This archive report was first published on 5 August 2020.
As Kenya gradually reopens its economy, the real estate sector is expected to experience a significant boost in activities over the next quarter, according to Mizizi Africa Homes, a leading developer.
George Mburu, the company's Operations Director, attributed the sector's current challenges to the COVID-19 pandemic, which forced many players to cut down on the number of workers on sites and disrupted supply chains, including intermittent access to construction material shops.
"We expect most activities to gradually return to optimum levels to correct longer development periods, a situation we had been pushed into by the COVID-19 pandemic," Mburu said.
He added that the prolonged lockdown period led to increased operational costs for developers, which could have threatened the sustainability and existence of developers if sustained.
Subdued economic activities also resulted in disrupted instalment collections for off-plan units, with investors becoming risk-averse due to delayed payments.
However, Mburu remains optimistic that the sector will take an upward trajectory, particularly due to commitments and concerted efforts towards affordable housing provision by the government and private sector players.
With an estimated 300,000 people having lost their jobs since Kenya reported its first case of coronavirus in March, Mburu believes that the gradual re-opening of the economy should be able to reverse the adverse effects on job losses, savings, and investment funds held by potential home-owners.
