The NCA Quarterly

16

owning three Domino’s pizza stores” he explains. He won Rookie Franchisee of the Year, and managed to expand his three stores to seven in about four and a half years. “That knowledge in systems and branding is proving very useful now,” he says, laughing.Despite all the success, he sold his stores and moved back to Kenya. “ I moved back because Kenya is a fast-developing country. Business men and women make 20-30% in profit here. That’s unheard of in the developed world. And that’s why everyone in the West and even the East is rushing in for a piece of not just the Kenyan but the African pie,” Sam explains.

He isn’t stopping with construction industry products, he plans to diversity as much as possible. Regeneration Africa has partnered with FlipFlopi, a company dedicated eradication of single use plastic, and they are working on building the first dhow made entirely out of plastic and discarded flip flops, which, as Sam explains, further demonstrates the potential value and versatility of plastic. Regeneration Africa provided all the plastic used for this project.

The company is also working with bodies like Kenya Association of Manufacturers (KAM) and other relevant manufacturers to establish recycling, following Kenya’s recent legal reforms on plastic. Beyond that, Sam is looking into the recycling potential of human hair.

“At the moment, I am in collaboration with a research company to find out what can be made with recycled hair,” he says. “In Kenya, we’re producing eight to ten tonnes of it per week and it eventually finds its way back to dumpsites. In fact, I have a friend who’s making a three-wheel recycling bicycle for picking up these recyclable materials from hair salons” he says.

Sam, who is happily married with grown children, wants to leave a legacy. “Since I was a child, one of my biggest dreams was to invent something and make an impact on people’s lives. And I think the eco-construction products we make are not only creating livelihoods but also creating a better environment,” he says.

Sam’s parting shot sums up his business philosophy. “Plastic is not evil, the evil is in not re-using or re-cycling it. Rwanda is known as the cleanest country in Africa, let Kenya be known as the country that has the highest uptake of recycling on continent and even the world.”

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Joint Building CouncilAn interview with the Chairman, Qs. Kairu Bachia

Words by Mellany Muthui

The NCA Quarterly

20

Kairu Bachia is exactly what you expect a Chairman to be: receptive, exactly on time, and exuding an air of authority.The editorial team meets Bachia at his firm, Masterbill Integrated Projects, where he is the Team Leader and Quality Control Director.

“In the early days, we practiced Quantity Surveying just after graduating with a degree in Building Economics,” he says. Bachia and his fellow director Eli Asura have been running the firm since 2007 although their combined experience dates back to 1989 when he established Masterbill Kenya.

We’re meeting the former Architectural Association of Kenya (he served from 1994 to1996) as he is the newly appointed Chairman of the Joint Building and Construction Council, JBCC.

“JBCC, formerly the Joint Building Council, is a critical

body within the construction industry best known as the publisher of the Agreement and Conditions of Contract for Building Works, commonly referred to as ‘The Green Book’ and the Fluctuations Clause Pricelist that is used as a basis of adjusting the contract price in

Fluctuating Price Contracts,” Bachia explains.

The history of JBCC is a checkered one. It was established in 1980 by the Architectural Association of Kenya (AAK) and the Kenya

Association of Building and Civil Engineering Contractors (KABCEC) as a company limited by guarantee and not by shares, with the main object to promote the consideration and discussion of all questions affecting the building industry and to promote the adoption of equitable forms

of contracts and other documents used in the building industry.“Standard forms of contracts are contractual agreements with standard clauses that define the relationship between an employer (developer) and a

My ambition is to be a good citizen, to mentor as many people as possible, and to leave a legacy of having made a positive impact on others and to the nation of Kenya”

The NCA Quarterly

21

contractor,” he continues. “Before 1980, the standard forms of contract used were mostly borrowed from the United Kingdom and were not necessarily appropriate to suit our local context. Coming up with our own local standard form of contract was quite a feat.”

The publication of the Fluctuating Price List by JBC was critical. “Clause thirty five (35) of the current “Green Book “ is of special interest to both the Employer and the Contractor because it prescribes how the contract price will be adjusted if and when prices of materials and labour change during the life of a contract. The Clause and the Fluctuation Price List were widely acceptable to the extent that even the government had adopted them for use in price adjustments in government contracts. Then, the government used to have observer status within the JBC Council; it is our intention to reinstate the observer status to the government institutions that play a critical role in the Building and Construction Industry,” Bachia says.

He explained that JBCC would collect market prices of materials that are permanently incorporated in construction, such as steel, cement, timber, plastic pipes as well as labour and then publish the fluctuations price list on a monthly basis for circulation to

consultants, developers and contractors. “In addition, the JBC would issue Practicing Notes to guide on the formula to be applied depending on the material. The Council acted as the industry arbiter.” Over the years, the influence of JBC in the industry kept on waning, and for unexplained reasons it ceased publishing the

Fluctuations Price List sometime in 2014. The present “Green book” was last reviewed in 1990. “I do not want to speculate, but this state of affairs may have arisen due to lack of effective leadership, and in any case the document has many gaps that hinder the smooth operations of building contracts. For example, the dispute resolution clause is

seriously wanting,” Bachia, currently a practicing arbitrator and a Certified Mediator, explains.What, then, prompted the revival of JBC? “Some time last year, the President of AAK, Arch. Emma Miloyo, called to inform me that the AAK Governing Council had proposed that I take up the JBC leadership,” Bachia says. “I must confess, having served as AAK Chairman over 20 years ago I didn’t think I was the right person for the job because I felt that I had already made my contribution to the profession and the industry. The conversation did spark an interest though, and after some soul searching, I thought of way back in 1992 when my professional colleagues asked me to vie for the vice-chairmanship of AAK. I took up the challenge and rose to become the Chairman. During my tenure, together with my team, we were able to raise the profile of AAK considerably and it became a well-known organization. This, I dare say, was the turnaround of the association to become what it is today.” Bachia decided to accept the request to take up the JBC chairmanship believing that he could probably turn the organization around. Bachia accepted the request.“ I saw it as a transitional role, as soon as I transform JBCC into a strong and respectable body within the construction industry, I will hand over to younger

The first order of

business during

the workshop was

to discuss the

proposed

re-structuring of

JBCC

and then the

review of the

“Green book ’’

The NCA Quarterly

22

professionals whom I will coach and mentor as part of succession planning and continuity.” Bachia assumed leadership of JBC in July 2017, at a time when it was in dire constraints. His first official task was to motivate the council and make its members an integral part of decision making. The second task was to consider restructuring of the JBC to make it a more inclusive organization “The landscape of the building and construction industry has undergone many changes since 1980, and I recognize that there are very many interest groups that need to be brought on board.” Bachia, in collaboration with AAK engaged National Construction Authority (NCA) and persuaded it to accept to be strategic partners, a request that was positively received by their Executive Director, Dr. Daniel Manduku. The Authority sponsored a major JBCC stakeholders forum that was held in Naivasha on the 16th and 17th of January 2018.

