AN INVESTIGATION INTO THE EFFECTS OF TRANSPORTATION

INFRASTRUCTURE ON LAND DEVELOPMENT IN NAIROBI

METROPOLITANT
CASE STUDY OF EASTERN BYPASS

BY

GICHOHI CHRISPUS MWANGI

BRM/55515/2016

A RESEARCH PROJECT SUBMITTED TO THE SCHOOL OF

ENGINEERING, ENERGY AND THE BUILT ENVIROMENT IN
PARTIAL FULFILLMENT FOR THE REQUIREMENTS FOR THE
AWARD OF A DEGREE IN REAL ESTATE MANAGEMENT

MOUNT KENYA UNNIVERSITY

APRIL, 2019.

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DECLARATION
This research project report is my own original work and to the best of my knowledge has not been
presented in any other university or learning Institution for award of a diploma or degree.

Signed: ………………….Date: ..................................

GICHOHI CHRISPUS MWANGI

Registration No: BRM/55515/2016

Supervisor:
This research project report has been submitted with my approval as the university supervisor.

Signed: ............................. Date: ......................................

ENG. NICHOLAS SERYKHAN

Lecturer

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ACKNOWLEDGEMENT

I wish to acknowledge the almighty to whom all things have become possible
I would wish to acknowledge my family who provided all the moral support that I required during
the period of my studies. Acknowledgement also goes to my classmates and colleagues for their
technical support during the entire period of the course. I also recognize the support of my
supervisor Engineer Nicholas Serykhan for his cooperation and guidance in undertaking this study.

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ABSTRACT
Road infrastructure is a key pillar in a country’s economy since it helps to connect one area to
another. Poor road network leads to reduction in the economic activities since there will be slow
movement of goods and services in cases of perishable agricultural goods they may get perished
before reaching their market destination. Poor road network causes traffic congestion which
reduces productivity of the area and lowering both land and property value.
In this case the effects of transportation infrastructure on land development on the Eastern bypass
are discussed and how both have contributed both positively and negatively to Ruai, utawala,
Embakasi and surrounding areas. This areas are among the growing and developing area on the
outskirts of the CBD and have heavily benefited from development of this road.
The area was chosen due proximity to Nairobi central Business district and, also time constrains
.The area represents many areas around Nairobi CBDs which have had similar expectations as one
experienced in this area secondary data collected included the internet, published and unpublished
magazines among other materials .Primary data collected through sets of questionnaires which
were administered to land developers, local residents and property professionals (valuers and
property managers).
The study investigated how the development of the Eastern bypass had a direct impact on the land
development in areas. There was also an increase in the number of properties and a lot of
opportunities for real estate’s development.
The study finally recommend the appropriate measures to be undertaken in order to regulate and
control land development in the areas. The recommendations include; Uncontrolled development,
involvement of residents in projects, employment of residents and increase in social amenities

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Table of Contents
DECLARATION ........................................................................................................................................... 2
ACKNOWLEDGEMENT ................................................................................................................................... 3
CHAPTER 1 .................................................................................................................................................... 7
INTRODUCTION ............................................................................................................................................. 7
1.1 BACKGROUND STUDY ......................................................................................................................... 7
1.2 PROBLEM STATEMENT ........................................................................................................................ 8
1.3 MAIN OBJECTIVE ................................................................................................................................. 9
1.3.1 SPECIFIC OBJECTIVES ....................................................................................................................... 9
1.4 RESEARCH QUESTION ......................................................................................................................... 9
1.5 SIGNIFICANCE OF THE STUDY ............................................................................................................. 9
CHAPTER TWO ............................................................................................................................................ 10
LITERATURE REVIEW ................................................................................................................................... 10
2.1 Introduction ...................................................................................................................................... 10
2.2 LAND ................................................................................................................................................. 10
2.2.1 CHARACTERISTIC OF LAND ......................................................................................................... 11
2.2.3 LAND TENURE ............................................................................................................................ 12
2.2.4 LAND USE ................................................................................................................................... 12
2.2.5 URBAN LAND USE POLICY .......................................................................................................... 13
2.3 THEORY OF URBAN NUCLEATION AND GROWTH ALONG EASTERN BYPASS ................................... 13
(a)Axial development .......................................................................................................................... 13
(b)Radial /wedge sector theory .......................................................................................................... 14
2.4 REAL ESTATE DEVELOPMENT ............................................................................................................ 14
2.4.1 LAND DEVELOPMENT AND CONSTRUCTION ............................................................................. 15
2.5 PLANNING ......................................................................................................................................... 15
2.6 TRANSPORTATION INFRASTRUCUTRE DEVELOPMENT ..................................................................... 16
2.7 IMPACT OF EASTERN BYPASS ON LAND AND PROPERTY.................................................................. 16
2.8 CHANGES IN DEMOGRAPHIC. ........................................................................................................... 17
2.9 INVESTMENT OPPORTUNITIES IN REAL ESTATE ............................................................................... 17
CHAPTER THREE .......................................................................................................................................... 19
CASE STUDY AND RESEARCH METHODOLOGY ........................................................................................... 19
3.1 Introduction ...................................................................................................................................... 19
3.2 GEOGRAPHIC POSITION AND SIZE .................................................................................................... 19

