Rentals and Hostels are a booming business in Kakamega Town

Kakamega is a town found in Kakamega County. This town is the headquarters of Kakamega County. According to the 2009 census, the town had a population of 99,987 but the number is currently more than that. Kakamega is 52 kilometers north of Kisumu and its average elevation is 1,535 meters. Kakamega County is also the second most populous county after Nairobi County.

There is a huge investment opportunity within Kakamega town that has only been realized by a few. Even the few who have realized this potential have not fully utilized it. Kakamega town is a home to Masinde Muliro University. The university has thousands of students from all over the country and other countries. This institution is a blessing to Kakamega town but this blessing has not yet fully benefitted the people within the town.

Kakamega Town has a huge shortage of accommodation due to the high number of students from the university. This implies that there is a high demand for accommodation. Those few who have invested into hostels and rentals are reaping big from the students. Investing in rentals as well as hostels is a great investment opportunity in this town.

The best places to set up hostels and rentals that still have space are places like Amalemba and Sichirai. Setting up rentals in these places will always see one getting value for their money for good returns will always flow in.

The land prices in Kakamega town are a bit high but not as high as in Nairobi. An acre of land in town now retails at seven million shillings and the prices are prone to increase with influx of investors. The price is even higher in Kakamega CBD with an eighth of an acre going for 15 million shillings.

What are some of the challenges that an investor is likely to meet while investing in housing in this town?

There are no many challenges. The only major challenge is that it is not easy to find land. Only the highest bidder is able to get a piece of land in this town. There is also no clear demarcation between public land and private land. One can, therefore, easily fall a victim of fraud by buying public land that can be reclaimed later. The town CBD is also densely populated and there is no space for further constructions.

What next for investors?

Investors in Kakamega have always a promising future in the sector of rentals and hostels. Land is ever appreciating in value, so are the houses. This is a lifetime investment. Most universities have also opened their branches within the town like JKUAT, MKU and others. This is brings a great potential of investing in the housing sector.