Kenya: Fragmented Regulations, High Costs Holding Back Kenya's Property Sector
Nairobi — Fragmented regulatory processes, unpredictable policies, high development costs and inadequate infrastructure continue to undermine the viability of property development projects in Kenya, Kenya Property Developers Association (KPDA) has said.
The association says regulatory uncertainty, lengthy development approval processes and inadequate long-term financing are constraining investment in real estate, despite growing demand for housing, commercial property and supporting infrastructure.
KPDA is pushing for reforms targeting development approvals, property taxation, land administration and infrastructure planning, arguing that a more predictable operating environment would improve investor confidence and accelerate project delivery.
The association also wants stronger collaboration between developers, regulators and public institutions to address fragmented approval procedures and ensure more consistent implementation of development policies across different levels of government.
KPDA Chairman Zoravar Singh says Kenya needs to address structural barriers affecting developers to attract investment and support sustainable urban growth.
"Kenya needs greater policy predictability, more efficient approval processes, stronger infrastructure planning and innovative financing solutions," he said.
"These are fundamental to attracting investment, delivering quality developments and building sustainable communities for future generations."
On financing, the association is advocating for greater participation by pension funds, institutional investors, banks and development finance institutions to mobilize long-term capital for property development.
It says alternative financing structures could support investment in residential, commercial and industrial developments, particularly as developers contend with high upfront costs and lengthy project timelines.
KPDA is also calling for better alignment between land-use planning and infrastructure provision, noting that coordinated investment in supporting infrastructure is critical to the viability of new developments.
On taxation, the association has been engaging policymakers on tax measures affecting property investment, seeking a framework that provides greater certainty for developers and investors.
Likewise, the association is pushing for access to financing for decarbonization and sustainable building initiatives as the sector responds to growing demands for climate resilience and resource efficiency.
The proposed reforms are expected to feature prominently at the KPDA@20 Annual Conference in Nairobi, bringing together developers, government officials, investors and financial institutions to discuss challenges facing the built environment.
Singh says the industry needs stronger partnerships to translate policy discussions into practical improvements.
Read the original article on Capital FM.