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 3.3 RESEARCH METHODOLOGY .............................................................................................................. 19
3.3.1 DATA COLLECTION ..................................................................................................................... 19
3.4 PRIMARY DATA.................................................................................................................................. 19
3.5 SECONDARY DATA............................................................................................................................. 21
CHAPTER FOUR ........................................................................................................................................... 22
DATA ANALYSIS, RESEARCH FINDINGS AND PRESENTATION ..................................................................... 22
4.1 INTRODUCTION ................................................................................................................................. 22
PRESENTATION OF DATA ON THE BENEFICIARIES OF THE ROAD AND THE KEY LAND USES .................. 23
4.2 URBAN LAND USERS/LAND BENEFICIARIES ...................................................................................... 24
4.2.1. Commercial (offices and shops) ................................................................................................ 24
4.2.2. INDUSTRIAL PROPERTIES .......................................................................................................... 25
4.2.3. RESIDENTIAL.............................................................................................................................. 25
4.2.4. SPECIAL PURPOSE ..................................................................................................................... 25
4.3 INVESTMENT OPPORTUNITY/BUSINESS OPPORTUNITY ................................................................... 26
4.3.1 RECENT DEVELOPMENT ............................................................................................................. 26
4.3.2 MARKET PERFOMANCE .............................................................................................................. 27
4.4 BUSINESS OPPORTUNITY .................................................................................................................. 27
4.4.1 PIE CHART................................................................................................................................... 28
4.4.2 TABLE FOR LAND AND PROPERTY PRICES .................................................................................. 28
4.4.3 LINE GRAPH FOR LAND AND PROPERTY PRICES ............................................................................ 29
4.5 SERVICE DELIVERY ............................................................................................................................. 30
CHAPTER 5 .................................................................................................................................................. 31
SUMMARY, CONCLUSIONS AND RECCOMMENDATION ............................................................................. 31
5.1 INTRODUCTION ................................................................................................................................. 31
5.2 SUMMARY AND CONCLUSIONS OF FINDINGS .................................................................................. 31
5.3 RECOMMENDATIONS........................................................................................................................ 32
5.4 AREA OF FURTHER RESEARCH........................................................................................................... 32

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CHAPTER 1
INTRODUCTION
1.1 BACKGROUND STUDY
Transportation infrastructure refers to a framework that supports our transport system. This
includes roads railway, ports, and airports. National and Local government are responsible for
development of our transport infrastructure. Development and maintenance of physical
infrastructure are prerequisites for rapid economic growth and poverty reduction as they influence
production costs, employment creation, access to markets and investment opportunities.
Mega infrastructure projects are planned for East Africa and are set to create unique opportunities
projects and open new market in Kenya, Uganda and Ethiopia. Industry sector expected to benefit
from the planned infrastructure development including oil and gas, mining, agricultural and retail.
Transport Infrastructure has undergone major upgrades over the past 5 years in order to support
the high trade demand in East Africa region. New analysis from Frost and Sullman. Infrastructure
Tracker Kenya reveals that Kenya is set to become a hub for intra-regional trade in Africa.
The Kenya Infrastructure Networks has recently been following the population density. The world
Bank (2010) reports that the national agro-economic activity and population density are skewed
towards the southern half part of state alongside the transport corridor connecting Mombasa to
Nairobi to Kisumu ,kisumu to Busia and the areas around Mt. Kenya region.
In Kenya the road transport system is used to more people and goods and it is vital in
interconnection of the modes of transport as well as acting a vital linkage in access to basic social
services. The road transport system accounts for approximately 93% of all cargo shipment and
passenger travel in the country (The standard limitted, 2014). Roads networks are pillars for
economic, social, and political progress (MUGAMBI).
The Eastern Bypass road is a 39 km road that starts on the Ruiru Kiambu to Airport (JKIA) north
road which is on Mombasa Road. The Eastern Bypass is among the three bypasses that were
constructed by the GOK and financed by Chinese Government. Their construction seek to ease
congestion in Nairobi’s downtown area surrounding suburbs. The bypass has opened various
peripheral regions to the city of Nairobi thus prompting development in these areas due to ease in
accessibility and land availability for development.
Property developers around Ruiru about 22km north of Nairobi say prices have shot up by close
to 100% since the construction of the bypass (GROUP). It is also taking shape as the next industrial
hub with investors keen to take advantage for room of expansion and better infrastructure. The
industry is providing a plug and plug concept where they develop all their infrastructure internal
roads, water supply, power, sewerage and other amenities like hospitals fire station and mall within
the same compound.
The Kenyan economy continues to greatly improve due to the construction of the eastern bypass
road amidst the negative and the positive effects that continue to be felt, goods and services can
now be seen to reach a different market in time. (Olivia)

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The eastern bypass road construction project in Nairobi is expensive and can accommodate a heavy
of congestion of traffic, accidents, environmental pollution and enhancing economic development.
The vision and rational in improving this transitional program was to aid in movement of people
living along this road and also enhance economic productivity. (Olivia)

1.2 PROBLEM STATEMENT

Infrastructure has resulted in the development of dormitory towns. This towns usually have a
poorly planned land and property development .The development is as a result of lack of approval
and avoiding the right development process. (Physical planning Act , 2010). The type of structures
that may arise may not meet the legal required standard resulting in wearing down of the building.
The poor planning usually results in poor drainages areas which may have a direct impact on
human health and safety. Poor planning starts from the entire structure, aesthetics, waste
management, policies, and many others.
Infrastructure leads to Urban sprawl whereby there is expansion of the cities in both population
and geographic area. The cities of developing world are growing at an extremely rapid pace.
Millions of people are migrating each year from rural to urban areas for all practical purposes,
given up trying to provide more than minimal sanitation, health, housing and transportation
services to their dense population. (TODARD). This massive immigration usually raises the
demand for housing and incase of underemployment of these people there may be creation of
informal settlement and squatter houses.
Research reveals that roads increases agricultural development in previously isolated areas. In sub
urban areas this is usually not the case since agriculture faces stiff competition from industrial and
residential sector. Industrial hubs are taking over as investors take the advantage of the room of
expansion and better infrastructure .The high demand for houses for residential unit also pins down
the agricultural sector and since land is infinite, the developer are forced to target the agricultural
land for construction.
Land and property values. A research carried out on the impact of highway on property values
shows that improvement of transportation infrastructure improves the accessibility to a particular
area thus increasing the premium that commercial, industrial, residential users are willing to pay
to purchase or rent property. Their negative impacts on land value of transportation infrastructure
and their impacts of land value (d, 1997). The negative such as water pollution, noise pollution,,
environmental destruction ,road accidents and the value of land being high in terms of land use
infrastructure can cause rearrangement of land use since areas that were may a stage for matatu is
no longer their
Ecological destruction .Excessive construction could put huge pressure in the natural and
ecological environment when meeting the need for economic development and social
improvement .Ecological destruction can be because of the biological habitat. Fragmentation and
change of water flows and decline water quality .Environmental impact use may not
be well done thus leading to ecological destruction.

