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IntegratedDesignProjectInternationalReport–TechniConsultantsACriticalEvaluationoftheOpportunitytoDesignandConstructinNairobi,Kenya

ExecutiveSummaryAnopportunityforTechniConsultantstotenderforaprojectinNairobi,Kenya,hasarisen.Theprojectisofparticularinterest toTechniConsultants as it sharesmany similarities to theNeepsendRedevelopmentproject in Sheffield,England,recentlycompletedbythecompany.TechniConsultantsisaUKbasedconsultancyandhas,uptonow,onlyworkedwithintheUK.Thisreportdiscussesandcriticallyevaluatesthelikelyrisksandopportunitiesofthecompany,ifitweretocarryouttheproject.Considerationhasbeenmadeintotheeffectsofenvironmental,economic,political,cultural,socialandtechnicaldifferences,amongstotherfactors,betweentheUKandKenya.Byevaluatingtherisksand opportunities associated with these issues, along with specifying potential measures to mitigate identifiedproblems,thisreportaimstohelpthecompanyCEOandtenderingteamtomakeaninformedandobjectivedecisionwhethertotenderfortheproject.LocationandGeography Emphasisingandshowingconsiderationtotheenvironmentalimpactofanydevelopment,alongwithshowinghowthedevelopmentwouldintegratewithandcomplimenttheplannedandcurrentupgradestothetransportnetwork,islikelytogodownwellwiththeclientifitisdecidedtotenderfortheproject.Withwhatwouldbeconsideredapoortransportnetwork,comparedtothatoftheUK,logisticalplanningwouldhavetobeverymeticulousifconstructiondelaysaretobeavoided.Social,Cultural&EthicalNairobi, and Kenya in general, are inhabited by many different ethnic groups and tribes, whose cultures varysignificantly.Thereisatotalof68individuallanguagesspokeninKenya,however,SwahiliandEnglisharetheofficiallanguages.TechniConsultantswouldneedtobeculturallyagiletobeabletocarryoutasuccessfulprojectinKenya.CorruptionandcrimearerifeinNairobiandTechniwouldneedtotakemeasurestoensurethesafetyofstaffandsitematerialsonaprojectinKenya.Highunemploymentmeansthathiringoflabourerswouldnotbeanissue,however,askillsshortageisstilllikely.Highpovertyrates,watershortagesandpoorsanitationhaveledtohealthissuesinthecity.TheseissuesprovidetheopportunityforTechniConsultantstoimplementsolutions,suchasSuDSandrainwaterharvestingtohelpthecitymakeprogresstowardsamoresustainableandhealthyfuture.EnvironmentalThedifferencesinenvironmentinNairobiwillpresentdistinctchallengestothoselookingtodevelopinthearea.Manyof thesechallengescanbemetbysmallchanges indesignapproachcomparedtothatemployed intheUK,whileotherscanbeovercomebysmartsiteselectionforthedevelopment.Therearesomeproblems,however,thatpresentriskswhichcanonlybemitigatedforaconsiderableextraexpense.Thesearethefloodriskinthecityandthelow-levelseismicactivityinthearea.Theseproblemscanbeovercomeandshouldnotbeseenasareasonnottodevelophereintheirownright.However,itispossiblethattheextraassociatedcostscould,onbalance,makethisendeavourunprofitable. EconomicClimateKenya’seconomyhasbeengrowingquickly inrecentyearsandbytenderingforthisproject,TechniConsultants isfacedwiththeopportunityofgaininga foothold inthisgrowingeconomy,withmorepossibilitiesofdevelopmentprojectsinthefuture.TheGBP/KESexchangeratefluctuateshighlyandthiswillneedtobeaccountedforincostingestimatesforthetenderingprocess.PossibleremediestothiscouldbetoensurethatpaymentstoTechniConsultantsaremadebasedonafixedexchangeratebasis,agreedwithintheprojectcontracts.GeneralastutenesscanensurethatmaterialsandotherprojectcostsarepaidforattimeswhentheexchangeratefavoursTechniConsultants.Thesedetailswillhavetobeconsideredfurtherduringthetenderingprocessifitisdecidedtoproceedontothetenderingstage. Legalities The Kenyan legal system resembles the British legal system in many ways due to its colonial history. However,corruption in the country is rife and the law is not always upheld if bribery is involved. The process of obtainingplanningpermissionforconstructionisbothcheaperandquickerinKenya,howeverbuildingregulationispronetochanges and in comparison with the UK the health and safety section is almost non-existent. It would be theresponsibilityofTechniConsultantstoupholdtheUK/EuropeanstandardofhealthandsafetyifitweretotakeontheprojectinNairobi.Thiswouldalsobeanopportunityfortheprojecttostandasacasestudy,toshowthepeopleofKenyahowtoimplementhealthandsafetyeffectivelyonconstructionsites.

TechnicalExpertiseEducationoutcomesinKenyaaresignificantlylowerthanthoseintheUKandthiscouldmeanthattherewillbeaskillsshortageifTechniConsultantsistotakeontheprojectinKenyaandisseekingexpertisefromoutsidethecompany.TheEurocodesarenowbeingadoptedforuseinKenyaandthisisapositivethingforTechniConsultantsifitweretotakeontheproject,asthecompanyisusedtoworkingwithbothBritishStandardsandEurocodesfordesigning,andwouldthereforebeusingfamiliarcodesofaknownhighstandard.Ithas,however,beenfoundthatworkmanshipinNairobi,Kenya,isofaparticularlylowstandard,withmanybuildingfailuresbeingcausedovertheyearsasaresultofthis.Aboomintheconstructionindustryinrecentyearsdoessuggestthattheskillsofthelabourforcewillhaveincreasedinrecentyears,however,thestandardisgenerallyconsideredtobesignificantlylowerthanthatexpectedintheUK.TherisktoTechniConsultantsisthatevenifcodesarefollowedandtheprojectisdesignedtoahighstandard,thequalityoftheendproductwillmostlylieinthehandsofthosewhobuildit.Tomitigateanyriskofbadworkmanship,itwouldbeimperativethattheappropriatelegalcontractsanddocumentsarewritten,toensurethattheresponsibilityofthesub-contractorstoqualityisclearlydefinedandseparatetothatof Techni Consultants. Research suggests thatmaterial availabilitywill not be an issue, however,material qualitycontrolstandardsare likelytobesignificantly lowerthanthatoftheUK.Anumberofpotentialsub-contractors inKenyahavealreadybeenidentifiedforpotentialemploymentifTechnidecidestoundertaketheproject.ProjectImplicationsBuildinginNairobihasobviousprojectimplications,fromthedesignalterationstothemarketchallengesandcurrencyfluctuations.However,expandingTechni’sbusinessoverseas,toanemergingmarketbringswithitpotentialbenefits–botheconomicandphilanthropic.Bygettinginvolvedatagrassrootslevelinthedesignofanewmajordevelopment,TechnicouldstakeitsclaiminhavingapositiveimpactonNairobi’sfuture,aswellaseconomicallygainingfromthegrowingmarket.SuggestionCourseofActionFollowingtheextensiveresearchoutlinedinthisreport,expandingtobuildinNairobimaynotbethebestmoveforTechniatthispointintime.Ifthecompanywouldliketoexpandourworksscopetooverseas,itisprobablyawisermovetogetinvolvedincountrieswhicharebothclosertohomeandwhichhaveexistinginfrastructureresemblingourown–thiswouldallowustouseourexpertiseinamorefamiliarsetting.Countrieswithamorestableeconomicpatternandcurrencywouldalsoallowaconsistencyandmitigationofriskregardingprojectexpense.Politics and corruption inNairobi, and Kenya as awhole,make legitimate investment in projectswithout gettinginvolvedwithbriberyandbad-practice,insomeform,almostimpossible.AlsotobeconsideredisthesafetyrecordTechnihas–usingaNairobiancontractorwithmuchlessstringenthealthandsafetylawsmayreflectbadlyonthecompanyifanaccidentweretooccur.WereTechnitogoforwardwiththisinvestmentopportunity,therearecertainlygreatprofitstobemade,butatgreatrisk–thisissomethingwedonotthinkTechnicouldafford,bothfinanciallyandintermsofourcorporateimage.InNairobi,manyretaildevelopmentshavebeenconstructedinrecentyears,butsitemptyduetothesaturationofthemarket–Technirisksbeingpartofanunprofitableventureifweweretoinvestourtimeandmoney.

TableofContents

1. Foreword...........................................................................................................................................1

2. NairobiOverview..............................................................................................................................12.1. GlobalLocation.......................................................................................................................................12.2. CityLayout..............................................................................................................................................12.3. ChangingLandUsage...............................................................................................................................22.4. CurrentTransportNetwork.....................................................................................................................2

2.4.1. Rail............................................................................................................................................................22.4.2. Roads........................................................................................................................................................22.4.3. MatatusandBuses...................................................................................................................................3

2.5Conclusion....................................................................................................................................................3

3. Social,Cultural&EthicalConsiderations............................................................................................43.1. Population..............................................................................................................................................43.2. Language.................................................................................................................................................43.3. Kenya’sHistory.......................................................................................................................................4

3.3.1. Pre-Colonial..............................................................................................................................................43.3.2. ColonialHistory........................................................................................................................................53.3.3. RecentPoliticalHistory.............................................................................................................................5

3.4. KenyaToday............................................................................................................................................53.4.1. Politics......................................................................................................................................................53.4.2. Corruption................................................................................................................................................63.4.3. Crime........................................................................................................................................................63.4.4. Terrorism..................................................................................................................................................63.4.5. Unemployment.........................................................................................................................................73.4.6. Poverty.....................................................................................................................................................73.4.7. Health.......................................................................................................................................................7

3.5Conclusion....................................................................................................................................................7

4. EnvironmentalConsiderations...........................................................................................................74.1. Climate....................................................................................................................................................8

4.1.1. Temperature.............................................................................................................................................84.1.2. Precipitation.............................................................................................................................................94.1.3. Daylight...................................................................................................................................................114.1.4. Humidity.................................................................................................................................................124.1.5. Wind.......................................................................................................................................................124.1.6. Airquality...............................................................................................................................................13

4.2. GroundConditions.................................................................................................................................144.2.1. SoilProfile...............................................................................................................................................144.2.2. BedrockProfile.......................................................................................................................................154.2.3. Seismicity................................................................................................................................................154.3Conclusion........................................................................................................................................................15

5. CurrentEconomicClimate...............................................................................................................165.1. Kenya’sEconomy...................................................................................................................................165.2. Bankingsystem......................................................................................................................................185.3. Conclusion..............................................................................................................................................18

6. Legalities.........................................................................................................................................196.1. GeneralLaw...........................................................................................................................................196.2. ConstructionProcess..............................................................................................................................196.3. ConstructionRegulationsinKenya.........................................................................................................206.4. Conclusion..............................................................................................................................................20

