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THE IMPACT OF THE RELOCATION OF HOUSING AND COMMERCIAL

DEVELOPMENTS ON THE SUBURBS OF NAIROBI

A CASE STUDY OF

ZIMMERMAN AND ROYSAMBU.

BY

CARLSON NJAGI

B135/11423/2014

A RESEARCH PROJECT SUBMITTED AS PART OF THE FULFILMENT OF THE REQUIREMENTS OF THE AWARD OF DIPLOMA IN REAL ESTATE AGENCY AND PROPERTY MANAGEMENT.

MAY 2015.

UNIVERSITY OF NAIROBI.

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DECLARATION

I, Carlson Njagi, hereby declare that this project is my original work and has not been presented for this award in any other university.

Candidate: Carlson Njagi

Signature: …………………. Date: ………………………

This project has been submitted for examination with approval by my supervisor.

Supervisor: ………………………………………………

Signature: ……………………….Date: …………………….

Mrs. Catherine Kariuki.

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Acknowledgements

I am grateful to my supervisor, Mrs. CatherineKariuki for providingconcise, efficient and relevant information related to this research.

I also thank my colleagues for their support, encouragement and knowledge that guided me throughout my course, finally I would like to appreciate my family’s effort in ensuring that my studies are guaranteed, God bless you.

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ABSTRACT

The project focuses on the factors that influenced the relocation of housing and commercial developments and the impact of this relocation on the suburbs or peripherals like Zimmerman and Roysambu of the city of Nairobi.

Factors that have influenced the relocation include the availability of cheaper land and demand in housing, availability of financial resources and infrastructure like the recent construction of the Thika-superhighway.

The resultant negative consequences are congestion, pollution, stretching of available infrastructure, non-sustainable development and encroachment into wildlife echo-systems.

Some of the factors affecting the relocation include rent controls, corruption by government officials and concerned ministries, insecurity and poor infrastructure.

Chapter one introduces the phenomenon to be studied, the study objectives, limitations to the study and its significance.

Chapter two is about the literature review used to analyze the study, the reasons for relocation, consequences and methods that could be used to combat the challenges faced

The third chapter addresses the study design; methods of data collection involved, problems encountered in the research and exhaustively narrows down the area of study.

Chapter four involves data presentation and analysis research findings and graphical representation of the findings.

Chapter five as the final chapter looks into the conclusion and discussion of the research objectives and the recommendations to various personnel like the private developers and the government in helping curb problems that arise from the relocation of housing and commercial developments to this suburb.

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Table of Contents TITLE……………………………………………………………………………………………………1

CHAPTER ONE:INTRODUCTION TO STUDY……………………………………………………...7

1.1 INTRODUCTION. ........................................................................................................................ 7

1.2 PROBLEM STATETMENT .......................................................................................................... 8

1.3 OBJECTIVES OF THE STUDY .................................................................................................... 9

1.4 RESEARCH DESIGN ................................................................................................................... 9

1.5 AREA OF STUDY ........................................................................................................................ 9

1.6 COLLECTION OF DATA ........................................................................................................... 10

1.7 SIGNIFICANCE OF THE STUDY ........................................................................................... 10

1.8 DATA PRESENTATION AND ANNALYSIS ......................................................................... 10

CHAPTER TWO: LITERATURE REVIEW .................................................................................... 11

2.1 INTRODUCTION ....................................................................................................................... 11

2.2 FACTORS INFLUENCING THE RELOCATION ...................................................................... 12

2.3 CONSEQUENCES OF RELOCATION ....................................................................................... 14

2.4 FACTORS HINDERING THE RELOCATION ........................................................................... 17

2.5MEASURES TO COMBAT THE FACTORS HINDERING RELOCATION AND THE RESULTANT NEGATIVE CONSEQUENCES ................................................................................ 18

2.6 CONCLUSION ........................................................................................................................... 19

CHAPTER3: RESEARCH DESIGN .............................................................................................. 20

3.1 AREA OF STUDY ...................................................................................................................... 20

3.2 COLLECTION OF DATA ........................................................................................................... 20

3.3PROBLEMS ENCOUNTERED .................................................................................................... 21

4.0 DATA PRESENTATION AND ANALYSIS ................................................................................ 22

5.0 FINDINGS AND CONCLUSIONS .......................................................................................... 26

5.2 FACTORS HINDERING THE RELOCATION OF HOUSING AND COMMERCIAL DEVELOPMENT TO ZIMMERMAN AND ROYSAMBU............................................................... 27

REFERENCES AND BIBLIOGRAPHY………………………………………………………….....29

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LIST OF FIGURES

GRAPH 2.1:FINDING A BALANCE ………………………………………………………………..13

TABLE 2.1:TAX BUDGET REPORT………………………………………………………………...21

GRAPH 4.1:DISTANCE COMPARISONS BETWEEN DIFFERENT SUBURBS ………………....25

GRAPH 4.2:COMPARISON BETWEEN TIME TAKEN FROM DIFFERENT SUBURBS………...26

TABLE 4.3:OWNERSHIP OF HOUSING/COMMERCIAL SETTLEMENTS……………………...26

PIE CHART4.3:OWNERSHIP OF HOUSING/COMMERCIAL SETTLEMENTS………………….27

TABLE 4.4:SOURCES OF FINANCES FOR DEVELOPMENT…………………………….............28

PIE CHART4.4:SOURCES OF FINANCES FOR DEVELOPENT…………………………………..28

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CHAPTER ONE: INTRODUCTION TO THE STUDY

1.1 INTRODUCTION Housing is considered a basic human need, according to the constitution of Kenya, rights and fundamental freedom, article 19, every Kenyan has a right to residence, movement and right to owning property, therefore in every society there is need for existence of a structure of one form or the other to cater forthis need. Housing is mainly provided by the government through the relevant ministries like the Kenya ministry of housing or other private sectors consisting of Architects, Quantity surveyors, Engineers and contractors who contribute their professional skills for an organized synergy.

