Category: A4architect

HOW TO EARN OVER KES 200,000 IN REAL ESTATE INCOME IN KENYA.

GOAL: TO EARN AT LEAST KES 200,000 PER MONTH IN REAL ESTATE INCOME

LAND: TO BE BOUGHT AROUND NAIROBI

OPTION 1.RENTAL FLATS.

To derive 200,000 in rental income monthly, this translates to 17 units assuming a rental income of KES 12,000 per month.

LAND
Areas such as Umoja, Ongata Rongai, Kitengela, Athi River, Kahawa Wendani, Zimmerman are best suited for this type of construction.
This is because these areas are cosmopolitan hence attracting a wider range of tenants from all over Kenya hence pushing the house rent/demand high.
This means that the house owner will enjoy close to 100% tenancy rate.

KITENGELA
http://nairobi.dealfish.co.ke/offer/kitengela-new-2-bedroomed-flats-1-bed-roomed-and-a-bed-sitter-IDGqi.html

UMOJA
http://property.nation.co.ke/listing/7320/Umoja_drvie_Inner_Core_Nairobi.html

ONGATA RONGAI
http://property.nation.co.ke/listing/2046/ONGATA_RONGAI._ONGATA_RONGAI_NAIROBI,_KENYA.html

KAHAWA WENDANI
http://nairobi.dealfish.co.ke/offer/apartment-to-let-in-kahawa-wendani-IDpNd.html

LAND COST

In these areas, land suitable for construction of flats costs an average of KES 1.5 to 2 million per 1/8th plot.
A 1/8th plot can hold a minimum of 4 units per floor for 5 levels, bringing the units to 20 in total.

ONGATA RONGAI
http://nairobi.dealfish.co.ke/offer/ongata-rongai-1-8-05-acre-plots-for-sale-from-165-million-for-an1-8th-IDUIP.html
http://wafaskenya.com/index.php?option=com_content&view=category&layout=blog&id=19&Itemid=26

KITENGELA
http://wazua.co.ke/forum.aspx?g=posts&t=13506
http://www.propertyunit.com/detail/1904/

UMOJA
http://nairobi.dealfish.co.ke/offer/3-prime-plots-at-nasra-gardens-estates-IDnmJ.html
http://www.mydeals.co.ke/house-3-0-0-0-61-kenya-property-for-sale-rent.html

KAHAWA WENDANI
http://nairobi.dealfish.co.ke/offer/kahawa-wendani-along-thika-superhighway-IDWpi.html
http://nairobi.dealfish.co.ke/offer/kahawa-wendani-1-4-acre-IDYrK.html
http://nairobi.dealfish.co.ke/offer/5min-walk-from-nakumat-express-kahawa-hot-land-IDCM0.html
http://www.wazua.co.ke/forum.aspx?g=posts&m=231317

CONSTRUCTION COSTS.
After land is purchased at a cost of KES 2,000,000 for 1/8th acres, construction then follows.
Construction of 17 units at an estimated cost of KES 25,000 per square meter will cost KES 25,500,000.
Add KES 2,000,000 for land to bring a total of KES 27,500,000.
To view other comparisons between bedsitter, one bed roomed units and low, middle or high cost finishes, click on the link below;
http://www.a4architect.com/2011/10/07/18th-land-development-for-one-bedroomed-and-bedsitter-flats-rental/

OPTION2. EARNINGS AS A DEVELOPER.

A 1/8th plot can be designed to deliver 2 bungalow units. Each bungalow unit will cost as below
http://www.a4architect.com/diamond-house-plan-cost/

Assuming only Phase 1[1 Bed roomed] of the Diamond House is constructed; this will cost KES 2.4m for 2 units on a 1/8th acre costing KES 1m in the above mentioned areas.
For individual residential units such as these, the land will be cheaper since it can be located a further distance away from the main road as opposed to land for flats which have to be close to the main road.

The total investment will be KES 1m plus KES 2.4m=KES3.4m.
This can be phase 1 of the investment which will then be followed by phase 2 and 3 to total KES 10.2m.

PROFIT FROM DEVELOPING THE DIAMOND HOUSE DESIGN.

The One bed roomed house can cost KES 2.5m in the market. This price range has virtually no competition hence the price will go higher till sufficient competition checks in.
Sale of phase 1 comprising of 2 units will give a profit of KES 5m –KES 3.4m =KES 1.6m. Total time taken for development is 3 months.
Therefore, the amount of money earned per month is KES 1.6m /3=KES 530,000 per month.
With an initial investment of KES 10.2m for phase 1,2 and 3, this amount can triple to KES 1.6m per month.
This profit is assured as long as there is demand for housing in Kenya.

