On 16th September 2019, The Architectural Association of Kenya and Kenya Property Developers Association jointly called for a press briefing to address challenges experienced by AAK Members in Submission of Building Permits & Development Application on the E-Permit Platforms (Kisumu, Nairobi, Mombasa & Kiambu)
AAK President, Arch. Mugure Njendu and Director, KPDA, Gikonyo Gitonga noted that :
The Building Industry is a key economic activity in Kenya, and a significant contributor to the Gross Domestic Product, providing direct and indirect employment to thousands of Kenyans. In past years, the construction sector has experienced a boom with local and international investors supporting the growth of the sector.
The construction e-permitting system was a solution developed jointly between the county government, the International Finance Corporation (IFC/World Bank Group) and the Architectural Association of Kenya, with the objective of enhancing efficiency and accountability in the processing of construction permits in the city. It has had a significant impact in the ease of doing business in the country. Since 2011, four counties have been able to automate the construction permitting procedures – Nairobi, Mombasa, Kisumu and Kiambu.
This system is a key factor considered by the World Bank Group in ranking economies on the Ease of Doing Business report. In determining the efficiency of a construction permitting system, the Group evaluates the number of procedures required to obtain a construction permit, the amount of time it takes to obtain a construction permit, the cost of the construction permits as well as the quality control measures that include project inspections.
Built Environment Professionals and Developers, have experienced numerous disruptions in the operations of these systems that impede the professional practice of our members and the business of developers and building contractors and more holistically, to all those who would typically be impacted by Building Industry works including financiers and the day to day labourers.
Nairobi leads in the contribution of Kenya’s GDP by contributing 21.7 % of our national GDP according to KNBS’ Gross County Product report 2019 with the Development approvals, being the second highest collector of revenue for the County. In the KPDA/NCCG report on building approvals for June 2019, revenue collection was noted for development approvals of Ksh. 53,857,328.00.
The E-permitting system in Nairobi county was down recently in July, August and September for over 45 days. And earlier in the year has experienced additional disruptions that hinder the ease of doing business.
The collective financial impact this will have in the public and private sector, cannot be overemphasized. Normalizing of operations of the system is to the joint advantage of the Building Industry and the County Government. It is worth noting that the county has experienced a decrease in revenue collection in the first half of the year, as compared to 2018 and it is imperative that the system is regularized to avoid further decline.
