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28 December, 2021
News

Cytonn Real Estate, the development affiliate of Cytonn Investments, has released their Nairobi Metropolitan Area (NMA) Infrastructure Report 2021. The report highlights the state of infrastructure in the Nairobi Metropolitan Area, ongoing infrastructural projects, and as well as identifying the potential areas for Real Estate investment.

According to the report, Kenya’s road network coverage is currently at 161,451 Km and valued at over Kshs 3.5 tn as at 2021. In the Nairobi Metropolitan Area (NMA), there are 939.6 Km ongoing construction and rehabilitation projects valued at Kshs 162.4 bn, whereas 99.7 Km road projects worth Kshs 4.3 bn have been completed so far in 2021.

Below is a summary of completed and ongoing road network coverage in the Nairobi Metropolitan Area (NMA) in 2021;

Roads Completed in Nairobi Metropolitan Area in 2021

County

Coverage (KM)

Cost (Kshs bns)

Kajiado

70.0

3.0

Kiambu

15.7

0.7

Machakos

12.0

0.6

Total

97.7

4.3

Summary of Nairobi Metropolitan Area Ongoing Road Projects

County

Total Coverage (KM)

Total Cost (Kshs bns)

Nairobi

141.0

113.7

Kiambu

475.2

26.3

Machakos

181.0

15.0

Kajiado

142.4

7.3

Total

939.6

162.4

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;

Nairobi Metropolitan Area Water and Sewer Coverage 2020

Water Coverage

Sewer Coverage

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

Additionally, according to the report,

  1. Kenya’s electricity coverage currently stands at 70.0%, which represents a 0.3% points increase from the 69.7% realized in 2019,
  2. For air transport, the Jomo Kenyatta International Airport (JKIA) is the main airport servicing the Nairobi Metropolitan Area (NMA) and accounts for 93.2% of the total visitors arriving into the country, as per the October 2021 Leading Economic Indicators Report by KNBS, and,
  3. Rail transport accounted for 0.6% of the total value output of transport sector in the country, as per the Economic Survey 2021 signifying the limited use of the mode for transport. This is attributed to the limited network coverage in comparison to road transport network.

To gauge investment opportunities based on infrastructure, we ranked key infrastructural sectors based on 2021 performance as follows;

County Ranking based on the State of Infrastructure Development 2021

County

Roads

Water Connectivity

Sewer Connectivity

Railway Stations

Airport Proximity

Average Points

Rank

Nairobi

1

4

4

4

4

3.4

1

Kiambu

4

3

2

2

3

2.8

2

Machakos

2

2

3

3

2

2.4

3

Kajiado

3

1

1

1

1

1.4

4

* Ranking for roads was based on the ongoing and complete road network coverage within the various counties

* Ranking for water and sewer was based on the current network coverage,

* Ranking for airports was based on proximity of the various counties to JKIA

* Ranking for railways was based on the number of  railway stations available within the various NMA counties

Nairobi County presents the best investment opportunity supported by the availability of infrastructure amenities such as; i) efficient water supply and sewer connection, ii) adequate road networks with paved sidewalks, and iii) closest proximity to airports and train stations compared to other counties within the Nairobi Metropolitan Area (NMA). Some of the best areas for investments within Nairobi due to adequate infrastructure include Karen, Westlands, Kilimani, and Upper Hill.

Kiambu County follows with most road networks in the NMA which support Real Estate investment opportunities. This is in addition to adequate supply of water in the region with a current coverage of 67.0% thus being second best after Nairobi County Some of the best investment opportunity within Kiambu County include; Ruiru, Kikuyu, Kahawa Sukari, and Thika, due to the presence of most projects within them.

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