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For celebrating 38 years in Mechanical plumbing, Drainage and Water based technologies.
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REAL PARK
THE
Volume No. 27: 2018
KENYA ENGINEER &BUILDER
KUDOS!
BRINGS GLAMOUR & STYLE IN THE CITY 10
Inside
VOLCANIC PLUMBING MARKS
16
DAVIS & SHIRTLIFF OPENS NEW BRANCHES COUNTRYWIDE
18 Kshs. 500
Road to success in Real Estate • Material Testing and Research
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Kenya Engineer & Builder - 3
Kenya Engineer & Builder:
Publisher
Content: 6. 10.
18.
8.
13. 16.
Launch of construction of Shs 17B Southern Bypass The 30 kilometer dual carriageway road project, ... The Real Park Brings glamour and style in the city. D&S Branch Expansion Program In Full Gear Mtwapa, Eastleigh and Bungoma Branches Now Fully Operational: All set to register a first in Smart City ...Smart city initiative is set to create a mark in a central location construction concept. Using the Internet to demystify mortgages. Volcanic Plumbing Marks 38 Great Years In The Industry
Kenya Engineer & Buider: Joe Gichuhi Managing Editor
20. Lamu opens new trade corridors beyond East Africa Kenyans are excited that the mega transport corridor is finally under way following the commissioning of the Lamu port. 22. Shutting the door for quacks in the construction industry 26. Road to success in real estate The growing middle class and income fuels sector’s boom. 29. Material testing and research Materials testing and research department is one of the major departments of the ministry of roads... 31. Turkana Oil search raises hope for the county striking it rich
Mary Migichi Financial Controller Eng. Ingrind Vaughan Editors Peter Fairhead John Kaloki Millicent Aketch Oyoo Office Administrator Edith Amondi Reporters Ruth Angwenyi Thomas Mulandi Pious Ogoma Johnson Camel Brighton Kumasi Andrea Atusi Special Correspondent Prof. Owino Akeyo Marketing Manager Effy Obado Advertising Executives Evans Onyango Luke Gitonga Philip Wekesa Design & Layout Mackenzie Circulation Assistants Charles Wachira James Jalango Quality Assuarance Oliver Gupta Eng. Peter M. Kisemi Office Assistants Catherine Oyoma Ann Wafula Technical Assistant Simon Kiboi Printed by World Magic Printers Published by Perception Corporate Lommunications Tel: +254 722 889 763 Email: info@constructioneastafrica.com Registered at the GPO as a Newspaper. A product of Construction press service ŠCopyright 2014 : Reproduction of any article in part or in full is strictly prohibited without written permission from Construction Press Service
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Editorial
KENYANS OPTIMISTIC AFTER THE
HANDSHAKE
T
he Kenya population is awash with smiles of optimism after the symbolic greetings of peace christened The Handshake. The hope projected by the political ceasefire between two rival camps is that the economic will arise after almost an year of slumber. The most critical sector is the construction industry whose funding has seriously been curtailed by none reimbursement especially by the government. Contractors who work for both the national and county governments continue to limp as they count loses out of long withheld payments and rising interest rates accruing from bank loans. From the contractor downwards, suppliers, workers and other industry defendants continue to tighten belts. But with a peaceful political environment and government’s goodwill, it’s only a matter of time before the economy begins to grown again. The emergence of capital construction projects such as The Real Park is heartwarming to say the least. This marvel of architectural innovation stands tall in the heartland of Nairobi’s industrial district. The 9 floor magnificent enigma is an eye puller even from the outset and an eye catcher from the inside. The Real Park is a modern state-of-the Art office and commercial complex ready for immediate occupation. Coming up further afield along Langa’ta Road is The Freedom Heights and The JKUAT Tower within Kilimani area. The Britam Tower center is the other recently completed office project.
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Industry News
17B SOUTHERN BYPASS
The 30 kilometer dual carriageway road project, is an initiative by the Government to provide an alternative route for transit vehicles destined to western parts of Kenya or the coast region without passing through the Nairobi Central Business District.