CONCLUSION

There are many ways that developers can profit from construction apart from developing rental units which are costly to initially put up and have a long repayment period. Developers can now cash in on constructing houses for sale and make much more returns in a shorter time.

Higher profits come with higher risks and vice versa. After making the profits ads a developer, one can now develop lower risk rental units and enjoy rental income forever.

The time to make use of the current high demand for housing around Nairobi is now. Make use of the over 10 years of research put into the Diamond House design that reduces overall construction costs to enable you to generate good profit for yourself.

http://www.a4architect.com/diamond-house-plan-cost/

Architect Francis Gichuhi Kamau

info@a4architect.com

+254721410684

HOW TO EARN IN REAL ESTATE INCOME IN KENYA.

GOAL: TO EARN AT LEAST KES 200,000 PER MONTH IN REAL ESTATE INCOME

LAND: TO BE BOUGHT AROUND NAIROBI

OPTION 1.RENTAL FLATS.

To derive 200,000 in rental income monthly, this translates to 17 units assuming a rental income of KES 12,000 per month.

LAND
Areas such as Umoja, Ongata Rongai, Kitengela, Athi River, Kahawa Wendani, Zimmerman are best suited for this type of construction.
This is because these areas are cosmopolitan hence attracting a wider range of tenants from all over Kenya hence pushing the house rent/demand high.
This means that the house owner will enjoy close to 100% tenancy rate.

KITENGELA
http://nairobi.dealfish.co.ke/offer/kitengela-new-2-bedroomed-flats-1-bed-roomed-and-a-bed-sitter-IDGqi.html

UMOJA
http://property.nation.co.ke/listing/7320/Umoja_drvie_Inner_Core_Nairobi.html

ONGATA RONGAI
http://property.nation.co.ke/listing/2046/ONGATA_RONGAI._ONGATA_RONGAI_NAIROBI,_KENYA.html

KAHAWA WENDANI
http://nairobi.dealfish.co.ke/offer/apartment-to-let-in-kahawa-wendani-IDpNd.html

LAND COST

In these areas, land suitable for construction of flats costs an average of KES 1.5 to 2 million per 1/8th plot.
A 1/8th plot can hold a minimum of 4 units per floor for 5 levels, bringing the units to 20 in total.

ONGATA RONGAI
http://nairobi.dealfish.co.ke/offer/ongata-rongai-1-8-05-acre-plots-for-sale-from-165-million-for-an1-8th-IDUIP.html
http://wafaskenya.com/index.php?option=com_content&view=category&layout=blog&id=19&Itemid=26

KITENGELA
http://wazua.co.ke/forum.aspx?g=posts&t=13506
http://www.propertyunit.com/detail/1904/

UMOJA
http://nairobi.dealfish.co.ke/offer/3-prime-plots-at-nasra-gardens-estates-IDnmJ.html
http://www.mydeals.co.ke/house-3-0-0-0-61-kenya-property-for-sale-rent.html

KAHAWA WENDANI
http://nairobi.dealfish.co.ke/offer/kahawa-wendani-along-thika-superhighway-IDWpi.html
http://nairobi.dealfish.co.ke/offer/kahawa-wendani-1-4-acre-IDYrK.html
http://nairobi.dealfish.co.ke/offer/5min-walk-from-nakumat-express-kahawa-hot-land-IDCM0.html
http://www.wazua.co.ke/forum.aspx?g=posts&m=231317

CONSTRUCTION COSTS.
After land is purchased at a cost of KES 2,000,000 for 1/8th acres, construction then follows.
Construction of 17 units at an estimated cost of KES 25,000 per square meter will cost KES 25,500,000.
Add KES 2,000,000 for land to bring a total of KES 27,500,000.
To view other comparisons between bedsitter, one bed roomed units and low, middle or high cost finishes, click on the link below;
https://www.a4architect.com/2011/10/07/18th-land-development-for-one-bedroomed-and-bedsitter-flats-rental/

OPTION2. EARNINGS AS A DEVELOPER.

A 1/8th plot can be designed to deliver 2 bungalow units. Each bungalow unit will cost as below
https://www.a4architect.com/diamond-house-plan-cost/

Assuming only Phase 1[1 Bed roomed] of the Diamond House is constructed; this will cost KES 2.4m for 2 units on a 1/8th acre costing KES 1m in the above mentioned areas.
For individual residential units such as these, the land will be cheaper since it can be located a further distance away from the main road as opposed to land for flats which have to be close to the main road.