7. TechnicalExpertise..........................................................................................................................217.1. Education...............................................................................................................................................217.2. DesignCodes..........................................................................................................................................217.3. CaseStudies...........................................................................................................................................22

7.3.1. ConstructionDisasters............................................................................................................................227.3.2. RecentBuildingCollapse........................................................................................................................22

7.4. ConstructionAchievementsandCurrentDevelopment..........................................................................237.4.1. Nairobi’sCurrentDevelopment.............................................................................................................237.4.2. GoodExample........................................................................................................................................23

7.5. Materials................................................................................................................................................247.6. ContaminationExpertise........................................................................................................................247.7. ProjectCost............................................................................................................................................257.8. PotentialSub-Contractors......................................................................................................................267.9. Conclusion..............................................................................................................................................26

8. Risk.................................................................................................................................................27

9. ProjectImplications.........................................................................................................................289.1. PotentialOpportunities..........................................................................................................................289.2. MarketChallenges..................................................................................................................................289.3. DifferencestoUKNeepsendDesign........................................................................................................289.4. HeadquartersAlterations.......................................................................................................................299.5. Conclusion..............................................................................................................................................29

10. Conclusion...................................................................................................................................30

11. ReportValidityandEvaluation.....................................................................................................30

12. Bibliography.................................................................................................................................31

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1. ForewordThisreportoutlinesandevaluatesthepossibilityofdesigningandconstructinganew, largescale,development inNairobi,Kenya-engagingwithboththeissuesandopportunitiesthatwouldarisethroughouttheproject.Thisallowsforan informedassessment tobemadeaboutwork inNairobi, anda conclusion tobedrawnonwhetherTechniConsultantsshouldproceedandtender for theproject.Theproject teamhasattemptedtocoverawiderangeofpotentialissuesandassessthedesignandprojectimplications.

2. NairobiOverview2.1. GlobalLocation

Kenya is located on the east coast of Africa, bordered bySudan,Ethiopia,Somalia,UgandaandTanzania.Tothewestis Lake Victoria (origins of the White Nile) and to thesoutheastistheIndianOcean.Nairobiisthecapitalcity,asindicatedinfigure1.NairobihasbeenthecapitalofKenyaforoveracenturyandisthe14thlargestcityinthewholeofAfrica.Itisarapidlydevelopingareaoftheworld,withthecityalreadyhousingover 100 international companies. (Wikipedia, 2016)Nairobiisfamedforbeingtheonlymajorcityintheworldinwhichthereisanationalgamereserve:NairobiNationalPark.

2.2. CityLayoutNairobi is a developingmetropolitan city, withinwhichsitsanationalpark.Nairobi’sslumsarethelargest intheworld, formedduetourbanisation,unemploymentandpoverty.Thegovernmenthassanctionedoff areas to separateAfricans,Asiansand Europeans. Transport links run through thecity, including rail and road. The majority ofdevelopment istowardsthecentreofNairobi,ascanbeseenon thecitymap, shownon figure2.

Figure1:GloballocationofNairobi

Figure2:Nairobi'slayout,Source:(Mapsofworld.com,2016)

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2.3. ChangingLandUsageTheurbangrowthinrecentyears,followingeconomicdevelopment,hasledtoamajorchangeinthelandusageinNairobi.Thishascausedconcernsover thedegradationof thecity’senvironmentand thepotential impact to theecologyofthesurroundingarea.Acrucialissueintermsofdegradingthenaturalenvironment,asfoundbyareportonthe‘dynamicsoflanduse/coverchangesanddegradationof Nairobi City, Kenya’, is the phenomenon of informalsettlements. (Mundia and Aniya, 2006). This refers to theoccurrenceofslums.“About60percentof...residentsliveinslums.”(Worldpolicy.org,2016)ForNairobi,theonlycityintheworldwhichalsoincorporatesanationalpark,thequalityofthelandandthedegradationofthenaturalenvironmenthasnotonlyecological impactsbutalsoacommercialimpact.Thelargeareaoflandwithnochanges, towards the south, is the national park - whichcorrelateswiththecitylayoutmapshowninfigure2.Withenvironmental concerns running high globally, itwould bethe moral duty of Techni Consultants to consider theenvironmental impact of any development, whether theKenyanclientsspecifythisornot.

2.4. CurrentTransportNetwork

2.4.1. Rail FortravellinglongdistancesinKenya,traintravelislimitedtoafewroutes,andthereisnoundergroundsysteminanyofthecities.YoucantravelbetweenNairobiandMombasabytrain,normallyonanovernighttriplasting14hours,ascomparedtotravellingbybusfor8hours.AnotherroutethatisusedfordailyovernighttrainsistheNairobi-Kisumuroute,withadditionalservicestoKampalainUganda,however,thisisavastlyunder-developedsystemandiscurrentlybeingupgraded.AnexampleofthecurrentupgradesistheNairobiCommuterRailServicedevelopment,aspartofthecity’smasterplan.“TheprojectaimstocarryoutamodernizationandexpansionofunderutilizedrailwaytransportinfrastructurefacilitieswithinNairobiinordertoattractpassengertrafficfromtheroadsthusreducecongestion;andcreateanefficientandaffordablemassrapidtransittransportsystemforthecity.Itwillintegraterailtransportwithothermodesoftransportroadandairtransport.”(Krc.co.ke,2016)Withthisdevelopmentalreadyunderway,anewtransporthubdesignedbyTechniConsultantscouldtieintothecity’smasterplan,whichifshownthroughtenderingcouldpotentiallygiveourcompanytheedge.

2.4.2. RoadsTravelling in a car around Nairobi can be achallengeforthosewhoarenotusedtodrivingonthe often crowded, sometimes rough, dusty oruntarmacked roads, as compared to the roadsfound in the U.K. This can potentially makepredicting time of arrival of goods to site verydifficult, which could have disastrousconsequences for an operation such as a largeconcrete pour, where a continuous supply ofconcrete is required. The roads are not welldrained/linked with the sewer system, oftenresulting in flooding during periods of heavyrainfall.Withthesethingsinmind,materialswillneedtobedeliveredearlyonsiteandstoredtoavoiddelays.Investment inroad infrastructure isongoingandthe potential development of the transport hub

Figure3:Landusagechange,Source:(MundiaandAniya,2006)

Figure4:ExistingNairobiroads

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couldbelinkedintothis.“In2012,withaloanfromtheWorldBank,theKenyaNationalHighwaysAuthority(KeNHA)pledgedtoincorporateBRTintoaprojecttoupgradeamajorroadfromJomoKenyattaInternationalAirport,pastthecitycentre,andnorthwards.”(InstituteforTransportationandDevelopmentPolicy,2016)TheopeningoftheThikaRoadHighwayhassignificantlyreducedaconsiderableamountoftrafficwithinthecity.

2.4.3. MatatusandBusesMatatus’areprivatelyownedminibuses,andarethecheapestandmostpopularmodeoftransportationinKenya.(Kendi,2016)Thisisthemodeoftransportthatlabourerswouldbelikelytousetocometosite.Parkingandpaymentforthisfacilityissomethingwhichwouldhavetobetakenintoaccount.Byprovidingtransport,theworkerswouldnothavetowalk,reducingtherequirementfortheworkers’tobelocaltothesiteorthecreationofnewillegalhousingnearthesite.Nairobihasaneffectivepublicbusservice,runbytheKenyaBusService(KBS),thatrunsduringthedayaroundthecities,suburbsandsurroundingareas.Therearealsoafewprivatelyownedbusesthatlabourerscoulduse,suchastheMetroShuttleandcityhopper,whichrunallthewaytoKarenatoneendandKenyattaairportontheother.Safetyisissuewithbusesastheserouteshaveveryhightrafficvolumes.2.5ConclusionEmphasisingandshowingconsiderationtotheenvironmentalimpactofanydevelopment,alongwithshowinghowthedevelopmentwouldintegratewith,andcompliment,theplannedandcurrentupgradestothetransportnetwork,islikelytogodownwellwiththeclient,ifitisdecidedtotenderfortheproject.Withwhatwouldbeconsideredapoor transport network, compared to that of the UK, logistical planning would have to be very meticulous ifconstructiondelaysaretobeavoided.

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3. Social,Cultural&EthicalConsiderations3.1. Population

Nairobi’spopulationismadeupofdistinctgroupsanditisimportanttounderstandtheirmakeupandmotivationswhendevelopingareas.Politics,conflict,corruptionandviolence,tothisday,isprimarilyfocussedontribalconflicts.Thepopulationisprimarilymadeof:

• BantuPeople-usuallyfarmersandincludesKikuyu,Kamba,Luhya,MeruMijikendaandtheKisii.

• NiloticPeople-usuallyherdsmenbutalsoknownaswarriorsandcattlerustlersandincludesLuo,Maasai,Samburu,TurkanaandKalenjin.

• CushiticPeople-notoriginallyfromKenya,usuallyareMuslimherdsmenfromEthiopiaorSomali.

• Arabs-camefromOmanandYemenandsituatedthemselvesatthecoastofMombasa.

• Indians - arrived in 1896, recruited by British India to build the Kenya-Uganda railway, afterwhichmany

Gujarat’scalledithome.Populationof52,782.

• Europeans-DescendantsoftheBritishcolonials.ThecurrentpopulationofNairobiis3.363million,with an equal distribution ofmales and females.With a birth rate of 650,000 a year and acorrespondingdeath rateof155,879,pairedwiththe urbanisation which plays such a key role inKenya’schangingpopulationdistribution,Nairobi’spopulation is growing rapidly. Source: UnitedNationsDepartmentofEconomicandsocialAffairsKenyanpoliticshavebeencharacterisedbyethnictensionsandrivalrybetweenthelargergroupsandtribes within the country, devolving into ethnicviolenceinthe2007–2008Kenyancrisis.Nairobiiswithin the regionmade up predominantly of theMaasai, however, they only make up 2% of thewholecountry’speople.

3.2. LanguageThereisatotalof68individuallanguagesspokeninKenya,however,SwahiliandEnglisharetheofficiallanguages.EmployingEnglishspeakinglabourerswouldworktoTechni’sadvantageofcourse,however,thecompanywouldneedbeawareofthevariousspokenlanguagesandplanaccordingly,ifitweretoconductasuccessfulprojectinKenya.

3.3. Kenya’sHistoryTounderstandthecultural‘mixing-pot’ofNairobi,andKenyaasawhole,itisimportanttolookintoandunderstandtheintricatehistoryofthecountry.ThevastnumberofsettlersthathavecometothecountryovertheyearsandthetimescaleofthisexplainwhyavarietyofculturesaredeeplyrootedineverydayKenyanlife.