The event was attended by many high level delegates representing respective stakeholders including AAK, Institute of Quantity Surveyors of Kenya (IQSK), Association of Consulting Engineers of Kenya (ACEK), Kenya Association of Building and Civil Engineering Contractors (KABCEC), Kenya Federation of Master Builders

(KFMB), Kenya Property Developers Association (KPDA), Chartered Institute of Arbitrators (CIArb), Institute of Construction Project Managers of Kenya (ICPMK), Interior Designers Association of Kenya (IDAK)and academia from University of Nairobi(UON) and Jomo Kenyatta University of Agriculture and Technology (JKUAT). The first order of business during the workshop was to discuss the proposed re-structuring of JBCC and then the review of the “Green book “.

“It is my intention to bring in most of the stakeholders into the revamped JBCC to enrich the role of the 1980 founder members of JBC, AAK and KABCEC. I believe, after 37 years, it is time to have a wider representation to transform JBCC into a respectable and formidable advocacy and lobby group,” Bachia says. “We hope to be able to provide a platform to lobby the powers that be to formulate national policies that will address gaps identified in the industry. At the moment, for example, we do not have structured programs that can ensure proper skills transfer to indigenous contractors and our youth to empower them to play a more meaningful role in the realization of affordable and decent housing to all Kenyans by 2022, which is one of President Uhuru Kenyatta’s Big Four agenda items.” JBCC will work with other

government and q u a s i - g o v e r n m e n t organizations in the construction industry to achieve its objectives. “In recent years the construction industry has seen an influx of foreign contractors and consultants. This has had both positive and negative effects; it has introduced new technology that will inevitably make the local players more efficient and competitive. On the other hand, this has resulted in unfair competition which has edged out the local participants resulting in export of employment and capital to foreign countries while our youth languish in unemployment and poverty and our companies face bankruptcy. The current statutory requirement that all foreign companies awarded contracts must have a 30% local component must be strengthened to ensure that it covers both materials and skilled labour,” Bachia continues. He argues that JBCC should play a key role in developing formal structures that can evaluate and monitor transfer skills and technology that shall become a point of reference in the industry.

Bachia’s passion is evident when he speaks, and it was nurtured during his schooling at the Starehe Boys Centre where he graduated after his A levels in 1978. He joined the Ministry of Public Works in 1983 after

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23

graduating from the University of Nairobi with a Bachelor of Arts (Building Economics), where he worked as a quantity surveyor up to 1987. He left and joined the private sector, and then started his firm Masterbill Kenya in 1989. Masterbill Kenya rebranded to become Masterbill Integrated Projects in 2007, after merging with Integrated Projects which was being run by his fellow director Qs. Eli Asura.Bachia is clearly proud of his firm. “We have a team of fifteen young and motivated professionals whom I consider to be the key asset of the firm. They have helped build the firm to be one of the most respected quantity surveying practices in the country. Our clients have largely been private sector corporates and pension funds. Some of the projects we have participated in include Nginyo towers, Nairobi Hospital Doctors Plaza, 4th Ngong’ Towers, Commission for Higher Education Headquarters, Runda Park Estate, Loresho Ridge and Bogani Park, amongst others. Some of our clients include Cytonn Real Estate, Trade and Development Bank, Centum, Dyer and Blair, Kenya Power Pension Fund, Kengen Staff Retirement Benefit Scheme, Kenya Commercial Bank, UAP and Old Mutual.”

Bachia serves on the boards of several organizations, such as Kenya E l e c t r i c i t y Generating C o m p a n y L i m i t e d (KENGEN) w h e r e he is

currently serving his second term, and where he chairs the Strategy and Business Performance and sits on the Human Resource and Audit and Risk Committees. He also chairs the Taraji Heights Board, which is a subsidiary of Cytonn Real Estate. “Although one is usually invited to serve in a board because of the skills and expertise one possesses, more often than not the knowledge and skills acquired from such organizations far much outweigh one’s contribution. I have learnt that for success even public institutions should adopt many of the characteristics that are inherent in successful private corporations.”

Bachia is a man who likes to keep busy. He is an avid golfer, and is a past Captain and Chairman of Muthaiga Golf Club. One of his proudest moments was when the late Dr. William Griffin, Founder and Director of Starehe Boys Center, asked him to serve as Chairman of the Old Starehian Society (OSS), the school’s alumni

association. “Dr. Griffin personally requested me to take up the leadership of OSS.

I couldn’t understand why he had picked on me, he must have seen something in me that prompted him to do so.

Although I initially resisted, he categorically told me that I must accept the responsibility because he believed I had

what it took to transform the society into a strong and

enviable association. I had no choice other

than to accept and consider the call to

serve as an honour. By the time I finished my chairmanship in 2002, the association had been truly been transformed.”

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24

With all this on his plate, one wonders when Bachia actually unwinds. “Oh, there is always time for recreation,” he says. “I go to the gym as often as I can and regularly golf. I am also a husband and father to six children, and that certainly makes life worth living. Raising all my children has been and continues to be very exciting for me. My hope has always been to mentor them to be responsible citizens.”

Bachia is on a constant quest to better himself. He graduated from the United States International University - Africa (USIU) in 2017 with a Global Executive Masters in Business Administration (GeMBA) in 2017, after completing a one year Owner-Manager programme at Strathmore Business School in 2013. In between he has attended numerous professional, business and leadership short courses both local and abroad, amongst them the Project Finance and Financial Analysis Techniques for Infrastructure Projects at the Institute of Public-Private Partnership in Washington, USA, Strategic Planning and Decision Making at ETYM International in Montreal, Canada, Audit Committee Best Practices for the Public Sector Masterclass by Dr. John W. Hendrikse in Cape Town, South Africa amongst others. Currently, he is very active in alternative dispute resolution

I have learnt that

for success even

public institutions

should adopt

many of the

characteristics

that are inherent

in successful

private

corporations

through arbitration and mediation. “I have successfully presided over numerous arbitrations following appointment by the Chartered Institute of Arbitrators, Architectural Association of Kenya and the courts,” he says. “However, my new found love is

mediation, because in mediation, the approach is focused on a win-win outcome which resolves disputes and at the same time restores relationships. This is quite different from arbitration which is adversarial by nature and which often ends with a win-lose outcome and destroyed relationships.” He is a Certified Professional Mediator

and a Member of Institute of Directors (Kenya).

