Small Housing Developers Face Disruption by Government Plan
One-man real estate firms dominating the residential housing scene face imminent disruption after the government invited real estate conglomerates to put up 8,000 units using modern technologies.
Unlike the present situation where private developers seek and purchase their own parcels of land, the invited mass-housing builders have been given a major leeway where the government will provide the land for the planned houses.
Already several mass-housing companies have set up building raw materials in the country and have had their building technologies approved ahead of national rollout.
The new Public-Private Partnership deal could drive small players out of the market since government-fronted firms would enjoy faster approval of plans unlike currently where contractors and project owners wait for months to get approval for the planned projects.
Though the advice to small and one-man real estate firms is thinly veiled, the government has given them an opportunity to remain afloat by urging them to form consortiums and come up with housing models that could be mass produced, built within a short time while maintaining high quality at competitively low costs.
This means, a housing developer, a financier and a building products firm could form a Special Purpose Vehicle to bid for the tenders advertised by the government for the Mavoko project that closes on October 30.
The tender, under the Engineering Procurement Contract (EPC) delivery modelseek to promote low cost technologies that are currently shunned by Kenyans who deem them to be sub-standard.
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