The total investment will be KES 1m plus KES 2.4m=KES3.4m.
This can be phase 1 of the investment which will then be followed by phase 2 and 3 to total KES 10.2m.

PROFIT FROM DEVELOPING THE DIAMOND HOUSE DESIGN.

The One bed roomed house can cost KES 2.5m in the market. This price range has virtually no competition hence the price will go higher till sufficient competition checks in.
Sale of phase 1 comprising of 2 units will give a profit of KES 5m –KES 3.4m =KES 1.6m. Total time taken for development is 3 months.
Therefore, the amount of money earned per month is KES 1.6m /3=KES 530,000 per month.
With an initial investment of KES 10.2m for phase 1,2 and 3, this amount can triple to KES 1.6m per month.
This profit is assured as long as there is demand for housing in Kenya.

CONCLUSION

There are many ways that developers can profit from construction apart from developing rental units which are costly to initially put up and have a long repayment period. Developers can now cash in on constructing houses for sale and make much more returns in a shorter time.

Higher profits come with higher risks and vice versa. After making the profits ads a developer, one can now develop lower risk rental units and enjoy rental income forever.

The time to make use of the current high demand for housing around Nairobi is now. Make use of the over 10 years of research put into the Diamond House design that reduces overall construction costs to enable you to generate good profit for yourself.

https://www.a4architect.com/diamond-house-plan-cost/

Architect Francis Gichuhi Kamau

info@a4architect.com

+254721410684

INTERLOCKING STABILIZED SOIL BLOCKS CONSTRUCTION COSTS SAVINGS IN KENYA.

Interlocking Stabilized soil blocks are walling blocks made from compressed soil. They are just as hard and as water-proof as stone. Stone is made when soil is compressed by forces of nature while the Interlocking Stabilized Soil blocks are made when the soil is artificially compressed.
Interlocking Stabilized soil blocks are artificially compressed using either a manual or diesel-operated pressing machine to a pressure of between 20 to 40 kg/cm2.

COMPRESSIVE STRENGTH.

Quarry stone has a compressive strength of between 2 to 5 N/mm2 depending on the type of stone which varies from region to region.
Interlocking Stabilized soil blocks have a compressive strength of 2.5N/mm2.
This shows that they compare well to quarry stone in terms of strength.
Reinforced concrete has a much higher compressive strength that exceeds 15 to 20N/mm2 depending on the mix ratio of cement; sand; ballast.

COST

STABILISED CEMENT BLOCK COST BREAKDOWN.

Assuming an average price of KES 750 for a 50kg bag of cement, and KES 350 to 400 for unskilled labour per day, the cost of producing 1 meter squared is as below:
http://www.a4architect.com/2011/10/12/a4architect-com-construction-material-price-index/

CEMENT-KES 7 per brick
LABOUR to manufacture brick-KES 4 per brick
LABOUR to make wall-assuming 1 fundi and 1 assistant at a total of KES 1,100 per day with a minimum of 500 bricks per day.-KES 0.4 per brick.
TOTAL=KES 11.4 per brick.

1 M2 of walling will have an average of 33 bricks.

The total amount for 1 m2 of Stabilized soil walling will be KES 378 per m2.
The above estimate assumes that the soil is freely available at the site.

If the soil is bought, the cost will vary as below:

Assuming soil is bought and transported to the site at a cost of KES 500 per ton, this translates to 225 bricks per ton costing KES 0.3 per brick.
There will be an additional cost of KES 0.3 X 33 bricks per m2=KES 10 per m2.
This will total KES 388 per m2.

FREE SOIL

In Nairobi and its environs, since there are large construction projects requiring deep foundation excavations, soil can be delivered to the site for free since the large building owners are required to dump the soil in far away located approved council dumping sites hence more convenient for them to deliver to a nearby site.

NO NEED FOR JOINING MORTAR AND PLASTER

Stabilized soil blocks eliminate the need for joining cement mortar in between the blocks. It also eliminates the need for plaster. It’s however recommended to paint is externally using water-proof varnish to make it more water –resistant.
Specific sections can be painted using contrasting colors to create creative interior wall patterns.

MASONRY STONE COST BREAKDOWN

Machine-cut stone delivered around Nairobi costs between KES 60 to KES 70 per block.
In 1 m2 of wall, there are 13 stones. This totals to KES 60 x 13=KES 780 per m2.
The stones require cement mortar for joining. Each m2 requires approximately 1m2 of cement mortar at a cost of KES 200 per m2.
This adds the amount to KES 980M2.

