Unique private home construction in Kenya

Kenya has been experiencing a construction boom for the last 15 years. The government has also been investing heavily in infrastructure to improve transport, housing, and technology. Investment by individuals in residential housing has also increased dramatically.  The Kenya National Bureau of Statistics reports that real estate and construction sectors have been the key drivers of Kenya’s’ economic growth for the last ten years contributing 7 percent of the gross domestic product (GDP), which indicates that Kenya has a well-developed construction industry. With an increase in population, this trend will only continue and especially for low-cost housing.

Numerous challenges exist in the construction sector with the capital being the most significant. To overcome this, Kenyans build privately in a gradual fashion. This approach presents a challenge for homeowners and contractors who cannot plan and price accurately due to the start-stop nature of private home construction. Identifying skilled labor for this can also be a challenge since most of the skilled labor is concentrated around contractual/predictable assignments. It is not unusual to have more than 5 different plumbers, for example, to implement various sections of plumbing works to completion. While this style of the intermittent building is convenient for people with partial funding, it compromises quality and consistency. A lot of these assignments are also not licensed by the local authorities and the artisans are usually unqualified.

The depth of the informality extends to the supply chains that make up the informal construction industry. From identification of the artisan, quantifying the scope of work, preparing the bill of materials, purchasing (and delivery) of quality material, quality completion and documentation of work, effecting payments and rating the various players in the chain. Karabati is an innovation that uses an application stack to bring together the construction supply chain into one interactive platform. This app-based solution is free to download on the IOS and Android stores. There are various user profiles depending on the role the user plays in the value chain.       

Diagram 1: Karabati App roles and players

The user/homeowner simply downloads the application, registers and links their payment option (card, cash or mobile money). Once completed, they can request for a mason, for example, and the app searches for artisans registered as masons. The app displays results which can be sorted based on distance, rating, etc. The user then selects their preferred artisan and they communicate directly. The user can send images (if any), provides measurements to help in costing. If this is done, an estimate is provided, and the artisan visits the site and confirms the cost, creates a bill of quantities which gets approved for publishing by the user. Once published, suppliers bid for the order to supply. The user selects the best supplier (usually based on price) and then pays for the material and delivery via the app. The artisan is notified when the delivery happens, so they can move to the site to begin working.

Diagram 2: Karabati App process flows

As construction is ongoing/complete, the artisan takes pictures to update the homeowner and use as evidence of experience for future assignments. Once complete, the artisan shares handover plans, and the homeowner pays the artisan. Ability to pay in tranches is also possible). The app provides for all construction-related skills including architects and designers. A contractor, for example, can bid for complete works which will then be broken down into functional areas that will be delivered as and when the homeowner has funds. A qualification verification feature will also be introduced linked to formal training institutions, to allow users to verify the competencies presented by artisans. Over time, good contractors, artisans, and suppliers will filter up to the ranking order based on their history of good service and pricing. Objectivity in the rating is ensured because the users rate the providers based on their experience – quality of work, meeting timelines, price, etc. This application is a first in Kenya. It leverages existing value chains and brings them together into a single interactive platform making it easier to navigate the challenges of construction in Kenya.   

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