These roads are more expensive than SGR..1Km is 1.1B..SGR cost far less.

[RV Pundit]

• Tweet

http://www.businessdailyafrica.com/Nairobi-Western-Bypass-set-for-construction/-/539546/3229776/-/g8s50kz/-/index.html

[Empedocles]

http://www.businessdailyafrica.com/Nairobi-Western-Bypass-set-for-construction/-/539546/3229776/-/g8s50kz/-/index.html

The Standard wrote about this a few years ago:

Sound investment in infrastructure is a key driver of economic growth.

Countries with economies under transition spend a big percentage of development funds on the road network.

But road construction in Kenya is a major drain on our meager resources. The Kenyan taxpayer parts with Sh83 million for every kilometer of road tarmacked. In Ethiopia the same distance of road costs Sh34 million and in the Democratic Republic of Congo, it comes much cheaper at Sh20 million. This comparison is for a standard road; two lanes, seven meters wide. The writer is a communications consultant who analyses business politics

http://www.standardmedia.co.ke/article/2000095442/why-our-road-construction-costs-are-obscene

[Kim Jong-Un's Pajama Pants]

On another thread Pundit does an excellent job demonstrating how small time corruption by cops on the beat impacts national GDP.   It would be interesting to see how these numbers on infrastructure construction, which is said to constitute a substantial part of GDP(I don't have the numbers handy), pan out in a similar analysis.

[RV Pundit]

I am assuming this doesn't factor the expensive kenya land compensation payouts. If this doesn't then we are in problem. Certainly our road construction per kms I have heard is out of this world.

But road construction in Kenya is a major drain on our meager resources. The Kenyan taxpayer parts with Sh83 million for every kilometer of road tarmacked. In Ethiopia the same distance of road costs Sh34 million and in the Democratic Republic of Congo, it comes much cheaper at Sh20 million. This comparison is for a standard road; two lanes, seven meters wide.

[Georgesoros]

Govt needs to tell contractors how much it'll pay per kilometer. It must be the average for the region - Uganda, TZ, Ethiopia. A billion per km is ridicilously expensive. Unless they are using gold!!!

[RV Pundit]

Yeah, it tragic. Uhuru project to tarmac 10,000kms came a gropper when contractor quoted as much as 200M to tarmac essentially rural roads.

On another thread Pundit does an excellent job demonstrating how small time corruption by cops on the beat impacts national GDP.   It would be interesting to see how these numbers on infrastructure construction, which is said to constitute a substantial part of GDP(I don't have the numbers handy), pan out in a similar analysis.

[Georgesoros]

Ever heard of eminent domain?
Govt should use it to acquire the land.
It is for a common good. Rich countries use it all the time.

I am assuming this doesn't factor the expensive kenya land compensation payouts. If this doesn't then we are in problem. Certainly our road construction per kms I have heard is out of this world.

But road construction in Kenya is a major drain on our meager resources. The Kenyan taxpayer parts with Sh83 million for every kilometer of road tarmacked. In Ethiopia the same distance of road costs Sh34 million and in the Democratic Republic of Congo, it comes much cheaper at Sh20 million. This comparison is for a standard road; two lanes, seven meters wide.

[RV Pundit]

Yeah. It would be interesting to see the costing breakdown. Why would 4 lane road cost that much.

Govt needs to tell contractors how much it'll pay per kilometer. It must be the average for the region - Uganda, TZ, Ethiopia. A billion per km is ridicilously expensive. Unless they are using gold!!!

[RV Pundit]

Of course. What the hell do you think kenya uses. Complusory acquistion or eminent domain. The difference come in what fair compensation is. If US gov want to acquire a square foot of New York that is going to be damn expensive. The same with kenya gov. Generally land in Kenya is very expensive. Then you have folks who have legally "grabbed" land and it cost a fortune to pay them. For example Eastern by-pass they had to pay some Kiano window some billions...nearly equal to total road construction...coz they had to bring down his huge buildings.

I have no issues with land being expensive...it not within gov control...gov has to pay for fair market price for land...but constructions cost...should be pretty much less than say Uganda.

Ever heard of eminent domain?
Govt should use it to acquire the land.
It is for a common good. Rich countries use it all the time.

[Empedocles]

I am assuming this doesn't factor the expensive kenya land compensation payouts. If this doesn't then we are in problem. Certainly our road construction per kms I have heard is out of this world.

Should have posted this along with the earlier article, as it tries to point out some of the reasons why the costs are ridiculously over inflated:

Kenya among most expensive countries in Africa to construct roads

Road construction in Kenya has become very costly, making the country one of the most expensive in Africa.

A study of 172 road infrastructure projects, published by the African Development Bank (AfDB) in May 2014, showed that the unit cost of rehabilitating a kilometre of road in urban areas of Kenya was $440,000 in 2011. In Angola, the cost of constructing a similar kilometre of road amounted to $101,600.

