Cultivating the Green Opportunity in Kenyan Real Estate

Kenya has the opportunity to set a benchmark for Africa in implementing cost-saving green technologies, as it pursues its development goals as a committed signatory of the International Climate Agreement (ICA).

As the 49th ICA signatory, Kenya has committed to reducing its greenhouse gas emissions by 30 percent by 2030, while achieving its housing, infrastructure, job and healthcare goals.

But while the public-sector will be the driver of sustainability policy and regulation, the built industry (real estate and infrastructure developers) will be the key to achieving the government’s ambitious goals, said the Kenya Green Building Council’s (KGBS) Madhur Ramrakha.

“In Kenya, green buildings can be constructed at the same or even lower cost as a conventional building as the materials used save energy by as much as 30 to 60 percent. Strathmore, for instance, was able to save 20 percent of its projected budget on its first green building structure – Strathmore Business School,” said John Kabuye, vice chairman Kenyan Green Building Society.

Quest works Consulting, an engineering, procurement, and construction firm focused on real estate and renewable energy projects indicated that the solar energy system adopted in the Strathmore Business School project they managed, is saving close to one million kilograms of carbon dioxide, and Sh60m in electricity.

According to a study titled Greening Buildings and Communities: Costs and Benefits, supported by renewable energy investor Good Energies, about 50 percent of all green buildings studied, reported a payback of five years or less just from energy and water savings. However, that figure jumped to 90 percent when health and productivity benefits were included.

As a key stakeholder at this year’s API Events’ East Africa Property Investment (EAPI) Summit on the 24th and 25th of April, the KGBS will be presenting this ‘green opportunity’ to investors, developers and the public sector.

With technology improvements driving down capital costs, and green initiatives now improving efficiency and operating costs – alongside a proliferation of green financing instruments, and the increased impact of climate change on Africa’s countries, there is now a real opportunity for this cost-saving momentum, said API’s managing director, Kfir Rusin.

In this, climate change is creating mounting pressure, as destructive weather patterns across Africa trigger consequences such as East Africa’s record drought and the real possibility of Cape Town becoming the first ever city to run out of the water.

This is seeing socially conscious customers beginning to demand principled green design in their homes and businesses, especially at the building sector which is estimated by the United Nations Environment Programme(UNEP) to contribute up to 30 percent of all greenhouse emissions.

In this, the affordable housing initiative by the Kenyan government is an opportunity to use environmentally sound principles and products to build better homes.

In East Africa, and Kenya in particular, ambitious warehousing projects, new retail centers and Kenya’s growing importance as a global trade hub are all driving green innovation to reduce costs that will be covered at this year’s EAPI Summit.