Does Bachia get overwhelmed by his many different and demanding roles? “Not at all,” he says. “I believe that a person has enormous capacity to deliver what they desire to achieve, all one has to do is to set their priorities, then plan and manage their time. In fact I don’t think my plate is full. I have room for more. My ambition is to be a good citizen, to mentor as many people as possible, and to leave a legacy of having made a positive impact on others and to the nation of Kenya.”

Town and County Planners Association of KenyaAn interview with Mairura OmwengaWords by Brighton Amwayi

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28

Nairobi City is famous for its urban plan, said to have been adopted by Singapore, now a thriving metropolis, in the 1960s

Mairura Omwenga is not a man of few words. “I teach at the University, so be prepared for a long conversation,” he laughs as we begin our interview.

Mairura is the current Chairperson of the Town and County Planners Association of Kenya (TCPAK), an organization that was formed in 2014. Prior to that, Town Planning was a chapter of the Architectural Association of Kenya.

“We realized it wasn’t enough just to exist under AAK. Town planning is the very basis of infrastructural development, it was time to spread the wings,” he says.

Town planning or urban planning is a strategic exercise that involves matching resources to the needs of the residents, and ensuring that those resources are carefully managed to meet future expectations. It is one of the oldest professions dating back

to the beginning of human civilisation. Mairura continues, “towns are the seats of power; they are where governments are based. Towns are also the engines of development for any nation and the apex expression of human civilization. It is for this reason that we felt the need to step up our efforts because

we as town planners are the ones tasked with preparing master plans for this vital installations, we are the ones who must ensure that that when towns are being set up or expanded, compatible activities are grouped together to ensure that there is no conflict arising. For example building a school in

the middle of an industrial area. The onus is on town planners to ensure that there is synergy of activities even within limited space.”

Town planners design the communities where people live, work and play, all the while balancing the built and natural

environment, community needs and cultural significance. “Town planners improve the quality of life for the community because they strive to ensure there is perfect coexistece,” he continues.

Nairobi City is famous for its 1973 development report, said

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to have been adopted by Singapore, now a thriving metropolis, in the 1960s (Mairura insists it was a study report and not a plan). At the time, the small South-East Asian Island’s population had high levels of illiteracy and was living in sprawling slums. The country was tiny, with very few natural resources. Fast forward a few decades later, Singapore has the third highest global Gross Domestic Product (GDP) per capita, and is ranked among the world’s top countries when it comes to education, health care, safety, housing and overall quality of life. “This all boils down to proper town planning,” Mairura says. “Singapore is famous for land reclamation to allow for expansion, as well as controlled and sustainable development. They have integrated urban opan planning as well as controlled and sustainable development.”

Mairura says TCPAK has been very vocal in advocating for inclusion of planning in the development of urban areas within the country. “Just compare this current era with, say, the 1970s. Back then, you couldn’t specialize to become a town planner as those courses were not offered in the universities at undergraduate level. You had to have a first degree in a technical field, such as engineering, then specialize at post graduate level. Few people opted to do so, which is what led to a lull in the next few

decades and the profession of town planning was never really highlighted. Now, we have institutions offering undergraduate degrees in town planning. The profession is finally receiving the recognition it deserves, and TCPAK has played a vital role in raising the profile of town planners.”

The recognition of urban centers in Article 184 under Chapter 11 of the Kenyan constitution in 2010 also helped bring more focus to town planners, and contributed to TCPAK’s formation in 2014.

The association is currently led by a seven person National Council that was elected at its inception and will serve a single five year term.

Mairura is the current chairman and one of the individuals credited with TCPAK’s formation.

He holds a bachelor’s degree in Civil Engineering and a Master of Science in Urban and Regional Planning from the University of Nairobi. He is currently undertaking a PhD, and is conducting research on school transport in Nairobi. He remains optimistic that with the new energy and sense of direction brought about by TCPAK coupled with close co-operation with the national and county governments, the country can have better urban areas that will lead to a better

country. “TCPAK’s motto is Better Towns, Counties and Country; and it is one we live by,” he says.

The 2009 National Housing and Population Census forecast that the percentage of Kenyans living in urban settlements will increase from 32 percent to 54 percent by 2030. This increase is evident as urban areas are grappling with issues such as solid waste management and disposal, with Nairobi and Mombasa counties particularly on the spot over this issue. Mairura says that this is one of the issues that can be attributed to the fact that the last master plan for Mombasa town was done in 1947 and for Nairobi in 1973. “Mombasa stands out in particular because the Kibarani landfill was meant for a small town but since the last master plan was developed and implemented in 1947, there has been uncontrolled growth which manifests itself in the kind of problems we are seeing” Mairura goes on to add that even though dumpsites are an eyesore and potential health hazards, they cannot easily be replaced as a lot has to be put into consideration. He gives the example of leaching which occurs once waste has decomposed and can be harmful if the dumpsite is close to a water body.

With Nairobi County, however,

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21

The Integrated Urban

Development Master

Plan for the City of

Nairobi (NUIPLAN) will

integrate all the existing

Master Plans of various

infrastructures within the

City of Nairobi and its

surroundings

Mairura is quick to express his optimism mainly due to the fact that it has an Integrated Master Plan which was formulated in 2015 and is being processed for implementation. The Integrated Urban Development Master Plan for the City of Nairobi (NUIPLAN) will integrate all the existing Master Plans of various infrastructures within the City of Nairobi and its surroundings. Infrastructure to be included is urban transport, railway, airport, power, water supply, sewerage, telecommunication and solid waste management. Mairura says that this plan should be made available to the public so that everyone can familiarize themselves with it and own it in order to enable them come on board and become part and parcel of its implementation mechanism.

TCPAK has grown in the four years since its formation. It offers membership grouped into ten categories with the highest being Fellow Membership which is given to individuals who have amassed considerable experience in the planning sector. The minimum requirement for membership eligibility is a degree in Town /Regional/ Urban planning from a recognized university.

The association also runs a

continuous professional development programme for planning professionals. This, Mairura says, is geared towards enabling members to deliver as professionals and to address areas of specialization that are of key interest, such as developments in the transport and energy sectors. On the 8th ofNovember of every year, the association marks the World Town Planning Day, coordinated by the International Society of City and Regional Planners (ISOCARP).This date also marks the 3-day Town and County Planning and Development Conference. At the end of theconference, the association celebrates the Town Awards of

Excellence that fetes and recognizes institutions and persons who have made a contribution in making towns better places to work, live and play.

