Nairobi Proposes Development Impact Fee and Green Building Rules for New Developments

Nairobi City County has unveiled proposed building control reforms that would require developers to meet new sustainability standards and pay a Development Impact Fee before obtaining building permits.

The proposals form part of the county's new Development Control Policy 2026, which is intended to guide how development is planned, approved and managed as Nairobi continues to experience rapid urban growth. The policy is still at the proposal stage and has not yet taken legal effect.

Among the proposed changes is a requirement for major developments to make financial contributions towards public infrastructure or community facilities through a Development Impact Fee. According to the draft policy, the contribution would help address the additional pressure that new developments place on roads, drainage, public utilities and other shared infrastructure.

The county is also proposing that new developments incorporate a range of environmental features into their designs. These include solar-ready roofs, Electric Vehicle (EV) charging points, rainwater harvesting systems and waste segregation facilities.

For high-rise developments, separate bins for recyclable and general waste would also become mandatory under the proposed rules.

The proposals come as cities worldwide increasingly incorporate sustainability requirements into planning approvals to improve resource efficiency, reduce environmental impacts and prepare urban infrastructure for changing transport and energy needs.

In Kenya, some sustainability requirements already exist under national law. For example, buildings supplied with hot water are required to incorporate solar water heating systems under the Energy Act and related regulations. Nairobi's latest proposals go further by introducing planning requirements that address renewable energy readiness, waste management and electric mobility infrastructure at the development approval stage.

The county says the Development Control Policy is designed to curb unplanned construction, strengthen compliance with planning regulations and ensure urban growth is matched with supporting infrastructure. It also introduces wider development control measures covering zoning, infrastructure protection and construction practices.

One notable proposal would require developers to repair roads damaged by construction activities before projects receive completion approval. The county argues that heavy construction traffic often leaves surrounding public roads in poor condition, creating repair costs that are ultimately borne by taxpayers.

If implemented, the proposed Development Impact Fee would represent a new cost for many developers seeking planning approval in Nairobi. However, the county has not yet indicated how the fee would be calculated or the rates that would apply to different categories of development. Those details are expected to emerge through the legislative and regulatory process.

The proposals are likely to attract close attention from property developers, architects, engineers and investors because they would affect both project design and development costs. Industry stakeholders are also expected to scrutinise how the new requirements interact with existing national building regulations and county approval processes before the policy is finalised.