The government is motivated by the duty to serve its citizens while the private sector’s objective is to maximizing profits in the course of providing their services.

In the recent years there has been a tremendous growth of housing units in the suburbs. For example,Zimmerman,Embakasi and Kitengela.This is because of the high population density of Nairobi with an approximate 4515 people per square kilometer and a total population of about 3.9million people, according to the Government of Kenya population and housing census (2009.)

This mushrooming of both residential and commercial structures has brought about an impact that has been influenced by some factors that are sought to be investigated in the research with some of their positive and negative consequences.

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1.2 PROBLEM STATEMENT The study highlights the reasons of increased development in the suburbs of Nairobi like Roysambu that has been witnessed over a period of time,the reasons have been identified in other research work done. The impact of the relocation has also been seen and some of it has been negative.

The newly constructed Thika Superhighway has attracted many investors leading to growth of the areas along the road like the town of Zimmerman, due to relatively affordable rates of apartments however this causes congestion if the road is not upgraded for future expansion with a few years to come. Lack of well-developed infrastructure to correspond with the development of housing leads to a straining of the infrastructure

Government policies like taxation will take advantage of the increasing value of land; with time, developers, land owners and citizens may find that land in the suburbs expensive. This is because of the longer distances they have to travel to work hence increasing the transport cost.

Environmental degradation has become extensive due to the misuse of land and other resources, despite the National Environment Management Authority under the management and coordination act (1999) was charged with the responsibility of ensuring a proper balance is maintained. For example the Nairobi River has been contaminated with garbage disposals and effluents from industries and agrochemicals, which with consumption leads to water borne diseases like cholera and also kills aquatic life.Air pollution from motor vehicles also leads to the destruction of the Ozone layer that exposes us to the Ultra violet rays which may cause skin cancer. Inhaling these harmful gaseous fumes may also lead to respiratory complications like pneumonia in Man which may lead to death.

The Government and professional bodies in the construction industry have not adequately educated their members on the required legislations in building construction, as a result developers in a rush for supplying their units to satisfy the rise of demand for housing end up putting up structures that are substandard. As a result many buildings collapse claiming many lives, as witnessed in Roysambu residential area, near ThikaRoad Mall (Daily Nation 3rd APRIL 2015)

The relocation of housing and commercial to such suburbs has also put pressure on available land. Some of this settlements have also infringed on land set aside forwildlife,this can be seen in areas covered, such as Kitengela and Kajiado towns were once lion territories, but have since been inhabited by human settlements and industries. This has led to human/wildlife conflict. Yet the wildlife sector is also crucialin providing revenue for the country. However the government has set aside strict rules on encroachment of wildlife which is a major source of revenue through foreign exchange which cause a strain in our wildlife sector which is crucial in providing revenue for the country. However the government has instilled strict rules on encroachment of wildlife which is a major source of revenue through foreign exchange.( The tribunal 30th May 2013,www.kws.com)

Insecurity is also a major problem in the relocation to the peripheral suburbs, the crime rate has raisen tremendously over the years due to lack of employment and lack of the required skills for youths, due to this low economic state many youths have joined gangs, become robbers,rapist,kidnappers and Hi-hackers. This is all in an effort to earn a living. Investors have faced difficulties in trying to gain consumer’s interest in some of these places like Zimmerman. Hence making the cost of expenses higher

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in an effort to install electric fences, CCTV cameras and other measures like employing guards to curb insecurity

Corruption is another factor that has claimed the rights of many citizens especially in land ownership and administration of titles, according by a report of the Kenya National Commission of human rights (en.m.wikipedia.org) the ministry of lands has introduced a technique to curb land grabbers and other disputes arising from land ownership by establishing a digital platform of registering land titles.(Daily Nation property guide July 24th 2014)

However many officials in the same ministry have been involved corrupt deals in order to administer titles in order to gain an extra benefit which cause land disputes as witnessed in the Langataprimary school land grabbing scandal, where a piece of land belonging to a public school was illegally administered to an investor.(https://www.kenya-today.com) 19 Jan 2015)investors and landowners are more cautious than ever before purchasing a piece of land .They must ensure that the title is genuine to avoid the consequences that may arise from illegitimate land transactions.

Due to their close proximity to central business of Nairobi,these suburbs have faced traffic congestion as demand for housing unitsincreases, thisis despite the fact that there is a newly constructed Thika-superhighway. Other problems include shortage of water and electricity and poor drainage and sewage systems.

