Building permits in Nairobi up two folds to Ksh.118 billion
The evaluation of Nairobi business permit has doubled to Ksh.118 billion since July 2021 as real estate developers and investors dashed to take advantage of the recovering economy
This development comes after the real estate sector experienced a reduction in earnings between capable buyers and renters with developers having trouble acquiring capital from lenders due to fear of repaying back the loans
“Consultants were also increasingly finding it difficult to obtain construction supplies and materials with another 31.3 percent of the respondents reporting that the period had also seen an escalation in the difficulty of obtaining development approvals,” said former Architectural Association of Kenya (AAK) President Mugunde Jendu.
Data from the National Construction Authority (NCA) compiled by AAK shows the application fees increased from Ksh.215.9 million between July and December in 2020, to Ksh.479.6 million in a similar period last year.
And on the back of increased business permit, Nairobi ranked toped in earnings at Ksh.479 million in permit fees, making it one of the fastest revenue streams in the country.