3.3.1. Pre-ColonialBeforethecolonisationofAfrica,Kenyahasalongandinterestinghistory,withsettlerscomingfrommanydifferentgroups.Overthousandsofyears,differenttribesandpeoplesmovedtothecountry.ThefirstweretheCuchiticpeople,over4000yearsago.Inthe3rdcentury,theBantutribessettledalongthecoastsofKenya.Centurieslater,thefirst

Figure5:EthnicgroupsinKenya,Source:(Pinterest,2016)

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ArabianandPersian traderscame to the region.Someof theseArab traders stayed,bringing IslamtoKenya.Themajorityoftradeandprosperityatthistimewasalongthecoasts.The11thcenturysawtheNiloticpeoplesettlingintheriftvalley.Inthe16thcentury,thegroupsalongthecoastformedtheSwahiliculture.Religionatthistimewasseenasastatussymbol,however,manyconvertedtoavoidslavery.In1505thePortugueseinvaded,slaughteredandrobbedmostcitiesontheEastCoastofAfrica.ThenexttwocenturiesweremarkedbyfightsbetweentheArabsandthePortugueseforcontroloftheregion.

3.3.2. ColonialHistory19thCenturyEuropeancountries raced tooccupyandcontrol land inAfrica. InEastAfrica itwasmainlyGermanyandEnglandcompeting.Bythispoint,apoliticalpressurehadinfluencedBritaintotryandstoptheAfricanslavetrade.1885Europeannations starteddividingAfricabetween themselves, in 1920 theyKenyawasdeclaredprotectedby theBritishgovernment.1898TherailwayreachedhalfwaythroughKenya.ThecityofNairobiwasfoundedafewyearslater.1901The965kmrailwayfromMombasatoKisumuwascompleted.EuropeanandIndiansettlersarrivedingreatnumberstoEastAfrica.AsintheotherAfricancolonies,sometribesarefavouredbytheBritish.Thisgoessomewaytoexplainthefoundationforjealousy,hatredandethnicclasheswhichcontinuedforgenerationsandarestillevidenttothisday.

3.3.3. RecentPoliticalHistoryKenyagainedindependencein1963.JomoKenyatta,whowastheKAU(KenyaAfricanUnion)leader,afterservinga7-yearsentenceinjail,becamethePrimeministerofKenya.In1964JomoKenyattabecamepresident,astheKANU(KenyanAfricanNationalUnion),wastheonlypoliticalparty.UponJomoKenyatta'sdeath(1978)theneedforaleaderwasclear,andin1982DanielArapMoi,whowasthevicepresident,steppedupandtookthepresidencyandservedfor10years.DuringDanielArapMoi’sreignaspresidenthecreated,manipulatedandadvertisedtriballoyalties-thiswashiseffortatgainingcontrolofthepopulationandenpoweringcertaintribalgroups.Tribalismwasaneffectivewayofgainingandkeepingpower.In2002theNARCpartywontheelection,andMwaiKibakibecamepresidentafterwinningagainstJomoKenyatta'ssonUhuruKenyatta.TheNARCgovernmentdramaticallyinfluencedthenegativeeconomicgrowthexperiencedinKenyathroughoutthatperiod.ThisleadtothesplittingupofthepartyandtheformationoftheOrangeDemocraticmovementofKenya.The10thgeneralelectiontookplaceinDecember2007.Thecontestantsofthiselectionincludedtheopposition,OrangeDemocraticMovement(ODM),whosefatherwasthepoliticalleaderoftheLuo.HehadtastedafairshareofpoliticaldefeatbythekikuyuleaderJomoKenyattaandKibaki.TherewasadisputeastowhethertheelectionswereriggedsincetheelectionswerefollowedbytheunexpectedannouncementbytheElectoralCommissionofKenya(ECK)thatMwaiKibakiwaspresident.Thisleadintoanunprecedented7-weeklongoutbreakofviolenceinpartsofthecountry.Anestimated1500peoplewerekilledand600,000displaced,withalargeamountofpropertiesbeingdestroyed.

3.4. KenyaToday

3.4.1. PoliticsThelongpoliticalcrisisinKenyaislargelycausedbypeoplewhohaveabusedtheirpower,andbeenassociatedwithlargelevelsofcorruption.Alongsidethis,morethantwodecadesofconstitutionalreviewandpost-electionviolencehave been a result of historical domestic tensions and contestation between ethnic groups. Most governmentministers have pursued corrupt careers and this persists under President Kibaki. Hired thugs have now become,accordingtoAmnestyInternational,aprominentfeatureofthepoliticalsceneandthesourceofsomemurdersandassassinations.(CSIS,2011)

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3.4.2. CorruptionFromthepoliceforcetogovernmentofficials,thereisverylittlebusinesswhichgoesoninNairobiwithoutbriberyorcorruptionofsomekind.Althougheverycountryhasacertainlevelofcorruption,inKenyaitisamajorproblem.TheKenyan-Advisory claims that the average city-dwelling Kenyan has to pay asmany as 16 bribes amonth (Kenya-advisor.com,2016),whichcouldbeamajorproblemwhenworkingwithinthecityoveralongdurationproject,sincethelabourersmaybebribedintostealingmaterialsorpermingothernefarioussiteactivities.ForareputableUKbasedcompany,beinginvolvedinbriberywouldhavehugenegativeconsequencesforcorporateimage.Kenyaisratedasthe34thoutof180countriesintermsofcorruption,butinNairobi,beingthecapital,itisrife.

TribalismInKenya,unlikemanycountriesintheworld,corruptionisnotalwaysinfluencedbymoney.Tribalismisoftenakeyfactorinthemakingofcorruptdecisions,wheremembersofthesameclanortribeoftenhelpeachother,evenwhenit involves illegalactivity.Tribal influenceshavewanedovertheyears,butarestillstrongandissomethingTechniwouldneedtobeawareof,iftheprojectnKenyaistobetenderedfor.

SevereCorruptionwithinthepeoplerunningthecountry.JomoKenyattaThe first president, JomoKenyatta, took ownership of the fertile landwhichwas stolen from the Kalenjin by theEuropeans.Itwasnotreturnedtothemafterindependence-hebecamethelargestownerofprivatelandinKenya.DanielArapMoiCorruptionbecamewidespreadandhewasinvolvedinmanycases.TheGoldenbergScandalisthelargestcorruptionscandalinKenya,wherebyhesmuggledgoldoutofthecountryforhighergovernmentsubsidies.MwaiKibakiAlthoughpromisingtoendcorruption,hiscabinetspent$14million(USD)onMercedesCarsforthemselves,andwerefoundtobetakinglargeallowances,whichwasnotpartoftheofficialcompensations.

3.4.3. CrimeNairobihasearntitselfthenickname‘Nairobbery’withthelocals,duetothehighlevelsofcrimeinthecity.Inasurveyinwhichover10,000peoplewerequestioned,37%percenthadbeenmuggedwithinthelastyear,two-thirdsofthesemuggingswereviolentand40%ofthevictimswereleftinjured.Burglarystatisticsareevenmoreshocking,almostathirdofthesurveyedpopuloushadbeenburgledinthelastyear.Thisisnormallydonebygangsoftypicallyfiveormoreinnumbers,wieldinglocalaxe-likeweapons.Finally,car-jackinginthecitytendstobeextremelyviolent:two-thirdsresultedintheownerbeingtakenhostage,and10%ofthefemalevictimswereraped.(TheEconomist,2002)InKenya,typically,woodensupportsforslabsbeingcastareused.Thisisnotduetotheunavailabilityofmetalbutrather is because themetal supports would be stolen for scrap or use in other buildings, potentially leading tocatastrophicbuilding failure.TechniConsultantswillneedtoconsiderhigh levelsofsitesecurity if it isdecidedtotenderfortheproject.(Parks,2013)

3.4.4. TerrorismTerrorisminKenyaisathighlevelsdespitenotgettingthepublicityofothercountries,suchastheterroristattackinFrance in November, 2015. On 2nd April 2015, Garissa University College was attacked, resulting in 147 deaths(I.Bremmer,2015).Inaddition,KenyahasbeeninaconstantfightagainstAl-Shabaab,whichhasbeenthereasonforover600deathsinKenyasince2012.Al-Shabaabcaneasilyrecruityoungpeoplesincethesalaryfornewrecruitsisequalto$1,000,wheretheannualsalaryinKenyais$912(I.Bremmer,2015).Duetothisfact,aquarteroftheAl-Shabaab forces areKenyans.Moreover, since thepolice is corrupt,membersof theAl-Shabaab caneasilybypasssecurityforceswithbribery,whichmadeup50%ofthebribesin2014(I.Bremmer,2015).Duetothecorruptionofthepolice, thesecurity inKenya ispoorandcannotcopewith terrorismattacks.This lackof safetywouldneedtobeconsideredbyTechniConsultantsandtheuseofprivatesecuritymaybenecessary.Al-ShabaabhasclaimedresponsibilityfortheattackinGikombaMarket,Nairobi.InMay2015,tenpeoplelosttheirlivesbythetwinblasts(Roberts,2015).Sixmonthslater,Al-ShabaabattackedaminibustravellingfromManderatoNairobi, shootingandkilling28passengers (Roberts, 2015). Inaddition, inoneof theirmosthorrific attacks, four

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members of Al-Shabaab carrying weaponsmanaged to engage the police for four daysoutsidetheWestgatemall inNairobi.Attheendofthisevent67peopleweredead,includingmanychildren(Roberts,2015).In 1998, over than 200 people have died in thebombing of the U.S. Embassy in Nairobi (Azim,2016).

3.4.5. UnemploymentNairobi’s unemployment rate is high, at 18.5%(Knoema,2016)(validity-1999,issuewithageofdata)Thecity’sproblemwithunemploymentstemsfromKenya’slargescaleurbanisationand80%ofjoblessKenyansareagedbetween15and34years.“AsignificantnumberofKenya’spopulationiscomposedofyoungpeople,oftenthemostproductiveconstituentofaneconomy.However,facingwidespreadunemployment,manyjoblessandidleyoutharemigratingtourbanareastolookforelusivejobs...Nairobi,acentralpillartotheKenyaneconomycouldsoonbecomeoverwhelmedbyagrowingunemployedandunderemployedpopulation.”The largenumberofunemployedpeople inKenyawouldmeanthatatherewouldbenoshortageofpeopleforTechniConsultantstoemploytoworkontheconstructionsite,however,skillsshortagesmaybeanissue.(Worldpolicy.org,2016)

3.4.6. PovertyPairedwiththehighunemploymentrateisahighpovertyrate.22%ofNairobi’sinhabitantsareconsideredtobelivinginpoverty.(Knoema,2016)(validity-2006,issuewithageofdata)Nairobialsosuffersfromapoordistributionofitswealth,withtherich,oftencorrupt,classesinsocietylivinginavastlydifferentwaytothepoormillions.Thisleadstomistrustofthecountry’seliteandtensionwithinthecity.

