Housing Principal Secretary Charles Hinga stated that informal settlements in Nairobi generate higher real estate profits than upscale areas due to elevated charges for utilities.
Housing Principal Secretary Charles Hinga made the remarks on Saturday at the 4th International Research Conference, Skills Competition and Expo held at Kabete National Polytechnic.
He told attendees that many investors overlook the profitability in slum areas. “Some of you in real estate may think apartments in Kilimani are very lucrative, or that a palatial home in Muthaiga gives good returns. Let me shock you, the best returns in real estate in Kenya are in the slums,” Hinga said.
Hinga explained that landlords in estates including Kibra, Mathare, Embakasi, Kasarani, Huruma, Kawangware, Kangemi, Dandora, Kariobangi and Eastleigh often charge tenants up to 140 per cent more for electricity accessed through informal connections and 175 per cent more for water supplied by vendors. He described the extra costs as a penalty of poverty that affects basic services including sanitation.
The principal secretary linked these conditions to the government’s decision to launch the Affordable Housing Programme.