Mairura, who also lectures at the University of Nairobi’s Department of Urban and Regional Planning, says that TCPAK, in addition to raising the profile of the profession, has been able to pressure authorities (especially county governments) into accepting and embracing specific and orderly management of urban centers. This has in turn led to better working relations with stake holders in the built environment sector.

These efforts have garnered recognition from many quarters, leading to international partners reaching out to them for partnerships over the last two years. TCPAK currently has reciprocal engagements with the South African Planners Chapter as well as the Hague-based International Society Of City And Regional Planners.

“Town planning is the future of our country’s development,”saysMairura, “and the future is indeed bright.”

The NCA Quarterly

1 Ph

oto

Sp

ea

k1.Western Regional Commissioner Anne Ng’etich is welcomed to the NCA’s Western Region Stakeholders Forum by NCA Registration and Compliance Manager Raymond Karani (center) and NCA Kakamega Regional Coordinator Julius Muchiri (far right) at the Golf Hotel on 23rd to 27th April 2018

2. NCA Executive Director Dr. Arch. Daniel Manduku (far right) accompanied by management representatives pose with International Finanace Corporation Country Manager Manuel Moses (second right) after the signing of M.O.U between IFC and NCA

3. A Contractor recievieng Personal Protective Equipment from NCA staff after checking in for a

CPD training

4. NCA Board Directors, Executive Director and Managers pose for a group photo with Transport and Infrastracture CAS Chris Obure (fifth from right)

during his visit to the Authority's headquarters.

1

4

2

3

5. Housing and Urban development P.S Charles Hinga (spectacled) confers with NCA Executive Director Dr. Arch. Daniel Manduku, Board chairman Stephen Oundo OGW, Qs. Jeniffer Musyimi and NBI Secretary Moses Nyakiongora

6. Contractors during during a plant tour of Savannah Cement's Athi RIver premise

7. Nca Manager Regional Offices Arch. Mwilu shares a loght moment with Uasin Gishu Deputy Governor Samuel Chemnoo

5

6

7

KPDA was established in Nairobi in 2006 as the rep-resentative body of the residential, commercial and industrial property development sector in Kenya. It is an emerging Business Member Organisation which works in proactive partnership with policy-makers, financiers and citizens to ensure that the property development industry grows rapidly but in an orga-nized, efficient, economical and ethical manner.

Why Join Us

KPDA’s current membership is a diverse make up of all industry players including property development firms, real estate agents and managers, professional firms, industry suppliers, government agencies, in-stitutional investors and managers and financial in-stitutions who are based both in Kenya and globally. Principally, KPDA champions the interests of the in-dustry to ensure a better business environment. While KPDA membership is open only to registered companies or organizations, the benefits of mem-bership extend to all staff in our member companies or organizations.In order to join KPDA, visit our website;www.kpda.or.keThe following should be submitted to theKPDA Secretariat physically/electronically:

• Fill the KPDA Membership Application Form and sign the KPDA Code of Conduct;• Attach a copy of your company's certifi-cate of registration or incorporation;• Make the relevant payment.

Formalising Nairobi’s

Transport System

The country’s capital deserves intergrated public transport, and it is fully attainable

Words by Miracle Wachira

36

Nairobi City County is facing a myriad of transport problems as the rate of urbanisation outpac-es the investment and moderni-sation of the city's transport system. The city is plagued by incessant traffic jams and a public transport system that is chaotic, inefficient, unreliable, unfriendly to pram-bound children and people with disabilities.

The public transport supply is insufficient for the existing travel demand and its pricing predatory, making it unafford-able to a large section of com-munities in poor neighbour-hoods of the city. The city is car-centred, giving little room for non-motorised travel such as safe walking and cycling, save for a few roads confined to the surburbs. The challenges are consider-able, but not insurmountable. However, there will be neither

Nairobi City has minimal public transport integration

with respect to scheduling of different matatu services,

routing and ticketing, making it more difficult for commuters to

plan their travel

The NCA Quarterly

silver bullets nor quick fixes. There was a time in Kenya where an organized system of public transport existed, a bliss-ful post-independence period. In 1966, a company called United Transport Overseas Services (UTOS), owners of Kenya Bus Group Limited, was granted a monopoly franchise in Nairobi’s Central Business

District by the Nairobi City Council, who also acquire a 25% stake in UTOS. The buses were regulated by the Transport Licensing Board, which designed routes and set timeta-bles within which the buses operated. Shortly, enterprising Kenyans bought vans, installed seats and employed touts, and offered flexibility of the routes and operated outside the TLB rules. The cost of fare on these new vehicles was thirty cents, which is the origin of the word ‘matatu’.

The next major turning point in the matatu industry was in 2003, when the formidable Transport Minister John Michu-ki introduced the eponymous ‘Michuki Rules’. The rules were regulations for matatus, which required them to install speed governors and seat belts, paint visible yellow lines showing routes plied and for drivers and touts to wear uniforms and identification badges. Needless to say, the Michuki rules trans-formed the industry, and even

Githurai Matatu Stage

37

The NCA Quarterly

though his exit from the Ministry broiugh about a certain amount of laxity, the impact is still felt strongly 15 years later.

In 2009, then Transport Minister Amos Kimunya introduced new regulation that barred the regis-tration of 14 seater matatus to make way for bigger vehicles in a bid to decongest the roads. The regulation also announced that all matatus required registration under Savings and Credit Co-operatives (Saccos), through which matatu owners could access credit to purchase the higher capacity vehicles. Anoth-er purpose pf the Sacco regis-tration was to introduce self-regulation, where Sacco management would help disci-pline errant crews.

In 2011, The Ethics and Anti-Corruption Commission published a report based on the Kitu Kidogo Out Project, a donor funded initiative of the Matatu Welfare Association and the Matatu Drivers and Conductors’ Welfare Association, which stated that the matatu industry loses revenues in excess of Kshs. 1.8 billion every year. The figure was said to be “shared out among Police officers, judicial officials under whom matters fall, and organized gangs that masquerade as industry players.” The report was launched in the presence of then Kenya Anti Corruption Commis-sion Director and Chief Execu-tive, Professor P.L.O. Lumumba, then Police spokesman Eric Kiraithe and Transparency Inter-national’s Executive Director

Samuel Kimeu.

Leaving public transport indus-try to its own devices has led to the current fragmented owner-ship of matatus and cultivated the spirit of unbridled individual-ism and self-interests amongst the matatu operators. These matatu owners are motivated exclusively by profit rather than satisfying the transport needs of Nairobi commuters.