3.4.7. HealthNairobi suffers frommajor issueswith health. Air pollution,water quality andwastemanagement are all issues,especiallywithintheslums.(Gulisetal.,2004)In200637.7%ofthepopulationhadfever/malaria(Knoema,2016)-adrasticallyhighnumbercomparedtowesternEurope.Only59%ofKenyanshaveaccesstosafewatersupplies,withabout32%withacceptablesanitation.Urbanareas,inparticular,aresufferingfromwatershortagesandsanitationissues.Lackofwater,propersanitationandpoorhygienearethecauseofthemajorityofillnessesandconditions.TheprevalenceoftheseissuespresentstheopportunityforTechniConsultants to implementsolutions,suchasSuDSandrainwaterharvestingtohelp thecitymakeprogresstowardsamoresustainableandhealthyfuture.3.5ConclusionNairobi, and Kenya in general, is inhabited by many different ethnic groups and tribes, whose cultures varysignificantly.Thereisatotalof68individuallanguagesspokeninKenya,however,SwahiliandEnglisharetheofficiallanguages.TechniConsultantswouldneedtobeculturallyagiletobeabletocarryoutasuccessfulprojectinKenya.CorruptionandcrimearerifeinNairobiandTechniwouldneedtotakemeasurestoensurethesafetyofstaffandsitematerialsonaprojectinKenya.Highunemploymentmeansthathiringoflabourerswouldnotbeanissue,however,askillsshortageisstilllikely.Highpovertyrates,watershortagesandpoorsanitationhaveledtohealthissuesinthecity.TheseissuesprovidetheopportunityforTechniConsultantstoimplementsolutions,suchasSuDSandrainwaterharvestingtohelpthecitymakeprogresstowardsamoresustainableandhealthyfuture.

4. EnvironmentalConsiderations

OneofthemaindifferencesincarryingoutadevelopmentinNairobi,asopposedtoSheffield,istheeffectswhichthenaturalenvironmentwillhave.ThefollowingsectionsoutlinesomeofthesedifferencesandhowtheymayinfluencethefinaldecisiononwhethertodobusinessinNairobi.Recommendationsforwhattowatchoutforwhendesigningandchoosingthelocationofthenewdevelopment,shoulditgoahead,arealsoprovidedinthefollowingsections.

Figure6:U.S.EmbassybombinginNairobi

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4.1. Climate

BeinglocatedattheequatorandonthelargelandmassthatisthecontinentofAfrica,theaverageclimateandtheclimaticpatternsthroughouttheyearinNairobidiffergreatlytothoseexperiencedinSheffield,intheUK.

4.1.1. Temperature

BecauseNairobiissoclosetotheequator,theaveragemonthlytemperaturedoesn’tfluctuatemuchthroughouttheyearcomparedtointheUK.Theseasonalcycleistwiceasfrequentastheequatorgetsclosesttothesuntwiceayear;onceinBritishspringandonceinBritishAutumn.TheoverallaveragetemperatureismuchhotterthroughouttheyearinNairobi,andthereforetemperatureregulationwithinthebuildingscanbeabigproblem.Fromadesignperspective,thefollowingthingsshouldbetakenintoaccount,consideringthetemperaturedifferencesinNairobi:

ImplicationsThedifferenttemperatureinNairobi

• Attheheightofthehottestseasons,airconditioningsystemsintheleisurecomplexandHQwillconsumealot of power, thus increasing the operational energy of the structures considerably. It would be worthconsideringchangingthestructuresofthesebuildingstoareinforcedconcretedesignandleavingareasoftheconcreteexposedontheinterior,inordertoincreasethethermalmassofthestructure,tohelpregulatetheinteriortemperatures.

• Whereconcreteisusedonsite,thewarmertemperaturesshouldbetakenintoaccountwhenconsideringhowitshallbekeptworkablethroughouttheconstructionprocess.Solutionscouldincludetheadditionofretardingadmixturesor slowercuringcement replacingmaterials toextend the timewindow inwhich theconcreteremainsfluidenoughtobepoured.

Figure8:AverageannualtemperaturesinNairobi Figure7:AverageannualtemperaturesinSheffield

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4.1.2. PrecipitationThesequencingofNairobi’srainfallpatternsissimilartothatofitstemperaturefluctuationsthroughouttheyear,inthattherearetwowetseasonsperyear,sixmonthsapart.Theseoccurjustastheaveragedailytemperaturebeginstocoolfromitsseasonalpeaks.Whilethemonthlylevelofprecipitationremainsreasonablyconstantbetween50and60mmintheUK,inNairobiitswingstomuchmoreextremevaluesof150mminthewetseasonandlessthan20mminthedryseason.Drainageforthe sitewouldneed tobe able to copewith these considerablyhigh rainfall events. The implementationof SuDSsystems would be more sustainablethan the use of the of a purelytraditional ‘hard engineering’ solutionand may also provide TechniConsultants with an edge during thetendering process if this were to beshown.MuchofNairobiwasbuiltinarelativelyhaphazard fashion, without muchconsideration for the drainageimplications of the construction,especially in theslumareas.This leadstothecity,andareasonthefloodplaindownstream of it, being morevulnerabletofloodingthantheywouldotherwisebe.

Figure9:AverageannualrainfallinNairobi

Figure10:AveragerainfallinSheffield

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ElNiñoEl Niño, “the Christ-child” or “the boy-child” whentranslatedfromSpanish,isaphenomenonthatoccursintheequatorialeasternPacificOceanregionduringthelastthreemonthsoftheyear.DuringtheElNiñoperiods, extreme weather conditions occur such asfloods,changinghotandcoldweather,droughtsandcyclones. For many Kenyans, the worst El Niñoincident occurred in 1997-1998 which includedextremelyheavyrainfalls.Theresultsweredisastrousashouseswhere flooded, carswere ruinedand tenpeople lost their lives. In a recent event in March2016,adroughtwasworsenedbyElNiño,leadingtoinsecurityabouttheavailabilityoffoodinKenya.

SnowDuetothemildweatherthroughouttheyear, there isnosnowfall inNairobi. InSheffield,asseenfromthegraphbelow, even though there are some snowfall events, no extreme event occurs. Hence, snow is unlikely to causeconstructionissuesinSheffieldandwillcertainlynotbeaproblemNairobi.

Figure11:ElNinoimpacts

Figure12:AverageannualsnowdaysinSheffield

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ImplicationsFromadesignperspective,thefollowingthingsshouldbetakenintoaccount:

• Thedesignofthesite’sdrainagesystemwillbemuchmoreonerousthanthatinNeepsend,aspeakflowwillbemuchhigherforthesamegroundareaduringtherainyseasons.

• Itwouldbepreferabletouselandontheupstreamsideofthecity,sothatoursitewouldbelesssubjectedtotheextrafloodriskcausedbypoordrainagemanagementinotherareasofthecity.

• Floodingisaseriousriskfactorwhenchoosingwhetherornottodevelopinthiscity.• Usingarainfallcapturesysteminthewetseasonstoprovidewaterfortoiletsetc.couldbeausefulwayto

reducethepressureexertedontheNairobiwatersupplybythisdevelopment.Itwouldhavetheaddedbenefitofslightlyreducingsiterunoffinlargerainfallevents.

• DuetothelackofsnowinNairobi,designliveloadswillbemuchsmalleronroofsthanintheUK,meaningthatslendererstructuralelementscanbeused.Thiswillhavethemostnoticeableeffectonstructureswhosesolepurposeistocarryaroofliketransporttermini,forexample.

4.1.3. DaylightComparingthesunlighthoursforaperiodofsixmonths forNairobiandSheffield,wecansee thatNairobihasapproximately12hoursofsunlightthroughouttheyear.Ontheotherhand,duringsummerinSheffield,thedaylighthours reach 16 hours per day, while only 8hours of sunlight is available per day duringwinter.

An advantageof the consistent sunlight levels inNairobi is that the use of solar panels would bemuchmorecostefficientthanintheUK,frombothamonetaryandenvironmentalpointofview.Thisis because the energy output per panel ismuchlarger.Anotherthingtoconsideristhatthesunshinesfromthenorthduringthesummermonths,thesouthduringthewintermonthsandoverheadduringspringandautumn.Theimplicationsofthiswillneedtobeconsideredforthedesignandpositioningofwindowsonthedevelopment.

Implications

Thefollowingthingsshouldbemodifiedinthedesignapproachtoaccountforthesedifferencesinthedaylight.

• Makingeffectiveuseofsolarpanelsinthedesignshouldbeatoppriorityinthedesign,asthiswillbeacost-efficientwaytopowerthedevelopment.

• Carefuluseofwindows is required tominimise solar gainall year round. Theuseof roof lights shouldbedisregardedentirely.

Figure13:DaylighthoursinNairobi

Figure14:DaylighthoursinSheffield

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4.1.4. HumidityHumiditylevelsarehighinNairobithroughouttheyearwiththemaximumoccurringinMay,atapproximately70%.Lookingatthegraphbelow,Februaryhas60%humiditywhichistheminimumofthewholeyear,whichisstillhighwhencomparedtothemaximumhumidityexperiencedintheUK.Suchhighhumiditylevelscancauseareasofpersistentcondensationtoappearincoolerareasofthebuilding,whichcan cause problems such asmould andmildew if air isn’t circulated around the building properly. It is thereforeimperativethataneffectiveaircirculationsystemisemployedtopreventthisproblem.Apassivesystemispreferableinordertoreducetheenergyrequiredtorunthedevelopment.

4.1.5. WindInthefirstthreeandlasttwomonthsoftheyearinNairobi,theaveragewindspeedsare5m/s,whichareclassifiedas‘gentlebreeze’(WindFinder,2016).Duringtherestoftheyear,thewindspeedsare3m/sorlower,henceclassifiedas‘lightbreeze’(WindFinder,2016).TheaverageexpectedwindspeedsinSheffieldareapproximatelythesameasinNairobi,however,inSheffieldthereisahigherprobabilityofstronggusts.ThissuggeststhatwindloadingusedinthedesignofstructureswillbelowerinNairobithaninSheffield.

Figure15:RelativeannualhumidityinNairobi(WorldWeather&ClimateInformation,2015)

Figure16:AverageannualwindspeedsinNairobi

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LookingatthewinddirectioninNairobifortheperiodofJanuary2000toDecember2015,itisobservedthat34%onthewind isoriented in theNorth-Eastdirection.Agreatpercentage isalsopresent fromtheEast,whilst the leastpercentageisoccupiedbytheWestandNorth-Westdirection.

4.1.6. AirqualityThereareextremelyhigh levelsof air pollutionpresent inNairobi. TheUnitedNationsEnvironmentProgramme’s(UNEP)chiefscientistJacquelineMcGladehasstatedthatharmfulgasesarepresentintheatmosphere,whichcanleadto respiratory diseases or even death (Kilonzo, 2015). This ismostly due to incomplete combustion of fuel in carengines. This air pollutionmay pose a health and safety risk toworkers on-site aswell and the end users of thedevelopmentandshouldbeconsideredinthehealthandsafetyanalysisoftheproject.