1.3 OBJECTIVES OF THE STUDY • Find out the reasons that lead to relocation and impact of housing on the suburbs of the city. • Consequences that have aroused from the relocation of housing to the suburbs. • Identifying factors that hinder the relocation of housing and commercial units to the areas. • Measures to combat factors hindering relocation of housing and commercial units to the suburb.

1.4 RESEARCH DESIGN

Quantitative techniques are incorporated, qualitative analysis carry attributes of characteristic of something. An attribute is an essential character or nature of something; it involves conversational interviewing, observations, casestudies and document analysis. On the other hand quantitative techniques produce variables and measurable quantities. The survey includes

Describing the phenomena by asking individuals about their perception attitudes, behaviors,alternatives and recommendations

1.5 AREA OF STUDY The survey was done in Zimmerman and Roysambu areas. The areas were chosen because of the mushroomingof housing and commercial units, that some sources like have deemed as unauthorized building and construction according to members of new Roysambu housing company since the year 1972.(Rose Gatabaki’s PHD thesis 1st January2014)

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1.6 COLLECTION OF DATA

Ø Direct interviews with residents and developers

Ø Questionnaires, administered to contractor and the residents of the named suburbs

Ø Direct observations, the researcher can only report what happened as the situation exists.

Ø Secondary data is sourced from various published and unpublished journals relating to commercial and residential developments include;

• Newspapers e.g. the daily nation property guide • Internet e.g. encyclopedias like Wikipedia • Textbooks e.g. real estate journals • Relevant legislations, building codes and NEMA regulations.

1.7 SIGNIFICANCE OF THE STUDY

It deals with the factors enhancing the relocation of the suburbs that have created densely populated areas along the Thika-Nairobi highway; such as easy access to credit facilities for development, low interests rates and government policies that support development actions.

Sufficient infrastructure like better roads linking the city to the suburbs has also influenced this developments as well as availability of labor and building materials.

The study also identifies the consequences of relocation to the environment, the economy, to the existing infrastructure and the city planning.

The study gives a recommendation of how to obtain a balance between the positive and negative consequences of relocation. The positive factors include increased government revenue and the negative factors include pollution, congestion and insecurity.

1.8 DATA PRESENTATION AND ANNALYSIS Data was collected through internet and website research

Interviews carried out through various residents living in some of the suburb area in the area of study. To acquire first-hand information and have a view and experience in living in the area concerned in the research.

Data presentation was carried out through graphs, tables and charts for easier understanding and analysis by the reader.

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CHAPTER TWO: LITERATURE REVIEW

2.1 INTRODUCTION The study mainly focuses on the impact of the relocation of housing and commercial developments, since the establishment of the suburbs of Zimmerman and Roysambu from the reason of settlements to the suburbs. The suburbs in interest are Roysambu and Zimmerman which according to a study by the world bank an UN-Habitat(1970-1972) developed from unauthorized land supply and provision that sprawled middle-income housing, Highpopulation triggered by rural-urban migration in search of employment in industries, public or private sectors became the main cause of relocation to the suburbs, as a result of low incomes from farming in previous year, poor climate conditions, expensive inputs and civil unrest. This influx of large population into the city has created a high demand for residential housing in Nairobi. Hence created a diverse opportunity for many developers and investors to act up housing units into the suburbs of the city due to the high cost of owning land in the city. This include areas like; Kasarani, Embakasi, Zimmerman, Githurai, Ruaraka among others. Developers however considered the following factors when evaluating a prime area to construct residential building:

a) Proximity to the central business district

Many people working in Nairobi would like to be close to their business and work premises. Since the rising cost of fuel to 100 shillings per liter has made it expensive to commute on a daily basis and traffic congestions caused wastage of time, investors seek less costly housing projects to ensure they meet their consumer’s need by providing locations that are closure to the central business district.

b) Cost of land

The city center is characterized by concentration of offices and other commercial activities like

Shopping centers, learning institutions, industries and recreational facilities hence create an optimal location for provision of housing; this has led to a high demand of land in Nairobi.

However a slight increase has been fueled by the presence of numerous learning institutes alongThika Road like Kenyatta University, Zetech University, United States International University and Nairobi business institutes among others, investors seek land to satisfy the need of students to find housing units like hostels and commercial units to run small businesses.

https://nairobiplanninginnovations/files

Example; An Acre of land in Westlands which is close to the Central business district cost approximately 350Million Kenya shillings while an acre of land in Thika(45km)from the city is approximately Ten Million shillings. In Kasarani or Zimmerman a piece of land would cost

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approximately 15 to 20 million, but now cost up to 100 million around Thika Road and Garden city malls(property24 kenya)

Graph 2.1:FINDING A BALANCE BETWEEN DISTANCE AND COST.

Figure 1: FINDING A BALANCE BETWEEN DISTANCE AND COST

A suitable balance of distance and cost can be obtained at the point of intersection of the two graphs. Commercial developments however go hand in hand with residential developments because when a certain group moves into a given area, some necessary services are supplied by the relevant merchants to make profits, example; Hotels,hospitals,clinics,schools,shopping outlets, restaurants among many.

