Kenya has been experiencing a
construction boom for the last 15 years. The government has also been investing
heavily on 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 capital being the most
significant. To overcome this, Kenyans build privately in piecemeal fashion. This
approach presents a challenge for home owners 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
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.
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 delivery happens, so they can move to the
site to begin working.
As construction is ongoing/complete,
the artisan takes pictures to update the home owner 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
verify the competencies presented by artisans. Over time, good contractors,
artisans and suppliers will filter up 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 bring them together into a single interactive
platform making it easier to navigate the challenges of construction in Kenya.
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