Masonry walling requires plaster on the interior surface and key finishing on the exterior surface. This costs a further KKES 200 per m2, adding the cost to KES 1,180 per m2.

After plastering, masonry walling will need paint since the dull grey color of cement cannot be left bare compared to the reddish stabilized soil block color.
Paint costs a further KES 200 per m2, totaling the amount of masonry walling to KES 1,380 per m2.

COMPARISON OF PRICES.

Masonry walling costs 256% more than Interlocking Stabilized soil block walling.

In an average bungalow, the total walling costs compared to the total cost of construction is 15% .

The 256% difference in walling between use of masonry stone versus use of interlocking stabilized soil block happens only in the 15% of the total construction cost hence not being strongly felt.

For example, in the www.a4architect.com Diamond House design, the phase 1 [49m2] costs KES 853,000 to construct using masonry stone.

If the masonry stone is replaced with interlocking stabilized soil block, this 49m2 house will cost KES 796,000, representing a savings of KES 57,000.

CONCLUSION.

To achieve maximum results in terms of cost savings in construction, a holistic approach whereby all elements of construction are taken into consideration, from foundation to walling, roofing, windows, finishes, external works.
This holistic approach to design has been researched and compiled as the www.a4architect.com Diamond House methodology.
http://www.a4architect.com/diamond-house-plan-cost/

Architect Francis Gichuhi Kamau
inof@a4architect.com
www.a4architect.com
+254721410684

COMPARISON BETWEEN CONSTRUCTING A MAISONETTE VERSUS A BUNGALOW.

Construction costs between maisonette types versus bungalow types of the same plinth area are more or less equal.

FOUNDATION.

Assuming the maisonette will have 50m2 of ground floor and 50m2 of first floor plinth area, there will be savings on the foundation costs since the maisonette will have a foundation that is half the size of the bungalow which will have all the 100m2 area on the ground floor.

Foundation costs between 10 to 20 % of the total cost of construction so if the foundation quantities are halved, then the cost of construction is also reduced.

ROOF.

The maisonette will also have half the roof quantities compared to a bungalow type which will have all the 100m2 plinth area to be roofed.
Roofing costs around 15% of the total cost of construction. If this quantity is halved, then the costs are reduced.

SUSPENDED SLAB ON FIRST FLOOR.

A bungalow type of house does not have an extra suspended reinforced concrete slab for the first floor level. This translates to a saving compared to a maisonette type that has the extra cost of the suspended slab.
For a 100m2 maisonette, the suspended slab will cost an average of an additional KES 100,000.

GROUND LEVEL LAND SAVED FOR FUTURE USAGE.

A maisonette will also save on the footprint ground level space in that the house owner can in future utilize the space for additional construction, agriculture or landscaping as opposed to a bungalow type.

AESTHETICS.

Aesthetically speaking, maisonettes due to their elevated shape look more imposing than their bungalow type counterparts.

SECURITY.

Maisonettes also offer a better psychological assurance of security since the bedrooms are located on the first floor level which is not easy for burglars to access as opposed to bungalow types.

CLASS.

In terms of class, maisonettes will appear more expensive and classy than the same sized bungalow, hence increasing the house owner’s social status among his /her peers.

LABOUR COST.

Due to the need for construction materials to be transported to the ground floor, there will be a slight increase in the cost of labour for maisonette types as opposed to bungalows.

LAND COST.

In areas where an eighth of land costs more than KES 1,000,000, this means the cost per m2 of land is above KES 2,000. The cost of constructing a suspended first floor slab is also a minimum of KES 2,000. Therefore, by building a suspended slab on the first floor, you will have added more surface area to your plot at an equal or lower cost than the cost of your land.

If the land cost is lower than KES 1,000,000 per an eighth, then this means that the cost of land is lower than the cost of the first floor slab so it would be more feasible to build a bungalow that eats up a larger ground floor footprint as opposed to a maisonette which the slab will cost more than the land cost.

CONCLUSION.

Therefore, the choice between a maisonette and a bungalow house type can be guided and advised by the above issues.

Architect Francis Gichuhi kamau
www.a4architect.com
info@a4architect.com
+254721410684

DIAMOND HOUSE AT KISERIAN

This Diamond House is located at Kiserian opposite Kiserian PCEA Church.

From DIAMOND HOUSE, KISERIAN

This is Phase 1 of the 3 –phased Diamond House.

The 1 bedroomed Phase 1 has been added an extra bedroom to achieve 2 bedrooms .

