The Kenyan construction industry can expect some relief from the global financial tension thanks to the Government’s massive infrastructure investment.

In his recent budget speech for the financial year 2009/2010, Finance Minister Uhuru Kenyatta gave infrastructure development projects a major boost after allocating some Sh140 billion for infrastructure spending.

By allocating more resources to infrastructure development, the government can easily maintain growth in the face of the economic slowdown.

Kenya, the largest economy in East Africa, is currently experiencing a record demand for property in its major towns.
As I mentioned here a while ago, the rising demand is as a result of affordable interest rates by mortgage providers and expectations of substantial economic growth in Kenya.
In a bid to keep up with the current housing demand, property developers are working overtime, with new development projects being launched at an unprecedented rate.
These new developments are not only expected to fetch high rental or sale income on completion but they …

I beg to disagree with recent media reports that the Kenyan property market is currently being controlled by Somali pirates and drug traffickers.

According to the reports, escalation of property prices Kenya is as a result of “dirty money” finding its way into the country especially from pirate activities in neighboring Somalia.

The report cites Eastleigh - an area potentially attractive to the Somalis - as one of the estates that can reveal some truth on the possibility of money-laundering.

Although I doubt the possibility of Kenya achieving a quarter of what has been envisioned in Vision 2030, I’m pleased that the blue print recognizes infrastructure development as a key driver to economic growth.

In deed I’m reminded of a popular saying that “where a road passes, development follows.” This statement, beyond all doubts, is valid.

The validity of the saying has been verified from the local level through the national level to the international level. Economic development is often delayed by poor infrastructure.