‘Youth and women should be helped to own land, property’

Phyllis Gathura-Tole is a Co-founder of Land Layby Kenya Limited, which specializes in Land Banking Kenya Options. (PHOTO: COURTESY)

What is ‘Land Banking Options’ all about?

It is a land selling process where the buyer is granted a right to buy a parcel of land at a fixed price at a defined future date. The buyer pays a deposit as a sign of commitment.

The seller then holds the parcel of land for the buyer at the agreed price until the full price is paid. After the buyer pays the deposit, he or she is issued with a ceremonial certificate. He or she gets the actual title deed upon clearing the agreed payment.

After paying the deposit, one can continue paying installments or wait and pay whole amount at the expiry of the agreed period.

When did you launch this idea and what has been the market response?

We launched in September 2014 after spending considerable time doing feasibility studies and analysing primary data about land purchase trends and issues in the country. Initially, the reactions were mixed.

More Kenyans now believe in the concept, thanks to education campaigns and partnerships with reputable organisations.

How much land have you sold since you launched?

We have sold out two phases of Chanuka projects in Isinya and are currently selling our third phase of 83 one-eighth-acre parcels of land.

Namanga’s Chanuka project comprising 163 parcels of one-eighth acres has sold more than 37 per cent. Other than Chanuka, we have sold more than 50 acres in Kisaju A, Kisaju B and Nanyuki.

Why would someone want to buy land from you?

Our product is cheaper. To initiate a purchase, one only needs a fraction of the purchase price as a deposit, which can be paid in ten equal monthly installments.

Since the balance is settled at a future date of up to two years, the client has ample time to organise his or her finances.

Who are your target buyers?

The youth and women who aspire to own land but cannot raise the whole amount in lump-sum. We are also targeting people who want to buy land but cannot take bank loans because of the high cost of borrowing.

We are creating e-commerce systems to encourage Kenyans in the diaspora to invest back in the country.

How have you managed to deal with competition?

Our product was developed after years of research; it was developed by professionals with the know-how in property law, financial products and real estate. As we speak, we are yet to see anybody with a similar idea. Indeed, we are seeking to partner with land agents and sellers willing to use our products and platform to sell their property.

What has been your experience with clients in this project?

Our clients are committed, happy and satisfied. They are grateful the concept provides them with a cheaper way of acquiring land.

What happens when one defaults on the payment?

We educate our clients on financial requirements of the product. We openly tell them that defaulting could result in the loss of all installments paid.

Any challenges so far?

Being a new concept, some Kenyans had a negative perception about it simply because of the bad experiences they may have had before at the hands of unscrupulous land sellers.

Also, the diaspora clients doubted the idea after losing investment money to their own siblings back in the country. We have overcome most of these challenges by implementing a number of strategies.