View the Google Map below

http://maps.google.commaps/ms?msid=205617053586273466800.0004aa0f457b0317571df&msa=0

[googlemaps http://maps.google.com/maps/ms?vpsrc=1&ctz=-180&ie=UTF8&msa=0&msid=205617053586273466800.0004aa0f457b0317571df&t=h&ll=-1.425908,36.680643&spn=0,0&output=embed&w=425&h=350]

The Kiserian Diamond House was designed by www.a4architect.com and constructed between May 2011 and July 2011.
The House finishes are being constructed in phases and each phase is dependent on the financial ability of the owner at the particular moment.

From DIAMOND HOUSE, KISERIAN

COSTS

As at October 21st 2011, the total costs spent are in the range of KES 850,000. This includes external fencing, external toilet , bathroom and water reticulation and KPLC electricity costs.
This also includes heavy gauge steel reinforcement on the windows for added security and heavy gauge steel doors. Also, the floor has been finished with high quality ceramic tiles and the floor to ceiling height slightly extended to give more interior space for comfort.

REMAINING WORKS.

External walling will be keyed to the house owner’s taste.
Once the external finishes are complete, the house will increase its aesthetic appearance further as shown in the Diamond House version 2.4 images below.

DIAMOND HOUSE VERSION 2.4

From DIAMOND HOUSE VERSION 2.4

Diamond House version 2.4 is the latest version designed in October 2011 and will be constructed in Ruiru, off Thika road at Murera farm area.

OBJECTIVE: HOUSING AT A COST OF LES THAN KES 1M IN KENYA.

The main objective of the Diamond House is to achieve housing costs of less than KES 1M .
The Kiserian Diamond House Phase 1 contains 2 separate bedrooms, living room, kitchen and bathroom.
All these spaces have been achieved at a cost of KES 850,000. Therefore, the objective of provision of housing at a cost lower than KES 1m has been achieved.

CUSTOMISATION OF THE DIAMOND HOUSE

The Kiserian Diamond House has been customized in the following areas:
Roof: the roof has been changed to hip style as per the owner’s taste.
Windows: the windows are reinforced with heavy gauge steel to improve the security situation .
Doors; the doors are made of heavy gauge steel so as to increase the security levels.
Floor finishes; the floors are finished with high quality ceramic tiles.
These alterations have slightly increased the overall cost of construction form the estimated KES 676,000 to KES 850,000.

CONCLUSION

Housing at a cost of less than KES 1M for a 2 bedroomed unit is an achievable dream in Kenya. This can be achieved as shown in the Kiserian Diamond House.
This is achieved through
1. Use of creative construction technology
2. Phased design: careful floor layout design that makes use of all the space without any wastage
3. Use of labour based procurement method.

Architect Francis Gichuhi Kamau
www.a4architect.com
+254721410684
/table

5LEVELS- 2 UNITS PER FLOOR
Cost Item	Kshs	%
Land	1,500,000.00	7.915567282
Preliminary	200,000.00	1.055408971
Construction	15,000,000.00	79.15567282
External Works	450,000.00	2.374670185
Contingency	300,000.00	1.583113456
Professional fees	1,200,000.00	6.332453826
Project Management fees	300,000.00	1.583113456
Financial Charges[16 % of construction cost]	0.00	0
Total	18,950,000.00	100
Financing Plan	Kshs	%
Developer[Land,,Professional & Project Management fees]	3,000,000.00	15.83113456
Debt Finance	15,950,000.00	84.16886544
Total	18,950,000.00	100
PROFESSIONAL FEES BREAKDOWN
ARCHITECTURAL-6% OF TOTAL COST
INCEPTION-0%	0%	0
OUTLINE PROPOSALS-1%	1%	150000
SCHEME DESIGN-1.5%	1%	150000
DETAILED DESIGN-2%	2%	300000
SUPERVISION-1.5%	1.50%	225000
		825,000.00
ALL CONSULTANTS-10% OF TOTAL COST
INCEPTION-0%	0%	0
OUTLINE PROPOSALS-1%	1%	150000
SCHEME DESIGN-3%	3%	450000
DETAILED DESIGN-3%	3%	450000
SUPERVISION-3%	3.00%	450000
		1,500,000.00
RETURN ON INVESTMENT[excluding cost of land]
RENT-KES 15,000 per month for 10 units	150000
Annual rent	1,800,000.00
Construction cost	15,950,000.00
Number of months to repay	106.3333333
Number of years to repay	8.861111111
REMARKS
With an annual rent increment of 10%, the building will ROI within less thn 8 years hence a viable investment.
With the same repayment period of 8 years for both Ground floor only construction and Ground floor + 4 levels,
and potential for building to attract constant regular tenancy, construction of the complete G+4 levels is also
a viable option.