The choice of route for matatu trips from origin to destination and the scheduling of those trips are not fixed. They are chiefly geared towards maximising profits for the operators and touts often at the expense of the hapless traveller. For example, the routes used are varied regu-larly for reasons such as bypassing congestion in order to maximise trips per day, to avoid traffic police who may demand bribes for real or imagined infringements, to avoid areas where passenger demand may be low at that time among other rationales. To achieve the same ends, a matatu driver may decide to reduce their speeds or make prolonged stops so as to pick as many passengers as possible.

These practices often inconve-nience passengers whose desti-nations are by-passed. Pricing and route choice is at the discre-tion matatu operators, who favour short-term profit over long-term passenger loyalty.Pricing of matatu services in the Nairobi Metropolitan area by operators is predatory. The fares

charged for the same routes or distances are not fixed. Instead, they are varied depending on the time of the day, weather, avail-ability of alternative matatus (competition) for the traveller, the passenger’s negotiating skills, among others. In other words, matatus take advantage to maximise profits.

It is not strange to find two passengers travelling by the same matatu for the same distance but paying different fares. These exploitative tenden-cies are enkindled by the allure of physical cash money since fare collection is on-board and in cash. The woes experienced by commuters are further com-pounded by the lack public transport integration.

Nairobi City has minimal public transport integration with respect to scheduling of differ-ent matatu services, routing and ticketing, making it more difficult for commuters to plan their travel. Ticketing integration allows transfer between differ-ent public transport services using a single ticket for an entire journey which may contain different segments. The differ-ent operators used by the passenger throughout the journey then share the fare paid by that traveller equitably according to the distance travelled by the passenger in each of the services.

Services and scheduling integration, on the other hand, involves a seamless connection between modes and services.

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The NCA Quarterly

Consider travelling around Nairobi City. Nearly every com-muter trip has more than one segment and travel mode; at least some walking at the beginning and end, and then some combination of travelling by different matatu services or even a car.

Such a trip would be considered integrated when it is relatively seamless, with its different segments readily connecting in space and time and on a single ticket. Currently, this is not the case for travel around the city. As an example, the journey from Upper Hill to Uthiru has two segments: the Upperhill- CBD segment and then CBD-Uthiru segment. While on the Upper Hill-CBD portion, commuters have zero informa-tion on the schedule of matatu servicing the CBD-Uthiru segment.

They may, therefore, get off the Upper Hill-CBD matatu service at the CBD, find no matatu is available for the next segment of the journey and hence be forced to wait for extended periods in the CBD. Further-more, the end of Upper Hill- CBD journey and the stop for CBD-UTHIRU matatu service may not necessarily be close together, necessitating long walks through the congested city streets.

The travellers must pay for each of the journey segments separately. This lack of integra-tion and co-ordination in the public transportation system

has been one of the major com-plaints in passenger satisfac-tion surveys the world over. A public transit that lacks integration is riddled with uncertainties, is uncomfortable and generally offers a poor service to its users. Matters are worse for vulnerable passen-gers who have literally no place in our city’s transport services.

The question of inclusivity in public transport is one that matatu operators have general-ly put on the back burner in Nairobi. This has excluded persons living with disability, the elderly and young mothers, who make up a significant portion of our city population, from participating in nation-building against the principles of the United Nations Convention on the Rights of Persons with Disabilities, which

Kenya has ratified. Public transport should be safe for use and visible to all segments of the society including the vulnerable amongst us. World-wide, about 1 billion people live with one disability or another. Closer to home, about 5.1% of Nairobi residents live with different types of impairments that have long-term adverse effects on their abilities to participate in day-to-day activi-ties, according to the 2007 Kenya National Survey for Persons with Disabilities (KNSPD). These persons must be given access to public trans-port and a chance to participate in society on an equal basis with the rest as demanded by the United Nations Convention on the Rights of Persons with Disabilities. Due to their vulner-abilities, this class of passen-gers requires special attention.

A passenger in a wheelchair boarding a bus in London; the bus is notably low-floor and is equipped with a ramp (Transport for London)

3739

The NCA Quarterly

Matatus are not facilitative of seamless mobility by vulnerable commuters as they lack the features and spaces required while the operators and conductors lack the sensitivity to handle this special category of travellers. Passengers with disability (PwD), elderly passen-gers, wheelchair-bound passengers as well as babies in prams and their carers require special priority seats and spaces. Moreover, these vulnerable passengers require low-floor step-free vehicles with powered ramps that can be unfolded for wheelchairs, push-chairs and buggies to board and alight. Public transport vehicles should also be designed to allow lowering the vehicle suspension by a few inches at bus stops such that the entrance is at the level of the adjacent pavement. These features are not available on matatus that provide public transport in Nairobi which makes journeys for vulnerable passengers a nightmare. All these transport challenges

require an urgent solution. The newly established Nairobi Metro-politan Area Transport Authority (NaMATA) certainly has a hefty mandate ahead. The formalisation of public transport is the only effective solution to the many transport problems Nairobi is facing. Formal public transport is char-acterised by fixed routes and stops at regularly scheduled

intervals, ticketing systems which incorporate proof of payment (either a paper ticket, card or token system), owner-ship by a public transport authority or at least strong state oversight. Formal mass transit is provided through organised high capacity buses on segregated bus lanes popularly known as Bus Rapid Transit (BRT) system, trams on light rail (tramways) along urban streets or an under-ground, alternatively known as Light Rail Transit (LRT). BRT systems are recommended for cities in developing countries since their implementation costs are significantly lower than LRT.

Another advantage of BRT systems over LRT is that the BRT systems can be imple-mented in phases or a line (busway) for parts of the journey while allowing BRT buses to share the roadway with other

Cost comparisons pitting BRT against light and heavy rail

Passengers boarding a BRT bus at a distinctive tube-shaped BRT station in Curitiba, Brazil. The stations are raised from ground level and protected from the elements; the tubes open on to the bus lanes creating a platform for passengers to board and alight

Table 2.1 Average cost per Kilometer by mode [BRT, LRT, HRT], Developed versus Developing Countries

Type Lower income countries(2013$/km) Higher income countries(2013$/km)

BRT Average $11,504,575

BRT Gold

BRT Silver

BRT Bronze

LRT

HRT

$16,312,504

$9,528,467

$9,612,943

$25,373,992

$87,429,209

$10,054,824

n.a.

