This archive report was first published on 25 June 2020.
As the world grapples with the aftermath of the Covid-19 pandemic, Kenya's property sector is facing a major reboot. With many commercial spaces lying empty, architects and developers are being forced to rethink their business models and come up with innovative ways to make new income.
According to Architectural Association of Kenya (AAK) President Mugure Njendu, the pandemic presents a unique opportunity for the country to reevaluate its urban spaces and design cities that are walkable and bike-friendly. 'It is a good time for all to reevaluate their business models and look for innovative ways to make new income,' she said in an interview with Home & Away.
Ms Njendu's views are supported by other industry experts, who believe that the pandemic has created a window of opportunity for architects to come up with creative innovations that will mitigate the disruptions caused by Covid-19. 'People are now working from home. There are no setups for offices at home. Perhaps it is time for us to think about coming up with residentials with office spaces,' said architect Moses Okemwa.
However, not all is lost. Abraham Samoei, president of the Institution of Surveyors of Kenya, believes that new clients might enjoy rental concessions, which are compromises that landlords make to the original rent terms in the hope of finding tenants quickly. 'Rent-free agreements could be reached with headline rents to follow. But the landlords have to be careful not to disrupt other contracts, because such agreements could (lead to) older tenants asking for discounts, which the landlords may not afford,' he said.
Despite the challenges facing the property sector, experts believe that office spaces will still be in demand as many companies will not manage to implement digital working systems to enable employees work from home. 'The need for a physical office cannot be overemphasised. Companies will still need to work from spaces where customers can visit and have a physical interaction with the office,' said Mr Samoei.