 

DEVELOPMENT OF RENTAL UNITS ON A 60 X 40 FEET PLOT NEAR MAIN ROAD.
PLOT SIZE-APPROX. 40X60 FT.
GROUND FLOOR 2 UNITS
Cost Item	Kshs	%
Land	1,500,000.00	30.06012024
Preliminary	40,000.00	0.801603206
Construction	3,000,000.00	60.12024048
External Works	90,000.00	1.803607214
Contingency	60,000.00	1.20240481
Professional fees	240,000.00	4.809619238
Project Management fees	60,000.00	1.20240481
Financial Charges[16 % of construction cost]	0.00	0
Total	4,990,000.00	100
Financing Plan	Kshs	%
Developer[Land, Professional & Project Management fees]	1,800,000.00	36.07214429
Debt Finance	3,190,000.00	63.92785571
Total	4,990,000.00	100
PROFESSIONAL FEES BREAKDOWN
ARCHITECTURAL-6% OF TOTAL COST
INCEPTION-0%	0%	0
OUTLINE PROPOSALS-1%	1%	30000
SCHEME DESIGN-1.5%	1%	30000
DETAILED DESIGN-2%	2%	60000
SUPERVISION-1.5%	1.50%	45000
		165,000.00
ALL CONSULTANTS-10% OF TOTAL COST
INCEPTION-0%	0%	0
OUTLINE PROPOSALS-1%	1%	30000
SCHEME DESIGN-3%	3%	90000
DETAILED DESIGN-3%	3%	90000
SUPERVISION-3%	3.00%	90000
		300,000.00
RETURN ON INVESTMENT[excluding cost of land]
RENT-KES 15,000 per month for 2 units	30000
Annual rent	360,000.00
Construction cost	3,190,000.00
Number of months to repay	106.3333333
Number of years to repay	8.861111111
With an annual rent increment of 10%, the building will ROI within less than 8 years hence a viable investment.
5LEVELS- 2 UNITS PER FLOOR
Cost Item	Kshs	%
Land	1,500,000.00	7.915567282
Preliminary	200,000.00	1.055408971
Construction	15,000,000.00	79.15567282
External Works	450,000.00	2.374670185
Contingency	300,000.00	1.583113456
Professional fees	1,200,000.00	6.332453826
Project Management fees	300,000.00	1.583113456
Financial Charges[16 % of construction cost]	0.00	0
Total	18,950,000.00	100
Financing Plan	Kshs	%
Developer[Land, Professional & Project Management fees]	3,000,000.00	15.83113456
Debt Finance	15,950,000.00	84.16886544
Total	18,950,000.00	100
PROFESSIONAL FEES BREAKDOWN
ARCHITECTURAL-6% OF TOTAL COST
INCEPTION-0%	0%	0
OUTLINE PROPOSALS-1%	1%	150000
SCHEME DESIGN-1.5%	1%	150000
DETAILED DESIGN-2%	2%	300000
SUPERVISION-1.5%	1.50%	225000
		825,000.00
ALL CONSULTANTS-10% OF TOTAL COST
INCEPTION-0%	0%	0
OUTLINE PROPOSALS-1%	1%	150000
SCHEME DESIGN-3%	3%	450000
DETAILED DESIGN-3%	3%	450000
SUPERVISION-3%	3.00%	450000
		1,500,000.00
RETURN ON INVESTMENT[excluding cost of land]
RENT-KES 15,000 per month for 10 units	150000
Annual rent	1,800,000.00
Construction cost	15,950,000.00
Number of months to repay	106.3333333
Number of years to repay	8.861111111
REMARKS
With an annual rent increment of 10%, the building will ROI within less than 8 years hence a viable investment.
With the same repayment period of 8 years for both Ground floor only construction and Ground floor + 4 levels,
and potential for building to attract constant regular tenancy, construction of the complete G+4 levels is also
a viable option.

 

LAND OWNERSHIP IN RWANDA. COMPARISON TO KENYA

The Rwanda land ownership is regulated by the Organic Land Law of 2005.
There is no difference in the Law between Rwanda Nationals and Foreigners.
All land in Rwanda belongs to the State, the Districts and the Cities. These Public institutions then lease out the land to individuals or companies for a period of 99 years.

In Kenya, all land belongs to the State too. The Government allocates then leases the land to individuals or companies for a period of 99 years .
In Kenya, foreigners can only own 99 year freehold land.