Many prime positions should have the following characteristics;

1. Easy to access 2. Adequate security

2.2 FACTORS INFLUENCING THE RELOCATION OF HOUSING

• Advancement/Development of real estate market

. Real estate is a unique because its basic resource, land, is scarce and non-renewable. Hence and is improved or unimproved. The demand and supply of land are basic components of real estate market.

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• The capital market

The supply of many comes from the same capital market that serves the other sectors of economy. Real estate market requires a steady stream of funds though within some broad limits.E.g When interest rates are down the rate of construction increases due to the low cost of borrowing, while limited funds and high interest rates disrupts the market. Since capital is a major component of any project, if it lacks the project will fail, this requirement is evident in most conditions of contract such as clause 3&4 of the Joint Build Council (JBC) standard form of contracts which expressly states that obligation is to; “make advance adequate financial arrangement within the period of construction and provide such evidence on request by the contractor.”

• The development industry

It includes a number of people like brokers, appraisers,developers,buildings,lenders, architects, engineers and lawyers and they all constitute an important role in the economy. It ensures production of residential units like mansionettes, bungalows, apartments and condiminiums.Also provides commercial spaces for hotels, schools, offices and other recreational facilities.

• Availability of financial resources Financial are obtained can be obtained from;

Ø Commercial banks

The largest source of construction banks as per the residential and downtown development handbook of real estate. Its primary interest is short to intermediate term lending doesn’t exceed 5 years. Local banks such as Kenya commercial bank and Equity open up branches in these peripheral areas like Zimmerman, to provide easier access of their services to developers.

Ø Life insurance companies

Insurance companies majorly account for about a fifth of mortgage debt, as per the Real estate downtown and residential development handbook.

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Mortgages provide a large investment platform for life insurance companies, because of their remuneration payment and their attractive yields.

This helps in estate planning since it provides continuity by considering heirs of respective property.

Ø Savings and loans association and banks

Analyze the potential loans in many of the same ways that life insurance companies and commercial banks but they do not exceed 30years of lending and may offer competitive interests rates, the higher the interest rate the lower the rate of borrowing and lower interests rates attract more borrowers.

Ø Pension funds They are a new source of finances to major development investors and are more diverse and less regulated than other financial institutions. Some of the joint ventures include;Equity bank, NSSF, British American Investment and Housing finance Cooperation of Kenya.

• Availability of infrastructure

The government through the Ministry of works, roads and the local government has provided streets, roads, water, sewage and zoning laws in the peripheral suburbs of the city making them suitable for development.E.g.The ThikaSuperhighway has attracted many investors due to its convenience to accessing the City and reducing traffic congestions hence residents are able to attend their work places on time, also traders are able to transport their products efficiently to various markets. This in return has also promoted many business hubs like shopping malls, recreation centers, restaurants and many other facilities. As a result of these developments, the suburbs of Roysambuand Zimmerman have tremendously grown due to demand in housing because of the available amenities.

2.3 Consequences of relocation Urbanization has become a key role in many people’s lives, however countries in Africa are growing very rapidly, this has led to accumulation of various problems like unemployment, traffic congestion,insecurity,scarce resources and poor housing leading to growth of slums. Nairobi has become one of the worst affected cities as relocation to the suburb areas tries to curb its ever expanding population, residents in these suburbs still face all this problems including, water and electricity shortages, poor waste management hence causing pollution.

Ø Congestion

As a result of relocation of settlements to the peripheral suburbs of the city, congestion is increasing exponentially according to city planners. Baring in terms that in a couple of years, if no improvements are done, Nairobi may come to a standstill of traffic flow, due to over congestion. According to a financial

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analyst of the central bank of Kenya, the country loses about 50 million Kenya shillings per day due to traffic congestion,(www.businessdailyafrica.com) an estimate of about ksh20 billion annually and ($600,000) daily according to Forbes report 2015, traffic delays the workforce to their work place as they stay numerous hours on the roads, lately plans have been underway by the local authority to ease and decongest the city by blocking some right turns on major roundabouts, but complains from motorist have seen them partly demolished due to more congestion claims, the newly constructed Thika superhighway has been overstretched due to the increasing population of the suburbs along the road like Zimmerman, these proves that the government need to invest further in infrastructure(The Daily Nation 10thApril 2015)

Ø Pollution a. Air pollution

Motor vehicles are the major cause of air pollution producing lead which comprises of unburnt air and up to 50% carbon monoxide, hydrocarbons and nitrogen oxides. (American journal of respiratory and medicinal care)

These gases are harmful to human beings since May cause death due to respiratory problems like pneumonia once inhaled; they also corrode the ozone layer which may lead to harmful ultra violet radiation from the sun penetrating through the atmosphere which may cause skin cancer. Gases like carbon monoxide and methane absorb energy from the sun and radiate outward causing the atmosphere to warm (greenhouse effect)

a. Environmental pollution

Over the previous year’s river has been chocking with garbage disposals, human waste from informal settlements like Kibera, and industrial waste from gaseous emissions, liquids and agrochemicals. When this alter is used for human consumption it causes water borne diseases like cholera, loss of human and animals life. That is, Aqua lives like fish and lack of portable water usage. Zimmerman and Roysambu which are situated in Kasarani division have also been caught up in a pollution frenzy, It is home to a garbage dumpsite in Dandora which according to a report UNEP (United Nations Environment Programme) has been named the biggest in East Africa and inflicts he most number of infections and respiratory ailments to the surrounding residents, this is from inhaling the toxic gases from burning waste and breeding of harmful bacteria.