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1.3 MAIN OBJECTIVE
Assess the effect of transportation infrastructure on land development

1.3.1 SPECIFIC OBJECTIVES

 To establish the efficiency of service delivery since construction of the Eastern Bypass.
 To establish changes to land use and land value along the Eastern Bypass and the
surrounding
 To establish the effect investment opportunities along Eastern Bypass
 To establish the efficiency of road network in land development
 To establish the impact of infrastructure has on transformation of land and property values

1.4 RESEARCH QUESTION

 Who were the beneficiaries of the construction of the Eastern Bypass?
 What are the key land uses in the Eastern Bypass?
 As a result of the Eastern Bypass how has business opportunities come into effect?
 Is there fluctuation in land and property prices now and before its construction?
 How has the road infrastructure improved services delivery in the area?

1.5 SIGNIFICANCE OF THE STUDY

 Investors. Transportation infrastructure (roads) are the arteries through which the economy
pulses by linking producers to markets ,workers to jobs, students to school, roads are vital
to any development agenda. Investors view transportation infrastructure as requirement
before investing. This study will show how investors use infrastructure as a special tool in
decision making on where to invest in.
 Local authority. The local authority are responsible in showing how changes in land use
either from agricultural to other uses. It will indicate whether competence is followed
 Property managers will be able to show the trends in land value emerging as a result of the
infrastructure and also the rental value of various property.
 Kenya National Highway Authority. The study will bring out the role of the KNHA on
matter relating to maintenance of road infrastructure.

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CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
The review of literature involves the systematic identification, location and analysis of documents
containing information related to research problem being investigated
In this chapter available literature will be reviewed along with the subject matter of the research
which is an investigation of the effects of transportation on infrastructure on land development.
The chapter targets to bring out the concept in the topic clear, it will undertake on components of
central topic and will be the basis for developing the researcher’s ideas on concept of study. The
review of literature in addition aims at providing details of previous studies and there by
identifying gaps that exist which the researcher attempts to investigate Literature from different
disciplines that will be used include: Land, Real Estate development, property and land values,
theory of growth of towns, planning, land use, changes in demography, investment opportunities
and the impact on road upgrading.

2.2 LAND
The actual land is the soil ,ground, and earth plus any buildings on the land fixture attached to the
land ,mines, and minerals .Land include the soil plus anything below it to the center of gravity and
everything above the sky and anything which is permanently fixed to the soil .Land is important
as it is viewed as source of wealth since the ownership of land comes with a lot of advantages to
the owner like the building investing in land(directly and indirectly) informs the basis of most
livelihoods .In economics land is more than the surface of earth. This one of the factors of
production .We borrow mostly from principles of economic theory and analysis when we define
land as a factor of production. The rational person whether a farmer, industrialist, or a professional
business person is principally concerned with progression and enjoyment of a better lifer through
the production of wealth for present and possibly for the future .Land has value to man including
understanding the social needs of the users in relations to the land and the rights appropriate to use
for which the land is put to use ,secondly ,effective legal protection against illegal access and
arbitrary eviction of pupils from their school land and legal social remedies against the loss of
rights ,thirdly appreciating the values attached to land and how insecure land rights curtails some
of these values.

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Concepts of land and its value to humankind
CONCEPT OF LAND PHYSICAL VALUE CONCEPTUAL VALUE
Land as terra firma Natural resources Home planet earth
Land as physical space Spatial extent location Sense of space scarcity
location and extent :value in
use

Land as deity Spiritual value of material of

land
Land as property institution Land extent ,development Value in trade and investment
,service uses potential
Land as factor of production Combination of natural Livelihood value
resources
Land as capital Has inherent capital values as Security of plans, investment
secure physical resources value social safety net value
Land as consumption good Exploitation value Economic opportunity
Land as commodity Tradable resources Wealth creation/risk value
Land as human right Land rights value Human dignity
Land as nature Environmental system Essential for life
Land as resource Sum of all above Source of power
Land as environment System of administration for Value of societal environment
sustainability consciousness value of system
of sustainability
Adapted from South African journal of geometric
2.2.1 CHARACTERISTIC OF LAND
The term land in economics is often used in a wider sense .It does not mean only the surface of the
soil ,but it also includes all those natural resources which are free gifts of nature .Its therefore
means all free gifts of nature .These natural gifts includes ;rivers, forests ,mountains, and oceans
,heat of the sun ,light climate weather rainfall .Therefore land is a stock of free gifts of nature land
possess following characteristic ;
1. Free gift of nature. Man has to make efforts in order to acquire other factors of production
but to acquire land needs no efforts
2. Fixed quantity. The total quantity of land does not change.it is limited and cannot be
increased or decreased with human efforts .no alteration can be made in the surface area of
land
3. Land is permanent. Land is indestructible thus it cannot go out of existence
4. Land is primary factor of production .in any kind of production process we have to start
with land .like for industries ti helps to provide raw materials and in agriculture crops are
produced on land
5. Land is immovable. Land cannot be transported from one place to another
6. Land differs in fertility. fertility of land differs on different pieces of land.one piece produce
more and others less

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 7. Supply of land is inelastic. The demand for a particular commodity makes way for the
supply of that commodity but the supply of land cannot be increased or decreased
according to its demand.
2.2.3 LAND TENURE
The way land is held or owned by individuals and groups or the set of relationship legally or
customarily defined amongst people with respect to land .Land tenure system is a set of formal
or informal rules and institution which determine access to control over land and natural
resources .the 2010 constitution (chapter 5 60-68) identifies the land tenure system in Kenya
as public ,private and community.it has been noted that freehold and leasehold land has also
been seen to make up land tenure regime.
The statutory land tenure system has operated under various statutes such as the government
land act(282) the registered land act cap 300 and the sectional properties act no 21 of 1987 .the
statues above relating to land have been consolidated and repelled in land registration act no 3
of 2012
2.2.4 LAND USE
Land use in Kenya falls under rural and urban. Rural land is a function of the physical
environment and comprises farm land, forest, national parks, and utilized land that is the arid
and semi-arid areas .Urban areas falls within the jurisdiction of municipal town and urban
council created from time to time through operation of local government act. When land
becomes urban the local residents lose their rural tradition, enters the market economy,
surrender the jurisdiction of the use of their land respective local authority .through the
operations of the town planning regulations and building codes, the authority and zoning in
land value which are the highest at the center diminishing to low values at the peripheral urban
centers .Syagga categorized land use as;
 Rural land use
 Urban land use
 Special land use

