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Following several years of sustained growth, the outlook for Kenya’s construction sector remains positive as the industry benefits from the elevated levels of public spending outlined in the Vision 2030 development strategy. Although a slowdown in capital inflows into infrastructure and real estate projects between 2009 and 2011 impacted real growth rates, the sector as a whole has delivered average annual growth rates of 15.26% between 2008 and 2012. With a host of infrastructure projects planned, as well as increased housing demand, contractors are set to profit from a continuation of the robust upward trajectory of recent years. Backed by regulatory reform under the newly formed National Construction Authority (NCA), the industry should also see improved enforcement of standards and training. This chapter contains an interview with Mohamed Hassanali, CEO and Director, HassConsult Real Estate.

Expansion of infrastructure and transportation networks is a key pillar of the government’s Vision 2030 economic development plan. Kenya represents a critical lifeline for landlocked neighbouring countries. While increased competition, ongoing delays among roads and ports projects, and a host of non-tariff barriers pose serious challenges to future expansion, the government’s dedication to improving transportation indicators has already witnessed steady growth in the rail, port, road and maritime segments. The sector is now poised to undergo enormous change in the next several years, with government expenditure on transportation construction and upgrades showing steady expansion. At the same time the country’s Public-Private Partnership (PPP) Act, enacted in 2013, has opened the door for private investors to help develop high-profile projects including LAPSSET, the standard-gauge railway project and Lamu Port. Coupled with regulatory reforms aimed at reducing non-tariff barriers, these developments should see transportation in Kenya improve dramatically in the medium to long term. This chapter contains interviews with Michael Kamau, Cabinet Secretary, Ministry of Transport and Infrastructure; Titus Naikuni, Group Managing Director and CEO, Kenya Airways.

As with a number of African markets, expanding the capacity of Kenya’s utilities sector is a key part of the government’s blueprint for development. On the power side, the government aims to add 5000 MW of generation capacity to the existing 1672 MW by 2017. Down the road, the government intends to further expand capacity to meet the 17,000 MW of demand anticipated by 2030. Renewables such as geothermal energy and wind are also key to this plan. The water and sanitation sectors are lagging, but upcoming regulation promises to clarify roles and facilitate private sector investment. The goal that is laid out in the Vision 2030 master plan is to extend universal access to safe water by 2030. Nairobi alone requires $1.9bn in infrastructure upgrades to meet this goal. All sectors within the utilities umbrella promise to grow and have strong support from the national government. This chapter contains interviews with Jay Ireland, President and CEO, General Electric Africa; and Ben Chumo, Managing Director and CEO, Kenya Power.

Holding enormous untapped potential, Kenya’s insurance industry has expanded rapidly over the past 10 years, with both the life and non-life segments showing consistent double-digit growth. As of early 2013 there were 47 operating insurance companies in Kenya, including 24 non-life businesses, 11 life insurers and 12 composite firms. Although the sector is still dominated by the short-term motor segment, rapid uptake in life, medical and new micro-insurance products has seen lower-earning Kenyans gain coverage. The industry, however, faces formidable challenges – premium undercutting has put intense pressure on major players, while fraud and low penetration have hurt margins and prevented nationwide expansion of comprehensive coverage. Nevertheless, the market holds considerable promise in the medium and long term. The expansion of coverage to lower-income groups via micro-insurance products also promises new opportunities to expand the market. This chapter contains an interview with Tom Gichuhi, CEO, Association of Kenyan Insurers (AKI).

Headlined by two equities boards and liquid options for bonds both in primary and secondary trading, Kenya’s capital markets stand out for their maturity in comparison to most African markets, although other asset classes are in the early stages of development. The Capital Markets Master Plan (2014-23) outlines a growth programme for the short to medium term, while separately the Nairobi Securities Exchange (NSE) has demutualised and is implementing a strategy that includes self-listing, in keeping with a worldwide trend as bourses seek to evolve to suit changing global market conditions. The year 2014 could prove a pivotal one for the NSE and for Kenya’s capital markets overall. A period of discussion and planning is now poised to end, with the master plan commencing its phased implementation and the NSE completing its plan for demutualisation and listing. This chapter contains interviews with Peter Mwangi, CEO, Nairobi Securities Exchange (NSE); Paul Muthaura, CEO, Capital Markets Authority (CMA); and a viewpoint from James Mworia, CEO, Centum Investment Company.

OBG introduces the reader to the different aspects of the legal system in Ghana, in partnership with AB & David. This section includes a viewpoint from David Ofosu-Dorte, Senior Partner, AB & David, on attracting private capital to fund public sector projects.