$9,729,605

$10,380,042

$37,496,032

$433,660,969

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The NCA Quarterly

traffic for the rest of the journeys. In the case of Nairobi, for instance, we can start by implementing BRT along a few of the city’s main thoroughfares such as Thika Superhighway and Uhuru Highway, and then progressively move on to other corridors to join the busways into a network as funds become available. BRT systems are the go-to public transport solution for most cities in the world.

BRT systems have increasingly become popular in many cities across the globe after their first implementation in Curitiba, Brazil in 1974. Currently, a whopping 85% of Curitiba’s population use the BRT buses to fulfil their travel needs. making it the envy of other world cities in terms of sustain-able transport.There are plans in the pipeline

by the National Government to implement several lines of BRT busways along the main traffic arteries in Nairobi including Waiyaki way, Thika Road and Ngong Road. This is a step in the right direction. The BRT systems, if implemented as per the government’s blueprint, would provide faster, comfort-able journeys for Nairobi com-muters, in comparison with the current matatus system.

A strongly regulated or state-owned BRT system would also promote equity and social inclusion in public transport. By putting in place bus priority measures and providing segre-gated bus lanes, travel times on public transport become as competitive or even more com-petitive than car travel times. Despite these potential bene-fits, how to fund the bus

systems is always a challenge particularly for developing countries. The national and the relevant county governments should devise creative ways of raising the money required for the BRT investment such as taxing prop-erty owners, charging cars entering the CBD, parking fees and driving license fees. The value of land and properties along the routes earmarked for BRT system development has been shown to increase. This is one of the wider economic benefits consequent to trans-port investment. The property owners should be charged a fee to contribute to funding the BRT. The fee may be viewed as a tax on the increase in the value of their land and property.

For those of us who would still want to enjoy the luxury of driving to the CBD despite the improved public transport system, thereby taking up disproportionately large road space and contributing to congestion, a financial penalty should be imposed on us for the negative externalities of our use of cars. The money raised from this congestion charging system should be invested towards improving public trans-port. This charge would also act as a deterrent and encourage behaviour change. Congestion charging has been tried in several cities in the world. In London, for instance, conges-tion charge on cars entering central London between 07:00 and 18:00 Mondays to Fridays was introduced on 17th Febru-

London Congestion Charging Zone. Every entrance to the Congestion Charge Zone is marked unambiguously with the red circular "C" symbol

41

The NCA Quarterly

ary 2003 by the then anti-car city Mayor, Ken Livingston. The charge is either paid in advance, on the day of travel or by midnight the following day. The charge is £11.50 per day if paid in advance or on the same day, or £14 if paid the day after. The congestion charge has been effective so far, with congestion delays in the Charging Zone falling by 30% and the volume of traffic within the zone down by 15%. Other ways of funding the BRT could be increased driving licence acquisition fee as well as development vote from the National Government and the Nairobi City County Government. To reach its full potential, formalisation of public transport will need to be accompanied by other auxiliary transport mea-sures such as transit-oriented development, Park and Ride facilities, Parking Control Mea-sures and Intelligent Transport System (ITS).

Colchester Town Park and Ride. The town can be seen on Right-hand side of the horizon

Real-time information displayed at a bus stop in Dublin, Republic of Ireland. Passengers at the stop are informed on when the next buses services are due

Sustainable transit requires transit-oriented development. Henceforth, there should be stricter planning control by the Nairobi City Government to make sure that as new develop-ments are built, transport is built with or before them. Devel-opment should also be geared

towards maximising the public transport and non-motorised travel. Dense and mixed-use development, where residential, commercial, institutional and industrial uses are combined in the same or adjacent areas reduces trip lengths and distrib-utes traffic demand into different directions.

In addition, Nairobi city streets should be re-designed to priori-tise people and their health over vehicular traffic. This should be aimed at improving the experi-ence of being on those streets, making them appealing and inclusive public places unlike the case today. Such streets have been christened ‘healthy streets’ by transport planners. Such streets are easy to cross for pedestrians of all abilities, have shades and shelters, places to stop and rest, not too

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There should be stricter planning

control by the Nairobi City

County to make sure that

as new developments

are built, transport is built with or before them

The NCA Quarterly

noisy, have clean air and people feel safe and relaxed. To complement a BRT system, it would be essential to provide Park and Ride facilities. Park and Ride facilities serve as collection areas for people transferring to higher occupancy vehicles. In the case of Nairobi, it would make it convenient for car owners living far from the reach of the proposed BRT system to drive their cars up to the outskirts of the city where they can park and use BRT buses to commute for the rest of their journeys to the city and back. This would further reduce the congestion in Nairobi CBD and the environmental externalities that result from increased traffic levels such as air and noise pollution. City centre parking control mea-sures are a powerful tool for guiding mode choice and use of city streets. Measures such as charging parking on an hourly basis, increased parking fees and reduced parking spaces would reduce the negative effects of current excess demand for parking in the city centre. The space freed up can be reallocated to pedestrians or cyclists to encourage non-moto-rised travel which, according to research, has tremendous health benefits, both physical and mental. Reallocation of space away from cars can also make more pleasant, and there-fore prosperous, city centres. Most of these transport mea-

sures can benefit immensely from the deployment of Informa-tion and Communication Tech-nology.

Information and Communication Technology has been deployed in other cities to improve transport and reduce congestion. This advanced application of ICT in transport is popularly known as intelligent transport system (ITS) and can be replicated in Nairobi city. ICT has been used to relay real-time passenger information at bus stations and bus stops along the bus routes, informing passengers when the next bus is due. This calms

passengers by reducing the psychological anxiety and frustration associated with the uncertainty of waiting for a public transport vehicle without the information on whether it’s coming at when it will arrive. Another common deployment of ITS is in digital road signs to inform drivers of real-time traffic conditions, warn them of traffic incidents, delays or closed lane(s) ahead. This calms motorists and can enable them to use choose alternative routes.

In conclusion, public transport in Nairobi city is in dire need of improvement. When done right, it will allow Nairobians to travel affordably, efficiently and with dignity, increasing their access to economic, education and social opportunities and at the same time, sparing time for themselves and their families.

The most efficient solution will be incrementally phasing out the privately-owned informal mata-tus and replacing them with strongly regulated or state-owned high capacity formal bus system. To be successful, the BRT system will require to be accompanied by transit-oriented development, healthy city streets, parking control measures and intelligent transport system (ITS). The chal-lenge is now on the City’s newly-created transport author-ity, NaMATA, to lead the way.

The region has seen a surge in mega construction projects that are shaping the physical and economic landscape.