Rural land use. Minerals prospecting and mining in Kenya is controlled by mining act and its
subsidiary legislation under this acts, ownership of land does not include ownership of any
minerals. Farm include crop farming ,grazing, building and relevant infrastructure .forest land
comprises two forms of asset usually valued separately ,the site and the tree growing upon it .The
value of forest land is based on what it might fetch if left or sold in it natural an improved state.
Urban land use; commercial properties (offices and shops) factors that affect investment in
commercial offices property include; location, design and let able area. The location of a building
both regionally and locally is of increasing importance .the location of columns and pillars an
important in allowing for flexible let able space. Factor that influence the quality of retail
,investment include the direction and volume of pedestrian flow ,availability, and regularity of

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public transport respective balance of other retail and non-retail use in terms of competition and
complimentary potential for expansion and availability of parking space.
Industrial properties. Industrial rents and development is being encouraged by continued
government support and though lower per unit area are usually more than office rents. Leases are
normally granted for longer periods than the usual granted for shops and offices. For industrial
land value access and proximity to railway line for transport or river for discharge of effluent are
of great importance.
2.2.5 URBAN LAND USE POLICY
Urban land development is part of overall land policy framework and should be reviewed in same
sense as general physical development policies .Then basis goal of urban land policy is to achieve
the social economic maximization of land use .Four types of land use policies which help to
achieve above
 Accumulation policy; this gathers and take custody of land, finance, for land development
and information of public benefit. (I) land banking; outlines purchase of land by
government in advance for future use.it is easy to define but difficult to implement rarely
is land available at cheap price. (ii) Land taxation. Its purpose is to raise local authority
revenues and control government revenues. (iii) Compulsory acquisition. Its main is to
make land available for public purpose.
 Controlled policies. This aims at regulating the manner in which land is used and developed
how it changes hand like through sale leases .The price commands the market like zoning
,regulation of urban land according to building ,design and land use
 Adaptive policies. Purposes is to foster and promote land development every existing land
use is made to be in line with the requirement of land development law.
 Distributive policies. Make land available to various urban land users .They include legal
policies on that like land use plans allocation procedures and compensation methods for
land taken over .This conflict works best under a clear organized rules which are rarely
found in many African cities.

2.3 THEORY OF URBAN NUCLEATION AND GROWTH ALONG EASTERN

BYPASS
(a)Axial development
The theory was proposed by Babcock Timothy in 1932.It is an off show of concentric rings based
on Von Thunen transport model. This theory states that urban land uses arrange themselves along
major transport routes and influence of transport and communication line congregates different
land uses along around .This books and their surrounding area as the route expand and extend
further more land user surround them hence more intensity of land development .Routers which
are bigger or those leading to reputable areas or economically strategy areas tend to attract a large
diversity of land use .The actual sorting out of this issues is the influenced by common factors of
site selection .This theory applies either in whole or part on some major cities of African, Transport
facilities are limited so that movement will be concentrated along particular routes and urban
expansion will follow those routes extending each types of land use along main transport routes

13
especially the best and fastest route. The urban built up area will assume a star based patterns at
number of aims will correspond to the number of main routes.
(b)Radial /wedge sector theory
Proposed by Hommer Hogt in 1939 .The theory suggest that cities grow not in strict concentric
zones as proposed by Ernes but in sector of similar types of land use development like residential
areas may expand along certain existing transportation routes or topographical features or natural
amenities. Every dominant sector forms a sub market of its own land use and around it are found
other land uses to compliment it. The arrangement of this uses is made in reference to dominance
of original sector. Some sector include CBD, transportation industry, low income, middle class,
residential. Homer recognized that housing or residential neighborhood in American cities in hid
analysis he placed low income groups in proximately to industries land for easy accessibility and
he suggested that over time .High quality housing tends to expand outwards from center along the
fastest travel routes.
Examples of road transport infrastructure in different countries
1.London
The M25 london orbital motorway has affected levels of accessibility in Britain.Changes so
caused are thought likely to affect regionally development .Accessibility is measured using
time,distance and cost impendance functions for heavy goods vehicles movements .The results are
somewhat different from those found in the previous research involving different spartial and
temperal circumstances.During 1980s places with highest general levels of accessibility (including
those arising from the construction of the MR5)score poorest on the changing development
changes indicators.However,when the components .
2. Europe
The highway system a communications networks on a national and international scale per
excellence.is here examined in light of the relationships which it makes possible between cities of
Europe significance.The rank of each of these cities in terms of accessibility to the other poles can
be calculated mathematically and a hierarchy of these cities can thus be established while the
position of a given city within this hierarchy is linked to physical and human geography (natural
barriers in the first case; boundary effects extremely variable destiny according to country and
region in the second)It is also linked to characteristics of national highway systems

2.4 REAL ESTATE DEVELOPMENT

Real estate development is multifaceted business process encompassing activities that range from
renovation and re-lease of existing buildings to the purchase of raw land and the sale of developed
land or parcel to others .Development can be defines as the making of any material change in the
use or density of any buildings or land or the subdivision of any land. Development may be broken
into two parties;
i) Land development; which is the process of subdividing and preparing land for building

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 ii) Construction; an actual erection of buildings and improvement
2.4.1 LAND DEVELOPMENT AND CONSTRUCTION
The Eastern bypass has opened up its surrounding areas thus influencing the economic potential
of the area, which has direct implications to the livelihoods and overall standard of living of people
of the area .Development in the area has drastically increased the population along major towns
along the eastern bypass. Buying and selling of land has also been on an increase .The area has
undergone densification as most of the new development are high rise residential apartments.
There is also increased transformation of land uses from single dwelling to multi dwelling
residential as well as to commercial use. The Eastern Bypass is taking shape as the next industrial
hub with investors taking advantage for room for expansion on better infrastructure .The industry
parks are providing total development concept where they develop all the infrastructure internal
roads ,water supply, power ,sewerage and other amenities ,recent development ,recent
development vary from trunk sewers ,transportation system improvement ,retail development
,affordable housing initiative and face change development.

