With comparable plots in the area now costing over Sh5 million, land prices have more than tripled. But for Ouma, acquiring the land was only the beginning Morris Ouma bought a piece of land in Ruaka, Kiambu County, in 2010 for Sh1.5 million. His hope was to build a family home and secure his financial future.
More than a decade later, his journey from owning a plot to putting up a house has become an illustration of how expensive homeownership has become. “It has been a long journey but I'm almost there,” he told the Star, “I thank God I first invested in land then started construction slowly.” Price of land in the area has more than tripled with comparable plots now costing over Sh5 million.
With comparable plots in the area now costing over Sh5 million, land prices have more than tripled. But for Ouma, acquiring the land was only the beginning; construction has been a slow, incremental grind funded by periodic savings. Ouma's story mirrors the reality for countless Kenyans who must save for years to buy land before spending an even longer time building a house.
The alternative path is hardly easier: buying a completed house requires steep upfront capital, while a mortgage commits a household to rigid repayments for 15, 20, or even 25 years. “The biggest challenge is that you are expected to save for a house while paying rent and meeting all your other expenses.
Even with a regular salary, it is difficult to accumulate enough money for a deposit,” Nairobi resident Phyllis Nyanchira said. “Property prices keep changing, and by the time you save enough, the house you wanted may already be beyond your reach. Homeownership is increasingly becoming reserved for rich people." Those who turn to off-plan developments face the risk of the promised home not being delivered.
“I trusted the developer because the project was presented as a secure investment with a completion date. I paid my instalments expecting to move into my house, but the deadline passed without delivery. My money is now tied up in a project that has not fulfilled its promise,” says Fred Onyango.