Former Kenya President Mwai Kibaki launched the construction work for the Southern Bypass which estimated to cost Shs 17 billion in 2012. The 30 kilometer dual carriageway road project, is an initiative by the Government to provide
an alternative route for transit vehicles destined to western parts of Kenya or the coast region without passing through the Nairobi Central Business District. The project was being financed through a concessionary loan from the Government of the People’s
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Republic of China and funding from the Government of Kenya. With regard to Government’s commitment to addressing traffic congestion in the city expansion work along the busy Lang’ata and Magadi roads has commenced to rehabilitate and upgrade the vital highway. The expansion and upgrading of Lang’ata road is scheduled to be completed by mid next year and is expected to improve traffic flow for vehicles accessing the city centre from Ngong, Karen, Ongata Rongai and Kiserian towns. The government has appreciated the urgency required in addressing traffic congestion so as to curtail its negative impact on the country’s economic growth projections. The Government is concerned about the high vehicle congestion on some of the roads, particularly in the major urban centres and it is
Industry News
taking measures to address and stem the adverse impact on the growth of the economy.. In this regard, the listed various measures the government was implementing to address traffic congestion among them improvement of the road surface and widening of some of the roads to streamline traffic flow and modernization of main accesses to the city. Besides the widening of roads, the Government is implementing
the Missing Links projects such as the construction of the Nairobi Western Ring Roads which is due for completion later this year. The problem of congestion also affected other major urban centres such as Mombasa, Kisumu, Eldoret and Nakuru adding that the Government was actively pursuing measures to address the problem in those cities and towns too. During the occasion he underscored the need for
regular maintenance of the country’s road network by putting in place mechanisms for proper and timely repairs to avoid the huge costs of reconstruction of the existing roads. It was noted that upgrading of the country’s outdated infrastructure is a key component of the Government’s plan to reignite the economy, boost job creation and keep Kenya competitive in the 21st Century.
The Government is concerned about the high vehicle congestion on some of the roads, particularly in the major urban centres and it is taking measures to address and stem the adverse impact on the growth of the economy..
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Kenya Engineer & Builder - 7
Special Report
ALL SET TO REGISTER A FIRST IN SMART CITY
Kenya’s Ministry of Information and Communications’ smart city initiative is set to create a mark in a central location construction concept. Konza Technology City, dubbed Africa’s Silicon, will be built at a cost of US $ 10 billion in Konza, just 60 km from Kenya capital city, Nairobi. Africa’s first smart city is anchoret on well planed buildings and industrial parks, information hubs, a science park and other modern
institutions with expansive space for operation. The city is also strategically placed, only 50km from Kenya’s aviation hub, Jomo Kenyatta International airport and 450km from Kenya’s tourism belt, Mombasa. The railway line is just 4km away. The smart city will thus be well connected and accessible. On completion, the Konza city will house centrally a world - class hospital, five star
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hotels, International Schools, Financial Institutions, Integrated Infrastructure which includes reliable Internet connectivity. The city will also be Business Processing Outsourcing (BPO) that is to rival such ventures in Asia. It will have media centre for training and production services. The project is anchored on Kenya’s development blue print, Vision 2030. Already, the smart city has seen 60% of the space booked
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and foreign investors have been on the whirl to tap the potential of Africa’s first smart City. In a bid to position themselves for a piece of the pie, the government has encouraged local investors to move fast to secure space. In the true spirit of East African community, regional investors are also encouraged to compete for the available opportunities. The city will be built on a 500 -acre piece of land that has been acquired by government. To
avoid land encroachment and mushrooming of illegal structures on the land, a 10 km buffer zone will be erected. The Konza smart city is likely to raise the bar in construction standards. It will ensure that buildings and other infrastructure meet the highest standards of construction. Professionalism will be key in the city concept. It will be managed by a yet to be created parastatal, Konza Technology City Authority
The Grand Opportunities
• Property development and rental • Infrastructure • Call centers • Web design • Financial services • Tourism • Sports • Media services • Software development
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Cover Story
THE
REAL PARK IS THE REAL DEAL
A new haven for business and commerce in the name of The Real Park has sprung up in the heart of and nerve centre of Nairobi’s Industrial area. A new haven for business and commerce in the name of The Real Park has sprung up in the heart of and nerve centre of Nairobi’s Industrial area. The Real Park is an ultramodern and State-of-the Art office and commercial development. This building stands out as a marvel of ingenious design and innovation with imposing calmness and warmth of a rare measure. As one negotiates the Car & General round about heading to Mater Hospital, the presence and visibility of The Real Park is prominent, a tall majestic and imposing landmark daring the sky at the junction of Bandari and Wajir road. The design stands tall and bold among its neighborhood giving it a spectacular and serene view of Nairobi Skyline from its wide UV Glass Curtain walling. The Real Park is located in a