2.5 PLANNING
Planning is the conscious direction of efforts towards the attainment of ratio
(Kiita, 2013)nally desired goal and further notes that is the opposite of improvising .Land use
planning is the process of regulating the use of land in an effort to promote more desirable social
and environmental outcomes as well a more efficient use of resources .Goals of land use planning
may include environmental conservation ,restraints of urban sprawl ,minimization of transport cost
,preventable of land conflict and a reduction in exposure to pollutant.
Urban planning, land use planning seek to order and regulate land use in efficient and ethical way,
thus preventing land use conflicts. Government use land use planning to manage the development
of land within their jurisdictions land planning includes rent control ,zoning laws , development
controls ,building codes .in control their recommendations on the implication this Eastern Bypass
road to the growth and development of surrounding centers
(i) Comprehensive land use plan to guide the development of the area especially taking
into account the different development conditions that the bypass has brought .This is
important to ensure sustainable development of the area. This also involves reviewing
the current policies guiding zoning, land use, subdivision, change of use, extension of
lease; to prevent haphazard development in the area
(ii) Policies regulating land prices to be formulated as these have the potential to rise
restrictive levels dues to speculation. Developers in the area are already setting
themselves up to receive super normal profits from land sales as a result of the impact
of the Eastern Bypass on land price in the area.
(iii) Informal daily markets predominant at the road reserves be located to an official
space for such activities. This is also true for the sand trucks which usually park at the
road reserves is necessary so that the space can be used for what it was intended
provision of service way leaves.

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2.6 TRANSPORTATION INFRASTRUCUTRE DEVELOPMENT
Land use patterns affect accessibility people’s ability to reach desired services and activity which
affect mobility the amount and type of travel activity .Transport is vital to the well-functioning of
economic activities and key to ensuring social wellbeing cohesion of populations. Transport
ensures everyday mobility of people and is crucial to the production and distribution of goods
.Adequate infrastructure is a fundamental precondition for transport system. In their endeavor to
facilitate transport infrastructure bottlenecks and missing links as well as lack of funds to remove
them road improvements and the consequent users benefits can create condition conducive to
increase commercial activity in the area of the project. Transport investment can stimulate business
growth through expansion of existing business of attraction of new business in the corridor
reduction cost in moving goods and materials and increased inter region of traffic .There have
been numerous studies on the effect of transportation improvement on real estate values. The
expansion of cities prompts upgrading of transportation lines to cater for the flux of the volume of
traffic both human and material .A city growth in most cases results in the growth of other centers
around it.
The government of Kenya is moving steadily toward economic development over the next couple
of decades Vision 2030 is a development plan and policy that looks to increase the country GDP
.Infrastructure development is the major areas stated for improvement under the vision .Improved
transport reliable and efficient port facilities and reliable telecommunication network will ensure
the success of Kenya’s economic growth .Responsibility for the management of the road networks
falls under the ministry of transport infrastructure development and implemented through KNHA
,KERRA,.
According to Jason 2001 location, condition and security are relevant value determines location is
in relevant to proximity to major public centers and social amenities. A property in a deteriorating
state will definitely have reduction in value while well maintained properties appreciates in value
.Jason added that infrastructure plays a major role in value appreciate of property and location
that suffer from value depreciation of property and location that suffer from value depreciation of
property and location is by far the most important factor.

2.7 IMPACT OF EASTERN BYPASS ON LAND AND PROPERTY

Transport development projection improves a certain areas accessibility but also increases its
levels of exposure to traffic intensity and noise pollution. The externalities are evaluated by
homeowners and demonstrate that changes in accessibility results in a significant positive effect
on the price of housing in nearby municipalities but that increased noise pollution and traffic
intensity level results in a decrease in prices.
Transport infrastructure development is undertaken to improve accessibility at a regional or urban
level and to relieve traffic congestion in the areas .This development is evaluated by property
owners and residents in the affected areas and is capitalized in the price of housing .However the
effect of new transportation development, roads of highways in particular may have positive or
negative effects on the price of housing. Improved accessibility may shift housing prices upwards,
whereas higher traffic noise levels and increase in traffic density may reduce prices in the house
that are adjacent to the new road .Gaining an understanding of whether a development project is

16
valued positively or negatively is a key issue in evaluating regionally policy. Accurate estimations
of such valuations may be used as valuable criterion in a social cost benefit analysis. Analyzing
the effects of various positive and negative externalities of the development project maybe also be
used in project evaluation and assessing which externalities is most dominated to what extend it
affects housing for the future policy planning. According to Jason 2001 location, condition and
security are relevant value determinant. Location is in relevant to the proximity of major public
Centre’s and social amenities. Security of lives and property is very essential to prospective
investors for that reason real property locate in prime prone areas experience minimum value
appreciation. The condition of the property should be considered in value estimation. A property
in deteriorating state will defiantly have reduction in value while the well maintained properties
appreciate in value. Infrastructure plays a major role in value appreciation over property and
location that suffer from value depreciation argues that location is by far the most important factor.

2.8 CHANGES IN DEMOGRAPHIC.

Investment in transport infrastructure is the main factor responsible for decreasing origin
destination travel times which are them implemented into a potential accessibility measure. The
measure uses population size as proxy destination attractiveness thus changes in population
distribution as well as the development of transport infrastructure are mutually responsible for
changes in accessibility. The potential accessibility measure is applied to access change in
accessibility therefore experiencing a significant change in population distribution. Components
of accessibility namely transport and land use usually lead towards a change in the level of
accessibility and its spatial pattern resulting in a transformation of the level of territorial cohesion.
However the selection of the particular impedance parameters greatly influence the importance
assigned to an element of infrastructure or a component of population accessibility. Several
impedance functions are applied in order to capture their influence on the balance between the
infrastructure and population components of accessibility change.

2.9 INVESTMENT OPPORTUNITIES IN REAL ESTATE

From research conducted by Cytonn investment it identified the Eastern Bypass as one of the
beneficial of investment in real estate due to infrastructure .Infrastructure improvements such as
roads enhances a notions connectivity thud unlocking the economic potential of a region by
opening it up for trade and investment ,as it allows for easy transport of labor ,goods and services
to where they are in demand .In real estate infrastructure acts facilitate the sector growths as its
availability or lack thereof determines the growth momentum of the real estate sector are;
 Increased real estate development project. Infrastructure development opens previously
inaccessible areas and improves connectivity thus making areas more attractive for
investment. There have been springing up of several shopping malls as real estate investors
and realizers sought to tap into growing middle class. Also several residential residents’
projects have come up.
 Increased value of properties. Investment infrastructure resort in increased demand for
property which the causes an increase in property prices. Land in areas along transport
infrastructure registered consistent price appreciation signaling increased demand for the
property as a result of infrastructure development.