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Infrastructure

The rapid population growth has put immense pressure on infrastructure, which include transport systems like roads, and communication services. Even the lately improved Thika superhighway has begun experiencing traffic snarl ups around Pangani shopping Centre to town. Despite the short distance from Zimmerman, commuting to town at peak hours may takes up to one hour according to a resident in the area. The work force which employs about 30% percentage of the population and produces a GDP of 50% is lacking services and facing infrastructure constraints, telecommunication companies like the Safaricom and Airtel also face some network issues as they try to curb the ever developing population. (Wikipedia-Nairobi urbanization) Barrier effect and encroachment into the wildlife eco-system In an effort of relocating, settlements create a barrier to movement and living of animals. example;where there are large roads they find it difficult to cross due to the risky nature of getting killed by the heavy traffic. The demand for housing and land has affected the natural habitat in a number of ways. Example: The savanna which was once a habitat for lions and other gamehas been in total disregard as buildings slowly replace the acacia skyline. According to EgeroMwebi a research scientist with the national museums of Kenya about 30% of Echo-system of game reserves has been taken over by man.Example;Kajiado,Kitengela,Kiserian and own major settlement zones. Non sustainable development It entails on how poor and unplanned development affects the future expansion of the city of Nairobi. As more projects are undertaken congestion still perceives due to increasing population.

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2.4 FACTORS HINDERING THE RELOCATION

Rent control Properties are subject to rent control or stabilization where a landlord is not supposed to stage an increase in rent without the permission from government through administrative boards like rent control board.(real_estate.lawyers.com) according to the Kenya law reports, the rent restriction Act also offers limitations as to permitted increase of rent by landlords and establishing regional house tribunals to regulate the same.(landlord and tenant bill 2012) Poor housing quality Rent controls discourages the development of affordable housing as property developers face low rent returns by jurisdiction of the rent and collection control. This in turn force them to develop poor quality of foundation and Housing due to high construction cost, this leads to tragedies like collapsing of buildings and loss of lives, the local ministries of housing checks to ensure that the buildings constructed are safe for construction. Hoarding Tenants in these housing tend to hoard the housing units thereby removing them from circulation and availability in the market. A good example is the city council estates in Nairobi such as Kariobangi and Muthurwa estate that belonging to the Kenya Railways. The ownerships of these estates then turnover the possession of these properties of these properties to their children and next as though they were private property. It occurs due to poor management by the relevant authorities’i.e. lack of properly maintained and up to date inventory of their properties and lack of commitment in enforcing the relevant laws and bylaws. Redevelopment Rent and suction control also accelerates redevelopment where poor and low income work classes are forced out of the controlled housing units by high income working class. Public policy must create incentives to supply through tax holidays and revision of building codes to encourage use of low cost local building materials and techniques.Muiki,kasarani.others include Nyayohigh-rise and Gikombamarkets,

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Corruption

Corruption loopholes maybe found in policy design, budgeting, allocation, operation and billing system. Insecurity Major threats like Gangs scares away investors, E.g.Mungiki which threatens lives of people, due to lack of job opportunities, many youths also turn to crime like robbery,kidnapping,rape, mugging to the higher income working class residents.(gang-scares the standard 2008)

2.5Measures to combat the factors hindering relocation and the resultant negative consequences

It takes both the government and private sector ;

Government

a) Infrastructure

The government through relevant ministries like roads and public works, local government, energy information and communication should improve and expand the existing infrastructure by proper utilization of its resources (both human and financial)the role of the Nairobi Metropolitan development industry as spelt out by the office of president on June 25th 2008. They include roads, bus and rail infrastructures for the metropolitan, efficient transport policy for Nairobi Metropolitan and replacing slums with affordable low cost rental houses, the ministry is also charged with enforcing planning and zoning regulations, efficient water supply and waste management infrastructure.

Pollution and encroachment into Animal echo systems.

The government should enact legal and policy instruments for pollution and wildlife management. This can be done through bodies like NEMA (National Environment Management Authority) KWS(Kenya wildlife service) and KEEP (Kenya Energy and Environment Program

Furthermore NEMA is working on measures to reduce carbon dioxide levels, through afforestation, public awareness and reduction of carbon emissions through legislations and promotion of public awareness

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Congestion

The government is currently implementing projects that involve development of bypasses o supplement existing road networks in the city.eg.Nothern and southern Bypass along Thika road. Also interchanging of roundabouts to flyovers relieves motorist from traffic congestion

Inflation

The government should protect developers from the current high levels of inflation through subsidies and tax breaks example;

TABLE 2.1 PROPOSED TAXATION CUT ON PRODUCTS

Products Proposed due Previous due

Hot rolled steel 25% 30%

Imported cement 25% 30%

Telecom equip 10% 25%

Source: 2014-2015 budget report

The private sector

The private sector should work in conjunction with the relevant government departments like the city planning department of the city council and land ministry to ensure that the development projects are consistent with set rules, regulations and policies.