The Kenya Urban Roads Authority (KURA) blames these high costs on unfettered land grabbing by cartels; illegal allocation of land particularly by the (former) provincial administration and county governments; conflict of interests between various stakeholders and over-valuation of land parcels.

The cost is also increased by illegal payments made to those who have constructed buildings on road reserves; unnecessary cost of relocating power lines and other utilities and an escalation of fees owed to public agencies.

These costs have over-burdened the taxpayer as the government pays billions of shillings to either acquire plots that are on road reserves or to compensate people who have constructed buildings there.

At the same time, the government has been paying Kenya Power and water and sewerage companies millions to relocate power lines and other services.

Further costs go towards hefty legal fees for numerous court cases that lead to long delays in starting road projects.http://www.theeastafrican.co.ke/news/Kenya-most-expensive-countries-in-Africa-to-construct-roads-/-/2558/2619524/-/item/1/-/4nqd8h/-/index.html

The eating is massive, from the very bottom all the way to the top.

EDIT: posted at the same time as @RV Pundit.

[RV Pundit]

I think we need Mumbi Ngugi to save kenyans here. It seem the problem is land acquisitions gone awry. The main reason why Uganda feared the pipeline will be expensive.

[Kadudu]

The land around Lamu port facilities has seen speculators going there in droves. The land prices have exploded making LAPPSET a very expensive excersice.

I think we need Mumbi Ngugi to save kenyans here. It seem the problem is land acquisitions gone awry. The main reason why Uganda feared the pipeline will be expensive.

[RV Pundit]

What is the solution to this land speculation. Seem legal and constitutional.

The land around Lamu port facilities has seen speculators going there in droves. The land prices have exploded making LAPPSET a very expensive excersice.

[Kadudu]

Why would one pay today for 10M Ksh for an acre in Lamu when the same land was going for 0.5M per acre only 4 years back?
Solution is govt sets prices and sticks to them. Even people who have built on road reserves are being compensated. They belong in the dock by interfering with public land.
I hear the bigges land compensation for SGR in Taita Taveta was the Kenyatta family. Is there not a conflict of interests?
Uhuru already made too much money with his cut in the SGR deal. Is he not satisfied or was the rest for his mum?

What is the solution to this land speculation. Seem legal and constitutional.

[RV Pundit]

This is clearly unconstitutional and gok doesn not have the last say on this. It the high court which determine the price if Gok valuation differ with owners. And normally the market price determine this.

Why would one pay today for 10M Ksh for an acre in Lamu when the same land was going for 0.5M per acre only 4 years back?
Solution is govt sets prices and sticks to them. Even people who have built on road reserves are being compensated. They belong in the dock by interfering with public land.
I hear the bigges land compensation for SGR in Taita Taveta was the Kenyatta family. Is there not a conflict of interests?
Uhuru already made too much money with his cut in the SGR deal. Is he not satisfied or was the rest for his mum?

What is the solution to this land speculation. Seem legal and constitutional.

[Georgesoros]

They should use an average of 10yrs when compensating coz people inflate as soon as they hear a road.
At this rate kenya will be very expensive to invest in 20yrs.

This is clearly unconstitutional and gok doesn not have the last say on this. It the high court which determine the price if Gok valuation differ with owners. And normally the market price determine this.

Why would one pay today for 10M Ksh for an acre in Lamu when the same land was going for 0.5M per acre only 4 years back?
Solution is govt sets prices and sticks to them. Even people who have built on road reserves are being compensated. They belong in the dock by interfering with public land.
I hear the bigges land compensation for SGR in Taita Taveta was the Kenyatta family. Is there not a conflict of interests?
Uhuru already made too much money with his cut in the SGR deal. Is he not satisfied or was the rest for his mum?

What is the solution to this land speculation. Seem legal and constitutional.

[RV Pundit]

That make sense. Parliament need to pass such a law. If it won't be unconstitutional. Certainly something need to be done on land speculators.

They should use an average of 10yrs when compensating coz people inflate as soon as they hear a road.
At this rate kenya will be very expensive to invest in 20yrs.

[Empedocles]

That make sense. Parliament need to pass such a law. If it won't be unconstitutional. Certainly something need to be done on land speculators.

[Georgesoros]

Yes it is difficult but the other difficult thing is paying a billion per km to construct a road.
Also why not tax every inch of land to finance building of schools?

Am against any kind of tax but will support this.
This should be managed by achool districr boards. Not national or county

That make sense. Parliament need to pass such a law. If it won't be unconstitutional. Certainly something need to be done on land speculators.

[Empedocles]

Yes it is difficult but the other difficult thing is paying a billion per km to construct a road.
Also why not tax every inch of land to finance building of schools?

Am against any kind of tax but will support this.
This should be managed by achool districr boards. Not national or county

The Capital Gains Tax, if properly implemented, would have gone a long way into cooling the real estate market of speculators. Unfortunately, it's too vague and confusing.