According to the report, the Nairobi Metropolitan Area (NMA) currently has a total of 940.5 Km ongoing construction and rehabilitation road projects valued at Kshs 97.3 bn, whereas 132.8 Km road projects worth Kshs 93.1 bn have been completed so far between January 2021 and May 2022. (Key to note is that the completed projects are more costly compared to the projects in pipeline which have longer distance, as a result of the Nairobi Expressway project which costed Kshs 88.0 bn yet just 27.1 Km).
Below is a summary of completed and ongoing road network coverage in the Nairobi Metropolitan Area (NMA) between January 2021 and May 2022;
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Roads Completed Roads in the Nairobi Metropolitan Area between January 2021 and May 2022 |
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|
County |
Coverage (KM) |
Cost (Kshs bns) |
|
Nairobi |
35.1 |
88.7 |
|
Kajiado |
70.0 |
3.0 |
|
Kiambu |
15.7 |
0.7 |
|
Machakos |
12.0 |
0.6 |
|
Total |
132.8 |
93.1 |
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Summary of Nairobi Metropolitan Area Ongoing Road Projects |
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|
County |
Total Coverage (KM) |
Total Cost (Kshs bns) |
|
Kiambu |
502.0 |
38.8 |
|
Machakos |
202.0 |
20.4 |
|
Kajiado |
142.4 |
7.3 |
|
Nairobi |
94.1 |
7.3 |
|
Average |
940.5 |
97.3 |
Source: KENHA, KURA, KeRRA
Both water and sewer connectivity increased by 1.0% points to 55.8% and 19.0% in 2020, from 54.8% and 18.0% in 2019, respectively, in the NMA. The table below shows the water and sewer coverage of various counties within the NMA as at 2020;
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Nairobi Metropolitan Area Water and Sewer Coverage as at 2020 |
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|
Water Coverage |
Sewer Coverage |
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|
County |
2020 |
2019 |
Sewer Coverage 2020 |
Sewer Coverage 2019 |
|
Nairobi |
79.0% |
77.0% |
51.0% |
51.0% |
|
Kiambu |
67.0% |
67.0% |
11.0% |
10.0% |
|
Machakos |
46.0% |
33.0% |
14.0% |
11.0% |
|
Kajiado |
31.0% |
42.0% |
0.0% |
0.0% |
|
Average |
55.8% |
54.8% |
19.0% |
18.0% |
Source: Water Service Regulatory Board
To gauge Real Estate investment opportunities based on infrastructure, we looked at the key infrastructural sectors and ranked them in terms of performance and availability as follows;
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The points are 1-4, with 4 awarded to the Best Performing Area Based on Infrastructure Availability |
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County Ranking based on the State of Infrastructure Development January 2021 – May 2022 |
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County |
Completed Roads |
Roads in Pipeline |
Water Connectivity |
Sewer Connectivity |
Average Points |
Rank |
|
Nairobi |
4 |
1 |
4 |
4 |
3.3 |
1 |
|
Kiambu |
2 |
4 |
3 |
2 |
2.8 |
2 |
|
Machakos |
1 |
3 |
2 |
3 |
2.3 |
3 |
|
Kajiado |
3 |
2 |
1 |
1 |
1.8 |
4 |
Based on the above infrastructure services, Nairobi tops as the best County for Real Estate developments such as the residential units, due to the presence of adequate completed road networks, and, adequate water and sewer connectivity. Some of the areas to invest in Nairobi County due to the presence adequate infrastructure include; Kilimani, Westlands, Upperhill, Gigiri, and Karen, among many others. Kiambu County follows closely in terms of infrastructure availability, with some of the best areas to implement Real Estate investments being; Ruiru, Kahawa Sukari, Juja, and, Thika, among others.
Notes to the Editor:
Cytonn Investments is an independent investment management firm, with offices in Nairobi - Kenya and D.C. Metro - U.S. We are primarily focused on offering alternative investment solutions to individual high net-worth investors, global and institutional investors and Kenyans in the diaspora interested in the high-growth East-African region. We currently have over Kshs 82.0 billion of investments and projects under mandate, primarily in real estate.
Cytonn Real Estate is Cytonn’s development affiliate, which is focused on developing institutional grade real estate targeted at specific institutional, high net-worth and Diaspora investors. Collective, Cytonn Investments and Cytonn Real Estate manage over Kshs. 82 billion of real estate projects.
For more information, kindly contact:
Teresiah W. King’ara
Brand and Communications
+254704597107
Cytonn Investments Management Limited, 6th Floor, The Chancery, Valley Road, P.O. Box 20695 – 00200, Nairobi, Kenya.
rdo@cytonn.com | +254 (0) 20 4400420 | +254709101000