The architectural association of Kenya has pledged to work with the government to improve the status of Nairobi, the greater role of appropriate in external aid can be key to successful development is the the involvement of both the private and public sector, 5th June 2008 was the world environment day and the theme for the year’s celebration held at Eldoret was Kick the habit Reduce air pollution while they maintaining themes like think, eat and save in 2013’s environmental day thus saving lives.

2.6 CONCLUSION The key to successful development is the involvement of both the private and public sector. Development of new suburbs generates tax revenue for the government but also makes the city more attractive as a place to live and work for the residence. Therefore both the government and residents stand to gain from suitable sustainable suburbs development.

The greater role of appropriation in external aid can be substitute with that of private sector by proposing;-

1. Supporting an environment for enhanced investment in Kenya which will result in part of reducing thousands of licenses required in operating businesses.

2. Enhancement of shelter regulator penalties to control those who stock and hoard in trade illegally.

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CHAPTER THREE

3.0 Research Design For the purpose of the study both attributes from qualifications techniques and variables from quantities techniques of investigations were incorporated. Qualitative techniques are techniques that don’t carry nominal variables but rather carry attributes or character of something. The study involves depth conversational interviewing, observation, case studies, document analysis.

The research was a case study, it sought to obtain information that describes phenomenon by asking individuals about their perception attitude behaviors, alternatives and recommendations.

Information was mainly obtained from residence and contractors of the suburbs of the city of Nairobi. E.g. Zimmerman and Roysambu in Kasarani

3.1 Area of study The survey was done in Zimmerman and Roysambu, these suburbs were chosen because of the high concentration of housing and commercial units’ development in the areas and given that the researcher sought to study the phenomenon in its current state. The areas were limited due to time and financial constraints that would have been associated with carrying out the research on all the suburbs surrounding the city of Nairobi.

3.2 Collection of data

Primary data

This is data obtained from the field using the following tools,

i. Self-administered questionnaires, administered to contractor and the residents of the named suburbs.

ii. Interviews were conducted with residents and developers, it includes data which the interviewer has no control over the variables in the sense of being able to manipulate them.

E.g. a sample administered on data analysis and presentation (chapter four)

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Secondary data

The data was obtained from the existing historical data from various published and unpublished

Journals relating to residential and commercial developments, environmental protection, sustainable development, and public-private sector partnership.e.t.c they include;

i. Newspaper ii. Textbooks

iii. Internet

3.1Problems encountered The researcher encountered various problems in the process of collection data the major ones were;-

i. Some respondents consider the questionnaires; interview and document reviews were analyzed by use of computer software (Microsoft excel), frequency distribution tables and percentages. The analyzed data was the presented in the form of tables, charts and graphs (graphical representation) for ease of interpretation to the researcher and ease of understanding to the reader.

ii. Some residents thought that there privacy was being invaded and were hesitant into allowing me in for interviewing.

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CHAPTER FOUR

4.0 DATA PRESENTATION AND ANALYSIS Involvesstudyingthe distance of the suburb of study from the CBD,

According to the field study it covers it is about 19km from Nairobi central district. Comparison to other areas surrounding Nairobi like Kitengela, Embakasi, Limuru, Thika

GRAPH 4.1: DISTANCE IN KILOMETERS BETWEEN THE CITY AND SUBURBS.

Distance in km

SUBURB

In the graph above, the suburbs are arranged in ascending order from the nearest to the farthest, it’s relatively clear that the suburb under study is relatively closer than the previous area of the resident.

According to the resident;

1. Time for travel was significantly reduced 2. Convenient since transport expenses are reduced.

0

5

10

15

2025

30

35

4045

50

ZIMMERMAN EMBAKASI KITENGELA THIKA

DISTANCE COMPARISON

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GRAPH 4.2:COMPARISON OF TIME TAKEN AND COST OF TO THE CBD FROM ZIMMERMAN AND OTHER SUBURBS

In the graph4.2 above the suburbs are in ascending order, it shows that the distance from the CBD to the suburbs increases, so does the time and cost spent.

The above analysis has confirmed that the residents interviewed assertion that the relocation has led to both time convenience and economic benefits.

TABLE 4.3 Ownership of housing and commercial developments

Status Frequency Percentage% Rental 9 90 Owner/occupier 1 10 Total 10 100 Source: Field survey 2012

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4.3: OWNERSHIP OF THE HOUSING AND COMMERCIAL DEVELOPMENT IN

90% of Zimmerman respondents occupy their residential or commercial units on a rental agreement while 10% owned the units they occupy.

According to the interviewees this is attributed to the high cost of land per unit in the suburbs that are near the Central business district,(CBD) Developers therefore purchase small pieces of land. Example; a quarter of an acre to construct high-rise properties like flats and apartments to maximize the land use.

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Table 4.4: Sources of finances for developments.

Source Frequency Percentage% Savings 3 10% Bank loans 6 20% Sacco loans 7 23.3% Mortgages 5 16.7% Pooling of resources 9 30% Total 30 100%

PIE CHART 4.4 SOURCES OF FINANCE

From developers interviewed, majority of them 32% has pooled resources from their own savings and income with other like-minded individuals to finance their developments.

