money streaming from somewhere
not supported by government
statistics. It could have been good
money - from the diaspora or hot
money.
At the time, piracy was rampant
along the Indian Ocean and Drug
lords and drug money was ruling
our parliament. Corruption,
mostly stealing from government
was also a top earner during this
period. But, who cares? What
mattered was that developers
were selling. They could build and
sell. And sell more even before
building.
New kids on the Block like Suraya
and Home Afrika Limited, a
merry go round burst into the
scene with their Migaa. They
too sold and made money. They
quickly went into the Stock
Market through a newly created
window to raise more funds for
developing new units. Their
foray at the Stock market was
unanimously endorsed. They got
more than they asked for. And
many more buildings came up.
Pressure On Land
As the number of developers
increased, pressure began to
mount on Land. They quickly
came up with more ingenious
ways to acquire more land and
build as land prices also went
over the roof.
Joint ventures took over. Those
who inherited large tracts of idle
land were in luck. Developers
were pounding their doors
begging for deals. Blind greed
took over. Big projects were
launched amidst pomp and
fanfare.
No sooner had the ink dried
on the new deals than court
cases began to emerge. One
famous case was that of Tatu
City amongst the shareholders.
Another was that of Suraya
and the Gatabaki’s where a
disagreement resulted in a
dramatic case that pitted the
husband and wife on opposing
sides. The wife got a generous
settlement from the courts. These
cases could have heralded the
meltdown in the real estate sector.
The Meltdown
May be it was a change in
strategy or they smelt the
meltdown. First was the bold
foray into the East of the City
with the 360 apartments and
the Great Wall on Mombasa
‘‘ Then came the Chinese with their
ingenious cost cutting and deal making
skills. They could out price everybody
in the market and still make a profit! All
over sudden, buyers had choices both in
variety and price. Banks that had fallen
over their heads loaning developers
started experiencing slowing loan
repayments and ultimately defaults.’’
52 MAL 17/17 ISSUE
road. It was the first statement in
development that recognized the
Kenyan middle class.
These units were developed with
Kenyans in mind not some deep
pocketed shadowy figures. The
prices ranging from Kshs. 2.8
million to 4 million was targeting
real Kenyans. Earlier, a similar
pocket friendly development was
the Nyayo Estate Embakasi by
NSSF, also targeting the Kenyan
middle class.
The first signs that things were
getting thick in the upmarket
or money running out from the
moneyed few was when Suraya
launched the Studio apartment -
Bedsitters in Mlolongo selling for
1 Million Kenya Shillings. This
was a clear testament that money
was running low in the upmarket.
Then came the Chinese with
their ingenious cost cutting and
deal making skills. They could
out price everybody in the market
and still make a profit! All over
sudden, buyers had choices both
in variety and price. Banks that
had fallen over their heads loaning
developers started experiencing
slowing loan repayments and
ultimately defaults.
Fatigue
Those who had moved to their
homes in the outskirts started
feeling weary. Sleeping late and
waking up before down is not for
the faint hearted. They started
realizing that the opportunity
cost of staying in the Bundus
was not worth it. You missed
coffee or drinks with friends. The
insecurity in the villages started
getting to you.
Your children would go for sleep
overs at their friends in the city
and only come back reluctantly
after you hit the roof. And when