By Jackson Okoth
Demand and prices of property along the Nairobi-Thika highway, now under construction, will go up once expansion is complete and developers move in.
"Property along this highway has been unpopular due to traffic congestion. But this will change as developers take advantage of available land along the highway to put up property," said Mr Daniel Ojijo, Executive chairman, Mentor Holdings.
"We are developing low-income housing projects to take advantage of available land along Thika road and the Nairobi-Northern corridor by-pass," said Ojijo.
Under the Nairobi-Thika Road project, the plan is to have four lanes in both directions, from the Pangani roundabout to Thika.
All roundabouts will be replaced by a system of flyovers and underpasses to ease the flow of traffic between Nairobi and Thika town.
While huge tracts of land along the highway are mainly agricultural, especially the area after Kenyatta University, this is expected to change. "We expect conversion of most of the land here from agriculture to commercial and residential use. This will impact on property prices," said Mr Robert Bunyi, an analyst at Mavuno Capital.
Higher rates
He said farming will become less profitable, as local authorities demand higher land rates, effectively making large-scale farming operations untenable.
Local authorities expected to expand their boundaries include Juja, Thika and Kiambu. Due to expected increase in land prices, most co-operative societies with large parcels would sell off, to take advantage of favourable prices.
"Although the property market is experiencing a slowdown, it is expected to recover as the economy improves and banks begin to lend again," property dealers say.
The Northern bypass feeds into Nairobi-Thika road highway at Ruiru, providing vast opportunities for local manufacturers keen to access the Ethiopian vast market.
Presently, work is underway to tarmac the 400-kilometre road between Isiolo and Moyale, linking the country to Ethiopia.