Reasons; because it would take a very long time for a middle class earner to accumulate enough resources to undertake a substantial construction project. I.e. Capital and operational costs. The cost of borrowing money from financial institutions are also high, hence they pooled resources together and laid down rules, regulations, obligations ,rights and benefits of each participant that are clearly defined in contracts.

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CHAPTER FIVE

5.0 FINDINGS AND CONCLUSIONS 5.1 Factors causing the impact of relocation of housing and commercial units onZimmerman and Roysambu.

I. Proximity to the central business district is the most common reason why people choose this suburbs as places of residence to minimize the time and cost spent in commuting to and fro their working centers in the city

II. Cost of land/rent; where it is cheaper to afford land in the suburbs than within or close the CBD, where prices of land skyrocket due to an impulse of demand, the rates of monthly rent also decrease as you move further from the central business district. E.g. the monthly rent of a 2 bedroomed apartment in Roysambu is approximately ten thousand to twenty thousand Kenya shillings, while the same type of apartment in Westlands,Nairobi ranges from thirty thousand to fifty thousand Kenya shillings per Month, as per the buy rent Kenya website, A firm that deals with property listings in the Kenyan market. Though rents may vary according to design of apartments and amenities offered like parking, swimming pools, gyms and clubhouses.

III. Availability of reliable services like infrastructure include good road networks, communication that suit the developing population, however 60% of the population agreed to this as an inadequate factor due to increased population, this has also been influenced by sprouting of Malls and shopping centers like Thika Road Mall, Garden City and The Mountain Mall.

IV. High demand for affordablehousing and commercial units occasioned by high levels of rural-urban migration.

V. Property legislations and laws are becoming flexible making it abit easier for developers to own property and invest especially in flats and apartments.

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5.2 Factors hindering the relocation of housing and commercial development to Zimmerman and Roysambu. Insecurity-70% of respondents complained of increasing insecurity due high levels of unemployment, leading to an uprising of criminal gangs that steal and terrorize people within the estate, most residents reported of stolen cases of mobile phones especially smartphones and other gadgets like tablets and I-pads, the locals say that the criminals steal this expensive devices and try selling them at cheaper price, in a bid to find a source of income.

Inadequate infrastructure- development and maintenance of existing infrastructure is slackening behindcausing an overstretching of existing amenities like roads, transport, communication, and electricity and sewage systems.

High cost of land- the cost of land has skyrocketed since the latestconstruction of Thika-superhighway and the Thika road Mall since they have influenced demand for housing due to their proximity to the CBD and availability hence developers strive to find affordable land for setting up of property units.

5.3 Consequencesand impact of the relocation.

1. Negative consequences a. Congestion

A large number of people now reside in these two suburbs because of their proximity to the CBD,this has led to congestion of motor vehicles driving in and out of town, even the recently constructed Thika-Superhighway has started getting traffic snarl ups from around Muthaiga police station to town in the peak hours, like the mornings. Residents complained that this may have negative effects to the economy since some working hours are consumed in traffic congestion.

b) Poor town planning cities making it very difficult for future development

Some towns like Zimmerman have become so crowded by buildings that access to some apartments by foot or vehicle has become impossible, the local government should enact planning laws and other statutory regulations. E.g. setting plot ratio required to construct buildings

2. Positive consequences a. A high concentration of people in a particular area gives rise to commercial activities that

translates to higher government revenue through taxation. b. Commercial activities in an area also create employment opportunities which increase the

standards of living of people and a solution to unemployment and retrenchments. c. It is also easier for contractors and developers to source labour for more construction for

developments due to high concentration of people in a single area.

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5.4 RECOMMENDATIONS

5.4 .1 To developers

I. Developers should maintain high standards in in occupational safety, public health and environmental management.

II. Developers should operate within law and statutory obligations and strive to maintain international practices at their best.

III. Developers should engage in contracts that clearly lay down performance standards, rights, obligations and benefits of each participant.

IV. Developers should cooperate with the government and other industries to participate in activities to improve the real estate industry productivity, efficiency, safety, competiveness an environmental management.

5.4.2 To the Government

I. The government should commit more resources to the expansion an improvement of existing Infrastructure to keep up with the high rates of population increase. E.g roads and sewer systems

II. The government should enforce various laws and regulations on building to ensure developers abide by them to avoid disasters like the previous cases of collapse at Roysambu April 2015.

III. The government should partner with relevant bodies to provide training to members of the institution to enhance environmental conservation and management and vices of corruption practices in real estate.

IV. The government should adopt measures to protect developers from the high levels of inflation e.g. through tax exemptions and subsides.

