Friday, July 31, 2015

Kenya’s vibrant real estate sector needs clear rules to instill order B

Opinion and Analysis
 Commercial Bank of Africa Centre in Upper Hill, Nairobi.  PHOTO | FILE
 MARTIN DIAS

In Summary
  • Reforms will greatly assist Kenyans to carry out transactions with more confidence and surety.

The real estate industry is today the largest single sector experiencing rapid growth. Even US President Barack Obama admitted that much had changed since his last visit to Kenya.
He was amazed and impressed to note that Nairobi’s infrastructure had developed significantly. He said: “Kenya is on the growth path having the highest growth rate in East and Central Africa.”
Today many Kenyans are shopping for homes. They are constantly looking around the neighbourhood for the right home to buy or apartment to rent.
The number of Kenyans and even expatriates hunting for houses are numerous, probably in their hundreds, thus providing real estate agents with ample opportunities to provide housing solutions from the market portfolio.
The commercial sector also offers another line of opportunities as business enterprises are looking for office space to rent or buy and save on rent.
This is big business for estate agents, from established ones to midsize companies. Not left out are briefcase agents who are in their hundreds if not more.
A briefcase agent is one who has no office, works from a cell phone and has the sweetest tongue and power of persuasion.
Indeed, with some humour but facts, we can admit that today everyone and anyone is an estate agent.
Recently, I was privileged to be invited to a cocktail at the prestigious Capital Club in Westlands courtesy of Radio Africa Group. The function was the launch of their upcoming motor and property expo to be held at the KICC grounds.
The guest speaker was acting Land secretary Fred Matiang’i. Of interest was his speech touching on new regulations to be implemented in reforms targeting estate agents.
His concern was that there was no order or law to regulate their existence and have entities that are duly registered and governed by the Estate Agent Act.
As chief executive of an established agency called Financial and Property Consultants Ltd, I found this topic to be of immense interest and significant importance to this vibrant industry.
I listened carefully to every word and decided to share his speech with all players in this industry.
The Cabinet secretary posed some pertinent and relevant questions to the guests that included the following:
1. How many Kenyans have lost money in a house letting transactions? Many have paid a deposit and thereafter never seen the agent again

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