This archive report was first published on 18 June 2020.
As the COVID-19 pandemic continues to spread, Nakuru's housing market is facing unprecedented challenges. According to property agents, the government's measures to contain the virus have resulted in a significant decline in profits, forcing some agents to lay off staff to cut costs.
Landlords have also been affected, with some terminating their lease contracts with commercial agents to reduce expenses. Elly Ogutu, a commercial property agent, admitted that the pandemic has had a devastating impact on their businesses.
"We are struggling to stay afloat because the move has reduced our earnings irreparably as we are paid on commission, which of course at the moment is meagre, but we are equally determined to fight on since it has affected everyone globally," Ogutu said.
Many tenants have been forced to relocate to cheaper houses due to their inability to meet current rents. Some have shifted from upmarket estates like Naka, Section 58, and Koinange to medium-class estates like Racecourse and Shabab, where rents are significantly lower.
"Since the pandemic hit us, we have devised strategic ways of obtaining rents from tenants because of economic hardships. We have also followed the guidelines of the Kenya Landlords Association not to harass tenants in the course of collecting rent arrears," Ogutu said.
However, many landlords are unwilling to reduce their rents to accommodate the reduced incomes of their tenants. "How do I do so and yet I’m servicing a bank loan and its conditions are stiffer and have not been relaxed," posed a landlord who wished to remain anonymous.
