Kenya s Real Estate Market 2021 Projections - Reports
A block of apartments in Nairobi, Kenya.
File
The year 2021 is set to be a defining year for Kenya s real estate market following a disastrous 2020 occasioned by the Covid-19 pandemic and its negative effects on the sector.
As early as May 2020, the commercial property space in Kenya witnessed a 68% decline in office space absorption during the first quarter of the year.
The work-from-home directive employed to curb the spread of the virus has led experts to project a further decline in demand during the first quarter of 2021.
The government and health directives in place; social distancing directives, travel restrictions, curfews, and county lockdowns have all affected the different property sectors - retail, commercial, travel, hospitality, and leisure.
THE STANDARD
Members of the National Assembly yesterday voted for the reversal of Covid-19 tax reliefs in an attempt to fill empty government coffers.
But given the dire economic situation, it is not only the government that is desperate to recover from the havoc wrought onto an already strained economy when Covid-19 struck in March.
Business and households have been hit hard by the pandemic, dimming any hope for a meaningful revenue to be realised in the latest reversal.
The country is caught up in the grip of a health crisis with doctors, nurses and clinicians downing their tools over a myriad grievances, including the push for better pay and provision of personal protective equipment (PPE).
The Central Bank of Kenya (CBK) made the first move in March, effecting numerous steps to sustain liquidity in the economy at a time when measures to prevent the spread of the virus such as the cessation of movement brought economic activity to a near standstill.
For instance, the banking sector regulator asked mobile-money operators to waive fees on all transfers not exceeding Sh1000 in a boost to cashless transactions in Kenya.
The CBK would further extend transaction limits while freeing up the costs of transferring funds between banks and mobile wallets.
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Why traders see little merry this Christmas
Monday December 21 2020
By KEVIN ROTICH
However, clothes traders have been a depressed lot this festive season.
Customers are staying away from their stalls and instead of counting profits, traders are counting fast rising bills that may soon put them out of business.
Their woes have everything to do with reduced customers’ purchasing powers.
December is here with us. Traditionally, it marks the start of the festive season when families and friends spend thousands of shillings on Christmas and New-Year holidays merry-making.
This is usually characterised by up-country travels, feasts, as well as holidays and clothes purchases.
Debt relief welcome, but bigger problems loom
Monday December 21 2020
Kenya plans to defer $690 million (Sh75 billion) in debt repayments.
This comprises about 7 percent of total debt and is just under a quarter of Kenya’s foreign debt burden.
Whereas the move will offer relief from interest payments to international development partners, the bulk of Kenya’s foreign debt, around 63 percent, is owed to commercial lenders.
Of that amount, China is the single largest creditor with 28 percent of all foreign debt secured bilaterally, to finance the standard gauge railway (SGR) at rates slightly higher than commercial rates.
Kenya’s decision to seek debt relief under the G20 debt service suspension initiative (DSSI) is a welcome move, but a far cry from dealing with the debt crisis. Kenya plans to defer $690 million (Sh75 billion) in debt repayments. This comprises about 7 percent of total debt and is just under a quarter of Kenya’s foreign debt burden.