Shapoorji Pallonji Real Estate (SPRE) and Private Equity (PE) firm Actis are still waiting for the Nairobi County government to approve the two firms’ architectural plans for a Ksh. 6.5 billion middle income residential housing project set to be established at Garden City Mall on Thika Road.
Construction for the development dubbed, Mi Vida Homes, has been on hold nearly eight months after a Ksh.12 billion joint venture fund was established to drive the construction of the two firms’ planned residential housing establishment.
“The contractor is ready to move onto site where we planned to finish the first 208 units hosted on a 13 floor complex within 24 months,” said Mi Vida project chief executive Chris Coulson in a statement.
According to the Mi Vida project CEO, the delays have hindered the project’s opportunity to create employment opportunities for Kenyan youth.
The project would have employed over 1,000 skilled and unskilled workers with building material suppliers enjoying brisk business. The project would generate good business for transporters, revenue for government and also facilitate technology transfer from the visiting 150 year old SPRE team,” Mr. Coulson explained.
Despite having sold off 90 units of the project, Mr. Coulson was adamant that the delayed permit issuance could adversely affect their planned construction schedule as per agreed contract terms with the unit buyers.
Shapoorji Real Estate is not the only developer that has been affected by government and regulatory approval delays in the Kenyan market. Similar delays have affected the planned establishment of a Ksh. 5 billion 44 floor high-end residential development in Upperhill known as 88 Nairobi Condominium Apartments. The project by Czech-based Kenyan Jonathan Jackson was launched on February 7, 2019 but is still awaiting renewal of its two year permit from Nairobi county government.