This archive report was first published on 24 August 2021.
Kenya's real estate sector has been plagued by speculation, leading to a scarcity mentality and artificial demand for land that pushes prices beyond what most people can afford.
According to economic analyst Ephraim Njega, if he were in charge of the country, he would disrupt the real estate sector completely and invest massively in public housing.
Njega argues that speculation in land is disastrous for the economy, creating a scarcity mentality that leads to hoarding and pushing prices beyond what most people can afford.
He also points out that the plots menace is causing haphazard development in the country, leading to slum-like environments and making it difficult for young people to achieve financial security.
With rent already consuming a significant portion of people's income, Njega warns that if we do not change, it could end up consuming even more than 50% of people's income.
He also highlights the real estate sector dysfunction as the greatest contributor to corruption in the country, with people stealing public money and pouring it into buildings.
Published on August 24, 2021.