Figure18:WinddirectionsforNairobi

Figure17:AverageannualwindspeedinSheffield

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4.2. GroundConditionsBeinginanareaoftheworldwithacompletelydifferentgeologicalpasttothatoftheUK,Nairobi’stypicalgroundprofile is significantly different to that found in Neepsend. The differences can offer both advantages anddisadvantagesinthedesignofanewdevelopment.(Earthwise.bgs.ac.uk,2016)

4.2.1. SoilProfileThe soil at the site in Neepsend is formed of alluvial deposits ormadegroundacrossmostofthesite.Thisisloamyclayeysoilwhich,duetotheproximityoftheriver,hasagroundwaterlevelquiteclosetothesurfacethroughouttheyear.(Landis.org.uk,2016)Thissoilisquiteweak,andsoprecludestheuseofshallowfoundationsforanythingbutthemostlightlyloadedstructures.Three classifications of soil aremost prevalent in the area surroundingNairobi, according to the British Geological Survey, which are vertisol,nitisolandferralsol.Alloftheseareclayeysoils,withnitisolandferralsolbehavinglikemostclays(EncyclopediaBritannica,2016)(Fao.org,2016).However,vertisolhasaveryhighexpansiveclaycontent,meaningthatitis very unstable throughout the year due to seasonal variations in itsmoisturecontent.Duringthedryseasonsitcontractsandlargecracksopenonthesurfaceandduringwetseasonsthe itexpands.Becauseof theseproperties, any foundations built on this soil type are likely to feel theeffects of heave and settlement throughout their lifespan.(Web.archive.org,2016)Inconclusion,thesoilfoundinNairobiwillnotbehavedissimilarlytothatinNeepsend,unlessvertisolisfoundonsite.Inthiscase,greatcaremustbetakenduringfoundationdesign.

Figure19:BlackcarbonmeasurementsinNairobi,Source:(Göteborgsuniversitet,2016)

Figure20:SoilprofileinKenya

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4.2.2. BedrockProfileWhilst the bedrock under Neepsend is mostlysedimentary, under Nairobi it is partly sedimentary,partly igneous volcanic rock created in the relativelyrecentvolcanicactivityintheregion.Ifasiteunderlainbyigneousrockcouldbefound,thiscouldgreatlyimprovetheendbearingresistanceofanypiles installed for thefoundations,as igneousrock isgenerallymuchstrongerthansedimentary.

4.2.3. SeismicityDuetoNairobi’sproximitytotheEastAfricanRift,thereisasmallchanceofdangerousseismicactivityinthearea.However,therisksarenotashighasitisinareaswithintheriftitself.(Rao,2016)Havingtodesignthestructuresto resist earthquakesmayadda sizeable costonto theproject compared to designing structures for theseismicallystablesiteofNeepsend.Amajorearthquakewouldbemostproblematicduringconstruction,not just forthedamagethat itmaycauseonsitebutalsoforthedamageitwillcausefortherestofthecountry.Thiscould,inextremecircumstances,leadtofinancialproblems suchas thedevelopment’s investorsgoing bankrupt due to their other investments beingdestroyed, or logistical problems such as difficulties in transporting construction materials due to damagedinfrastructure.However,astheriskofsuchacatastrophicearthquakeisquitelowinthisarea,itisfeltthatthisisanacceptablerisktobetakenonbyTechniconsultants.

4.3ConclusionThedifferencesinenvironmentinNairobiwillpresentdistinctchallengestothoselookingtodevelopinthearea.Manyofthesechallengescanbemetbysmallchanges in design approach compared to thatemployedintheUK,whileotherscanbeovercomebysmart site selection for thedevelopment. Therearesomeproblems,however,whichpresentriskswhichcanonlybemitigatedatconsiderableexpense.Thesearethefloodriskinthecityandthelow-levelseismicactivityinthearea.Theseproblemscanbeovercomeandshouldnotbeseen as a reason not to develop here in their ownright.However,itispossiblethattheextraassociatedcostscould,onbalance,makethisendeavourunprofitable.

Figure21:BedrockprofileinKenya

Figure22:EarthquakeintensitiesinKenya

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5. CurrentEconomicClimate5.1. Kenya’sEconomy

KenyaisconsideredtobethelargestandmostdynamiceconomyinEastAfrica,withNairobibeingthebusiestbusinesshubofthecountry.NairobiisakeydriverinKenya’srecenteconomicgrowth,takingtheeconomyaway fromonebasedheavily on agriculture. “As thelargest and most dynamic economy in East Africa,Kenya is the growth engine of the region. In turn,Nairobi is Kenya’s busiest business hub.”(Internations.org,2016)However,thedynamicnatureofKenya’seconomyanddependencies on external (international) influences,mayhaverepercussionsinthesubmissionofatenderforlongtermworkprojects.ThegraphontherighthandsideshowstherelationshipbetweentheGreatBritishPound(GBP)andtheKenyanShilling(KES).Thisofcourseisaffectedbythestrengthof both currencies and, as such, cannot be purelyattributedtoKenya’ssituation.(Xe.com,2016)However,thefluctuationsinthevalueoftheKenyanShillingmayhavebudgetingimplicationsoverafive-yearproject,asprojectedatNeepsend,ifthecostisquotedinthelocalcurrencyatthestartoftheprojecttheallocatedfundsmaynotcoverthecoststowardstheendoftheprojectiftheexchangeratechanges.Thiswouldhavetobebuiltintothecostprofile.Intermsofimplicationstotheengineeringworks,aconstrainedbudgetmayforceefficiencytobebuiltintothedesign.Kenya’s gross domesticproduct has beenincreasing in recentyears at a consistentlyhigh rate, as can beseen in the figure. Theannual growth rate,although fluctuating, ismuch higher than theUK’s.ThisislargelyduetothefactthatKenyaisstill a developingcountry where highgrowth is easier toproduce.(Tradingeconomics.com,2016)

Figure23:GBPandKESexchangerate

Figure24:Kenya'sGDP

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Kenya’sannualgrowthrate,thoughfluctuatingovertime,isgenerallymuchhigherthantheUK’s.“ThepeopleworkinginNairobigeneratedalargepartofthisimpressiveoutput.Unfortunately,Kenyaisfacingseveralchallengeswhichcouldimpedeitseconomicgrowth.”(Tradingeconomics.com,2016)

AlthoughKenyahasagrowingeconomy,thereareriskstoitscontinued,sustainablegrowth.“OverrelianceonexportsleavesKenyavulnerabletocrisesafflictingitstradingpartners–theEurozoneisoneexample.AhighinflationrateinKenyahas ledtorisingfoodprices,thoughitseemstohavestabilizedfornow,at justunder6%.(Internations.org,2016)

Figure25:Kenya'sGDPannualgrowthrate,Source:(Tradingeconomics.com,2016)

Figure26:UK'sGDPgrowthrate

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5.2. BankingsystemThe banking systemwas able to spring back, after stabilizing a successful reopening of the Chase Bank Ltd,withendorsementofthecentralbankofKenya(CBK).TheKenyanDepositInsuranceCorporation(KDIC)hascometoanagreementwithChaseBankLtdtobecomethemajoritystakeholderofthebankinthenextfewdays.OnApril1st,2016ImperialBankwentunderreceivership.TheMonetaryPolicyCommittee(MPC)heldameetingonMay23,2016,toreviewrecenteconomicdevelopments,andtheoutlookforthedomesticandglobaleconomies.TheCommitteenotedthefollowingdevelopments:

• OverallInflationfellby5.3%onthemonthtomonthbases.

• Theforeignmarketisstabledueto:o Deficitinoilimportso Moreexportsofteaandhorticultureo Kenya'scurrentaccountdeficithasdroppedby3%in2015ascomparedto2014

• ReservesofTheCentralBank(CBK)standsatUSD7.688million.

• Theperformanceoftheeconomyshowsagrowthof0.3%in2015ascomparedto2014.

• Kenya'sglobaleconomyhasdeterioratedduetolowergrowthprospects.

5.3. Conclusion

Kenya’seconomyhasbeengrowingquickly inrecentyearsandbytenderingforthisproject,TechniConsultants isfacedwiththeopportunityofgaininga foothold inthisgrowingeconomy,withmorepossibilitiesofdevelopmentprojectsinthefuture.TheGBP/KESexchangeratefluctuateshighlyandthiswillneedtobeaccountedforincostingestimatesforthetenderingprocess.PossibleremediestothiscouldbetoensurethatpaymentstoTechniConsultantsaremadebasedonafixedexchangeratebasis,agreedwithintheprojectcontracts.GeneralastutenesscanensurethatmaterialsandotherprojectcostsarepaidforattimeswhentheexchangeratefavoursTechniConsultants.Thesedetailswillhavetobeconsideredfurtherduringthetenderingprocessifitisdecidedtoproceedontothetenderingstage.

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6. Legalities6.1. GeneralLaw

TheKenyanlegalsystemmainlyworksinasimilarwaytotheBritishsystem,duetoithavingbeenpartoftheBritishEmpireuntil the 1960s. Itmostly operatesunder a common law system,with small elementsof the Islamic legalsystem.(Kenya-advisor.com,2016)Thismeansthatourcompany’sownlegalteamwillbeabletousetheirexperiencewiththeBritishjudicialsystemtooffersoundadviceifanylegaldisputesarisewithinthecountry.ThiscouldmeanasavinginthecostofhiringaKenyanlegalteamforthispurpose.However,unlikeintheBritishlegalsystem,corruptionisendemicinKenya.Thiscouldleadtoextracomplicationsifthecourtsarerequiredtoretrievepaymentorcompensation.TheBritishEmbassyinKenyawouldbethemostreliablesourceofhelpifthissituationarose.(Lubale,2012)

6.2. ConstructionProcessConstructionpermits(WorldBankGroup,2016):

Procedure Time to be completed(days)

Associated Cost(KES)

ObtainasurveyplanfromsurveyKenya 1 500

Submitandobtainapprovalofthearchitecturalplans 45 340,439

Submitandobtainapprovaloftheconstructionplans 10 -

Obtainaprojectreportfromanenvironmentalexpert 5 50,000

Obtainapprovaloftheenvironmentalimpactstudy 30 2,936

NotifytheNairobiCityCouncil 1 -

Requestandreceivesetoutinspection 1 -

Requestandreceivefoundationexcavationinspection 1 -

Applyforpermittoconnecttothecitysewagesystem 7 7,500

Request and receive final inspection by theMunicipal Authorityafterconstruction

5 -

Obtainoccupancycertificate 14 -

Applyforwaterconnection 1 5,000

Receiveinspectionforassessmentofconnectionfees 1 -

Obtainwaterconnection 30 -

TOTAL 152 406,375Table1:ConstructionpermitsinKenya

UnitedKingdom:

Procedure Time to be completed(days)

Associated Cost(GBP)

Hireanapprovedinspector 1 2,964

Obtainplanningpermission 56 6,676

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ApprovedinspectorfilestheinitialnoticetotheLocalAuthority 5 -

Submit application to local Fire andRescueAuthority andobtainapproval

21 -

Applyforwaterandsewageconnection 1 -

Receiveinspectionfromthewaterandsewageprovider 1 -

Obtainwaterandsewageconnection 20 5,321

Request and receive energy performance certificate fromAccreditedEnergyAssessor

1 78

File completion certificate with the Local Building ControlDepartment

1 -

TOTAL 107 15,039Table2:ConstructionpermitsinUK

Lookingatthetablesabove,thetotaltimeneededfortheconstructionpermitsinKenyais152dayswhileintheUKis107 days. Hence, constructing in Kenya results in delaying the whole project by 1.5months in comparison withconstructingintheUK.However,lookingatthetotalcostingofthepermits,KenyaissignificantlycheaperthantheUKas406,375KES≈2,762GBP,whichissignificantlylowerthanthe£15,039fortheUK.

