In Watamu, shillings won't buy you land

Medina palms beach front luxury villas. [PHOTO:JAMES WANZALA/STANDARD]

Kilifi, Kenya: In Watamu, land is bought in euros, thanks to visitors who fall in love with beach plots, says Stephen Makanga, a managing director with You Sustain Travel Ltd, a company which deals in real estate management, tours and travel.

This sub-county of Kilifi is better known as a being a tourist destination. And it economy hinges on tourism, at least when the going is good.

“The first-row plots (also called beach plots) are the most expensive with one acre going for Sh30million, up from Sh15million five years ago,” says Makanga.

“Plots in town fetch between Sh1million to Sh2million. An acre outside the town sells for anything between Sh8million and Sh15million,” says Madzo Real Estate Developers Director Maurice Charo Kombe.

Private villas of between three to four bedrooms on the other hand are selling at €190,000 to €200,000 (Sh19 million to Sh20 million).

 Challenge

“The fact that the town depends on seasonal tourism is a challenge especially in the low season, where there is no cash flow, which affects the economy,” says Charo, who adds that during the high season, land prices also go up.

There are three seasons; the low season runs from April, 1 to July, 12 and from November, 1 to December, 18. The high season runs from January, 15 to March, 31 and July, 13 to October, 31. The peak season runs from December, 19 to January, 14.

How much you make from the sale of land and property may just well depend on when during these seasons you make your sale.

According to Haron Maliwa, a cyber-attendant who has lived in the town for two years, the town depends on tourists and is active during the high season but when the low season sets in, business goes down.

And despite Watamu being a tourist destination, it is witnessing slow growth thanks to low investment in the real estate and education sector.

What is thriving here in terms of colleges are foreign language schools teaching foreign languages essential for communicating with visitors to the town.

It is an old town, home to the Bajuni people who trace their descent to the intermarriages between the local Giriama people and Arab traders. But like many towns, today it is home to a mix of people from all over Kenya.

Its tourism heritage has, however, seen it attract high-end developments. One such development is Medina Palms, made up of  beachfront villas, penthouses and apartments.