secure and serene environment away from the hustle and bustle of the Nairobi CBD. The complex is a 10 minute drive from the Nairobi’s CBD and it provides easy access to outer regions such as Westlands area, Mombasa Road, The Airport, Langata, Karen and Upperhil. The building has 9 floors of office space and is leased at reasonable rates. The ground floor accommodates shops and showrooms. Other amenities include • CCTV with 24 hour surveillance • Back-up generator • Cleaning Services on common areas and outside the building • A Restaurant • Secure parking • Internet Ready The floors are served by 2 high
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speed lifts. The Exterior and Interior Materials were specifically imported for this project. Each office Space is carefully designed with Large Curtain walling windows to allow natural lighting and cross ventilation thus providing a highly conducive working environment. The External walls are cladded with Aluminum Composite Panels (ACP) which blend with wide curtain walling infill panels to give it a contemporary look and feel. The Development has a welcoming grand entrance at the corner with steps and ramps with make it accessible to the Paraplegic. It is then ushered by a double volume receptions which leads to carefully designed and keen to details wet areas and circulation spaces. The careful selection of materials and strict supervision makes The Real Park not only
aesthetically beautiful but also boasts of the highest safety standards. According to the Architect, The Real Park was a dream version of the developer which they conceptualized and turned it into reality. The developer Mr. Eddy
Kariuki asserted that the concept was fired by his passion of great working environments which he believes is the bottom line of effective performance and profitability. Mr. Kariuki, a leading HVAC magnet in Africa and CEO of Raerex (EA) Limited observed that there is humongous motivation from
working within a bright, serene and warm environment. This accommodation is ideal for Public Institutions and private companies including consultancies. For those really seeking to secure a harmonious home for their businesses, The Real Park is The Real Deal.
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National Construction Authority
Special Report
USING THE INTERNET TO DEMYSTIFY
Mortgages Keeping Secrets: Many of the institutions that offer housing financing provide a mortgage calculator on their websites, but not such information as interest rates. Something interesting is happening in the US mortgage industry that Kenya’s lenders and prospective home buyers should take note of: many major online shopping sites have been adding new user friendly features in readiness for the large number of buyers expected to search online for mortgages this spring. According to The New York Times, well established online organisations like LendingTree, Zillow Mortgage Marketplace, and Bankrate.com, commonly referred to as mortgage marketplaces, are increasingly
becoming popular as a way for borrowers to research loan rates and options. LendingTree, for example, says it has facilitated more than 30 million loan requests and $214 billion (Shi7 trillion) in closed loan transactions since its inception 15 years ago. The US has 1,200 mortgagerelated websites, which attracted 126 million visitors in February, an increase of 26 per cent over last year’s figure. Most sites offer a mix of consumer mortgage calculators and other tools, along with rate quotes or match-ups with one or more of the hundreds of participating lenders, The Times said. “Many are adding other features and functions to stay more competitive.”
By Pious Ogoma
Mortgage mobile app Others like Zillow Mortgage Marketplace have been focused on mobile applications. Zillow’s mobile mortgage application for the iPhone allows borrowers to check rates and loan quotes. The app has been downloaded more than two million times since June last year and they have began offering a version for Android phones. The point here is that Kenyan mortgage lenders and borrowers, like their US counterparts, should start finding modern technology indispensable. They should view the Internet as a marketplace where the seller (commercial banks and mortgage institutions) and the buyer (mortgage seekers) “meet” for business. Granted,
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Special Report
compared to America’s, Kenya’s mortgage market is nothing to write home about. But the fact is, the mortgage market does’ exist in Kenya and it is growing, no matter how slowly. And technology, used appropriately, can fuel that growth. Commercial banks that offer mortgages as well as specialised mortgage institutions have websites, but most of these sites do not offer much. Some of them do well by listing the products they offer, but they do not give sufficient details that can help those searching for a mortgage know what to expect. The most common features on most of these websites are houses and their prices, a brief catalogue of products offered, and a mortgage calculator. Hardly do you find a
site stating the interest rate or placing a repayment schedule. What, then, is the use of the mortgage calculators? LendingTree is planning to add a feature (among several other new features) called “The Best Loan for Life”, which will help it evaluate homeowners’ current loans against new offerings from lenders signed up with it to see if it would be worthwhile to refinance. This is a positive and admirable advancement. Users will be able to add their own information - rates and terms from other lenders, not just those associated with LendingTree - to allow them to do a side-by-side analysis “and see which one is better”. This level of interaction and
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openness makes it easier for potential mortgage takers to not only have a better understanding of what the firm is offering, but also gives a better understanding of the mortgage market in general. Our nascent mortgage market needs this more than the more advanced US market if we expect to de mystify mortgages for the populace.