6.3. ConstructionRegulationsinKenyaSince 1988 and the disbandment of the National Construction Cooperation, Kenya has had no regulating body.However, in2012,theNationalConstructionAuthority(NCA)wasestablished.Overall inKenya,manypeoplehavelosttheirlivesduetothecollapseofbuildings.Thiswasmainlyduetopoorworkmanship,poorstructuraldesignsandlack of supervision. Moreover, the NCA faced many challenges in the implementation of its mandate and theeffectiveness of its regulatory framework (E. N. Gacheru, S. O. Diang'a, 2015). The main problems have beencorruption,alongwithpoororganisationinthecontractortrainingprogramsoftheNCAandunnecessarypaymentofconstructionlevies.Thecontractortrainingprogramslackcurriculum,motivatingstrategyandtrainingstructures.IncomparisonwiththeUK,constructionregulationsinKenyaneedseriousimprovements.DuringconstructionintheUKthehealthandsafetysectionisgivengreatattention,comparedtotheapproximatelyzerohealthandsafetyinKenya.

6.4. ConclusionThe Kenyan legal system resembles the British legal system in many ways due to its colonial history. However,corruption in the country is rife and the law is not always upheld if bribery is involved. The process of obtainingplanningpermissionforconstructionisbothcheaperandquickerinKenya,howeverbuildingregulationispronetochanges and in comparison with the UK the health and safety section is almost non-existent. It would be theresponsibilityofTechniConsultantstoupholdtheUK/EuropeanstandardofhealthandsafetyifitweretotakeontheprojectinNairobi.Thiswouldalsobeanopportunityfortheprojecttostandasacasestudy,toshowthepeopleofKenyahowtoimplementhealthandsafetyeffectivelyonconstructionsites.

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7. TechnicalExpertise7.1. Education

Themaineducation system inKenyauses an8-4-4model. It intends toprovide studentswith8 yearsofprimaryeducation,4yearsofsecondaryand4yearsofUniversity.ThecurrenteducationpolicyofKenyarequireschildrenaged between 3 and 6 to attend pre-primary education for 2 or 3 years before attending primary education.(ChalkboardKenya|VolunteeringandTeaching,2012)HighereducationinKenyagrowsalot inrecentyears.Therearecurrently22publicuniversitiesinwhichtechnicalcourses are available. In addition, there 17 private universities and 14 public and private university constituentcolleges,whichalsoawardacademicdegrees.However,despitethepresenceofsoundeducationsystem,itseemsquiteanumberofilliteratesandsemi-illiteratesstillexistsinthepost-educatedgroupsofthepopulation.(Knoema,2016)(WENR,2015)Civil Engineering is offered at the Jomo Kenyatta University of Agriculture and Technology and the University ofNairobi.Fora5-yearbachelor'sdegreethecoursescoverGeotechnics,EngineeringManagementandHarbourandCivilengineeringpracticeasthecoremodules.(Civil.uonbi.ac.ke,2016)(Jkuat.ac.ke,2016)

7.2. DesignCodesBuildingDevelopmentcontrolswerefirstintroducedinKenyabytheColonialGovernmentin1926andwereappliedtothethenNairobiTownCouncil.ThesewerelaterreplacedbytheNairobiCityCouncilby-lawsin1948,thatthenincludedtownplanningandzoningrequirements.Since1968,thecurrentbuildingscodeusedinKenyahasbeenareplicaofBritishbuildingregulations.(NationalPlanningandBuildingAuthority,Kenya,2009)ACommissionof Inquiry toexamine theexistingbuilding lawsand regulationswasestablished in1996, after thecollapseofthesunbeambuildinginNairobi.Thiswasmainlytoinvestigateanddeterminethecauseofthecollapseofthesunbeambuildingandmakerecommendations,withaviewtopreventsimilarincidences.IthassincebeendecidedbytheKenyangovernmenttosanctiontheadoptionoftheEurocodes,thatarenowusedglobally,asthiswillprovideacommonreferencepointforallconsultantsandcontractorsworkingwithinthecountry.(Ndaiga,2016)ThisisgoodnewsforTechniConsultants,asthecompanyandstaffarepredominantlyUKbasedandthereforeworkusingtheEurocodes.ThesenewdevelopmentsinKenyanbuildingcodeswillmeanthatTechniConsultantsisabletoimplementtheseinKenya,withoutqualmsfromthelocalauthorities.

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7.3. CaseStudies

7.3.1. ConstructionDisastersAfterseveralbuildingscollapsedlastyear,PresidentUhuruKenyattaorderedanaudittobeconducted.Theresultingreportconcludedthatthecollapseofmanybuildingswasaresultofpoorqualityconcrete,lackofproperfoundationsandtheuseofsubstandardbuildingstones.ThisisultimatelyalackofproperworkmanshipandtheissueforTechniConsultants is that despite designing to the proper codes and regulations, the outcome and final quality of anyconstruction,willultimatelybedependentuponthethequalityofworkmanshipofthoseconstructingwhathasbeendesignedbyTechni.IfTechniistotenderforandbesuccessfulinsecuringtheprojectthenitisimperativethatthepropercontractsarewritten,toensuretheconsequencesandcostsofanyfailuresduetopoorworkmanshipwillfallupontheassociatedsub-contractor.Hereisalistofbuildingsthathavecollapsedintherecentpast:April28,2016:AwallcollapsedalongNairobi’sLenanaRoad.Threepeoplediedandseveralothersinjured.March09,2016:Afour-storeybuildinginZimmerman,Nairobi,whoseconstructionwasquestionedtwoyearsbeforecollapsed.Noonewasinjuredsinceithadbeenvacated.May11,2015:AperimeterwallataSouthBmosquecollapsedduetoheavyrains.10peopledied.April 2, 2015:Sevenpeopledied andmanyothers trapped after a buildingbehind ThikaRoadMall in Roysambucollapsed.Jan4,2015:Fivepeoplediedandseveralothers injuredafterasix-storeyresidentialbuildingcollapsedinHurumaestate.December 17, 2014:A five-storey residential building that was partly occupied and was still under constructioncollapsedinKaloleni.Sevenpeopledied.January10,2010:AbuildinginKiambutowncollapsedduetoheavyrains.Threepeopledied.June9,2012:ThreepeoplediedafterabuildingunderconstructioncollapsedinMlolongo.September17,2011:Fourdiedafterathree-storeybuildingcollapsedinheavyrainfallatMabonaareaofLwandatradingcentreinEmuhaya,VihigaCounty.June14,2011:Twoworkersdiedafterasix-storeybuildingunderconstructioncollapsedinNairobiJanuary2006:Afive-storeybuildingunderconstructionalongRonaldNgalaStreetcollapsed.14peoplediedand14moreinjured.(DailyNation,2016)

7.3.2. RecentBuildingCollapseArecentcasestudyreportsthecollapseofasix-storeybuildingresultinginmultipledeaths.Thecollapseofthe building was due to heavy rainfalls in Nairobi.Accordingtorecentreports,at least33peoplediedand 70 are still missing. Meanwhile, another fourpeople have lost their lives due to a wall whichtoppledover.Theserecentexamplesprovidefurtherevidence of the poor construction practices withinKenya. (BBC News, 2016) (BBC News, 2016) (BBCNews,2016)

Figure27:BuildingcollapseinNairobi,2016

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7.4. ConstructionAchievementsandCurrentDevelopment

7.4.1. Nairobi’sCurrentDevelopmentInfrastructuregrowthinKenyaisapparentandrecentlythenationhasbeguntoundertakeextensivedevelopmentprojects.TheincreasingnumberofskyscrapersbeingerectedinrecentyearsshowsthatKenyaiswillingtotaketheadvantageofnewtechnologiesand facilitateeconomicgrowth.ThisyearaDubaideveloper isplanning tobuildaskyscraper inNairobi. Itwillbea35-storey towercomprisingamixofoffice spacesand luxuryapartments.UponcompletionthetowerwillbetallerthanexistingUAPtowerwhichissetforoccupationfromJune.(Makena,2016)AnotherplannedprojectinNairobiistheconstructionofGreenspanMallinAthiRiver,Machakoscounty.Themultiusesbuildingcomplexwillconsistofabasement,groundfloor,firstfloorandrooftopfloor,whichcontainretailandcommercialspaces.Therewillberestaurants,lineshopsandentertainmentservicesetc.Itwillbethesecond“megashoppingcentre”inMachakosifcompleted.(Nkirote,2016)WithregardstothepotentialchangeinbuildingregulationsinKenya,theadoptionoftheEurocodesanditsrecenthigh expansion rate of development, there are great for Techni Consultants to indulge in. Tendering for this firstprojectinKenyawouldprovidethecompanyafootholdinthecountry’sconstructionindustry.

7.4.2. GoodExampleAscanbeseeninsection5ofthisreport,Kenyahasbeenexperiencinghighratesofeconomicgrowthinrecentyears,withthecountry'sGDPrisingfrom$25.83billion-$60.94billionduringtheperiod2006–2014.AsignificantproportionoftheincreaseinGDPinrecentyearshasbeenaresultoftheexplosionintheconstructionindustry,accountingfor13.6%ofGDPaccordingto(Tradingeconomics.com,2016).Oneprojectthatstandsasagoodexampletoshowthisexplosioninconstructionisthenewstandardgaugerailway(SGR)line.ThelineisforpassengersandcargotransportationbetweenMombasa,thelargestportinEastAfrica,andNairobi,thecapitalcityofKenya,andisbeingdevelopedbytheKenyaRailwaysCorporation.(Megaprojects.co.ke,2016) The first phase of the SGR project aims toconnect Kenya, Uganda, Rwanda and South Sudan.The Mombasa-Nairobi SGR is the biggestinfrastructure project in Kenya since independenceand will shorten the passenger travel time fromMombasatoNairobi,frommorethantenhourstoalittle more than four hours. Construction of the609km long line began in October 2013 and isscheduled for completion by December 2017. TheMombasa-Nairobiphaseoftheprojectisestimatedtocost$3.8bn.ChinaEximBankwillprovide90%ofthefinancing while the Kenyan Government willcontributetheremaining10%.One of the main benefits of the recent boom inconstruction (MG Africa, 2015) is that theconstruction labour force in Kenyawill have gainedexperience from projects in recent years and thisexperiencecanbedrawnuponbyTechniConsultantsifaprojectweretobetakenonbythecompany.

