KENYA Trends and Developments Contributed by: Lorna Mainnah, Joseph Omwenga, June Lomaria and Herbert Karanja, Dentons Hamilton Harrison & Mathews
“Ardhisasa” has a chatbot that utilises AI tech - nology to provide users with personalised assis - tance and information regarding the system and real estate matters. Smart buildings AI can be utilised in the real estate sector to optimise building operations and energy effi - ciency. Smart building systems equipped with AI algorithms can monitor and control heating, ventilation, and air-conditioning systems, light - ing, security, and occupancy levels in real time, resulting in cost savings and sustainability. For example, the iconic Britam Tower in Nairobi uti - lises AI technology to monitor the tower’s energy and utility consumption. Conclusion Overall, the adoption of AI in the real estate sec - tor in Kenya is still in its infancy, but is steadily growing as the Government of Kenya, the private sector, and other stakeholders in the real estate industry recognise the potential for increased efficiency, accuracy, and innovation in real estate transactions. ESG Kenya’s real estate sector is starting to adopt ESG principles, thus demonstrating a commit - ment to sustainable development and ethical business practices. This trend mirrors a global shift towards sustainability, with ESG considera - tions becoming essential for ensuring long-term corporate success and promoting community welfare. The adoption of ESG principles in the real estate sector is influenced by both legal obligations and industry-driven initiatives, reflecting a com - prehensive approach towards sustainability in Kenya’s business landscape.
Legal framework and ESG integration The Companies Act under Section 655 (4) (b) mandates corporate directors to evaluate ESG issues that might influence a company’s future performance. This underscores the importance of integrating ESG considerations into corporate governance and decision-making processes. Furthermore, legislative proposals such as the Preservation of Human Dignity and Enforcement of Economic and Social Rights Bill, 2021 and the Carbon Credit Trading and Benefit Sharing Bill, 2023 aim to establish frameworks for enforcing economic and social rights and regulating car - bon credit trading respectively. In addition to legal mandates, private sector initiatives are pivotal in advancing ESG princi - ples. The Nairobi Declaration on Sustainable Insurance and the Kenya Bankers Association’s Sustainable Finance Initiative exemplify the insurance and banking industries’ drive towards incorporating ESG considerations into business models. Real estate industry and ESG trends Despite the absence of mandatory ESG compli - ance requirements for the real estate industry under Kenyan law, some stakeholders have pro - actively engaged global and local ESG stand - ards to integrate sustainability principles into their projects. The following are key trends within the sector. • Sustainable construction practices . These include utilising eco-friendly materials such as green steel, green concrete and sustainable timber for construction projects, reflecting a commitment to minimising environmental impact. • Air quality improvement . Design elements that enhance air quality are incorporated in con -
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