M a r k e t N e w s
BaraBara Project to Simplify Construction in Kenya
Posted on : Thursday, 28th September 2017
The Kenyan construction industry has experienced rapid growth over the last ten years. The sector recorded an impressive growth rate of 9.2 per cent in 2016, according to the Economic Survey Report 2017. These statistics have been credited to an increase in investments in road construction and housing development.
It is no co-incidence that this rise in investment has come at a time that he employment rate to risen markedly. The sector now employs as many as 163,000 people in contrast to the figure of 148,000 recorded in 2015. The government too, has contributed generously to the sector, with their investment rising from Sh 106.5 billion in 2015 to Sh 180.7 billion.
According to Vision 2030, roads play a major role in reducing business costs and enhance connectivity, mobility, trade and investments. Due to which , Infrastructure forms a major part of the growth of many other sectors of a country’s economy.
Construction, however incurs heavy costs and therefore developers must invest in different aspect to find success. The most expensive aspects of construction remain in acquiring construction permits and approvals, initial works, proper execution of plans and completing the construction process.
There still remains room for improvement in the local services services sector.
Back in 2012, the World Bank did a series named ‘Doing business in Africa’, where the business operation environment in Kenya was extensively analyzed, to see if it met the requisite standards to meet Kenya’s goal of “Vision 2030”.
The main focus of the series was the rules and regulation of operations in Kenya and how they could work to the benefit of trade and entrepreneurship, and in a wider perspective lead to the further growth of the economy as a whole. The report also mentioned how the government’s stance on ‘Investment Climate Reform’ has transformed the regulatory landscape in Kenya.
The report also claims that there is a long list of firms with a will to register in Kenya in comparison to other nations with simpler registration norms. It also reports that permits to build a warehouse and connect them to waterways and sewerage remains a fairly simple task in contrast to the current situation in other Sub-Saharan nations.
The report claims that it taken around 17 procedures to attain the required permits for business start-ups in Kenya, which is three stages higher than the worldwide average.
The construction industry in Kenya aims to give due importance effective and efficient procedures, while also assuring that no compromises are made in regard to quality at the same time.
Digital technology too, is perceived as being critical to the country’s growth as it is convenient in terms of service delivery. The digital avenue also cuts costs considerably.
The establishment of the ‘Huduma Centres’ is also seen as a step in the right direction and key to the effective growth of the Kenyan economy.
The government has also begun developing the BaraBara plaza Office Complex, which will bring all construction related government agencies under one roof, to simplify the processing of documents for constructors.
Inter-agency cooperation is also key in reducing the cost of doing business. The construction project registration process has been made easier by the NCA, in partnership with the Engineers Board of Kenya and Board of Registration of Architects and Quantity Surveyors.
They have achieved this by interlinking the databases of the three organizations and making sure that only registered professionals are selected as consultants for any project. The NCA is in talks with several county governments to interlink the permit systems. If this happens it will be a major relief for both developers and contractors.
Source : bizmap
