How mixed-use developments are reshaping Kenya's urban landscape

Kenya has witnessed a surge in mixed-use development projects,  transforming the urban landscape and redefining the way people live, work, and play in cities.

These projects, blending residential, commercial, and sometimes industrial spaces in a single complex, are reshaping the real estate sector and according to experts fostering sustainable urban growth.

Some of the notable mixed-use developments in Kenya are Two Rivers Mall and Residential Complex, Garden City, Tatu City development and the upcoming one Business Bay Square (BBS) Mall in Eastleigh, about 4km east of Nairobi’s Central Business District

Mixed use developments are becoming all the rave.

According to Knight Frank, these developments are not the traditional, one high-rise buildings with a mix of retail space on the lower floors, office space on the upper floors, and, occasionally, some penthouses on the top-most floors.

They are properly integrated developments delivering commercial, residential and retail space in far bigger magnitudes

These expansive project combines shopping, entertainment, dining, and residential units, creating a vibrant community within its premises.

The business models are increasingly becoming popular destination for locals and tourists alike, offering a diverse range of retail outlets, restaurants, cinemas, and recreational facilities.

This according to industry players will be the new battle front in development of malls going forward.

The multibillion developments are planned to accommodate residential, commercial, industrial, and recreational zones, providing a comprehensive urban environment for its residents and businesses.

Digitally savvy middle-class Kenyans are increasingly demanding local brand experiences that align with what they see regionally, continentally and internationally, and are issuing new demands.

Such mixed-use developments have become popular in many locations globally.

In Dubai, for instance, residential homes, offices, and amusement parks compete for space with the city’s skyscrapers.

The most daring of them all has been the upcoming development at BBS Mall in Eastleigh Nairobi, the largest in East and Central Africa.

The development is twice the retail space of the second placed mall.

BBS Mall Chief Marketing and communications officer Dalmar Abdi says that following the completion of the region’s largest mall by size, the second phase will be the development of office and residential apartments.

“The mall phase two of the development is coming, it will be office blocks tower, two serviced block apartments and an international five Star hotel,” said Abdi.

The project size covers 6.4 acres with the property comprising serviced plots for commercial, residential and mixed-use as well as recreational and utility plots, landscaped areas and infrastructure routes.

Compared to its peers in the mixed use development, BBS mall has already achieved 80 per cent occupancy in less than year with the remaining space already recording high enquiries.

A factor that Abdi attributes to already available market that needed just the right products and services delivered to them.

He says the development is divided into retail and whole sale section, with the retail area already oversubscribed.

“Overall we are at 80 per cent of occupancy, the ground floor and lower ground are almost full also. Eastleigh is a large business and financial hub if you see the amenities that people needed they had to go out to get the amenities that they can now get here,” added Adbdi.

The occupancy rate has been faster than Garden City that attained a 92 per cent occupancy in January 2024, the first time in four years.

Eastleigh, which boasts of heightened business activities, has emerged among the Key hubs in the country accounting for more than 30 per cent of Nairobi’s tax revenues and five percent of Safaricom business.

Over the years, the area has evolved in leaps and bounds. It has curved its niche in more ways than one and sealed its place as a commercial hub to be reckoned with.

It is estimated that the area transacts an estimated $18,000,000 (Sh2.3 billion) daily.

President William Ruto and German ambassador to Kenya Sebastian Groth last month toured the development in an unofficial visit.

Traders expressed confidence that the visit by the Head of State is a testament to the improved security in the region, which is now driving more investments.

Emulating Dubai’s love for luxury, Abdi says in the coming three months’ plans are underway for the development of live gold trading area at the facility.

 “Soon we are working on a gold souk, where you will be able to buy and sell gold in real-time. It will be a complete gold market almost the Dubai style that will happen in the next two to three months,” added Abdi.

The thriving construction industry in Eastleigh has transformed the area’s skyline, setting it apart as a notable citadel in the growth of the country.

Garden City was the first fully-integrated development in Kenya. It was also the first private project of that nature to be granted a Vision 2030 status.

With a focus on sustainability and smart infrastructure, BBS says it’s looking to become a model for future urban developments in the region.

In Mombasa, the EnglishPoint Marina is a another of a mixed-use development that integrates luxury residences, a marina, retail spaces, and hospitality services.

The waterfront project not only enhances the city's skyline but also promotes tourism and economic growth in the coastal region.

These mixed-use developments are not limited to major cities; smaller towns like Eldoret are also experiencing a transformation.

The Rupa's Mall and Residences project in Eldoret is bringing modern retail experiences and upscale living options to the area, catering to the growing demand from residents and investors.

According to the experts, the rise of mixed-use developments in Kenya can be attributed to several factors, among them rapid urbanisation and population growth, which have increased the demand for integrated spaces that offer convenience and accessibility.

Moreover, the shift towards mixed-use developments aligns with global trends favouring sustainable and walkable communities.