Landowners in four Nairobi satellite towns are set to be the biggest beneficiaries after President William Ruto earmarked four infrastructural projects as priorities in his government Medium-Term plan.
Among the projects highlighted in the plan are three road projects which include; the resumption of the Rironi-Nakuru-Mau Summit Highway and one Metre Gauge Railway (MGR) line from Riruta to Ngong.
It is expected that the projects will drive up development in those towns and even lead to land speculation. The four towns are Limuru, Kitengela, Athi River and Ngong.
Limuru
Landowners are set to benefit immensely once the government embarks on the Rironi-Nakuru-Mau Summit Highway which is aimed at easing traffic along the Nairobi-Nakuru Highway.
As projected by real estate firm HassConsult, the development of the road project will open the area to investors. Owing to increased development, land value will steadily rise.
This was also a trend that was witnessed in December 2022 when various multinational institutions showed interest in the Ksh160 billion road project initiated by President Uhuru Kenyatta's administration.
"We note that Limuru posted the strongest quarterly growth in the Kiambu County towns at 4.2 per cent. The town's attractiveness is enhanced because it is still relatively undeveloped compared to its peers. Additionally, the area is attracting speculators on account of the resumed plans to construct the Rironi-Mau Summit Road," the report on 2022's fourth quarter highlighted.
As detailed in the Medium Term plan, construction of the road will commence in 2025 and be completed in 2028.
On the other hand, the government also intends to implement a Bus Rapid Transport (BRT) line from Limuru to Kitengela in a move aimed at easing traffic in the city.
Currently, one acre of land averages Ksh21 million.
Kitengela and Athi River
One notable project that will push land value in the two satellite towns is the Limuru-Kangemi-CBD-Imara-Daima- Athi River–Kitengela BRT line.
The much-anticipated project that has been in plans since 2019 will be commenced in the 2025/2026 Financial Year and completed between 2027 and 2028.
Apart from opening both towns to more investors, the area will become attractive to Nairobi residents seeking to live outside the city given that the project also aims to ease traffic congestion within the city.
Notably, the two towns benefitted immensely from the implementation of the Nairobi Expressway which opened up towns near Mombasa Road for development.
Since the opening of the Expressway, land value in Kitengela and Athi River have grown by over 10 per cent.
On the other hand, owing to plans to extend SGR to the Athi River Export Processing Zone, land in satellite town has experienced rapid growth in the last 12 months.
"The proposal to extend the Standard Gauge Railway to Athi River's Export Processing Zone has sparked speculation and led to a 6.1 per cent increase in land prices over the quarter. This growth rate is comparable to Ngong, the best-performing town, which witnessed a 6.2 per cent surge in land prices," read the 2022 report in part.
A plot measuring an acre in Kitengela is currently being sold at Ksh16 million while a similar piece in Athi River is being sold at Ksh18.7 million.
Ngong
Landowners in Ngong will benefit immensely from the Tala - CBD – Ngong Road BRT line project and the Riruta/Lenana–Ngong commuter MGR Line.
The BRT line covering Ngong Road will be commenced in the 2024/2025 Financial Year where 50 per cent of the project will be undertaken.
On the other hand, construction of the Riruta-Ngong line was launched on December 15, 2023, by Ruto and is expected to be launched in September 2023.
The railway line is intended to ease pressure on traffic along Ngong Road while offering cheaper transport for Ngong residents.
Currently, an acre of land in the satellite town is sold at Ksh35 million.