Providing information We might not have many people taking mortgages, but it is important to provide as much information as possible through the rapidly emerging digital technology platforms so that people stay informed. I hope the mortgage providers can learn to use technology to their advantage.
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Advertising Feature
VOLCANIC PLUMBING MARKS 38 GREAT YEARS IN THE INDUSTRY 38 years ago, a young man then had passion to venture into private practice and persue a business career in his chosen area of specialization; Mechanical plumbing, Drainage and Water based technologies. This young man was Mr. William (Bill to his friends) Muigai Kihonge. As the sir name suggests, he came from a lineage of the famous Naivasha Transport Magnet, the late Ng’ang’a Kihonge. The younger Kihonge has engaged and successfully implemented so many projects its unbelievable, both for government and public sector.
Some of the landmark projects include the humogous Nyayo Estate Embakasi certified as Africa’s No. 2 largest Gated Community. Others include Britam Tower and the Ongoing Freedom Heights along Lang’ata Road. Here below is a list of some of his key completed projects. 1. Egerton University 2008 2. All African Conference of Churches 2008 3. Don Bosco 2008 4. Kagumo Teachers College 2009 5. NSSF Nyayo Housing
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Complex 2009 6. Adventist University of Africa 2009 7. Kenya School of Monitary Studies 2009 8. GSU Headquarters 2010 9. Britam Towers 2018 10. Freedom Heights ongoing Volcanic Plumbing Works has continued unbeatable service and value addition to all its clients in government and private sector. According to Mr. Kihonge, his company has always strived to go the extra mile and deliver beyond the expectations of all their clients.
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D&S
D&S BRANCH
EXPANSION
PROGRAM IN FULL GEAR MTWAPA, EASTLEIGH AND BUNGOMA BRANCHES NOW FULLY OPERATIONAL:
a branch in Mtwapa, the famous, lively coastal resort town on the Kenyan coast under newly appointed Branch Manager, Christopher Muli. The branch is in a smart new and fully air-conditioned premises in Mtwapa Mall at the Northern end of the town. Davis & Shirtliff ’s It is ideally located to serve determination to deliver the local areas around Mtwapa services right at the door step including Vipingo, Kilifi and of their customers can now be Shanzu and, due to its location felt. inside the mall offers tranquil In the last few months this refuge from the heat and company has opened three bustle of the town. new branches one after the The Eastleigh branch is other. First it was Mtwapa housed in a well-known district followed by Eastleigh and just of Nairobi that is famous for its recently, Bungoma. dynamic business community The overriding objective and rapid expansion over the is to reduce transport cost last few years. Branch Manager, for customers according to a Samuel Kibet, has overseen the member of the marketing team. refurbishment of the large and D&S Coast under the GM ideally situated premises on 1st Mohamed Farook has opened Avenue, a thriving hub more 18 - Kenya Engineer & Builder
commonly associated with traders, souks and bazaars that will now also offer residents the much needed range of D&S products and solutions. The newly opened Bungoma branch is at busy intersection along Moi Avenue near Nyanza Supermarket. According to the Company’s CEO, Mr. David Gatende, “The percentage share of business generated outside Nairobi has grown immensely over the recent years and this has been a major driver of our expansion strategy. Our branches provide vital after-sales services to our customers,” he said Moving forward, the company intends to “improve people’s lives by provide water and energy solutions across the region”.
D&S DAVIS & SHIRTLIFF’S BRANCH EXPANSION PICTORIAL
Pwani Deputy Vice Chancellor, Prof James Kahindi [centre] during the official opening of Davis and Shirtliff (D&S) Mtwapa Branch, Kilifi County, its 8th branch in the Coast region. Seen [from left] are D&S Group CEO, David Gatende, D&S Branch Manager Christopher Muli, D&S Business Development Director, Edward Davis and D&S Coast GM Mohammed Farook.
Eastleigh is a thriving and high energy district of Nairobi that is notable for its vibrant and enterprising Somali ethnic community. The initiative was taken to open a branch there last year by Business Development Director Edward Davis who was at that time responsible for the Nairobi cluster of D&S branches.
