(Xinhua) -- Foreign
investors and Kenyans seeking to buy land in the
East African nation have to dig deeper in their
pockets as prices surge following improved political
Political stability after last
year’s disputed elections has pushed up demand for
land as both small and big investors scramble to get
Land buying companies top the list of those who
have pushed up demand for the resource as they buy
huge parcels, subdivide into eighth-acre portions
and sell to individuals.
Demand has shot up both in areas around the
capital and upcountry, according to industry
In areas surrounding Nairobi, which include
Rongai, Kitengela, Syokimau, Athi River, Juja, Ruiru
and Ruai, the cost of an eighth of acre has hit
40,000 U.S. dollars in residential areas neighboring
towns and 25,000 dollars in those further away.
Latest appreciation in prices has been in the
last three months following political truce between
President Uhuru Kenyatta and opposition leader Raila
Odinga in March.
The pact that followed two divisive polls in 2017
led to political stability that unlocked activities
in the real estate sector.
"The truce gave people the confidence to buy land
and build houses because of the resultant positive
political climate," Antony Kuyo, a consultant at
Avent Properties, said Wednesday.
Kuyo said property developers moved to complete
projects that had stalled due to election activities
and others have sought land to build, the main
reason prices have been on the rise.
He said that prices can only go up, and not down
in the coming months due to several factors.
"I don’t see any reason to make prices fall.
The economy is expected to grow this year by
about 6 percent, Saccos are willing to lend money to
people investing in land and the government is
moving to invest in houses. Coupled with good
political environment, prices cannot fall," he said.
In several upcountry towns, eighth-acre pieces of
land are currently going for at least 20,000
dollars, with prices sustaining upward trend as
business booms thanks to county governments.
Within the town centers, the cost of such plots
has hit up to 150,000 dollars as real estate booms.
Similarly, within central business districts of
towns in the suburbs that border Nairobi, an eighth
goes for up to 350,000 dollars, thanks to
construction of malls and other business centers.
"I have been looking for quarter acre to buy in
my rural home but the price is prohibitive.
"Before elections, I was asked to part with
"Right now sellers are asking for 25,000
dollars," recounted Moses Kinyanjui, who comes from
A recent survey by Cytonn, a Nairobi-based
investment firm, noted upcountry towns are
experiencing faster rise in land prices due to
increased demand for commercial and residential
In Nyeri, central Kenya for instance, the survey
showed an eighth-acre piece of land is being sold at
an average of 20,000 dollars, from less than 10,000
dollars two years ago.
And in other parts of the country, the same piece
of land is being sold for at least 15,000 dollars.
Cytonn attributed the rising price of land across
the country to high rental yields for both
commercial and residential properties.
Rental yields in Nyeri, Mombasa, Kisumu, and
Nakuru stand at between 9.6 percent and 13 percent
for commercial properties and 4.1 percent to 6
percent for residential.
The huge returns are pushing up investment in
Another key factor set to push up land prices in
the coming months is the actualization of the
housing projects across the country in President
Uhuru Kenyatta’s Big Four Agenda, according to
The massive projects in which the government
seeks to build 500,000 units by 2022 will push up
demand for land and thus prices, with the government
currently working on key designs for the project.