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REFERENCES AND BIBLIOGRAPHY

1. Amis P,1996,Long Run trends in Nairobi Informal Housing Market

2. Basile,R,J. Black J.T lowly, and porter Residential and Down town Development handbook Washington D.C

3. Hailstone,H.W (1995). Modern Real Estate.London:JohnWiley and sons.

4. Harvey (2000).Urban land Economics. Macmillan Press

5. Kiamba C.M 1986 Role of state in control of Urbanization and Urban land policy,Univesity of Cambridge.UK

6. Republic of Kenya (1968) the building code, government of Kenya printer, Nairobi

7. Republic of Kenya,1963 the local government Act, government printer, Nairobi

8. Syagga P.M (1994). Real Estate Valuation Handbook. Nairobi University Press.

9. William Ventolo and Martha Williams Fundamentals of Real Estate Appraisal.

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Newspapers/Journals

1. Daily nation DN2 July 24th 2015 Ministry of land digital registration

2. Budget cut and taxation on building products 2014-2015 get report (2014)

3. The trouble with urbanization (2008) (Ferdnerd Mwongela the standard 31st July. Real estate)

4. Real estate investors gang scares (2008) (Ferdnerd Mwongela the standard 26thJune.Real estate)

5. Encroachment of human settlements to wildlife habitats ( The tribunal 30th may 2014)

6. Landlord and tenants bill 2012

(Collins Kuwour Sunday nation 22nd july.2012)

7. The King of the jungle is dying in Kenya

(Journal of planning literature)

8. ‘Origins of Nairobi’s informal settlement; “vijijini Newsletter”

(Majaloe MM.(2000), Nairobi.)

9. UN-Habitat Economics of commercialized rental housing in Nairobi.

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Internet sites

https://en.wikipediaorg/wiki/Nairobi/housing en.m.wikipedia.org/wiki/urbanization en.m.wikipedia.org/wiki/Real_estate_ind en.m.wikipedia.org/wiki/planned_ en.m.wkipedia.org/wiki/slum https://en.nairobiplanninginnovation/files(0130 www.businessdaily.com (014) www.kws.com( 014) https://www.kenya-today.org (015 .Wikipedia.-Nairobi Urbanization

www.propdom.com –Kenyan real estate

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APPENDIX.

Dear sir/madam

I am a student of Diploma, in Estate Agency and property management, currently doing my end of course research project on the recent relocation of housing and commercial development in the suburbs of the city, with my main area being Roysambu and Zimmerman in Kasarani. I would kindly request you to assist me in the study by filling in the following questionnaire; the information you provide will be treated as confidential and will not be used for any other purposes other than the research.

CARLSON.M.NJAGI

B135/11423/014

Resident’s response

1 (a).Name of the suburb of residence-RoysambuThika road

(b) Name of previous area of residence-Githunguri (Kiambu County)

2.(a) Distance of the suburb from the central business district?- 16km

(b)Distance of previous area of residence from the CBD?-37km

3. Is the Unit you occupy a rental an own occupier?-Rental (Ksh 7500 per month)

4. What’s the transport Means to and from the CBD?-public transport (PSV)

5. What is the transport cost to and from the CBD?-Ksh 70 during peak hours like mornings

-Ksh 30 during off-peak hours like afternoons

6. What factors influenced your choice of the suburb you reside in?

a. Proximity to the CBD-the respondent said that the area of residence was much closer to the Central business district which was his place of work compared to his previous residence, hence saving on time and cost.

b. Cost of land or rent- the respondent claimed that the rent in his current area of residence was relatively affordable compared to other suburbs that area closer to the CBD like Pangani or Westlands

c. Security- the respondent said that security was relatively fare since the property he lived was gated and had plenty of security lights, however the neighborhood was not quite a safe environment because one was subject to mugging or burglary of homes by anonymous criminals, he said it was advisable to stay indoors after dusk.

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d. Availability of transport services- the resident claimed that transport was favorable due to the upgrading of the recent Thika-superhighway that easily links the suburb to the CBD and eases traffic condition because it is wide and smoothly tarmacked.

e. Availability of water and electricity-the respondent claimed there was a power plant nearby his place of residence hence power was evenly distributed, however water supply was a bit limited due to rationing and outages.

7. Other factors that influence your choice of residence?-the residence said he had chosen the area of residence due to availability of high-end shopping centers like Thika Road Mall, where he would carry out shopping for domestic appliances, feeding from the restaurants and enjoying other recreation activities like watching movies and swimming.

8. Are there any difficulties that you experience in your day to day activities as a resident of the suburb?-

The resident agreed that there were some difficulties like water and power shortages due to the increasing population.

He also said there were certain security concerns that were to be addressed by the local government, like mugging of innocent people, theft of mobile phones and other expensive gadgets and burglary.

Pollution of water resources and air had become common because of poor disposal of waste from neighboring households, there was also poor sewage flow of waste leading to bursting of sewer lines from excessive use, which create an eyesore and cause discomfort of the residents from the stenches produced.

9. Recommendations that could be offered to counter the challenges;

a. To private developer • Ensuring security is adequately provided.e.g Perimeter walls, Metallic Gates, CCTV cameras

and Guards. • Establishing good drainage facilities.eg from kitchen sinks and washrooms to avoid clogging of

pipes or bursting. • Constructing apartments and houses with conducive living space, at affordable rental fees that

would encourage more tenants and comfortable living. b. To the government

• The government should build better roads to access different places around the estate because the existing ones are rugged and full of potholes.

• Establishment of security lights would prevent excessive mugging of people from happening due to exposure of the criminals at night; this also helps residents with vending businesses to prolong their activities to the later hours of the night.

• Regulations by the government to ensure that there is no illegal hiking of rental charges, and inspect the processes of construction to ensure the buildings are up to standard to avoid demolition collapsing as in previous occurrences. Thank you for your assistance.

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