According to HassConsult, a real estate company, the value of land in the Nairobi satellite towns increased between 2007 and 2022.
The rush by young Kenyans to purchase land as an investment within the rapidly expanding towns that are a part of the large Nairobi Metropolis contributed to the rise.
Economist Vincent Kimosop advised that before rushing to buy land, young Kenyans should explore other forms of investment arguing that the returns might not be as lucrative.
“People are rushing to buy land in satellite towns due to cultural aspects where people want to be associated with land property,” Kimosop explained.
However, he cautioned individuals jumping on the land-buying bandwagon that they risk losing money because the frenzy was certain to fade away over time.
“The rush to purchase plots is a sign of how our culture views investments. The desire for purchasing land in satellite towns could not last long.
The economist also pointed out that young Kenyans were drawn to satellite towns because of a policy gap in the nation.
He further pointed out that people would not feel the need to invest in land if there was better infrastructure.
If you look at the Asian community, they do not own large tracts of land but they overwhelmingly rich in Kenyans.
“Typically, they live in one large flat and have one shop. They collaborate on trading and finance projects like the Nairobi Security Exchange (NSE),” he noted.
Kimosop counseled Kenyans to consider investment in terms of how much life they would want to have in their environment and within their income rather than being motivated by societal pressure.