Figure28:WorkonSGRproject

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7.5. MaterialsCommonusesofsomeconstructionmaterialsarelistedasfollows(Nduire,2014):

• Timber:woodisusedprimaryasamaterialintheconstructionduetoitsavailabilityfromlocalforests.Timberisusedinflooring,panellingandfinishing.Inaddition,itcanbeusedfortheconstructionofdoors,windowframes,exteriorcladdingandinroofingandceilingconstruction.However,thedemandoftimberhasreducedin the construction industrydue toprice rises as a result of deforestation risk. Techni Consultants shouldconsiderthiswhendesigningandusetimberfromsustainableforestsourcesonly.

• Cement:beingtheworld’smostusedmaterialnowadays,cementismixedwithaggregatessuchascrushedrock,gravelsandsandtoformhighstrengthconcrete.ConcreteisoneofthemajorconstructionmaterialsinKenyaanditisalsousedasexteriorfinishingandforplastering.Thepriceofthecementisdecreasingrapidlyinthecountrybecauseofthehighdemandintheworldwidesector.Itbecomesaninevitablechoiceofbuildingmaterialsforhighrisingstructures.(Expogr.com,2016)

• Glass: Demand is growing over the years due to the increasing use of glass cladding in Kenyanmodern

architecture.Glass isgainingpopularity inmoderndesignas ithasplentyofadvantages inprovidingsolar,sound,heatandfireprotection.However,duetotransparentnatureofglass,buildingswithlargeproportionofglassare subject to largeheatgains.Percentageofglassuse inouroriginalprojectdesignneeds tobeadjustedtoachievedesirableindoorconditionsinasimilardevelopmentinNairobi.(Nduire,2014)

• SteelandMetals:steelsandmetalsaremainlyusedinthereinforcementoftheconcretewhenconstructing

houses,bridgesandother structures.Theyareoftenpaintedandmade into sheets for roofing toprovideshelter and protection against extremeweather. Copper and aluminium are increasing in demand in theconstructionsectorbecauseoftheirabilitytoresistcorrosion.

o Steel is currently cheap in Kenya (downapproximately 50% fromworldmarket price). This bringsconsiderablecostsavingopportunitybyusingsteelstructurally.

• VolcanicRock:themostcommonrawmaterialusedinNairobiisvolcanicrock.Thevolcanicrocksincludelavaandpyroclastic rocks.However, research suggests that there is no rigidmonitoringof useof these rocks.Therefore, itwouldbenecessary to investigate thematerialpropertiesandperformqualitychecksbeforeusingthem.(WASWAandD.N,2009)

• Prefabricatedmaterials:commonlyusedforconstructionintheUK,however,thisisnotthecaseinKenyaas

thereisagenerallackofappreciationofthebenefitsofthistypeofconstructionandasaresultthemarketforprefabricatedmaterialsinKenyaisstillverysmall.

7.6. ContaminationExpertise

Oneof theparallels of theproject inKenyawith theNeepsendproject is that theproposed site is contaminatedbecauseofitshistoricaluse.ContaminationinKenyahasbeenaprobleminrecentyears,forexample,leadpoisoningfromindustrialpollutionhasimposedaterribletollonKenyans.(TheEcologist,2016)Researchsuggeststhatthereisalackofspecificregulationtospecifyacceptablelevelsofcontaminationonasitesuchasthis.BritishorEuropeanstandards for contamination wouldmost likely be adopted to guide the remediation process. A company calledKryptoneConsultingLimited,basedinNairobi,Kenya,iscapableofperformingallremediationneedsandcouldbeusedasaspecialistbyTechniConsultantstodealwiththecontaminationofthesite.Thefollowingparagraphisfromtheir website: “Kryptone is dedicated to developing and implementing solutions that safely and cost-effectivelyaddresscomplexremediationchallenges,provideeconomicandenvironmentalbenefits,andaddresspublicconcerns.Weprovideafullrangeofservicesrequiredtodevelopandimplementanyremedialactionprogram,fromconductingtheenvironmentalimpactstudy,throughtodesign,construction,andoperationsassistance.”(KryptoneConsultingLtd,Kenya,2016)

25

7.7. ProjectCostThefollowingtableprovidesaroughestimationofcostingsthatwouldbeusefulindeterminingtheprojectcost.ThetablewasproducedbytheInstituteofQuantitySurveyorsofKenyaandissuitableforpreliminarycostestimationforvariousscalesofprojectsinmajortowns.Thedatawascollectedfromprojectsofdifferentsizesofrecentlycompletedprojects.Thecostoftheprojectcanbeobtainedbymultiplyingthecalculatedrateofconstructionperunitareabythe area of the development. The costing data is applicable from foundation to finishes but generally excludesadditionalsiteworkwhosecostsessentiallydependsonthenatureoftheproject.

(Maseghe,2015)

Table3:ConstructioncostestimatesforKenya

26

7.8. PotentialSub-ContractorsZenithsteel-(Zenithsteel.com,2016)

• Zenithdealsinthedesign,fabricationanderectionofhighrisebuildingswithmetaldeckingsheetsupto25floorshigh.

• Zenith Steel Fabricators is a leading steel fabrication firm that specializes in the Design, Fabrication andErectionofalltypes’structuralsteelworks.

• Zenith’shighcommitmenttoqualitythroughitsISO9001:2000certificationhasenabledittocapturealargemarket,bothwithinKenyaandthesurroundingcountries.

SteelstructuresLtd-(Steelstructureskenya.com, 2016)

• They provide premium quality steel building solutions for all commercial, Industrial, Institutional andresidentialneeds.

• Clientele consists of Architects, Contractors, Developers, Investors, and Manufacturers & GovernmentInstitutionsamongothers,fromallovertheAfricancontinentandinparticularEastandCentralAfrica.

• PartnerwithCivilContractors infabricatingthesteelworkpartoftheirscopeandhelpthemachievetheircompletiontargets.

Mangat,I.B.PatelandPartners-(Mangat,IBPatel&Partners,2016)

• They are a consulting engineering, construction management and operations company specializing ininfrastructuredevelopmentofhighways,water,energyanddevelopmentconsultingformulti-lateralfinanceagencies,governmentsandprivateenterprise.

RhombusConcreteLimited-(Concrete,2014)

• Leadingmanufacturerofpre-mixedconcretewiththefull rangeofpre-mixedconcreteproducts, technicalresources,consistentlyhighenvironmentalperformanceandawealthofpracticalexperience.

7.9. Conclusion

EducationoutcomesinKenyaaresignificantlylowerthanthoseintheUKandthiscouldmeanthattherewillbeaskillsshortageifTechniConsultantsistotakeontheprojectinKenyaandisseekingexpertisefromoutsidethecompany.TheEurocodesarenowbeingadoptedforuseinKenyaandthisisapositivethingforTechniConsultantsifitweretotakeontheproject,asthecompanyisusedtoworkingwithbothBritishStandardsandEurocodesfordesigning,andwouldthereforebeusingfamiliarcodesofaknownhighstandard.Ithas,however,beenfoundthatworkmanshipinNairobi,Kenya,isofaparticularlylowstandard,withmanybuildingfailuresbeingcausedovertheyearsasaresultofthis.Aboomintheconstructionindustryinrecentyearsdoessuggestthattheskillsofthelabourforcewillhaveincreasedinrecentyears,however,thestandardisgenerallyconsideredtobesignificantlylowerthanthatexpectedintheUK.TherisktoTechniConsultantsisthatevenifcodesarefollowedandtheprojectisdesignedtoahighstandard,thequalityoftheendproductwillmostlylieinthehandsofthosewhobuildit.Tomitigateanyriskofbadworkmanship,itwouldbeimperativethattheappropriatelegalcontractsanddocumentsarewritten,toensurethattheresponsibilityofthesub-contractorstoqualityisclearlydefinedandseparatetothatof Techni Consultants. Research suggests thatmaterial availabilitywill not be an issue, however,material qualitycontrolstandardsare likelytobesignificantly lowerthanthatoftheUK.Anumberofpotentialsub-contractors inKenyahavealreadybeenidentifiedforpotentialemploymentifTechnidecidestoundertaketheproject.

27

8. RiskAriskassessmenthasbeencompiledtoshowtherisksspecifictoworkinginKenya.

Likelihood Severity Hazards(LxS) Likelihood Severity Hazards

1 CommunicationDifficulties 1 2 2Misunderstandingoftasks,leadingtounwantedoutcomes

EnsureProjectmanagercanspeakEnglishandSwahiliwell.Useimagesordrawingswherehelpfultoconsildateunderstanding

1 2 2AllParties(Project

Managers)

2 PoliticalInstability 2 2 4Distruptiontowork,andceaseoffundingforproject

Avoidconstructionduringperiodsofelections,aswellasundertakingathoroughassessmentofpoliticalsituationbeforetendering

1 2 2Techni

Consultants,clientele

3 Corruption 3 2 6CompanyRepuntation,Budgetingandprofitabiltiy.

TechniConsultantshasapolicytonotbeseentobeinvolvedinbrideryorothercorruptactivites

2 2 4Techni

Concultantsconctractors

4 Crime 3 3 9 Materialandmachinerystolen

KeepSecuritygaurds,andensurematerialsandmachineryarestoredinashedthatcanbelockedafterwork.Restrictkeystoauthorizedpersonel.

1 2 2 Contractors

12 Pollution 3 1 3Poisoningtopeopleasthereisnoregulationtocontaminationlevel

CleanUpthesitetoacceptablelevels, 1 1 1Techni

Concultantsconctractors

2

Controls/MitigationMethodsRiskAfter

Ownership

5 Healthandsafety 2 3 6EnforceUKstandardsitesafetyrules,restrictaccesstosite.EnsureManagers/site

1 3 3 ContractorsInjurytopersonaland/orpublic

Category Ref. Hazard/RiskorEnvironmentalImpactRisk

Impact

2Projectmanagers

7 ElNiNo 1 3 3HeavyRainfallthatcandistruptworkforoveraweekdueto

KeepaneyeoutformeterologicalcentrewarningsforElNiNos,andgivelabourbreak

1 3 3Projectmanagers

6 Temperature 1

onlyauthorizedpersonelallowedintheaccessintosite

1 3

2 HeatStroketoworkersEnsureaconstantsupplyofdrinkingwaterisavailabletopersonel,implementmandatory

1 2

TerrorismandRiots 2 2 4 Distruptiontowork.