From Left is Davis & Shirtliff (D&S) Group CEO David Gatende, D&S Commercial Manager Margaret Kuchio, Eng. John Situma, Chief Officer Ministry of Environment, Water & Natural resources and D&S Bungoma Branch Manager Wanjala Namukana during the official opening of the Bungoma Branch located along Moi Avenue.
Kenya Engineer & Builder - 19
Special Report
NEW TRADE CORRIDORS BEYOND EAST AFRICA
OPENS IN LAMU
Kenyans are excited that the mega transport corridor is finally under way following the commissioning of the Lamu port. The commissioning of the port and the signing co-operation protocols was a positive step which is an essential starting point for attracting both bilateral and multilateral agency funding. Projects with regional trade content and scope for regional interconnectivity are usually good candidates for such funding. Known as the Lamu Port South Sudan-Ethiopia Transport and Economic Development Corridor (LAPSSET), the Lamu port will position Kenya, regionally and globally, as one of the major transit corridors in the world. The transnational and regional project that will link up Ethiopia and South Sudan has often been described as a pipedream, or a white elephant. The project will include an oil refinery and pipeline, a standard gauge railway line to Addis Ababa and Juba, an airport and
a highway joining Ethiopia and South Sudan. It will also involve the construction of three international airports at the three resort cities of Lamu, Isiolo and Turkana. Yet, there have been concerns that the project will not only interfere with the delicate ecological system, but also erode the strong Islamic and Swahili culture that attracts hordes of tourists to the Lamu archipelago. There are also concerns that Lamu people will lose their land to land speculators. Furthermore, the clearing of hundreds of acres of the precious mangrove trees is likely to interfere with a fragile ecosystem, especially the fish breeding areas. Perhaps the most immediate benefit to the corridor will be the development and commercialization of the livestock sector which is the mainstay of nearly all the
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communities along the corridor. The first phase of the port development is expected to have facilities for export of live animals, supported by a large livestock holding ground on the Lamu mainland. Meat processing and leather industries are obvious industrial starters for the corridor, because the Livestock Ministry has already done a lot of ground work in the sector. The other activity that may end up being an economic blessing to the corridor is the ongoing oil and gas exploration in and around the corridor (Turkana and offshore Lamu). Any discovery of oil and gas would increase justification for the corridor petroleum infrastructure and also create opportunities for petrochemical industries and power generation. Where we have major grassroots project developments, as we have in Lamu, we expect
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to see social and environmental activists. To the people of Lamu and other corridor counties, this is the time to understand and appreciate the positive impacts of this project to their communities. Petty politics and uninformed activism will need to be minimized. While the construction of infrastructure will open up the coastal and northern Kenya for socio-economic development, there are still questions as to what extent the projects will disrupt the predominantly pastoral life of the people where the railway and the roads will be built. However, it is encouraging that the government recently revoked the titles of some tycoons that had rushed to acquire land in Lamu in order to make a kill once the port construction kicks off. Kenyans are hoping that the project will not lead to
mass displacement and loss of land, desecration of the tourism attractions and the destruction of aquatic life and marine ecosystem in Lamu. Sudan has voiced concerns that the commissioning of the Lamu Port and several other key infrastructure projects in the Horn of Africa risk undermining its economy, a sign that Khartoum is increasingly feeling isolated from the region. Sudan’s deputy head of mission in Nairobi said there was a plan to alienate the country from the regional economy. Ali Mahmoud Abdurrasoul, the Sudanese Minister for Finance and National Economy, said that out of the nine infrastructure projects under the Inter-Governmental Authority on Development (Igad), only two included Khartoum, with the majority involving Kenya, Ethiopia,
Uganda and now Somalia. Khartoum officials said the country has tabled a complaint of economic sabotage with the African Union team handling its negotiations with Juba. The new pipeline deal came only months after the East Africa Community declined Khartoum’s application to join the bloc, while agreeing to admit South Sudan as an observer member. It is such developments that convince Khartoum of the ill intentions of the EAC member countries. The commissioning of the Lamu project is realigning East Africa’s geopolitics. Khartoum views the planned crude oil route as a plan to sabotage its economy, while a senior Ugandan official said the pipeline’s route should be extended to connect the country’s new oil fields.
