Migori property market hard hit by poll anxiety
The swimming pool at Florence Hotel in Migori town. Lack of visitors has brought business almost to a halt. PHOTO| VIVERE NANDIEMO
What you need to know:
- Migori, a NASA stronghold, is prone to political activity that often leads to chaos. Indeed, in the run-up to the August 8 polls, Migori County was identified by the National Cohesion and Integration Commission as one of the country’s political hotspots.
- “Scores of potential customers are avoiding the town since they fear that violence can break out anytime,” said Mr David Omollo Oyugi, the general manager of Creadex Hotel, one of the leading hotels in the town.
- “Occupancy rates took a drastic drop as the campaigns for August 8h poll set in. As we speak, they have sunk to as low as 10 per cent. Should this persist, we are likely to close business,” said Mr Mbeva, the general manager of Florence Hotel. Usually the rates range between 70 and 80 per cent.
Non-local tenants have moved to what they consider the safer towns of Isibania and Kehancha while tourists who would visit the border town now prefer going to Tanzania.
Political uncertainty is taking a huge toll on the real estate business in Migori town, with home owners and hotel industry players concerned about low occupancy since the August 8 election and the prolonged campaign period before the repeat presidential poll.
Migori, a NASA stronghold, is prone to political activity that often leads to chaos. Indeed, in the run-up to the August 8 polls, Migori County was identified by the National Cohesion and Integration Commission as one of the country’s political hotspots.
Before the August polls, Migori town experienced a spate of campaign-related violence pitting the supporters of the main gubernatorial aspirants, Mr Polycarp Ochillo Ayacko and Mr Okoth Obado.
And following the nullification of the results of the presidential election, there were protests in the town, leading to the closure of several businesses.
Property owners say that business premises, in particular, are suffering low occupancy rates as potential clients stay away for fear of an outbreak of violence.
“Many commercial buildings with office space have come up in Migori town but they have not been occupied due to the political uncertainty occasioned by August 8 election and the forthcoming repeat poll. Many investors hope the situation will stabilise so that business can return to normal,” said Mr George Omondi, a real estate agent in the town.
Hotels in the town have been particularly hard hit, with the owners counting their losses as occupancy rates plummet.
“Scores of potential customers are avoiding the town since they fear that violence can break out anytime,” said Mr David Omollo Oyugi, the general manager of Creadex Hotel, one of the leading hotels in the town.
Mr Oyugi added that many non-governmental organisations that operate in the region and are their main clients have scaled down their activities as they wait for the political season to end.
“Most of the hotels rely heavily on NGOs. They hold seminars, trainings and conferences in the hotels. However, all of them have stopped their activities due to the rising political temperatures. We are operating at a loss since we have to take care of overhead operational costs,” he added. Meanwhile, Mr Brian Mbeva, the manager of Florence Hotel, said: “Tourists who used to visit the town now opt for Tanzanian towns such as Tarime and Mwanza.”
Besides, the hotels are facing an acute shortage of essential supplies since most suppliers have kept away for fear of violence. The suppliers, most of whom come from Kisii, Bomet and Keroka, have reduced their supplies, citing delays in payment.
To remain afloat, many hotels have sent their workers on compulsory leave or laid them off.
A number of hotels opened in Migori County in the last few years to cash in on the county’s tourism potential. The county is part of the larger western tourism circuit.
The investors also regret the standoff at the Migori County Assembly, which has denied them income. “We also rely on MCAs since most of them stay in hotels as they go about their businesses but there is nothing happening at the assembly at the moment,” Mr Oyugi said.
Chaos broke out in the county assembly during the election of the Speaker a couple of weeks ago and the House has not resumed its sittings since the court stopped the controversially elected speaker, Mr Boaz Okoth, from transacting any business until the matter is resolved.
“Occupancy rates took a drastic drop as the campaigns for August 8h poll set in. As we speak, they have sunk to as low as 10 per cent. Should this persist, we are likely to close business,” said Mr Mbeva, the general manager of Florence Hotel. Usually the rates range between 70 and 80 per cent.
When business is good, tourists flock to Migori County to visit popular sites such as Thim Lich Ohinga, the stone ruins of a protective wall that date back more than 200 years, Gogo Waterfalls and the Macalder mines.
Those with rental houses have been equally hit after some of their tenants moved out. Mr Joel Odhiambo, who owns a number of rental houses in Migori town, says he is yet to get tenants for some of his houses, which were vacated in the run-up to August election.
Many tenants are said to have relocated to Isibania and Kehancha towns, which usually experience relative calm even during periods of heightened political activity.