1 1

3Projectmanagers

9 NearbyBuildingsCollapsing 1 2 2PoorWorkmanshipcanpotentiallyinjurypeoplle

surveyingofnearbybuilding 1 3 3Techni

Concultants

8

2 1 2PoorWorkmanshipcanpotentiallyinjurypeople

ThroughTraining,hireskilledlabour.

AssociatedRisksinNairobibesidesthegeneralRisks

1Techni

Concultants

11 Clientsfinaces/Banksclosing 1 3 3FundingStops,andprojectis

putonaholdUseseveralbanks,toensureclosureofonebankdoesnoteffecttheproject.

1 3 3Techni

Concultants

10 LackofEducation

Table4:RiskAssessment

28

9. ProjectImplications9.1. PotentialOpportunities

AsTechniConsultantshas,upuntilnow,onlyoperatedwithintheUK,takingonaprojectinaforeigncountrywillbe

ahugelearningcurveforthecompanyandultimatelyexpandtheknowledgeofthecompany.Thiswillinturncreate

potential opportunities for the company towork in Kenya and other East African countries in the future, as the

company becomes more culturally agile and established around the rapidly growing region. As a company we

encouragetheuseofinnovativetechniqueswhichcanbedevelopedonandshowntootherpartsoftheworldthrough

projectslikethis.

Forgettingthepotentialbenefitstothecompany,theprojectoffersthepotentialforTechniConsultantstoimprove

thelivesofthepeopleofNairobi,astheconstructionofaretailandleisurecentreinNairobiaswellastransportlinks

willhaveapositiveimpactonthelocaleconomy.TheprojectprovidesTechniwiththeopportunitytoshowcasethe

latestenvironmentalandsustainablebuildingsolutionstotheKenyanpeople,alongwithpromotingtheuseofproper

healthandsafetyprocedureswithinthecountry.Theprojectwillalsoprovide jobsandhelpalleviatesomeofthe

currentunemploymentissueswithinNairobi.

9.2. MarketChallengesAlargeproportionofpeopleuptotheageof35andunderarerelativelyunskilled.Thecostofskilledlabourishighby

developingworldstandardsbutismoreavailablewhencomparedtoKenya’sneighbours.Kenya'sinfrastructureisfar

betterthanneighbouringcountriesbutstillremainsthegreatestobstacleforeconomicgrowth.Recently,themajority

of investmenthas gone into transport infrastructure todealwith theeffectsof globalisation.Reformshavebeen

undertaken to improve government efficiency, transparency and reliability; better competition and business

regulationsystemsarebeingimplementedandjudicialsystemreformstogetherwilldetermineifKenyagainsorloses

groundinthenextdecade.However,itisbynomeansastablemarketand,foralongtermscheme,thechangeable

natureofNairobiiscauseforconcern.

Corruptionandpoorsecuritycauseadditionalthreatsforbusinesses.Problemsareparticularlyassociatedwithland

purchaseorlargegovernmentprojects.Thereisalsouncertaintywhenobtainingtitlestolandsuchasloans.Althoughfewcompanyrelationship issueshavearisen, it isverydifficult toevaluatethereliabilityofanypotentialbusiness

partnersinNairobi-anissuethatmayimpactthedecisionmadebyTechniwhethertoinvesttimeandmoneyina

tendersubmission.

Finally,thegovernmenthasbeenunabletoprovideasecureenvironmentforbusinessesandfamilies,particularlyin

urban settings. Property crime and violence aremajor concerns and have become an unavoidable cost of doing

businessforcompaniesinKenya.

9.3. DifferencestoUKNeepsendDesignConstructingtheprojectinKenyameansthatalterationsneedtobemade.Factorsaffectingtheprojectaremainly

environmental, economical, ethical and cultural. These factors are analysed in the sections above indicating the

differencesofNairobiandSheffield.Hence,usingtheconclusionstakenforeachsection,a fewalterationscanbe

outlinedandjustified:

· GlasscladdingintheHQandterminusbuilding-Nairobihashightemperaturesthroughoutthewholeyear,

havingglasscladdingaroundtheheadquartersbuildingandterminusisnotasefficientasintheUK.Capturingthe

heatofthesuninNairobiandisolatingit inthebuildingwillcausediscomforttothepeopleworkingthere,asthe

buildingwouldactasa‘greenhouse’.Hence,asolutionthatseemedsustainablewhendesigningforSheffieldhasa

negativeimpactwhenconstructedinNairobi.

·Solarpanels-Onceagain,sincethedaylighthoursinNairobiaremoreconsistentlylongthaninSheffield,the

solarenergycanbeusedtoouradvantage.Byusingsolarpanelsinalltheroofsoftheretailandleisurecentre,except

fromthegreenroof,energycanbegeneratedtobeconsumedforthebuilding’sactions.Theuseofsolarpanelswould

bemorecostandenergyeffectiveinNairobi.

29

·Drainage-ComparingtheprecipitationofNairobiandSheffieldandtakinginaccountthepossibilityofanElNiño

event,thedrainagedesignforthesiteshouldbemuchmorerobustthanthedesignusedatNeepsend.

·Terminus-TramsarenotusedinNairobi,hencetheterminusshouldbeusedforMadatus’whicharewidely

usedbythelocalresidents.

·Materials-ThematerialschosenfortheconstructioninNeepsendmaynotbeveryeffectiveindealingwiththe

Nairobiclimate.Considerationofthiswillberequired.

9.4. HeadquartersAlterations

Most buildings in Nairobi as

seen by the times tower

building in Kenya, prefer not

havingabuildingwithafacade

all through the building as it

will get too hot within the

building, so they have half

covered buildings. As our

Headquarters building has an

atrium, itwouldhelpwith the

cooling and ventilation within

thebuilding.

TheWind Loading scenario in

NairobiislessthaninSheffield

thereforethiswouldaffectthe

loadingonthepilefoundations

fromthebracedframe

In Terms of drainage we will

have to design for the system

toeffectivelydrainoutElNino

rains

PrecastconcreteisnotavailableinNairobi,unlessimportedthereforethedesignwillhavetobechangedintometal

deckingasmostspecialistcompaniesareabletodesignandfabricatethat.

9.5. ConclusionBuildinginNairobihasobviousprojectimplications,fromthedesignalterationstothemarketchallengesandcurrency

fluctuations.However,expandingTechni’sbusinessoverseas,toanemergingmarketbringswithitpotentialbenefits

–botheconomicandphilanthropic.Bygettinginvolvedatagrassrootslevelinthedesignofanewmajordevelopment,

TechnicanstakeitsclaiminhavingapositiveimpactonNairobi’sfuture,aswellaseconomicallygainingfromthe

growingmarket.

Figure29:TimeTower,Nairobi

30

10. ConclusionHavingconsideredawiderangeoffactors,wefeelthisreporteffectivelyoutlinesinformationsufficienttoallowthe

executivesatTechnitomakeadecisionashowtomoveforwardinthetenderingprocess.Nairobibringswithita

wholehostofsocialandculturalfactors,manyofwhicharearesultofitstribalandcolonialhistory.Tribalismand

corruptionstemfromthis,notablyinthebuildinganddevelopmentsectors.Povertyandpoorhealthconditionsare

commonplace,somethingwhichthecompanyneedstobeawareofifthinkingofinvesting–thisbringsopportunity

toimproveourcorporateimagebyhelpinglocalcommunities,butmayalsohaveprojectimplications.

Environmentally,Nairobi is not too challenging.However, hotter temperatures and generally lowerwinds slightly

impactbuildingorientationanddesign,andfloodingneedssignificantconsideration.Seismicityisalsoafactorwhich

needstakingintoconsideration,sincethiscouldincreaseourcosts.Thebuiltenvironmentbringswithitriskstoo–

surrounding building collapses, and generally poor infrastructure could cause catastrophic failure of our building

mid/postconstruction.

Kenya’seconomyhasbeengrowingquickly inrecentyearsandbytenderingforthisproject,TechniConsultants is

facedwiththeopportunityofgaininga foothold inthisgrowingeconomy,withmorepossibilitiesofdevelopment

projectsinthefuture.TheGBP/KESexchangeratefluctuateshighlyandthiswillneedtobeaccountedforincosting

estimatesforthetenderingprocess.PossibleremediestothiscouldbetoensurethatpaymentstoTechniConsultants

aremadebasedonafixedexchangeratebasis,agreedwithintheprojectcontracts.Generalastutenesscanensure

thatmaterialsandotherprojectcostsarepaidforattimeswhentheexchangeratefavoursTechniConsultants.

Followingtheextensiveresearchoutlinedinthisreport,expandingtobuildinNairobimaynotbethebestmovefor

Techniatthispointintime.Ifthecompanywouldliketoexpandourworksscopetooverseas,itisprobablyawiser

movetogetinvolvedincountrieswhicharebothclosertohomeandwhichhaveexistinginfrastructureresembling

ourown–thiswouldallowustouseourexpertiseinamorefamiliar.Countrieswithamorestableeconomicpattern

andcurrencywouldalsoallowaconsistencyandmitigationofriskregardingprojectexpense.

Politics and corruption inNairobi, and Kenya as awhole,make legitimate investment in projectswithout getting

involvedwithbriberyandbad-practice insomeformalmost impossible.Alsotobeconsideredisthesafetyrecord

Technihas–usingaNairobiancontractorwithmuchmorestringenthealthandsafetylawsmayreflectbadlyonthe

company.

WereTechnitogoforwardwiththisinvestmentopportunity,therearecertainlygreatprofitstobemade,butatgreat

risk–thisissomethingwedonotthinkTechnicouldafford,bothfinanciallyandintermsofourcorporateimage.

11. ReportValidityandEvaluationThe informationused towrite this reporthasbeentaken fromavastnumberof sources.Carehasbeen taken to

referenceworkcited,aswellastoconsidervalidityofthesourcematerial.Wehavetakeninformationfromacademic

papers, news articles, web archives, lecture notes, web galleries, regulations and government reports – this has

allowedawiderangeofopinions,factsandofficialstatisticstobetakenintoaccount.AKenyanmemberoftheteam,

NimmitShah,hasbeenactivelyinvolvedinthewritingofthisreport,andhasverifiedstatementsmadewithassociates

inNairobi.However,theprojectteamacknowledgessomesourcesusedmaynotbefullyaccurate,ormaybeoutdated

intheirinformation,especiallyconsideringtherapidlychangingcityNairobiis.However,weareconfidentthatthe

technicalinformationandoverallconclusionsofthesub-sectionsarecorrectandvalidrespectively.

31

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