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Special Report
Shutting the door for quacks in the
CONSTRUCTION
INDUSTRY By James Camel
Thanks to the new National Construction Authority law, carpenters and house painters will no longer register companies and seek bids to build houses and roads An MP hired a contractor to build his house. When it was half-way done, the contractor abandoned the site without notice. The house collapsed within days. The MP narrated his ordeal with the “rogue” contractor to his colleagues in Parliament last June during debate on the National Construction Authority Bill. The MP sounded helpless. But not anymore. Today, the legislator, together with many other builders and private developers, must be a happy lot for the Bill, aimed at bringing
order in the construction industry by ensuring that only genuine and qualified Contractors practise, is now law and is expected to come into operation soon. The government, which for decades, has been fleeced by wheeler-dealer contractors, variously referred to “rogue contractors”, “cowboy contractors”, and “briefcase contractors”, is even happier. “We are happy that the National Construction Authority Bill is now law. It is now possible to rid the construction
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industry of rogue contractors since the new law provides for the blacklisting of those who abandon work half-way or who do not conduct themselves professionally,” said Public Works minister Chris Obure. The National Construction Authority Act, signed into law by former President (Kibaki), seeks to regulate the building and construction industry by setting up the National Construction Authority, an agency to oversee the sector. The authority will be charged with registering and accrediting contractors and regulating their activities.
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It will also promote professionalism in the sector by ensuring that only trained contractors, construction workers, and site supervisors are registered. “The new law has given us the teeth to deal with contractors who abandon (government) projects half-way. We will have the option of de registering them, barring them from working for any government department or the private sector,” said Mr Obure. He said lack of centralised registration of contractors (the
registration of contractors has been fragmented, with each government agency maintaining its own register on administrative basis) has created a situation where non-performing contractors and those barred in one minis-try or institution can migrate and actively tender for projects in other ministries and institutions on account of multiple registrations or change of legal status. According to industry players, lack of a centralised regulation and registration mechanism for contractors has led to the proliferation of non-performing
Imco Holdings Ltd
Engineering & Construction Langata Road, Langata Shopping Centre P.O. Box 27718-00506, Nairobi Phone: (20) 8000838; Mobile; 0721-736849/0711 536115 E-mail: imcoholdingd@gmail.com csdesk@imcoholdings.co.ke george.kihiko@imcoholdings.co.ke Website: www.imcoholdings.co.ke
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contractors with little or no capacity to undertake works. The activities of the nonperforming contractors have resulted in collapsing buildings due to poor workmanship and non-compliance with specifications, often occasioning loss of life, poorly constructed infrastructure, and delayed completion of works, leading to project cost over-runs and stalled projects. “I think this new law will help tame rogue contractors and improve the quality of construction work because the contractors now know that if they are de registered, they will not be able to get work elsewhere,” said Mr. Alfred Aluvaala, the director of Miradi Consultants, a quantity surveying firm that also deals with project management. He said the law has stringent requirements that will ensure that only certain cadres of contractors with a given level of education are allowed to practise. “At the moment, anybody can register a firm and claim to be a contractor. But under the new law, they will have to be registered by the authority, checked, and their activities followed up to ensure that they follow laid-down procedure. This law win help sieve the profession and leave only those who are serious,” said Mr Aluvaala. He was in the team that drafted the National Construction Authority Act and is a member of the governing council of the Institute of Quantity Surveyors of Kenya.
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Special Report
Over the past decade, estate has headed towards the sky and has become one of the most vibrant sectors of the Kenyan economy. Almost every young Kenyan dreams of owning property, either in towns or their suburbs. This has, in turn, led to escalation of the cost of land and housing. The fast growth of the middle class has been a boon to the sector, with increasing demand for decent and affordable homes. It is estimated that Kenya has a supply deficit of over 200,000 housing units every year. As
demand grows, entrepreneurs have taken advantage of the opportunities presented to net billions. However, few understand how to make an entry and sustain growth in this booming sector. Making the first step in the long journey to success and keeping a good pace has remained a mystery to many potential investors. “The best thing about real estate is that you don’t need to be a rocket scientist to succeed; all you need is hard work and determination to achieve clearly set goals,� says Mentor Holdings
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executive chairman Daniel Ojijo. His company has grown from a part-time marketing agent in real estate, earning a commission of 30 per cent, to the multibillion venture that it is now. The dream was conceived through interaction with an agent who helped Mr Ojijo get a house. He realised that one does not need to own property to make money. Instead, you just need to bring together property owners and those looking for houses. By so doing, you get a piece of the cake in the form of commissions. 200,000 The number of
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ROAD TO SUCCESS IN
The growing middle class and income fuels sector’s boom. Unlike agriculture, where you need to plant every season to make money, or a retail chain of shops, which you need to keep re-stocking to earn profits, maintenance demand in real estate ventures is minimal. By Brighton Kumasi
housing units that the country falls short of every year. The real estate sector has grown to become one of the leading earners for investors 30pc What Mentor Holdings used to earn in commissions from real estate 11 The number of subsidiaries that the company now boasts in the real estate sector that is seeing investors reap handsomely Mr. Ojijo’s marketing skills and determination earned him a chance to work with a bigger firm, in which he eventually acquired a 20 per cent share.
