Why Kisii town is a new gem for real estate developers

Property investors are scrambling to put up housing developments in Kisii town and its environs, attracted by good road networks and security.

Boosted by billions of shilling from the dispora that have spurred rapid growth of the region’s economy, Kisii is not just an agricultural town any more but a gem for investors in varied sectors.

The region is famous for its production of food, especially bananas and avocado, but population pressure has led to intensive demarcation of land.

Real estate agents say the rising demand for land that is hardly available has led to a huge spike in prices.

Evans Mbaka, a land dealer in the town, says buyers are attracted by the availability of water, electricity and passable roads.

“For the first time in more than 20 years, Kisii County is having major roads being undertaken by both the county and national governments,” he says.

Skyrocketed

Construction of the 90-kilometre Kisii-Isebania road at a cost of Sh8.6 billion has, for instance, led to the skyrocketing of land prices along the corridor.

The multi-billion-shilling project was identified by East Africa Community Master Plan 2012 and is being funded by the African Development Bank in conjunction with the Kenyan government. 

The project that started three years ago has more than 15 access roads and has resulted to jostling for space in the outskirts of Kisii town.

Numerous investors who had bought land outside the town years ago are now setting out to develop the parcels.

The road project has seen some investors in the hotel and hospitality industry move outside Kisii town and put up facilities in some of the serene areas in the outskirts.

Silky tarmac has replaced potholed roads, and with it the price of land has shot up.

Between Nyamataro and Nyambera, less a kilometre from the Central Business District, the price of an eighth of an acre that was selling at Sh500,000 about 10 years ago is currently selling at Sh4 million.

Egesa, along the Kisii-Kisumu road, which was previously shunned by land buyers, has in the recent past seen development of several gated communities. Here there is no more land for sale.

A 25 by 100 feet piece could go for Sh5 million. An investor has put up a multi-million-shilling hospital there - Nairobi Women Hospital.

Nyanchwa, Getare, Suneka, Mosocho and Nyakoe are becoming the next destination for high-end housing developments.

Duncan Siman, the chief executive of Siman Property, says land prices have gone up by 70 per cent.

“The opening up of businesses such as hardware shops and general stores is a sign of growth in the real estate,” he says, adding that returns on real estate in the town are at peak.

“Kisii was deemed rural some 15 years ago but the booming real estate development is unparalleled.”

One of the fastest growing economies in Western Kenya, Kisii accounts for 60 per cent of total money circulating in the region.

Central Bank of Kenya has already built a money clearing and forwarding centre in the town that is due for opening soon.

Steady growth

The steady and consistent growth of financial, hospitality and health services in the town can be attributed to a number of factors including the increasing demand for socially responsible investment.

Kisii Governor James Ongwae says the county and national governments have implemented key projects in water, agriculture and transport that will spur economic growth in the area.

“We have readily available human capital. The peaceful co-existence of our people has given us a lead in attracting key players in the economy,” he says.

Richard Nyabwari, a resident of Nyabioto area along the Kisii-Migori road, says devolution has brought about expansion of urban areas. 

“We even have non-locals buying land in the outskirts of Kisii town, which was not the case few years ago,” he says.

eabuga@standardmedia.co.ke

Why Kisii town is a new gem for real estate developers

Why Kisii town is a new gem for real estate developers

• Dealers say prices have shot up by at least 70pc in 10 years
• Silky tarmac has tarmac replaced potholes in a road upgrade programme that has opened up the outskirts to investors

Eric Abuga

Property investors are scrambling to put up housing developments in Kisii town and its environs, attracted by good road networks and security.

Boosted by billions of shilling from the dispora that have spurred rapid growth of the region’s economy, Kisii is not just an agricultural town any more but a gem for investors in varied sectors.

The region is famous for its production of food, especially bananas and avocado, but population pressure has led to intensive demarcation of land.

Real estate agents say the rising demand for land that is hardly available has led to a huge spike in prices.

Evans Mbaka, a land dealer in the town, says buyers are attracted by the availability of water, electricity and passable roads.

“For the first time in more than 20 years, Kisii County is having major roads being undertaken by both the county and national governments,” he says.

Skyrocketed

Construction of the 90-kilometre Kisii-Isebania road at a cost of Sh8.6 billion has, for instance, led to the skyrocketing of land prices along the corridor.

The multi-billion-shilling project was identified by East Africa Community Master Plan 2012 and is being funded by the African Development Bank in conjunction with the Kenyan government. 

The project that started three years ago has more than 15 access roads and has resulted to jostling for space in the outskirts of Kisii town.

Numerous investors who had bought land outside the town years ago are now setting out to develop the parcels.

The road project has seen some investors in the hotel and hospitality industry move outside Kisii town and put up facilities in some of the serene areas in the outskirts.

Silky tarmac has replaced potholed roads, and with it the price of land has shot up.

Between Nyamataro and Nyambera, less a kilometre from the Central Business District, the price of an eighth of an acre that was selling at Sh500,000 about 10 years ago is currently selling at Sh4 million.

Egesa, along the Kisii-Kisumu road, which was previously shunned by land buyers, has in the recent past seen development of several gated communities. Here there is no more land for sale.

A 25 by 100 feet piece could go for Sh5 million. An investor has put up a multi-million-shilling hospital there - Nairobi Women Hospital.

Nyanchwa, Getare, Suneka, Mosocho and Nyakoe are becoming the next destination for high-end housing developments.

Duncan Siman, the chief executive of Siman Property, says land prices have gone up by 70 per cent.

“The opening up of businesses such as hardware shops and general stores is a sign of growth in the real estate,” he says, adding that returns on real estate in the town are at peak.

“Kisii was deemed rural some 15 years ago but the booming real estate development is unparalleled.”

One of the fastest growing economies in Western Kenya, Kisii accounts for 60 per cent of total money circulating in the region.

Central Bank of Kenya has already built a money clearing and forwarding centre in the town that is due for opening soon.

Steady growth

The steady and consistent growth of financial, hospitality and health services in the town can be attributed to a number of factors including the increasing demand for socially responsible investment.

Kisii Governor James Ongwae says the county and national governments have implemented key projects in water, agriculture and transport that will spur economic growth in the area.

“We have readily available human capital. The peaceful co-existence of our people has given us a lead in attracting key players in the economy,” he says.

Richard Nyabwari, a resident of Nyabioto area along the Kisii-Migori road, says devolution has brought about expansion of urban areas. 

“We even have non-locals buying land in the outskirts of Kisii town, which was not the case few years ago,” he says.

eabuga@standardmedia.co.ke