Sustainability has assumed growing importance in real estate investment, operations, and decision making.
In Kenya, regulators and stakeholders are collaborating on sustainability frameworks to implement UN Sustainable Development Goals (SDGs) and government social impact objectives.
This prioritisation signals positive progress for the industry, particularly as Kenya pursues ambitious urbansation programmes through infrastructure development.
Buildings account for 39 percent of global energy-related carbon emissions according to World Green Building Council data, with 28 percent from operational emissions (heating, cooling, power) and 11 percent from materials and construction.
As a Paris Agreement signatory, Kenya’s Climate Change Act (2016) provides a regulatory framework for climate action, including a target to reduce greenhouse emissions by 30 percent by 2030. This makes sustainability initiatives in real estate not just beneficial but essential.
The consequences of failing to adopt sustainable practices in real estate are already becoming apparent across Kenya. In recent years, the country has experienced increasingly frequent and severe extreme weather events linked to climate change.
From devastating floods in western Kenya to prolonged droughts in arid regions, these events have destroyed property, eroded family and national wealth, and displaced entire communities.
These incidents serve as stark warnings of the vulnerabilities in our current built environment and underscore the growing need to develop properties that can withstand such climate shocks while minimising their own environmental impact.
Sustainable asset management offers practical solutions to these challenges. Energy-efficient buildings designed with climate resilience in mind provide multiple benefits: they reduce vulnerability to extreme weather events, lower insurance premiums through improved risk profiles, and decrease operational costs through optimised energy and water use. These advantages translate to preserved and often enhanced asset values over the long term.
The global real estate investment community has already recognised these benefits. Green-certified buildings now command premium valuations in many markets and attract higher-quality tenants willing to pay for better, more sustainable spaces.
In Kenya, industry leaders who embrace these practices early will gain significant competitive advantages in the coming years.
To fully realise the potential of sustainable real estate in Kenya, coordinated policy action is required. Policymakers should prioritise the development of comprehensive regulatory frameworks that incentivise rather than simply mandate sustainable practices.
This could include measures such as fast-tracked approvals for green building projects, targeted tax incentives for sustainable developments, and revised building codes that incorporate modern energy efficiency standards.
Financial regulators can complement these efforts by encouraging the development of green financing instruments and sustainable investment products that channel capital toward responsible real estate projects.
The writer is founder and CEO of Construkt Africa and executive director, Future Construkt Investment Managers