He later pulled out to buy Villa Care, which was not doing well at the time. The company has since grown to become the multi-billion shilling empire under the name Mentor Holdings. Co-owned with other directors, Mentor Holdings has 11 subsidiaries including Kenya Homes Expo, Beyond Media, Homes Kenya, Windsor Homes, Home Fix, Nairobi Best Homes, Villa Care, Kenya Interiors, International Valuers, and Mentor Group Limited. Windsor Homes alone has a portfolio of Shi5 billion, with
the total turnover of the holding company well into the billions. According to Mr Ojijo’s business partner, Major (retired) D.K. Karau, real estate business is demanding, especially at the start because it requires high amounts of capital compared to other investments. Most of the ventures are started through loan financing and it may take time to break even. However, once success docks, the glory of the enterprise keeps growing, with assured demand for houses as long as the population keeps growing.
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CONSTRUCTION
ARK CONSTRUCTION LTD
ELECTRO TECHNOLOGIES LTD ELECTRICAL ENGINEERING CONTRACTORS
22, Sports Road P. O. Box 38425-00623 Nairobi, Kenya Tel: +254 20 4453365/66 | Cell: +254 722 510589 / +254 733 863756 Fax: +254 20 445 3367 | Email: info@electrotech.home.co.ke
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B UILDING AN D G ENER A L CONT RA CTOR S P. O. Box 21073-00100 Nairobi, Kenya Tel: +254 20 444 3723/4, 8041599 Fax: +254 20 444 3722 | Email: info@arkconstruction.co.ke
Special Report
MATERIAL TESTING AND
RESEARCH By Ruth Angwenyi
INTRODUCTION Materials testing and research department is one of the major departments of the ministry of roads charged mainly with the responsibility of testing engineering and non-engineering materials used in road construction and the building industry. The department also carries out research on performance of various types of paints and chemical products, timber, bitumen, concrete products, design and research on road construction materials and performance of road pavement
structures and geotechnical studies for foundation of building and dams. MISSION To guarantee suitable materials for an efficient building and road construction sector that supports and promotes economic growth through effective provision and maintenance of infrastructure. SOME OF OUR CORE FUNCTIONS Prospecting and testing of all road and other civil engineering building materials prior to commencement of
construction and maintenance of roads and other civil engineering projects. Quality control and assurance during construction, maintenance and rehabilitation of all works. Carrying out both road rehabilitation and strengthening designs. Vetting of road designs commission to consultants. Undertake collaborative research activities in liaison with other local and international organizations.
Kenya Engineer & Builder - 29
Special Report
TESTING SERVICES The department has well equipped testing laboratories performing various types of test in accordance with various standard e.g. British standard, KEBS, these services are available at nominal testing charges to government departments, parastatals, private companies and individuals including manufacturers , contractors, consultant and project developers. TESTING LABORATORIES The central laboratories are situated at Machakos road in the Nairobi industrial area. There are seven laboratories.
