Flexible real estate deals for Kenyans in diaspora

PHILADELPHIA

For most Kenyans living abroad, the most valued investment back home is real estate.

Mr Cliff Nakitare, a Kenyan resident of Maryland, US, attributes this to the strong links most people living in the diaspora have with Kenya.

“We live in two worlds: the world we now occupy abroad and the world we left behind in Kenya. At every turn, you will find these two worlds colliding,” he says.

For most people living abroad, owning a house in Kenya is a measure of success.

“That is why you are seeing this scramble to buy homes in Kenya — a scramble that has led mortgage lenders, construction companies and other lending institutions to seek the diaspora pie,” says Mr Nakitare.

Nairobi-based Kings Pride Properties is one such company seeking a share of the diaspora market in the US.

“There are three aspects of our products that seem to be very popular with Kenyans living abroad. First is our 'zero' down payment plan — commonly known as the 30 per cent down payment that most other developers insist on. Second is the location of our homes and the security guarantees we offer; and lastly, we are reasonably priced,” says Mr Bico Oguta, one of the company’s sales representatives based in Nairobi.

He explains that the growing interest in real estate by Kenyans living abroad has made the company dedicate a department for them. The firm is also involved in the Kenya Diaspora Home Expo scheduled to take place in Dallas, Texas, on July 4-5, 2015.

A similar exhibition was held in New Jersey last year.

Mr Dominic Karau, the business development director of Kings Pride, says what puts off most Kenyans living abroad from owning properties back home is not only the long and tedious process of negotiating for a loan but also the high costs associated with most properties.

“Many people would want to own homes back in Kenya but the high deposits tied to mortgages are a big constraint,” he says.

Mr Nakitare says the “zero downpayment” option is attractive since “our lifestyle abroad is such that we live from paycheque to paycheque”.

The company already has projects underway in Ruaka (Glenwood Gardens), Kiambu Road (Runda Park), Riruta (Vermont Park), and Thika (Castle Park).