17
To gauge investment opportunities based on infrastructure key sectors weighing them in terms
of importance are
i. Roads- accessibility of an area is the most important factor in real estate especially for
home buyers and commercial real estate investors
ii. Water- its reliable availability is one of the factors that home buyers look when
investing.
iii. Sewer connectivity
iv. security

18
 CHAPTER THREE
CASE STUDY AND RESEARCH METHODOLOGY
3.1 Introduction
In this chapter the researcher focuses on some characteristic of the study area and methodology of
the study.

3.2 GEOGRAPHIC POSITION AND SIZE

The Greater Eastern bypass links Mombasa road and the Thika Superhighway Road. This is a 39
kilometer bypass and the Ruai-Kiambu road (NJOKA, 2010). It crosses the Northern bypass and
the Ruiru railway line into Thika Road. After crossing Thika Road it crosses Kamiti, Gatharaini,
and Nairobi rivers into Ruai. The corridor then passes through Kangundo road and proceeds to
Mombasa road Embakasi Garrison and North Airport Road.

3.3 RESEARCH METHODOLOGY

A researcher needs to develop instrument with which to collect the necessary information. This
section will identify, describe and apply the procedure and the methodology that will be followed
in conducting the study. It describes the data collection, the sampling methods and procedure, the
statistical parameters and data analysis techniques.
3.3.1 DATA COLLECTION
The nature of data analysis sought dictate the research method to be used and are convenient to
the research according to the type of data. A research using a case study area may require use of
qualitative data analysis since it involves observation of social units which can either be person,
family or entire community.
Qualitative research is an umbrella term for various types of interpretive modes of inquiring
commonly used in social sciences. A research obtain detailed information about the phenomenon
being studied and then try to establish pattern trends and relationships from information gathered.

3.4 PRIMARY DATA

I. OBSERVATION:
This is whereby the behavior to be observed and then developed are listed and the researcher
checks off each as it occurs .This permits the observer to spend time thinking about what is
occurring rather than how it records it and this enhances the accuracy of the study. The units
of study are upcoming development projects either commercial or residential, parcel of land
whether cultivated or not that are in close proximity to the road.

II.TAKING PHOTOGRAPHS
Photography is taken to supplement the observation made in the process, they help to capture
the real phenomena on the ground.

19
III.QUESTIONNAIRE
Each item in the questionnaire is developed to address a specific objective, research question
or hypothesis of the study .Residents, builders, Real Estate Professionals and land planners
were adequately captured by administration of questionnaires. The resident were asses what
they feel about the development of the road and so the property professionals operating around
the study area.
IV.ORAL INTERVIEWS
This is an oral administration of questionnaire and to obtain maximum co-operation from
residents .Interview with key informant will be conducted as they will allow clarification to be
sought where the response is not clear to the researcher
SAMPLING METHODS AND PROCEDURES
After deciding on the sample size, the researcher formulates a procedure of selecting the
subject or cases to be included in the sample.
A sampling frame work which forms the units of observation in a study is a list of cases which
sample can be selected.
STATISTICAL PARAMATERS
I.POPULATION
Population is a set of complete set of individuals, cases or object with some common
observable characteristic. It is often impossible to study the whole of the target population and
therefore researcher identify and define an experimentally accessible population. The
population require in giving data includes; residents, land officials, Land professionals among
other people.
II.SAMPLING
Dealing with all me3mbers even of a small accessible population would still involve a
tremendous amount of time and resources and the researcher therefore select a given number
of member or cases from the accessible population. The nature of study required these
members; Estate Valuers, physical planners, property developers and residents to be sampled.

20
3.5 SECONDARY DATA
This usually entails work done by other people with topics that have relevance to the researcher
study topics. The researcher may review published papers, articles, journal related to land
development in relation to road infrastructure

21
 CHAPTER FOUR
DATA ANALYSIS, RESEARCH FINDINGS AND
PRESENTATION
4.1 INTRODUCTION
This chapter will entail the analysis of data obtained in connection with the research questions.
Data from the local residents, land developers and property managers were the respondents to the
questionnaire. Various towns which served as data collection centers were as follows with their
response rate.
TOWN/CENTER RESIDENT R.RATE P.M R.RATE L.D R.RATE
Ruiru bypass 10 10 2 1 0 0
roundabout
Kamakis 10 10 0 0 1 1
Bypass Ruai 15 13 8 5 3 2
Utawala 10 9 2 2 0 0
Embakasi 5 5 1 0 0 0
TOTAL 50 47 13 8 4 3

Table1: Presentation of data from the towns along bypass. From the above table 5 centers or towns
were chosen where concentration of the study was focused. The response rate in percentage were
as follows.
i) Local residents
ii) Property managers
iii) Land developers
In which 67 questionnaires were administered where 58 were collected from the respondents;
therefore the total percentage is beyond 70% meaning its reliable data.

22
PRESENTATION OF DATA ON THE BENEFICIARIES OF THE ROAD AND
THE KEY LAND USES
4.1.1 TABLE 2:
Town Special
centers commercial industrial Residential purpose
Ruiru
Bypass 10 2 33 5
Kamakis 10 5 15 20
Bypass
Ruai 20 3 10 17
Utawala 10 0 20 20
Embakasi 20 0 10 20

23
For this table each centers a maximum of 50 land uses were taken. A bar graph will show the land
users and the beneficiaries

BENEFICIARIES OF ROAD AND KEY LAND USES

35

30

25
commercial
20 industrial
15 Residential
10 Special purpose

0
Ruiru Bypass Kamakis Bypass Ruai Utawala Embakasi

4.2 URBAN LAND USERS/LAND BENEFICIARIES

4.2.1. Commercial (offices and shops)
Factors that affect investment in commercial office property include location, design and lettable
area. The location of a building both regionally and locally is of increasing importance. The
location of a column and pillars are important in allowing for flexible lettable space. Factors that
influence the quality of retail investments include the direction and volume of pedestrian flow,
availability and regularity of public transport, respective balance of other retail and non-retail use
in terms of completion and complimentarily potential for expansion and availability of parking

space

24
4.2.2. INDUSTRIAL PROPERTIES
Industrial rents and development is being encouraged by continued government support and
through lower per unit area are usually more stable than office rent. Leases are normally granted
for longer periods than the usual time granted for shops and offices. For any industrial land value
access and proximity to a railway line for transport or river for discharge of effluent area of great

importance (Paul).
4.2.3. RESIDENTIAL
There is a large deficit of demand for accommodation which unless government intervention it
leads to a statutory direction of investment. Resident accommodation is varied and includes flats
and bungalows. Factor affecting values of residential properties are location and accommodation

facilities (Paul)
4.2.4. SPECIAL PURPOSE
Exceptional properties include; schools, hotels and restaurants and petrol stations. The demand for
this land users is usually derived from the basic need of human. The demand for this land use

25
usually responds to the changes in price but is rather in elastic as compared to with other

commodities.