OBTAINING LEASE TITLE IN RWANDA

The procedure is as follows:

An individual or Company duly registered in Rwanda visits District Office, and provides the below documents:

Proof of Identity[passport], Company Registration, Deed plan, Tax clearance certificate, sale/purchase agreement, previous title deed, property valuation report, marriage/celibacy certificate, land lease and transfer fees payment receipt.
This process costs approximately KES 14,000.
This procedure takes 7 to 19days from start to completion.

COMPARISON TO OBTAINING LEASE IN KENYA

In Rwanda, the population is small compared to Kenya. The Rwanda Civil service is effective and very reliable, maybe due to computerization, better salaries and less work load than the Kenyan counterparts.

In Kenya, the Ministry of Lands employees use manual methods, have more workload and lesser salaries resulting to inefficiencies.
This results to a higher cost of obtaining title and a longer time-a minimum of 30 days.

LAND DISTRIBUTION

In Kenya, only 20% of land is arable. 10% of the population owns most of the arable land.
In Rwanda, there are 390 people per Km2 of Land, thereby making it one of the mostly highly populated countries in the World.
In Rwanda, 24% of the population control 70% of the arable land.

FOREIGN OWNERSHIP OF LAND

With the promulgation of the new constitution in Kenya, foreigners are now allowed to own 99 year leasehold title land.
Land that was issued by the British Colonial Government in the early 1900s for a leasehold period of 999 years will also be affected.
This will now be reduced to 99 years.

In Kenya, the Land Control Board sets out the mechanisms to identify land ownership and advice/issue clearance on the same to be effected by the Registrar of Lands.
In Kenya, companies that have directors who are not Kenyan nationals are also not allowed to own freehold land.

Freehold land ownership is exclusively for Kenyan citizens.
After the promulgation of the new Kenya constitution in August 2010, all freehold land in Kenya owned by foreigners reverted to State ownership whereby the State can now lease the same the land to citizens and foreigners for a period of 99 years.

In Rwanda, there is no statute of law that discriminates against foreign ownership of land.

LAND LAWS

In Kenya, the Land Laws are very detailed and cover all areas of land ownership comprehensively.
In Rwanda, the Land Laws are not as detailed and very many sections are left out to a wide array of interpretation.

BUILDABLE AREA

In Kigali, only approximately 50% of land is buildable. The rest is made up of rivers, marshland and very steep slopes. Therefore, the Local Authority encourages developers to build high density developments several storeys high. This is effected using zoning controls whereby areas are zoned for high density high rise constructions.

In Kenya, the Local Authorities discourage developers form constructing high rise buildings. Approval for a high rise building in Nairobi and its environ is a tedious process, with the Local Authority trying all ways and methods to scale a developer’s building to a lower density.

This has resulted to situations whereby developers have been pushed to a corner to use all ways and methods possible to obtain high rise approvals. The land price in Nairobi is very high; therefore, for developers to make a return on their investments, they have to build high.

This has resulted to creating avenues for corruption whereby developers fins that if they bribe the local authorities, they will be allowed to construct more storeys higher and in return, make a profit.

In Rwanda, it’s the other way round. The Rwanda Government encourages high density high rise construction so as to make maximum use of the available land. This way, there are no situations necessary to encourage developers to offer bribes since they are encouraged to build more storeys hence higher profits.

Architect Francis Gichuhi Kamau
www.a4architect.com
+254721410684

DIAMOND HOUSE EXTENDABLE DESIGN	FLAT ROOF VERSION		SLOPED ROOF VERSION
	FLOOR AREA M2
PHASE 1 ONE BEDROOMED 45M2	45		45
https://picasaweb.google.com/100670517898592718535/DIAMONDHOUSEFLATROOF?authuser=0&feat=embedwebsite#
	ESTIMATED COST		ESTIMATED COST
LOW COST MATERIALS-45M2	900,000.00		1,125M
MIDDLE COST MATERIALS-45M2	1,35M		1,35M
HIGH COST MATERIALS-45M2	1,8M		1,8M
PHASE 2 TWO BEDROOMED 67M2	67		67
https://picasaweb.google.com/100670517898592718535/DIAMONDHOUSEFLATROOF?authuser=0&feat=embedwebsite#	ESTIMATED COST		ESTIMATED COST
LOW COST MATERIALS-67M2	1,34M		1,675M
MIDDLE COST MATERIALS-67M2	2,01M		2,01M
HIGH COST MATERIALS-67M2	2,68M		2,68M
PHASE 3 THREE BEDROOMED 92M2	92		92
https://picasaweb.google.com/100670517898592718535/DIAMONDHOUSEFLATROOF?authuser=0&feat=embedwebsite#	ESTIMATED COST		ESTIMATED COST
LOW COST MATERIALS-92M2	1,84M		2,3M
MIDDLE COST MATERIALS-92M2	2,76M		2,76M
HIGH COST MATERIALS-92M2	3,68M		3,68M
DIAMOND HOUSE RONGAI VERSION
DIAMOND HOUSE RONGAI TYPE THREE BEDROOMED 100M2
	ESTIMATED COST
https://picasaweb.google.com/100670517898592718535/RONGAITUALADIAMONDHOUSEVersion20#
LOW COST MATERIALS-100M2	2M
MIDDLE COST MATERIALS-100M2	3M
HIGH COST MATERIALS-100M2	4M

