Devolution drives up demand for modern hotels in Busia town

The demand for business premises has gone up in Busia County, creating an alternative income stream to agriculture that for long has been the region’s mainstay.

The returns from housing are so attractive that some locals have even turned their residential houses into business premises.

For the past year, Busia town has been a hive of activity, with hotels and conference centres being set up. The number of hotels in the town has doubled. This growth is driven by the soaring demand for hospitality and meeting centres largely due to devolution.

Industry players say increase in transport, rise in the number of non-governmental organisations, higher learning institutions and government offices being set up in the town have fuelled housing demand.

At the moment, hotel and conference facilities in the town include Itoya, The Quill, Border palace, Farm view, Floman, Roots, Western Ambience and Gronnia.

A visitor to Busia will not fail to spot the booming construction around the urban centre. On the once idle plots, commercial and residential buildings are coming up, pretty fast.

CROSS-BORDER TRADE

Charles Wesonga, owner of a modern hotel in Busia town told Smart Company he ventured into the business to tap into the booming cross-border trade.

“There is a lot of cross-border business in the region and the county receives foreign visitors. So I decided to set up a facility that will meet their expectation,” Mr Wesonga said.

The hotel industry has created jobs for the locals, especially the youth and women.

Developers are investing in modern structures to meet the rising demand and cater for the increasing urban population.

Busia County governor Sospeter Ojaamong says the hotel industry will perform well if Busia and Malava towns are planned properly. He said the urban centres should be made attractive and sustainable hubs for business.

“To capitalise on the wide spectrum of business opportunities that our border towns and hotel industry offer, we must ensure we plan our towns well,” he noted.

Besides the booming hospitality industry, other businesses are also angling for a share of the trade opportunities brought about by devolution. Take Yako supermarket for instance. To tap into the growing cross-border business, the retail chain has opened a multi-million complex in the town, setting the stage for a fierce battle for customers.

STRATEGICALLY LOCATED

The supermarket, headquartered in Kakamega town and with presence in Bungoma County, is the first giant retailer to set up a shop in the border town. Strategically located next to the up-market Burumba estate, the retail store is housed under the biggest mall in the town with a parking for 50 cars.

Tesia and Frank Matt supermarkets have for a while enjoyed monopoly in the region but the fight for customers is taking a new turn.

Yako’s location will see it attract customers across the Kenyan border since Uganda’s Busia town does not have a major supermarket. Mr Sudhir Khetia, the director of the supermarket said the management has invested Sh200 million in the branch creating over 200 jobs, especially for the locals. He said the opening of the Busia branch is part of the enterprise’s expansion plan in the western region.

Although not complete, the mall has also caught the eye of banks with some lenders already booking space to set up ATMs, said Mr Khetia. Today, Yako supermarket serves other major towns in Busia County including Malaba, Amukura, Port Victoria. Shoppers from Uganda side of the border also stream into the retailer.

“We used to go to Kisumu or Kakamega for shopping but thank God at least we have a modern supermarket,” said Nicholas Oluoch, a resident.