According to HassConsult, a real estate company, the value of land in the Nairobi satellite towns increased tenfold between 2007 and 2022.
The spike was partly driven by young Kenyans' rush to own land as a form of investment within the fast-growing towns that form part of the larger Nairobi Metropolis.
Economist Vincent Kimosop, in an interview with Kenyans.co.ke, however, cast doubts on the rush to buy the parcels arguing that the returns might not be as lucrative.
Kimosop advised that before rushing to buy land, young Kenyans should explore other forms of investment.
“People are rushing to buy land in satellite towns due to cultural aspects where people want to be associated with a land property,” he explained.
He, however, warned those joining the land-buying bandwagon that they could find themselves at a loss because the rush was bound to fizzle out with time.
“The rush to buy plots is a pointer to our cultural understanding of investments. The craze of buying land in satellite towns could be short-lived.
“Even people who had huge tracts of land upcountry are either selling them or converting them to ranches,” Kimosop explained.
The economist further noted that there was a policy gap in the country that was making young Kenyans gravitate towards satellite towns.
He, therefore, noted that if people got better infrastructure, they would not feel the need to sink money in land.
“Even in Singapore which Kenya seeks to emulate, people live in flats. With good infrastructure, healthcare and other amenities, you will increasingly find more people living in apartments,” he explained hinting at a policy gap that exists locally.
Instead, Kimosop advised young Kenyans on available investment alternatives that guarantee a quick return.
“If you look at the Asian community, they do not own large tracts of land but they dominate the list of richest Kenyans.
“Usually, they have one shop and stay in one major flat. They trade together and invest in ventures like the Nairobi Security Exchange (NSE),” he observed
Instead of being driven by societal pressure, Kimosop advised Kenyans to look at investment as how much life they would want to enjoy in their space and within their earnings.