By Stephen Nyakondo

East Africa’s Top 10

Most Valuable

Projects

Grand Ethiopian Renaissance

Dam

It is a gravity dam on the Blue Nile River in Ethiopia and has been under construction since 2011. When completed, the dam is expected to produce 6,450MW and this will make it the largest hydroelectric power plant in Africa. Apart from electricity, the dam will also be capable of handling floods and reduce alluvial erosion in Sudan, and will facilitate irrigation of over 500,000 hectares of land and boost water supply in the entire region.

Lake Turkana Wind Power

The Lake Turkana Wind Power project) is located in Loiyangalani District, Marsabit County, Kenya. It comprises of 365 wind turbines, each with a capacity of 850kW, and a high voltage substation that will be connected to the Kenyan national grid through an associated transmission line, which is being constructed by the Kenyan Government. Once operational, the wind farm will provide 310MW of reliable, low cost energy to Kenya’s national grid.

Koysha Hydroelectric Dam

Koysha Dam is being constructed on the lower bank of the Omo River, which is an outward-bound river of Ethiopia joining Lake Turkana in Kenya near the southern Ethiopian border. It has a capacity to generate 2000MW of electricity and will also provide water for irrigation.

Kigali Innovation City

Kigali Innovation City is an African-focused innovation hub encompassing three inter-dependent platforms which will enable it to sustainably deliver digital products and services for accelerated digital transformation of Rwanda’s economy and for export to other African economies. The platforms of Kigali Innovation City are: a) The digital innovation platform through which technology companies will establish and operate innovation labs within a technology cluster aligned with their intellectual property;b) Human capital development platform to supply the required scale of professional talent to the technology companies, and to up-skill the employed talent with a range of professional industry skills required throughout their employment; c) Innovation-friendly financing platform to nurture technology companies within the innovation hub throughout their stages of of growth.

Mtwara Gas Project

The project will involve construction of approximately 542 km of a gas pipeline that will connect natural gas reserves in Mtwara, Lindi and Dar-es-Salaam. The objective of this project is to diversify the national energy pool, and to take advantage of the vast natural gas resources onshore and offshore in the Mtwara and Lindi regions.

Central Railway

It is the construction of the first 202 kilometre stretch of the Standard Gauge Railway (SGR) between Dar es Salaam and neighboring countries Rwanda and Burundi. Once all phases are completed, it will help lift the economy of Tanzania and its neighboring countries, including Uganda, Rwanda, Burundi, and the Democratic Republic of Congo (DRC).

Mieso-Dire Dawa-Dewanle

Railway Line, Ethiopia

It will cover 740 kilometers and will link Addis Ababa to Djibouti’s capital city, Djibouti. It is a component of a series of eight rail corridors totaling 4,744 kilometers, creating a series of key trade routes to neighboring Kenya, South Sudan, Sudan and finally to Djibouti’s port.

Karuma Hydropower Plant

The plant is located on the Kyoga Nile in the city of Karuma and is expected to generate 600 megawatts of hydroelectricity upon completion. It will be the largest dam in Uganda.

Awash-Woldia-Hara Gebeya

Rail Project

The railroad's primary purpose is to connect northern and central Ethiopia and the Djibouti port. Several large cities of the Amhara Region are directly served by the railway and it will connect Ethiopian industrial centers like Kombolcha with neighbouring countries. It connects approximately a third of Ethiopia’s population and will provide efficient mobility and improve export and import activities, boosting the country’s economic development.

Standard Gauge Rail Project

The Standard Gauge Railway is a flagship project under the Kenya Vision 2030 development agenda. It will simplify transport operations across the borders and reduce travel costs, benefiting the economies of Kenya and its neighboring countries. Phase 1 of the project involved construction of a single-track standard gauge railway between Mombasa and Nairobi, a route length of 472km and a total length of 609km. Phase 2A extends the Standard Gauge Railway from Nairobi to Naivasha, a distance of 120 km. Just like the Nairobi-Mombasa line, this line will also be much cheaper and more convenient, opening up Naivasha to more visitors and promoting tourism and hospitality in the town.

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On August 4th, 2016, President Uhuru Kenyatta signed into law the 2015 Banking (Amendment) Bill. The law was meant offer a reprieve to the financially excluded, and capped interests rate at 14%.

Almost two years later, the effects of the law are being felt, especially within the construction industry. High land

FINANCING THE CONSTRUCTION

INDUSTRY

costs, which have grown by almost 20% in five years as well as high construction costs (as high as 70% of the entire project cost) mean that developers rely on debt financing to complete their projects. The Kenya Bankers Association notes the new law has worsened the slow-down in the disbursement of credit to several sectors including construction.

Developers are now turning to alternative financing sources, such as local institutional investors including insurance companies, joint ventures, foreign investments and off-plan sales.

Contractors and developers have been facing a myriad of challenges over the years as they try and secure construction

Is the Interest Rate Cap benefitting the industry?

Words by: William Maranga

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55

financing. Unpredictable economic cycles, revenue fluctuations and competition from foreign investors mean that demonstrating credit-worthiness isn’t always easy.

Other challenges include profit erosions, poor credit ratings, limited liquid working capital, limited or no bonding capacity and the overall volatility of the construction industry.

Banks have been struggling over time in allowing bonding accounts receivable to act as securities for a line of credit. In case a contractor becomes incapacitated and cannot complete work on a bonded contract, the bonding company is usually entitled to collection and not the bank. However, despite all the present challenges, construction financing is still a product offered by almost all major banks in the country. Construction loans and mortgages vary with the nature, complexity and purpose of the project to be undertaken. Lenders require a high degree of assurance that a project will be successful before disbursing funds, and will therefore take measures to evaluate the project’s ability to be accomplished in totality without fault. The project itself acts as a form of security.

The process of obtaining a construction loan is lengthy.

Documentation required includes project plans, details of the professionals involved in the project, reference letters to demonstrate experience as well as all statutory and regulatory requirements, such as approved plans and permits.

The anticipated incomes and expenses of the foreseen project should also be clearly highlighted in the application.Generally, banks assess lending maximums to contractors and developers. The maximum line of credit considered is a factor of ten to fifteen percent of the annual revenue. For financing of equipment, the bank will evaluate a loan request of 80% of the acquisition price of the construction equipment.One of the county’s oldest lending institutions is the Kenya Commercial Bank (KCB), and they have several

products with relation to construction financing. According to Ms. Caroline Kihara, the Head of Mortgage Sales at KCB, the mortgage industry has continued to experience tremendous

growth. A developer can take a project finance or estate development loan. To qualify, you are required to submit your audited accounts for the last three (3) years for existing companies and cash flow projections for one year. All documentation showing company ownership and tax compliance are also needed. Other documents needed include copy of title with a minimum lease of 35 years, practicing licenses of the consultants, bill of quantities and a feasibility study report confirming the project’s viability. Financing is up to 85% iof construction costs, however this is considered on a case to case basis and depending on the type of project/development being undertaken. The bank also offers up to 90% financing for purchase of residential units, and under employee scheme arramngem,ents, KCB is able to offer 100% financing.

