This archive report was first published on 16 September 2019.
The Architectural Association of Kenya (AAK) and the Kenya Private Developers Association (KPDA) have expressed concern over the downtime of the E-Construction Permit system in various counties, affecting projects in the building and construction sector.
Speaking during a press conference, the associations stated that they have been closely monitoring the issue, but to no avail. They noted that the Nairobi County system experienced hitches in May this year, eventually collapsing when the contract between the Nairobi City County and Jambo-Pay ended.
This has resulted in the council not processing permits for the last two months, allegedly due to a technical challenge. The associations claim that this has affected the practice of professionals in the built environment, as they cannot proceed with their projects in construction.
According to the KNBS' Gross County Product report 2019, Nairobi contributes 21.7% of Kenya's GDP. In the KPDA/NCCG report on building approvals for June 2019, revenue collection was noted for development approvals of Ksh. 53,857,328.00.
KPDA Director, Mr. Gikonyo Gitonga, highlighted that the construction industry needs a one-stop shop for processing all construction permits and synergies created by the E-Construction Permit. He added that the system has significantly reduced the time to issue development permits.
The associations stated that delays in building permits and development approvals have caused financial burdens to developers who rely on bank financing for their construction projects. They also negatively affect the ease of doing business in Kenya.
Arch. Mugure Njendu, President, The Architectural Association of Kenya, stated that the Knight Frank Kenya Market Update report for the 1st half of 2019 indicates that the value of building plans approved in Nairobi County decreased to Ksh 48.54 billion in the first quarter of 2019, a 19.2% drop from Ksh 60.11 billion in a comparable period in 2018.
The associations emphasized the need to establish a retrospective look at the inherent challenges affecting the acquisition of building permits and how they impact on the business climate in Nairobi City County and other major urban areas in Kenya.
They proposed the redesigning of the current e-permitting system to a one-stop shop that would integrate all the agencies involved into a central database management system to be managed at the national level.
The e-construction permit was a solution developed jointly between the county government, the International Finance Corporation (IFC/World Bank), and the AAK. The main objective behind it was to enhance efficiency and accountability in the processing of construction permits in the city.
Published on September 16, 2019.