4.3 INVESTMENT OPPORTUNITY/BUSINESS OPPORTUNITY

In this I looked at the brief overviews of the eastern bypass, its recent developments and the market
performance of real estate development. Eastern bypass with its fast growing rate has attracted real
estate supported by the good transport links of the Thika superhighway.
4.3.1 RECENT DEVELOPMENT
1. Industrial developments
The eastern bypass is taking shape as the next industrial hub with investors keen to take advantage
of the room for expansion and better infrastructure. There industrial park have come up along the
road. The three parks-Tatu city industrial, the Infinity industrial park and the Viken thirty Industrial
park.
2. Retail developments
Case in point quickmart supermarket, and other chains of supermarket developed along these
Eastern bypass road.

26
 3. Trunk sewers
This is where there has been construction of sewerage network in the area.
4. Face-changing development
These include the mall under construction in the Ruai Bypass junction which changes the area a
lot. Also the three industrial parks are face changing developments.

4.3.2 MARKET PERFOMANCE

i) Uptake indicates the speed sales there by giving the estimate of the time taken by the
investment
ii) Rental yield. This is how fast an investor can get back the returns on the investments.

4.4 BUSINESS OPPORTUNITY

The growths of the area has attracted other investors who can complement these rates of
development. Based on the findings the following are the most recommended business
opportunities.

a) Hardware 14
b) Electrical 5
c) Hotels and clubs 20
d) Sand and quarry stones selling 4
e) Supermarkets 3
f) Small and medium enterprises (shops) 16
As per the number of respondents most said that those above were the business opportunities.
The pie chart below shows the number of business opportunity from the respondents.

27
4.4.1 PIE CHART

BUSINESS OPPORTUNITIES

23%
26% Hardware
Electrical shop
Hotel and Clubs
8% Sand and Query story
5%
Supermarkets
6%
Small and medium enterprices

32%

In this part also it’s noted there were a lot of coming up projects which were under construction
and this was an observable data and from the interviews conducted the rate of crime has decreased
since most residents including the youth were already employed.

4.4.2 TABLE FOR LAND AND PROPERTY PRICES

Years

Land size 2015 2016 2017 2018

1/8hectare 400000 1900000 2000000 2500000

1/4hectare 3000000 5000000 6000000 6100000

1/2hectare 6000000 10000000 11000000 12000000

1hectare 15000000 20000000 22500000 24000000

28
4.4.3 LINE GRAPH FOR LAND AND PROPERTY PRICES
30000000

25000000

1/8hect
20000000 are
1/4hect
No.crime

15000000 are
1/2hect
are
10000000
1hectar
e
5000000

0
2015 2016 2017 2018

In Eastern Bypass has strategic development programs that have been put in place and therefore
attracting investors and speculators who hope to cash in on this development programs, as a result
of the demand therefore pushing the prices higher. Improved transport network is among the many
factors that usually lead to high pricing of the real estate and therefore these factors are the key
drive of demand in real estate property. Since the construction of this Eastern Bypass the values
have taken an upward trend and increasing tremendously. The researcher also discovered that
undeveloped land in the area was as a result of land owners not selling their land waiting for further
appreciation in price.
Property value is dependent upon many characteristics such as the location, physical
characteristics, view, amenities and accessibility have an increase in property value since buyers
value the infrastructure and are willing to pay higher prices. Owners of properties receive better
connection to a transport network, thus not only benefit from improved access to transport services.

29
4.5 SERVICE DELIVERY
The area has good supply of water and electricity. The electricity connecting is in major households
that have been developed. The shortage of water has been addressed by delivery of water by water
Lorries to areas that have limited water. All this has been possible through construction of this
road. Also issues of sewer connectivity has been addressed through construction of sewer lines in
the area.
With increased service delivery the area will be able to cater for all levels of housing from singles
to three bedroomed apartments hence this fact leads to all levels of people being catered thus
preventing any form of slum emerging.

30
 CHAPTER 5
SUMMARY, CONCLUSIONS AND RECCOMMENDATION
5.1 INTRODUCTION
The main objective of the research was to establish the effect of transportation infrastructure on
land development .The objective and the research question were the basis of this evaluation and
making the recommended solutions based on the findings.
Chapter four entailed presentation of data collected from the field and analyzed. This chapter
presents the conclusions for the study by together With the recommendations on the basis of the
objectives and findings made.

5.2 SUMMARY AND CONCLUSIONS OF FINDINGS

Based on the main objective of the study, the researcher established that the effect of this Eastern
Bypass has led to development of the land. This is because projects that are coming up of
commercial, residential, industrial and special purpose has increased. The researcher was able to
identify that Eastern Bypass has attracted investors to either buy land or develop, also due to the
speculation of increase in price. During the field data collection the researcher identified a lot of
growth in the real estate sector in this area.
Based on the specific objectives the service delivery of water, electricity and sewer line has
increased. This has been due to the repair of water pipes, electricity connectivity being pushed by
the accessibility of any drainage.
The land value has increased tremendously because of the demand from people. The Eastern
Bypass opened the area and link it with Thika superhighway and Mombasa Road. With this, the
area has been next industrial hub due to better accessibility and also space for expansion of
industries. For the residential sector it’s a good area to settle for its proximity to the Central
Business District. With such demand the value of land will increase because of the demand from
all the land users.
The investment opportunities in the area are mainly being taken by the small and medium
enterprises (SMES), Hotels and Restaurants and supermarkets. With SMES, they will cater for all
the levels of people whether the low income and middle income earners in this area. Hotels and
Restaurant will act as resting and recreation space for the residents and also other road users in this
area. Other investment opportunities are like: Hardware, Electrical shops and sand and quarry
stone selling.
The Eastern Bypass has transformed the land and property prices. New property designs are
coming up and the land developers are choosing the area because of accessibility, proximity,
availability of amenities and the demand factor of property. With this factors, the property prices
will tend to increase over time.
A trend that is along the Eastern Bypass is where most commercial and special purpose land users
are located on the roadside, since it acts as a marketing strategy while residential take the interior

31
phase of the area. Many residential properties like the gated communities, flats and high-rise
buildings.
Eastern Bypass has improved the efficiency in transport system. The Bypass has made travelling
more efficient and cost effective since accessibility has improved. The improved transport led to
an increase in the demand for housing in the area hence rental in the area increased.

