PRC Enhances Kilimo Biashara Project Model

Real estate firm Property Reality Company (PRC) Kilimo Biashara project model has been enhanced to ensure that investors get a sustained and value for their investment beginning this year.

According to Ronnie Ibuto, Head of Projects at PRC, the change of the model is set to ensure that those who invest in the project not only focus on short-term returns but long-term.

The investment program which kicked off two years ago required investors to buy a piece of land with a greenhouse from PRC. The investor and PRC then partnered to plant crops in the piece of land where the investor was assured of a ‘guaranteed return within a period of one year.’

“However, we did not factor in the usual challenges that come with farming when we were promising the guaranteed returns to our investors. The high expectations from some of our investors almost worked as a setback,” said Ronnie.

At its piloting stage, the project kicked off with 54 greenhouses which were being sold to investors at 549,000shillings per plot inclusive of the greenhouse.

“As PRC, we did not just want to sell land, but we wanted to sell investment opportunities. Instead of encouraging our investors to buy a piece of land and wait for the prices to increase in order to sell it at a profit, we wanted to give them an opportunity to earn from the piece of land as they think of other ways of developing it,” he added.

According to Ronnie, the Kilimo Biashara project was one of a kind. The fact that there was no similar project in the country to benchmark with meant that the company was going, to begin with, nothing to base on. The project was also going to be one of its own kind in Africa.

“We were the pioneers of the project in Kenya and I can say that we set out a leading role in the sector. We are still leaders because the new players who have come in the market are only imitating what we did and still doing,” said Ronnie.

Contrary to what many people thought, the project came with some success for other people including opening up employment opportunities for communities surrounding the project.

When the project was launched in Mbuni area, there was no road leading to the area. PRC had to undertake the construction of the all-weather road which is linked to the Isinya Pipeline road that has since been tarmacked by the government.

“To make the project more sustaining and more profitable to investors, PRC has decided to change the business model for Kilimo Biashara and intend to compensate their investors accordingly for any loss.

“The new model does not only give the investor an opportunity to own land but also an opportunity to be part of a group of investors running a farming business jointly with PRC,” he added.

In the new model, when an investor buys a piece of land and a greenhouse, he or she automatically becomes a shareholder in the project. What this means is that both investors (PRC and the landowner) invest together, make decisions together and be able to share the benefits.

“This is a long-term investment project. With shares, one can pass them down to a family member. It is actually a lifetime investment,” said the Head of Projects.