Other banks also have construction financing facilities. NIC Bank offers 60% financing for land purchases, and 70% financing for construction. Housing Finance has a construction loan facility that allows land owners to borrow funds that would facilitate the building of residential units on the same land. The project is then placed under the charge of an agreed group of experts who handle the monies paid out on arrears directly to the contractor. The bank offers up to 90% financing

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for owner-occupiers and 70% for rental or investment units. Loan terms are up to 20 years for salaried customers and 10 years for small medium sized enterprise business owners.

National Bank of Kenya also offers construction loans, including additions and enhancements to an existing structure. The Bank offers financing of up to 85% for salaried individuals, 80% for the self-employed with a repayment term of up to 25 years.

Family Bank offers loans depending on the land value and the type of construction to be undertaken. It offers loans for residential dwellings as well as estate developments.Gulf African Bank will finance the construction of commercial property meant to be sold or to be leased through its construction financing scheme. It has a repayment period of

1-10 years.

Stanbic Bank finances residential construction up to 90% of the total construction cost as per the Bill of Quantities from a duly registered Quantity Surveyor. The maximum construction period is usually 12 months during which payment of interest would be on amounts drawn. Thereafter, the loans are converted to a mortgage with a maximum repayment period of up to 20 years.

Project financing for major infrastructural projects has over the years been crucial for the development of economic growth. Kenya’s Standard Gauge Railway received 90% financing from China’s Exim Bank and 10% from the Kenyan government. The new terminal of the Jomo Kenyatta International Airport known as

the ‘Greenfield Terminal’ was financed by the African Development Bank at an approximate cost of 612 million dollars. The terminal is projected handle 20 million passengers a year.

In a recent meeting between the Kenya government andf the International Monetary Fund (IMF), it was agreed that the government was advised to review the interest rate cap, leading to either an abolition of the controls or modification. IMF Mission Chief Ben Clemens said,“The controls have contributed to slow overall credit growth of the private sector and lower access to credit by SMEs and individuals. In addition, interest rate controls are undermining the effectiveness of monetary policy aimed at ensuring price stability and supporting sustainable economic growth.”

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In a survey to assess the uptake of ICT in the Australian construction industry, it was found that the annual turnover of an organization has a direct effect on how well ICT will be utilized by a construction firm; basically the more profitable a firm, the higher the uptake of technology.

Use of ICT for Construction

Project Management:

The same survey also found that not having an ICT professional on site or within ready access was a strong barrier to the uptake of ICT on projects since adequate support for construction site processes is important for collaborative use of ICT in construction projects.

Benefits of the utilization of ICT for managing construction projects and improving overall organizational efficiency have been discussed at length. However, a methodology has yet to be developed for the construction industry to examine the potential contributions of information

Words by Bonanza Timothy

Why is the uptake so slow?

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Benefits of any technology

come through its widespread

adoption. Widespread

technological change would require a good

level of awareness of the

technology throughout the

industry, leading to a deeper

understanding of how to apply

it

management strategies in efforts to reduce overall project schedule and cost, according to a study by Back and Moreau a few years back. This inability to quantify process improvements and uncertainty of benefit from process changes is one of the primary barriers for the effective implementation of ICT in construction project management. As a result, the benefits of ICT are primarily perception based and not quantifiable and these perceived benefits define the extent of use of ICT by the construction industry.

Organizations consider initial cost and the cost of keeping up to date with the technological developments in training and hardware/software as a critical barrier for effective utilization of ICT. Identification of organizational changes required for effective use of ICT and measuring benefits accrued by its’ utilization are important enablers for its effective uptake.

Benefits of any technology come through its widespread adoption. Widespread technological change would require a good level of awareness of the technology throughout the industry, leading to a deeper understanding of how to apply it.

Organizations need a realistic and reliable knowledge base transmitted at a fast pace and made easily and instantly

available to project managers and consultants at all levels. Many small and medium enterprise (SME) construction firms often do not see the justification in spending money on large databases in isolation.Communicating information in standardized formats supports integration of different project

phases. Additionally, effective information sharing could be achieved through use of common internet services or shared use of common databases. Standardization of information transfer is very important at national as well as international level and can be achieved by industry level initiatives. Effective communication, training, education and organization structure are identified as important cultural characteristics impacting the utilization and exploitation of ICT. Construction program graduates schooled in ICT technologies effect the uptake of technology in the industry. In part, contractors have adopted computerized cost estimating and other systems due to the fact that university-educated construction graduates were familiar with these tools. Technology related barriers for effective use of ICT have also been identified. The same survey of the Australian construction industry found that most of the respondents agreed that the quality of IT equipment and infrastructure made available to them was a major factor in ensuring that they used it. Organizations also have a fear of data security, contributing to the reluctance of digitizing records. A project web site provides a centralized, commonly accessible, reliable means of transmitting and storing project information.

Regulars

However, employees need a road map to integrate the project web sites as a working tool in their day to day activities.

Finally, cultural factors need to be studied at project, organization and industry level. Recognizing the type of culture that exists in organizations and project environments is particularly useful to enable managers to determine the approach and strategies that facilitate interaction and communication, and to avoid mishaps in business dealings.

‘Protocol’ is defined as an accepted behavior in a situation.

Communication protocols define the accepted method of generating, storing and communicating information. In the construction industry, supply chains are typically formed by clients, developers, project managers, designers, consultants, material suppliers, contractors and subcontractors.

They are brought together to achieve one main objective, to develop and build a particular project. At all stages of the project, information is generated, stored and communicated by all the stakeholders. So, to have

effective communication, the stakeholders should be following the accepted methods or the communication protocols.

At any time each construction organization is involved in more than one project and is a part of more than one supply chain. This unique nature of the construction industry necessitates that the communication protocols are adopted by the industry as a whole and do not remain project specific. Thus, we need to develop protocols that support the use of IT by the whole industry.

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NCA customer care, always delighted

to assist you every working day from

8 AM to 5 PM. For all your queries

and support issues, talk to us.

Reach Us On : +254 709 126

102/172/173

NCA customer care, always delighted

to assist you every working day from

8 AM to 5 PM. For all your queries

and support issues, talk to us.

Reach Us On : +254 709 126

102/172/173

Be Sure, Jenga Smart