The main testing carried out is as described below;SOIL LABORATORY, soil classification test including grading and atterberg limits. Strength test including compaction and California bearing ratio. Other Laboratories are: Foundations and drilling laboratory. Physics laboratory Paints laboratory Chemical laboratory Bitumen laboratory Building materials laboratory Regional laboratories Material library
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Any enquiries on services available should be made at the earliest opportunity to:CHIEF ENGINEER (MATERIALS) MACHAKOS ROAD, INDUSTRIAL AREA P. O. Box 11873 – 00400
NAIROBI KENYA TEL: (+254) 020 554950/3/4/7 TELEFAX: (+254) 020 554877 E-mail: chief.engineer@ materials.roadsnet.go.ke info@materials.roadsnet. go.ke
Special Report
Turkana Oil search raises hope for the county striking it rich Our recent memory of Turkana County is through 2008/09 pictures of hungry families feeding on wild berries with carcasses of cattle strewn all over. By Andrea Atusi
This was during the recent devastating drought. More positive news out of Turkana County is the proposed wind power project, and a power line passing through Turkana, transmitting power from Ethiopian hydroelectric projects. Recently, a company by the name Centric Imaging Inc announced it had encountered oil seepages in a certain oil exploration block in Lake
Turkana area and that the company was going to do more detailed exploration work, leading eventually to drilling. Oil seepage has the simple definition of oil appearing on the ground surface, pushed to the ground probably by high pressure from beneath. In Ugandan Lake Albert area where oil production is currently being developed, seepages were reported many
years back, and this helped to delineate the starting locations for oil drilling. Oil seepages are a positive indication which greatly reduces uncertainties in oil exploration. Tullow has earned a reputation across Africa for being able to sniff out good prospects as has happened in Uganda, West Africa and elsewhere in the world. Tullow’s entry into Turkana County heightens
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Cover Story
hopes for oil finds for the county. It has been said by experts that evidence and experience so far point to Turkana and Keiyo areas in the Rift Valley as being oil prone zones, while gas prone areas are to the east of Isiolo, including the coastal blocks. It
is also understood that the same Turkana consortium is seeking oil exploration blocks on the Ethiopian side of Lake Turkana. Since the eighties many maps of Kenya show that the oil exploration in Turkana is most likely to touch that area
Oil seepages are a positive indication which greatly reduces uncertainties in oil exploration.
PLUMBUILD & ENGINEERING
We are
32 - Kenya Engineer & Builder
called Elemi Triangle. Maps in Southern Sudan show this “horn” as a part of Southern Sudan. The oil find in Tullow’s Ngamia 1 oil exploration site presents positive prospects for the country. From an altitude of 3,500m the oil rig looks like a toy town surrounded by shrubs with very little greenery. A recent visit to the oil rig area of Turkana were informed that “oil seeps like a sponge and not a well of water’ after they landed at the site and were not able to see drums full of oil all over the place. Using a graph, David, one of the Tullow engineers, explained to the journalists how the first 100m is drilled using 20-inch casings (pipes), after which a 13-inch casing is used at a depth of 712m. He explained that at about 1,515m, three products were present: Water, gas and oil. The drilling work is being undertaken by Weatherford International using rig 804 that was initially used in the Niger Delta before coming to Kenya. After Ngamia, the rig will move to Paipai 1 Marsabit where Tullow will be exploring more oil fields. The drilling itself is a team effort. Tullow management says it expects to reach their primary drilling of 2,700 metres in 35 days after which data analysis will be carried out to determine whether it will be viable for commercialization. Martin Mwaisakenyi, commissioner for petroleum
Kenya Engineer & Builder - 33
Special Report
energy at the Ministry of Energy, says it is still early to determine whether Ngamia 1 is viable for commercial production. “Now we are speculating, we cannot say for sure if the oil will be enough for production but this is the most promising well since we started oil exploration in 1960,� he said. The Ngamia well was initially drilled to a depth of 1,041 metres and movable oil with an API greater than 30 degrees was found. The American Petroleum Institute gravity is a measure of how heavy or light petroleum liquid is compared to water. If the API is greater than 10 degrees it is lighter and floats on water, if less than 10, it is heavier and sinks. The oil discovered in the area has similar properties to the light waxy crude discovered in Uganda. Forty wells have been sunk in Uganda to date and 1.1 billion barrels have been discovered. There are five stages in oil production and Ngamia well is at the second stage, called exploration. After exploration which entails detailed survey to identify a suitable project, it moves to appraisal stage. If a prospect is discovered, appraisal wells are used to check flow rate of the hydrocarbon (oil). This is the stage that Ngamia well is headed to. The third stage is the development stage where Tullow Oil will assess the commercial viability of the find which is followed by drilling of wells in preparation
of oil production. Uganda is at this stage. The final stage is the production by extracting and selling the oil. Tullow management says the project may take up to three years if oil
is found in the Ngamia well. The company has already started prospecting for oil at Block 10A (Paipai-1) in Marsabit. Other blocks are in Baringo, Turkana, Kisumu and Malindi.
Oil seepages has the simple definition of oil appearing on the ground surface, pushed to the ground probably by high pressure from beneath.
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