5.3 RECOMMENDATIONS
1. The county government should work with private sector to find a way in which frequent
garbage collection will be collected. This is because the county government would not
reach all the areas, the private sectors, the garbage collectors would be able to go house to
house to collect the garbage.
2. Uncontrolled developments, the demand for housing in the Eastern Bypass has resulted in
uncontrolled developments in the region whereby buildings are coming up without
considerations of factors like Aesthetics, air quality and air pollution. From the interviews
conducted to residents, most say that land which used to be grazing lands for cows and
goats is no longer there and that the tree which would block air pollution and improve air
quality are no longer there. The county government through the physical planning
department should control this by making guidelines and policy in the construction this
projects. Involvement of professionals in this will be a better way to solve the uncontrolled
developments in the area.
3. Involvements of residents or communities in projects. The land residents should be well
advised and given the knowledge to understand land processes and the way to put their
lands in the Highest Best Use (HBU).
4. Employment of residents in this industrial centers coming. With proper skills of this
residents on various technical skills it will enable them work in this industries and with
them working there will be a decrease in crime rate in the area.
5. Increase the social amenities. Increase in the number of government hospitals, schools will
help to serve the low and middle income earners in the area instead of them travelling to
hospitals that are in the outskirts of the town.

5.4 AREA OF FURTHER RESEARCH

i) A similar study to be conducted on a different area where transportation infrastructure has
led development.
ii) An investigation of the role played by the eastern bypass in the development on N Nairobi
metropolitan.
iii) An investigation of how infrastructure affect land use and land values.

32
Bibliography
D, A. (1987). Encyclopedia of real estate.

d, S. (1997). Urban Loop ,Access and The cost of land.

GoK. (2007). The Kenyan vision 2030.

GROUP, H. (n.d.). HF FOUNDATION ADVOCACY. Retrieved from https://www.hfgroup.co.ke

Kiita, M. E. (2013). An Investigation into the causes and effects of Agricultural land use conversion in
Urban fringes.

MUGAMBI, A. M. (n.d.). Roads Infrastructure Investment and Economic Growth in Kenya.

N, M. N. (2000). An Examination into provision of road network and its effect on urban development.

NJOKA, D. (2010). IMPACTS OF TRANSPORTATION INFRUSTRUCTURE ON UPGRADING PATTERNS OF

LAND USE. NAIROBI: UNIVERSITY OF NAIROBI.

Olivia, C. (n.d.). Effects of Eastern Bypass Nairobi Road Construction project on Economic Growth in
Kenya.

Physical planning Act . (2010).

Syagga, P. (1994). Valuation Handbook.

The standard limitted. (2014). Nairobi: the standard group centre.

TODARD, M. P. (n.d.). ECONOMICS FOR A DEVELOPING WORLD.

33
QUESTINAIRES FOR THE LAND DEVELOPERS
This questionnaire is in aid of research being conducted by Chrispus Gichohi Mwangi a student in
Mount Kenya University ,department of engineering energy and the built environment ;as partial
requirements for their award of degrees in bachelors of Science in Real Estate Management.The
aim is to facilitate investigation into infrastructure on land development.The information will be
treated with confidentiality .

1. Name of the respondent?

2. What is the name of the company?

3. For how long have you been involved in this profession along the eastern bypass?

4. How has population increase affected land development?

5. What has been the trend in land development?

6. What are the reasons of the eastern bypass being an industrial hub?

7. What has been the impact of Eastern bypass on property development?

8. What is the current trend in land values?

9. Which is the most prevalent land use being considered by investors?

10. What is the impact of the eastern bypass on service delivery?

34
QUESTIONARES FOR THE PROPERTY PROFFESIONALS, VALUERS AND LAND
PLANNED
This questionnaire is in aid of research being conducted by Chrispus Gichohi Mwangi a student in
Mount Kenya University, department of engineering energy and the built environment as partial
requirements for their award of degrees in bachelors of Science in Real Estate Management. The
aim is to facilitate investigation into infrastructure on land development. The information will be
treated with confidentiality.

1. .Name of the respondent?

2. What is the name of the company?

3. For how long have you been involved in this profession along the eastern bypass?

4. What is your area of specialization in real estate?

5. What is the difference in land use before construction of land in use3 before and after
construction of the eastern bypass?

6. From your experience why is the eastern bypass becoming an industrials hub?

7. What is the trend in land values since the construction of the eastern bypass?

8. What is the trend in rental values along the dormitory towns in the eastern bypass?

10. Do you think the eastern bypass has attracted investments opportunities?

11. With the increase in population along the road has it affected service delivery?

35
QUESTIONAIRES FOR THE LOCAL RESIDENTS
This questionnaire is in aid of research being conducted by Chrispus Gichohi Mwangi a student in
Mount Kenya University, department of engineering energy and the built environment; as partial
requirements for their award of degrees in bachelors of Science in Real Estate Management. The
aim is to facilitate investigation into infrastructure on land development. The information will be
treated with confidentiality.
1. What is your occupation?
2. Are you a tenant resident?
3. For how long have you been a resident in this area?
4. What prompt your move to this neighborhood?
5. Has the development on the Eastern Bypass changed on land development?
6. State the reason for your answer above
7. What is the most prevent land use in this area?
8. Has the construction of this road improved service delivery?
9. What are the trend in land value for the area since construction of the eastern Bypass?
10.Do you think there investments opportunities that have come up along the Eastern Bypass

36