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Why nobody dares touch the cash and gold in Eastleigh

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The bustling First Avenue Eastleigh which is famous for its many shopping malls. Photo/JENNIFER MUIRURI 

By JOHN KARIUKI
Posted  Friday, September 5  2008 at  20:50

The evidence is the interest the area is attracting from major banks, airlines, courier companies as well as clearing and forwarding companies, which have opened branches here. Property prices have sky-rocked and, currently, are among the highest in Nairobi.

On average, a front-row plot on the main road — around Garissa Lodge — goes for no less than Sh50 million. Further inside, it is Sh20 million.

“Comparatively, a similar size of commercial plot at the city’s Upper Hill area goes for about Sh30 million or Sh8 million in the Ngara area,” says the manager of a property company.

Unlike in most other commercial centres where building buyers retain them, those in Eastleigh demolish them and put up shopping malls.

“There is certainly big money rushing to that area, much of it from the Somali community,” says Mr Tom Odongo, the director of city planning.

Land owners are not the only people cashing in on the rush for business here. In the recent past, hawkers have joined in and are selling their allotted space to gullible traders from northern Kenya.

A wheelbarrow

Some of them are said to pay up to Sh50,000 for space big enough only for a wheelbarrow.

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“Such transactions are illegal and void because the space being sold is part of the road, sometimes right on the tarmac, but those buying do not seem to mind,” says area chief John Chege Irungu.

This has prompted the city council to classify the area as a commercial zone, and the ongoing planning and rehabilitation will look at it as a business, rather than residential, area,” says Mr Odongo.

He adds that this puts the area in the same category as upmarket Westlands.

“There are still some residential plots in the area, but all are under extreme pressure to transform into business premises, and I’m sure they will eventually relent.”

The official adds that the council is already drawing up a rehabilitation plan for the area, that will ease the traffic congestion and offer easy pedestrian movement.

“This will offer convenience for shopping and other activities and harness the general business atmosphere,’’ he adds.

But Eastleigh has other headaches to contend with, and nobody knows this better than Chief Irungu, who has to occasionally turn to kadhis for help, especially on matters to do with customs and traditions. Among the common issues are marital.

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Add a comment (5 comments so far)

  1. Submitted by amhke

    Most entrepreneurs Doing Business in Eastleigh are actually Kenyans from Northern Kenya therefore other Kenyans supposed learn entrepreneurship from those hardworking Kenyans in Eastleigh No matter what type of business you have, there are creative ways to increase your clientele you'll be able to stretch your marketing shilling further by forming a friendly alliance with other businesses in Eastleigh.

    Posted  September 10, 2008 01:00 AM  
  2. Submitted by SJ502

    Right Gizah: Money, as in Scarface movie,gives you the power. My concern right now is who is behind the huge cache of money in Eastleigh? Once entrenched, the illegals will reminsceint of the Italian Mafia,Cuban Mafia,Bolivia Mafia or the dreaded Mexican Mafia.

    Posted  September 07, 2008 04:43 PM  
  3. Submitted by gizah

    you cant blame them. Illigals in many countries, UK,USA inclusive tend to have their own tough but successful enclave. We should blame our own govrnment for failing to control ownership, issuance of trade license etc.They walked into a weak set up and exploited it. they will be the Jews of Africa andin 100 years they will control government directly or indirectly.

    Posted  September 06, 2008 09:30 PM  
  4. Submitted by kenyan11

    Eastleigh businesses pay taxes to the KRA and the Nairobi City Council collects millions monthly in licence and rate fees. Businessmen have put up imposing malls complete with Cabroworks pavements and parkings. The council needs to improve roads and sewer lines in Eastleigh to serve these smart and hardworking entrepreneurs.

    Posted  September 06, 2008 06:43 PM  
  5. Submitted by SJ502

    Little Mogadishu is a business hub with very little government or city regulation. The people here make their own rules. That may sound great...now take a closer look and you realize the tenants, Khat chewing businessmen are not your ordinary entrepreneurs. These are tough and smart illegals from war-torn Somalia and other unstable countries in East and Central Africa. BigQ is if they can turn Eastleigh into a lucrative high stake business zone why not do it in their countries?

    Posted  September 06, 2008 05:46 PM