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I started the company with less than Sh250,000 and the company now worth millions of shillings

Posted In Business, Real Estate - By admin on Wednesday, March 11th, 2015 With No Comments »

Making hay while construction sector booms : Dinara Developers Limited director, Wachira Muguku, tells says why there is room for more developers in Nairobi

inara Developers Limited director, Wachira Muguku

Dinara Developers Limited director, Wachira Muguku

What can you say about this industry now compared to a few years ago? The real estate sector in Kenya has seen a boom that begun in the late 2000s.

The property market is responding to demand created by the expanding middle class, given rising disposable incomes where potential home owners are now able to service mortgages.

Who are Dinara Developers Limited and what kind of projects do you do?

We are a construction, engineering and business services company operating in Kiambu and Nairobi counties in the commercial property development sector. We are also involved in buying of land, construction and then selling off the units to clients.

I started the company with less than Sh250,000 and the company is now worth over millions of shillings today. We plan to construct 10,000 units in next three years but we want to start with just 2,000 units this year.

We have already undertaken three projects and soon we will be undertaking our fourth project. We have Mashariki Park, Green View Apartments and Mazuri Side Apartments. All of them are still selling.

Do you take any special safety precautions on site?

Safety at our workplace is our number one priority. We promote an injury-free work environment for our employees, by providing our employees and subcontractors with the tools, gear, knowledge and resources needed to increase safety and reduce injury risk on every project we manage. We also encourage our sub-contractors to insure themselves before they start their contract.

How do you afford to offer lower prices for homes or are you cutting corners?

Quality is our number one priority and in every project, we do ensure that we use the best materials for construction. By sourcing raw materials from suppliers, we are able to cut the costs of middlemen.

Also, we use our own vehicles for transport and this helps cut transportation costs. We manage our own labour since labour accounts for about a third of the whole construction costs.Our homes range from Sh4m to Sh6m.

What are the challenges your company is facing and how are you coping?

The biggest challenge is that one is required to pay a lot of taxes to the national and county governments. With the introduction of National Construction Authority and re-introduction of capital gains tax, construction is more costly. Steel prices are unpredictable since they keep on changing now and then due various factors such as foreign exchange rates.

Are there opportunities in this industry?

Yes, there are lots of opportunities since more houses are needed than are available in the market. There is still room for more construction companies.

How was the idea born and what motivated you?

Initially the company was known as Dinara Vestures Estate Agents dealing with only land buying and supplying of construction materials to our clients. We later realised that most buyers of land were coming back to us asking for our guidance on the best construction methods. That’s when it hit us that there was a gap and we decided to fill it.

-www.dinaradevelopers.com

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