KCB plans relocation, signals exodus of banks from the city centre

KCB is set to relocate to a new multi-billion shilling headquarters in Upper Hill in a move that will step up the exodus of big financial service corporations from Nairobi’s central business district.

KCB’s pension fund announced on Monday that it will construct a 22-storey commercial building outside Nairobi’s central business district at a cost of Sh2.1 billion, to be completed by early 2013. The building’s entire floor space will be rented out to the bank, guaranteeing the 4,000-member pension fund rental income.

The 21-floor building will be the second tallest outside the city centre, one level shy of the 22-floor Rahimtulla Tower in the same area.

Dubbed KCB Plaza, the building is designed to feature green technology, following the global trend where developers use modern construction materials to cut power costs and conserve water.

The move follows a trend by other financial services firms like Standard Chartered Bank, Britak, Equity Bank, and Commercial Bank of Africa that have or are in the process of relocating from the city centre.

“The city centre is no longer an ideal location for the business of our nature due to congestion of people and traffic,” said Peter Muthoka, the bank’s chairman. “KCB Plaza will give us an opportunity to move critical administrative units and corporate banking business to the more tranquil Upper Hill,” he said, adding that the planned 450-car parking capacity will be a benefit to the bank’s corporate clients.

The building is designed to use natural light during the day and will be fitted with solar panels to reduce consumption of power.

The building will be fitted with smart technologies to manage consumption of water and energy, in addition to harvesting rain water.

Set the pace

KCB Plaza will become the latest building to be constructed using the energy efficient “green” technology. CocaCola’s new headquarters in Upper Hill, Standard Chartered’s new building in Westlands, and EnglishPoint Marina (valued at Sh4 billion) in Mombasa are designed to set the pace for green buildings in Kenya.

The EnglishPoint Marina complex – targeting high end tourists – plans to install technologies that will reduce energy consumption by 15 to 20 per cent in each apartment, while recycling of used water for re-use in toilets is expected to reduce the need for fresh water by up to 60 per cent.

The developers also plan to extract methane gas from sewer for use in kitchen of a hotel that is part of the complex.