A JOURNEY TO THE ESTABLISHMENT OF REAL ESTATE BUSINESS IN KENYA

Kenya is a third world county with a great potential of growing its economy to a higher heights.

The key indicators of Kenya’s ability to develop ranges from the fast growing population,

political stability, availability of natural resources, mature democracy to its openness to the

outside world. With the existence of such opportunities in Kenya, serious investors have a great

window of venturing into some of the most lucrative businesses in the country. One of the most

profitable venture that is emerging in Kenya is the real estate business. Despite the fact that the

business is very lucrative, there are a lot of risks that are associated with it if the investor do not

follow the right procedure. This article, therefore, takes you through the right steps that you

should follow in establishing the real estate business in Kenya.

The first step towards venturing into real estate business is conducting market research. Here,

you would consider such factors as availability of road network, electricity, water and people.

You would also want to consider the location of different institutions like schools, hospitals,

government offices and industries amongst others. A location with most of these facilities is the

best place to have a real estate. Having identified the suitable location, the next factor to be put

into consideration is the type of real estate property to be invested. Some of the most selling and

acceptable real estates in Kenya include residential properties such as apartments, town houses

and the gated community. Commercial properties like retail units and office spaces should also

be considered since they attract a lot of customers.

The fourth factor that the investors of real estates should keenly adhere to are the legal matters

that are concerned with the adoption and laying down of the property. To start with is possession

of land where the property will be erected. Having identified legal land that is suitable for raising

the building, the investor should carry out due diligence of land search in the ministry of land.
Once the land has been established to be legally owned by the seller, the buyer can make

payments and ensure that transfer of license is made.

Having acquired the land and ready to embark on laying down the property, one needs to be

familiar with the provisions of the Kenyan constitution governing real estates. For instance, there

is a need of inviting such body as National Construction Authority (NCA) to inspect the

construction site and provide the license. The investor will also be required to hire qualified and

registered specialist who will be concerned in the construction of the property. Once the property

is complete, the owner need to register it with the Estate Agents Registration Board.

The remaining task after the property has been completed is marketing. The investor will be

required to look for experienced real estate agents to market the property. Once the property is

occupied, there will be a need of a good manager who would nature and improve the reputation

of the property.