Cytonn Real Estate, the development affiliate of Cytonn Investments, has released their topical titled Nairobi Metropolitan Area (NMA) Infrastructure Report 2023. The report highlights the state of infrastructure in the NMA, with a major focus on roads, water and sewer coverage, NMA infrastructural projects, the importance of infrastructure, as well as identifying the potential areas for Real Estate investment.
According to the report, the Nairobi Metropolitan Area (NMA) currently has a total of 1,131.6 Km ongoing construction and rehabilitation road projects valued at Kshs 86.3 bn, whereas 91.7 Km road projects worth Kshs 43.7 bn have been completed so far between January 2022 and November 2023. Below is a summary of the ongoing road network coverage in the Nairobi Metropolitan Area (NMA) and completed road network coverage in the NMA between 2022 and November 2023;
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(All Values in Kshs Bns Unless Stated otherwise) |
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|---|---|---|---|
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Cytonn Report: Summary of Nairobi Metropolitan Area Ongoing Road Projects |
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County |
Total Coverage (KM) |
Status |
Cost (Kshs) |
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Kajiado |
142.4 |
61.8% |
7.3 |
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Nairobi |
70.3 |
61.7% |
12.2 |
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Kiambu |
685.4 |
54.6% |
49.7 |
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Machakos |
233.5 |
53.4% |
17.1 |
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Total |
1,131.6 |
86.3 |
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Average |
57.9% |
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(All Values in Kshs Bns Unless Stated otherwise) |
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Cytonn Report: Roads Completed in Nairobi Metropolitan Area 2022-2023 |
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County |
Coverage (in Km) |
Cost (Kshs) |
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Kiambu |
17.0 |
2.2 |
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Nairobi |
74.7 |
41.5 |
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Total |
91.7 |
43.7 |
Source: KENHA, KURA, KeRRA
In terms of water coverage performance, the Water Services Regulatory Board (WASREB’s) Impact Issue Report No.14 highlights NMA’s average water coverage declined by 4.0% to 51.8% in 2021 from 55.8% in 2020 despite water connections increasing during the period under review. However, Sewer systems in the Nairobi Metropolitan Area recorded an average network coverage of 24.5% in 2021, a notable increase of 5.5% points from the 19.0% recorded in 2020, according to the Impact Report Issue No. 14 published by the Water Services Regulator Board (WASREB). The table below shows the water and sewer coverage of various counties within the NMA as at 2021;
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Nairobi Metropolitan Area Water and Sewer Coverage as at 2021 |
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|---|---|---|---|---|
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Water Coverage |
Sewer Coverage |
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County |
Water Coverage 2021 |
Water Coverage 2020 |
Sewer Coverage 2021 |
Sewer Coverage 2020 |
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Nairobi |
88.0% |
79.0% |
50.0% |
51.0% |
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Kiambu |
69.0% |
67.0% |
28.0% |
11.0% |
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Machakos |
28.0% |
46.0% |
15.0% |
14.0% |
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Kajiado |
22.0% |
31.0% |
5.0% |
0.0% |
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Average |
51.8% |
55.8% |
24.5% |
19.0% |
Source: Water Service Regulatory Board
To gauge Real Estate investment opportunities based on infrastructure, we looked at the key infrastructural sectors and ranked them in terms of performance and availability as follows;
The points are 1-4, with 4 awarded to the Best Performing Area Based on Infrastructure Availability
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Cytonn Report: County Ranking based on the State of Infrastructure Development 2022 - October 2023 |
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County |
Completed Roads |
Roads in Pipeline |
Water Connectivity |
Sewer Connectivity |
Average Points |
Rank |
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Nairobi |
4 |
1 |
4 |
4 |
3.3 |
1 |
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Kiambu |
3 |
4 |
3 |
3 |
3.3 |
1 |
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Machakos |
1 |
3 |
2 |
2 |
2.0 |
3 |
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Kajiado |
1 |
2 |
1 |
1 |
1.3 |
4 |
Source: Cytonn Research
Based on the above infrastructure services, Nairobi and Kiambu are the best Counties for Real Estate developments such as residential units, due to the presence of adequate completed road networks, and, adequate water and sewer connectivity. Some of the areas to invest in Nairobi County due to the presence adequate infrastructure include; Westlands, Gigiri, Ridgeways, Karen, Runda, Kilimani, Upperhill, Parklands, Upperhill, Spring Valley, Kileleshwa, Syokimau among many others. Some of the best areas to implement Real Estate investments in Kiambu county include; Thika, Kiambu town, Ruiru, and Juja among others. Kajiado ranks at the bottom of all four counties, due to absence of adequate infrastructural amenities such as sewered sanitation services, water connectivity and low volume of road networks.
Notes to the Editor:
Cytonn Investments is an independent investment management firm, with offices in Nairobi - Kenya and D.C. Metro - U.S. We are primarily focused on offering alternative investment solutions to individual high net-worth investors, global and institutional investors and Kenyans in the diaspora interested in the high-growth East-African region. We currently have over Kshs 82.0 billion of investments and projects under mandate, primarily in real estate.
Cytonn Real Estate is Cytonn’s development affiliate, which is focused on developing institutional grade real estate targeted at specific institutional, high net-worth and Diaspora investors. Collective, Cytonn Investments and Cytonn Real Estate manage over Kshs. 82 billion of real estate projects.
For more information, kindly contact:
Brian Ireri
Brand and Communications Coordinator
+254704597107
Cytonn Investments Management Plc, Cytonn Square, Kilimani, Argwings Kodhek Rd, Nairobi, Kenya, P.O. Box 20695 – 00200, Nairobi, Kenya. info@cytonn.com || investment@cytonn.com | +254 (0)20 3929 000
