Premiere homes expo in Kisumu

By Mangoa Mosota

With a large number of Kisumu residents living in slums, the housing situation is grim. The informal settlements are not only congested but they lack basic amenities such as water and proper sanitation.

The slow growth of real estate in the area is exacerbating the situation. The annual demand for housing in the lakeside town is about 3,000 units but the supply is only 500 units. The deficit has lead to the high cost of rental houses, with some upmarket areas charging higher than Nairobi.

To meet the need, a Kisumu-based public relations firm has pioneered a property and homes expo.

An upcoming upmarket estate. Developers of such projects will have the opportunity to showcase their properties at the expo. Photos: James Keyi/Standard

"We are responding to the housing shortage in this town," says Lydia Limbe, director of Next Level Public Relations. "We want investors to see the potential in the property market."

Limbe says despite the post-election chaos, which massively affected the property sub-sector in the area, things have changed.

"We want to showcase the potential in this town. The water supply is getting better and we rarely have interruptions of electricity," she says.

Slum Upgrade

Limbe says they have invited a number of stakeholders including financial, property developers and Government agencies such as the Ministry of Housing.

She says close to 30 exhibitors have shown interest in the three-day event that will take place between 25th to 27th of next month.

Contractors will be keen to demonstrate that it is affordable to build own houses while financial institutions will exhibit their flexible mortgages.

Eric Ounga, the proprietor of Ounga Commercial Agencies, says the expo is expected to boost real estate in Kisumu.

"We will be giving information on the maisonettes and apartments available in Milimani and Riat Hills," he adds.

Ounga says maisonettes in the leafy estate are valued at Sh12 million, while an apartment costs Sh6.5 million.

The property dealer says the visit by President Kibaki and Prime Minister Raila Odinga to Kisumu last month has drawn investors.

"The two leaders have shown that the tension resulting from the post-poll violence has ebbed away and investors from other parts of Kenya can now grab the various opportunities available," he explains.

The expansion of Kisumu Airport will also spur real estate. Further, the completion of the Sh2.9 billion project will create a higher demand for quality hotels in the town.

"Many international tourists and businesspeople will require high-profile accommodation," Ounga notes.

Recently, Kibaki and Raila urged locals to engage in horticultural farming for export.

There are few housing developers in Kisumu.

"People construct their own houses but we do not have investors to put up rental units, both commercial and residential," says S&L Kisumu branch manager, Robert Bomett.

S&L will be exhibiting their products at the homes expo to create awareness that taking mortgage is a worthy long-term investment.

One of the challenges of poor housing in Kisumu is lack of government incentives yet it is a regional hub thus the housing problem should be addressed urgently.

"There is need for good roads and an efficient sewage system,"Bomett says.

Some residential houses in the area are built on sewage lines, making it difficult for the Kisumu Water and Sewerage Company to operate.

Last month, Kisumu Municipal Council’s director of Housing, Patrick Nyamita, said several acres of undeveloped land were illegally allocated to individuals in the town. This has compromised space for construction of residential houses.

Majority of Kisumu residents (77 per cent) live in rented houses as the shortage bites, especially for the middle-class.

Government Intervention

Housing Minister Soita Shitanda says Kisumu requires Sh28.7 billion to upgrade its slums. This amount is part of the Sh884 billion needed countrywide for the exercise.

Shitanda says the Government has set aside Sh100 million for the upgrading of informal settlements in Kisumu.

Scarcity of land has hiked asset prices with the cost of houses in upper class estates such as Milmani and Elgon View almost doubling in the last five years.