By MANGOA MOSOTA

The fourth Kisumu Homes Expo starts Friday, with the property market showing an optimistic surge four years after the post-election skirmishes that wrought damage on the lakeside town.

The organisers of the event, Novic Communications, said there will be 45 exhibitors, with about 15 of them participating for the first time. The theme of the event is ‘Unveiling Potential’.

"The exhibition has gained acceptance by many firms which want to showcase their products and services," said Aba Eban, Novic’s team leader. Crown Berger and Ounga Agencies are the main sponsors.

Medical Services Minister Anyang’ Nyong’o is scheduled to officially open the exhibition to be held at Aga Khan Hall.

New exhibitors

Among the new exhibitors are Shelter Afrique, Kisumu Water and Sewerage Company, All things Beautiful and the Kenya Power and Lighting Company.

Samson Murethi, an investment analyst for special projects at Shelter Afrique said Kisumu is underfunded in terms of financial support to the property market.

"There is a high demand for housing but underfunding is an impediment. I feel the event will make our prospective customers realise how much they can benefit from us," said Mr Mureithi, whose organisation has been operating in Kenya for the last 30 years.

Shelter Afrique funds affordable residential houses through provision of loans covering up to 60 per cent of any given project.The minimum funding Shelter Afrique can provide is Sh90 million, while the maximum is Sh630 million.

Kenya Union of Saving and Credit Co-operative (Kusco) Managing Director George Ototo says they will also display their products to potential clients.

"We have been in the market for the last 38 years, providing individuals in Saccos with loans to purchase affordable and decent houses," said Mr Ototo, adding that they recently completed one block of 14 three-bedroom units at Milimani. Besides, Kusco constructs and then sells office blocks to Saccos.

Kisumu was one of the hardest hit towns during the 2007 post-poll chaos, with destruction of property running into Sh1 billion.

Eban says there are there about six new residential estates in Kisumu, among them Trans Lakes and Kajulu Gardens.

However, rent of both residential and commercial houses is still on the rise, due to high demand.

Demand for property

The annual demand of housing in the lakeside town is over 3000 units, while the supply is 500 units, a meagre 17 per cent.

The deficit has lead to high rental fees. For example in Polyview Estate, rent for a two-bedroom is at an average of Sh18,000, up from Sh10,000 four years ago.

The demand for property has also shot up due to growth in the banking sector and tertiary institution such as universities in Kisumu, whose population is close to 600,000 residents.

"There over 25 banks and at least six universities and most of them have opened branches in this town. Workers of these institutions have to be accommodated in decent houses, and this makes the demand go up," argued Eban.

He added that there are barely any modern hostels for students, and this gives developers a business opportunity to venture into.

Tom Agumbi, a real estate expert, says poor infrastructure-has been a major obstacles to the property growth in the town.

"Roads are in a pathetic condition. This situation scares away investors," says Agumbi, who runs Agumbi and Company Agencies, situated in the town.

He says the poor drainage system also discourages prospective real estate investors to Kisumu town.

Almost 50 per cent of residential houses in the area are built on sewage lines, making it difficult for the Kisumu Water and Sewerage Company to run the system.

In addition, the Municipal Council has in the past said several acres of undeveloped land were illegally allocated to individuals in the town, which compromises space availability.

Contaminated water in several of the 800 boreholes in Kisumu is yet another problem afflicting Kisumu. This is as a result of waste from pit latrines constructed near these water sources.