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City apartments just too expensive

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A majority of Nairobi residents are moving out of expensive apartments near the capital in search of cheaper alternatives, a report shows.

This comes amid a soaring cost of living that is putting a strain on their

purses.

Realtor HassConsult yesterday said rents in the city have nearly tripled since 2007, pushing many families out of the suburbs in hunt for bargains and savings.

As a result, many residents have relocated to satellite towns such as Ngong and Kitengela. Interestingly, rents have also shot up in these towns due to the influx of new customers.

“Asking rents for a modern apartment may cost as little as Sh23,400 and this bodes well for many tenants who are now preferring affordable units as they take caution to save in the wake of job losses across all sectors,” said Sakina Hassanali, the head of development, consulting and research at Hass Consult, during the release of quarter one residential and land price indices.

The realtor said city residents would rather dig deeper into their pockets for transport and spend more time in longer commutes but live in cheaper homes.

“As the cost of living soars, the lower middle class is opting to pay slightly more in transport but less on rent,” she said.

Several companies have in the recent past announced thousands of job cuts, shining a spotlight on the worsening unemployment crisis in the country.

61 per cent live in slums

Apartments in Thika recorded the highest annual growth in rents at 13.3 per cent while those in Tigoni posted the highest quarterly rate increase at 3.5 per cent.

Kenya’s housing deficit is estimated at around two million units, with the industry adding only 50,000 a year.

According to the World Bank, besides addressing the housing gap, the government should provide incentives to developers to create affordable units as stipulated in the Constitution and the National Development Plan, Vision 2030 Strategy.

“These blueprints have targeted the provision of 200,000 housing units

annually for all income levels,” says the World Bank.

“However, the production of housing units is currently at less than 50,000 annually, well below the target number, culminating in a housing deficit of over two million units, with nearly 61 per cent of urban households living in slums.”

As the cost of living soars, the lower middle class is opting to pay slightly more in transport but less in rents.”

Hass Consult head of development, consulting and research Sakina Hassanali

by nation.co.ke


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Business

KQ resumes direct flights to New York

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The national carrier Kenya Airways (KQ) resumed its direct flights between Nairobi and New York on Sunday.

In a tweet, KQ announced the move and topped it up with an offer to passengers who book their flights before December 10 that they will enjoy discounted prices.

Welcome back to the Big Apple! Today we resume our service between Nairobi and New York, and we can’t wait to welcome you on board. Book your ticket via https://t.co/hitS3Whxtp before December 10th to enjoy discounted rates ✈️🌎 *Disclaimer – video from our pre-COVID archives pic.twitter.com/1kET4h0kRK

— Kenya Airways (@KenyaAirways) November 29, 2020

“Welcome back to the Big Apple! Today we resume our service between Nairobi and New York, and we can’t wait to welcome you on board,” the airline said.

The national carrier last operated the passenger flights using the Nairobi-New York route in April after disruptions caused by the Covid-19 pandemic.

KQ resumed international flights in August after suspending all its operations in March following the government’s directives after the firsts case of Covid-19 was confirmed in Kenya.

On Saturday, October 31, KQ announced that it had postponed New York flights’ resumption.

Through a notice, the airline said the decision to postpone the flights was informed by the increased cancellation of flight bookings to New York.

“We regret to announce that due to increased cancellations of flight bookings to New York City, we have pushed back the resumption of our service to this destination to November 29. We sincerely apologise for the inconvenience caused,” read the statement then.

Kenya Airways inaugurated direct flights to the US in October 2018, cutting the journey to the US by 15 hours and by October 2019 KQ had flown at least 105,084 passengers after completing 594 flights to and from New York.

by NN


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Bodaboda chama grows into a multi-million shilling housing cooperative

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A journey of a thousand many miles starts with a single step. A Nakuru-based bodaboda operator’s self-help group proved this in its growth. Driven by the ambition to have something to take home once they couldn’t ride any more, ten bodaboda operators from Barut, Nakuru West in 2015 formed Kianjahi Group, pooling a minimum savings of Sh100 per week per person.

“Being a bodaboda operator is a risky job and has serious effect on one’s health especially if you don’t dress properly for the cold. After attending a seminar in Machakos we decided to start making savings,” said Benson Sigei, the group chairperson.

The group grew as more members joined in 2016. After evaluating their progress, the members increased their weekly savings to Sh200 and eventually to Sh1,000.

“Before the year ended we were nearly 100 members. Our savings were growing and we had to come up with plans which some members considered as too ambitious and pulled out,” says Sigei. With savings of nearly Sh2 million, they bought a 1.6-acre piece of land which was previously a sand quarry.

“It cost us Sh2.1 million in buying the land and rehabilitating it to usable standards. We embarked on making savings for constructing houses which would be of similar design,” he said.

To make this possible they converted the group into Kianjahi Housing Cooperative Society Limited and introduced Sh15,100 registration fee and minimum share capital of Sh60,000 payable in Sh500 weekly instalments.

AmpThe group started the construction of two-bedroom houses in a gated community model.

“Every member now contributes a minimum of Sh1,500 for savings every week. Those yet to clear their share capital make an additional payment of Sh500. This amount does not exert great pressure on the riders since the majority make nearly KShs1,000 per day.

The group then started the construction of two-bedroom houses in a gated community model where four houses sit on every 50 by 100 feet plot. The cooperative completed the construction of the first 50 units majority of which have already been occupied.

“We took a Sh15 million loan and in addition to our savings we bought an additional acre of land at Sh2.1 million. In the first phase, we have constructed 52 housing units. 35 members have already moved in,” said the vice-chairman.

The cooperative has bought a third parcel of land on which they intend to set up houses for all members. Members who moved in during the first phase like pay Sh2,000 per month. Sh200 goes to savings and Sh1,800 going towards offsetting the cost of construction. The payment for the houses is spread over seven years.

by Standardmedia.co.ke


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Enough is Enough: Kenyan man in US relocates to motherland to become a farmer

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In a bold move and which took great courage, a former Kenyan Diaspora man Kunga Kihokia who was born and raised in Miami Florida has moved back to Kenya, bought a 20 acres piece of land and established an organic farm in Murang’a.

Initially, Kunga had planned to be in Kenya for three weeks 5 years ago but after what he says was the realization of the problems affecting Kenyans because of western lifestyle which he himself was struggling with, he felt strongly to start an organic farm to address those problems.

Kunga has built a water tower to use gravity that allows the water to get pumped and distributed  through  irrigation into the field. Everything in the farm is powered by solar energy and he has dug a borehole that supplies enough water for the farm. Watch the video, be inspired  and enjoy.

Source: Diasporamessenger.com


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