Natural disasters are an ever-present threat to the real estate industry, as vividly illustrated by the recent fires in Los Angeles, in America.
The catastrophic event, which claimed lives, homes and billions of dollars in damages, highlights the urgent need for property owners and developers to rethink their disaster preparedness strategies.
Los Angeles’ wildfires have grown longer and more intense due to climate change, creating immense challenges for residents and the real estate sector. The aftermath of the fires saw entire neighbourhoods levelled, insurance premiums soaring, and many questioning the viability of rebuilding in high-risk zones.
This growing risk is not unique to the US alone, as the frequency and severity of natural disasters like hurricanes, floods, and wildfires have in recent years surged globally.
In 2024 alone, natural disasters caused Sh41.44 trillion ($320 billion) in damages worldwide, compared to Sh34.31 trillion ($268 billion) in 2023. Of this, Sh18.13 trillion ($140 billion) was insured, reflecting a rise from the previous year’s Sh13.72 trillion ($106 billion). Kenya has not been spared from these disasters either. According to the Kenya National Disaster Management Authority (NDMA), damage to property and infrastructure in urban centres like Nairobi, Kisumu, and Mombasa has been severe due to flooding.
It has disrupted housing projects, and reduced property values in low-lying areas.
Landslides triggered by heavy rains in regions such as Murang’a and Elgeyo Marakwet have caused severe destruction, with over 1,200 housing units either destroyed or severely damaged.
Beyond flooding and landslides, prolonged droughts in arid and semi-arid regions have worsened real estate challenges. Reduced water supply has increased construction costs, delayed ongoing projects, and led to declining land values. Developers are now faced with the reality that building in these regions requires more than traditional construction methods. It demands innovation and resilience.
A report by the International Fund for Animal Welfare (IFAW) highlights the scale of the crisis, noting that persistent rains in April and May 2024 killed at least 235 people and displaced over 260,000. In response to these challenges, Kenya’s real estate sector is increasingly adopting sustainable building practices to mitigate risks.
According to Julius Wambugu, director at Jukiwa General Agencies Ltd, developers are now constructing flood-resistant buildings by elevating foundations and using water-resistant materials such as treated cement and reinforced concrete.
In regions prone to drought, properties are integrating water-efficient designs, including rainwater harvesting systems and greywater recycling solutions. “These measures not only protect properties but also promote sustainability, which is becoming a priority for eco-conscious buyers and investors,” he said.
Climate-sensitive areas
He added that developers are obtaining critical data from the Meteorological Department to make informed decisions about construction in climate-sensitive areas.
“Proactive steps are being taken to identify flood-prone and high-risk areas before construction begins. This data allows engineers and developers to assess potential environmental threats and design structures that can better withstand extreme weather conditions,” he said.
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To strengthen climate resilience, developers use qualified engineers to ensure buildings are designed to withstand the effects of climate change.
“These professionals provide crucial guidance on structural integrity, recommending designs that can endure extreme weather conditions such as heavy rains, strong winds, and prolonged droughts,” he said.
Wambungu observed that collaboration between real estate developers, national and county governments, and disaster management agencies is proving essential in building disaster-resilient communities.
“Efforts such as improving drainage systems, enforcing zoning laws to prevent construction in high-risk areas, and investing in flood barriers are crucial,” he said.
