Kenya: A Multi Million New City Plan Underway
By Eric Sande
NAIROBI---The Kenya Vision 2030, intended to guide the country’s development process for the next 25 years, is envisaged in a three pillar structure namely: Economic Pillar, the Social Pillar and the Political Pillar. The efforts of the grand coalition government, aimed at achieving this goal, seem to be bearing fruits.
The economic pillar, which aims at achieving an economic growth rate of 10 per cent per annum and sustaining the same until 2030 together with the social pillar, that seeks to create a just, cohesive and equitable social development in a clean and secure environment are slowly coming in with surprises.
A Moscow based Renaissance Partners, the principle investing arm of emerging markets firm Renaissance Group, in a joint venture with Kenyan investors, have laid down a multibillion new city master plan. The new city will be built on a residential complex outside Nairobi, the Kenyan capital. In its success it will go to the book of history as the first ever holistically planned city in Africa.
The new city master plan was officially launched on Tuesday October 26 at the Safari Park Hotel by the minister for Nairobi Metropolitan Development Robinson Githae who read the speech on behalf of Kenya’s President Mwai Kibaki.
Local investors seeking opportunities in the real estate sector have the chance to take part in the construction of Kenya’s single biggest project by buying parcels of land to build residential houses, office blocks, schools and hospitals.
A call for application from interested potential investors in the project, dubbed Tatu City, was tabled before the official launch of the project, whose actual construction is set to begin in 2012 by the shareholders .
“We are inviting individual investors, developers and corporate bodies to submit their applications for the property they are interested in according to the master-plan,” said Mr Nahashon Nyaga, chairman of the project.
Githae, during his speech, said that the government of Kenya is fully committed to the development of the new city, adding that it has identified urban development as key to achieving vision 2030.He added that the new city will help ease congestion in the central business district (cbd) of Nairobi’s city centre and minimise migration of people from rural into urban areas once the plan spreads into other major towns of the country.
It is expected to be home to about 62,000 people in a work-live-play environment. In its capacity, close to 23,000 day visitors are set to be accommodated in the residential complex which will be developed in 10 phases.
10,000 new jobs are set to be created during construction, and over 30,000 permanent jobs to come in handy once completed .This will translate to a boost in the Kenyan economy since it will generate KShs 400 billion directly into the country’s economy.
The Kenyan shareholders own a 50 per cent stake in the company which has so far allocated Sh200 billion for infrastructure development.
Renaissance Group Chief Executive Officer Stephen Jennings said about US$100 million has been spent so far on the development of Tatu City, a 50-50 joint venture between Renaissance and Tatu City Ltd., the Kenyan investors.
Jennings owns 50 per cent of the project and he puts it that the investors will be allowed a maximum of five years to complete their developments, implying that completion of the first phase will be in 2016.
“Tatu City is not only a city of the future, it is a demonstration of the positive investment climate in Kenya and across Africa,” Says Jenning.
The minimum investment value is yet to be tabled, but investors are encouraged to buy whole blocks of land and show ability to finance the development as designed in the new city master plan.
Arnold Meyer, Renaissance’s managing director for real estate, said in an interview that,“In Africa there is going to be exponential growth in urbanization with a need for people to be housed.”
Tatu City will in itself feature privately-run establishments including residential and commercial property and other facilities including hospitals, schools and recreational developments. It will also be “self-governing” and taxes collected within the area will be given to the city for spending, he said.
The 1,000 hectare plot about 15 kilometers (9 miles) north of Nairobi is envisioned to become a business centre for Kenya similar to the Johannesburg suburb of Sandton, whose developers include Liberty Group. ‘In 25 years it’s gone from a farm to the financial capital of Africa ‘as Meyer puts it.