 

A4ARCHITECT.COM CONSTRUCTION MATERIAL PRICE INDEX SEPTEMBER 2011

	SEPTEMBER 2011 PRICES KES			% INCREASE
	KENYA PRICE  [Nairobi]	RWANDA PRICE[Kigali]	DIFFERENCE
LABOUR
Foreman	1100	1200	100	9.09091
Builder-Fundi	700	700	0	0
Builder’s Assistant-Mtu wa Mikono	350	350	0	0
Anti Termite 1 ltr [Mlolongo A&B Hardware]	2200
Polyethene roll. [Mlolongo A&B Hardware]	4500
Masonry stone-rough[Kasarani junction traders]	40
Masonry Stone-machine-cut[Kasarani junction traders]	60
Walling Brick per m2	1000	2000	1000	100
Walling cncrete block per m2	1300	3000	1700	130.769
Cement-50kg bag.	750	1500	750	100
SAND per tonne	1700	2300	600	35.2941
BALLAST per tonne	1500	2300	800	53.3333
Steel Reinforcement bars.
Y10	690
Y12	970	1000	30	3.09278
Y16	1750	2000	250	14.2857
ROOF
Timber 6×2 cypress [per LM]	240	145
Hardwood 250mm by 10mm per LM		1300	1300
Clay roof tile per m2[Ruliba Clays, Kigali]	500	900	400	80
Concrete Roof tile per m2[Mareba]	650
Iron sheet-Gauge 30 per m2[Kiserian Hardware shop next to KCB]	280
Gauge 32-per m2	250
Stone-coated steel roofing tiles	2100
WINDOWS
Alluminium window frame 1 m2[FITC Hardware, Baricho road]	5500
Steel casement window frame 1m2	5000
Louvre window system 2 LM[FITC Hardware, Baricho road]	900
GLASS per  1M2[Kikuyu Glass mart,Waithaka]
3mm clear	500
4mm clear	700
Obscure	700
DOORS
TnG batten door	1900
Flush Door	2600
MDF board	2750
PLUMBING[Kerai Hardware, Parklands]
STAINLESS STEEL – KITCHEN SINK
One drain/ one bowl	1700
Two drain/ one bowl	4700
SANITARY AND ACCESSORIES
Ceramic WC Pan + cistern + seat + flush pipe – India	7500
WC – Asian – & High Level PLASTIC cistern + flush pipe – India	3500
Shower Cocks – ½” concealed with shower pipe and 3″ rose – UK	6500
Push Taps – PILLER type – UK	2560
Wall Type Tap – UK	1200
ELECTRICAL[Kerai Hardware, Parklands]
FLUORESCENT	PRICE @ Kshs
POLAROID TUBES – GERMANY
2ft Tubes each	75
4ft Tubes each	85
ENERGY SAVINGS LAMPS	PRICE @ Kshs
POLAROID – GERMANY
ENERGY SAVING BULBS 2U E27 & B22 11W OR 14W	151
ENERGY SAVING BULBS 3U E27 & B22 11W OR 14W	170
ENERGY SAVING BULBS SPIRAL B22 11W OR 14W	218
ELECTRICAL ACCESSORIES	@Ksh
BLANK PLATE SINGLE (C&J)	46
BLANK PLATE TWIN (C&J)	59
PATRESS BOX SINGLE (C&J)	43
PATRESS BOX TWIN (C&J)	66
CEILING ROSE COMPLETE (BJ & TJ)	146
ANGLE BUTTEN HOLDER (BG & TJ)	72
STRIGHT BUTTON HOLDER (BG & TJ)	85
TOP PLUG 13AMPS (MK)	108
TOP PLUG 13AMPS NEON (BJ)	95
INSTANT SHOWER	1700
DING DONG BELL	550