Kisumu prepares for major take-off in development

A mall under construction in Kisumu City. [Photo: Titus Munala/Standard]

By Rushdie Oudia and Dennis Onyango

Kisumu, Kenya: A Sh4 billion programme to restructure Kisumu City is set to start next month.

The planned overhaul will be icing on the cake of the city that is already experiencing rapid growth.

“Kisumu was last planned in 1963 and the population has since gone up, creating a shortage of all resources in the town,” said Governor Jack Ranguma.

From isolated temporary buildings surrounded by thorny bushes to upcoming skyscrapers and state-of-the-art roads, the face of Kisumu has changed greatly.

Bright future

Several construction projects on the verge of completion speak volumes about the city’s bright future.

Major highways and feeder roads across the region have undergone upgrading and expansion.

The Roads ministry had set a target of completing the new city highway by 2015, which residents have already christened ‘Kondele Super Highway’.

Rows of highrise flats and maisonettes can be seen coming up on all sides, taking the place of isolated temporary structures.

With expansion happening on the outskirts, many buildings are coming up in Riat, Nyamasaria, Nyahera, and Kibos.

The growth has come with the challenge of traffic jams.

Increased fortunes

However, boda boda operator Ezekiel Opondo says the situation has increased his fortunes since he makes more money in the morning ferrying those rushing to work and who cannot wait for traffic to ease.

“I used to make Sh300 by 8am but now I make close to Sh600 by the same time,” said Opondo.

People who have not come to Kisumu in the last one year would not recognise the town that has quickly recovered from the devastating effects of the 2008 post-election violence that nearly brought it to its knees.

The town that also houses the headquarters of the East African Community’s Lake Victoria Basin Commission is revelling in a booming hotel industry, with several facilities having been put up in the last two years.

The town, with a population of over 600,000, is currently experiencing a property boom that has seen land prices increase, enabling real estate agents and developers reap massive returns.

Also witnessed is an unprecedented increase in rent in and around the town.

In Nyamasaria Estate, for instance, some landlords have raised their rent charges following the town centre expansion towards the area.

A number of apartments are currently under construction in various estates, including informal settlements such as Obunga, Manyatta and Migosi.

Monica Auma, a resident of Manyatta Estate, says the growth is immense, with many residents having to cough up more for house rent.

“In Manyatta, one-bedroom houses go for Sh7,500, up from Sh3,000 three years ago,” said Auma.

The quest for more land for development has led to widening of the urban boundaries, with temporary structures in slums being pulled down to pave the way for permanent houses and commercial buildings.

Recently, the Kisumu county assembly passed the county’s Finance Bill 2013/2014, which saw many charges being increased by more than 100 per cent, including council houses. The county government also slapped a 100 per cent increment on most construction work charges.

Governor Ranguma has confirmed that a number of investors who had previously shied away are now making their way back to the lakeside region.

Last week, Ranguma asked area residents to volunteer some of their land for massive development projects in the region.

Chamber of Commerce, Western chapter chairman Israel Agina said there was a paradigm shift with efforts being made to make the city face the lake because of its beauty.

“The area is opening up due to the move to improve marine transport that will link the city to many African countries,” he said.

The value of land and rental houses in Kondele has also risen sharply over the last two years due to high demand. The property business has shifted towards the least populated side of Kisumu, with one acre of land going for Sh10m on the lower side, up from about Sh6m two years ago.

Kisumu’s growth is also evident in Kondele, which was once feared for being a violence hotspot.

Kisumu Land and Properties Masters Director George Weda said the expansion of the county was due to the fact that residents who used to invest outside the region have now come back home.

“Most of them are buying property and investing in their hometown,” said Weda, adding that many willing investors have approached him.

Another factor that has led to the growth of Kisumu is the availability of devolved funds to counties.

Weda said the county is yet to tap fully into the real estate potential, with the expansion spreading towards the hills.

Another group of investors are savings and credit companies (saccos) that are looking for available land for ventures that will benefit their members.

However, the rapid growth of Kisumu has made it vulnerable to fraudsters, especially in land deals, with cartels involving the police, lands officials, unlicensed lawyers and the public colluding to con innocent residents.

County Executive Committee Member in charge of Physical Planning, Roads and Public Works, Vincent Kodera, expressed confidence that Kenya’s third largest city after Nairobi and Mombasa will be a completely different place in the next two years.

“The new approach to development in infrastructure means we will realise unmatched growth in all sectors of the economy,” he said.

Rental charges

Demand for housing outstrips supply and this is attributed to the surge in rental charges following rising demand for housing in Kondele and its environs.

The planned reconstruction of the Kisumu railway line linking it to major towns and cities across East Africa will makes it strategic for business.

The project was aimed at decongesting the movement of freight goods across East Africa.

Kisumu currently hosts various industrial projects, large supermarkets and training institutions among other facilities.

In addition, private healthcare service providers such as Aga Khan Hospital and Avenue Hospital have opened branches in Kisumu.