real estate business plan in kenya

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How to Start a Real Estate Business in Kenya: The 10 Step Guide

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So, you want to start a real estate business in Kenya? Great! The real estate market is booming right now and there are plenty of opportunities for those who are willing to put in the work.

But where do you start?

There are a lot of things to consider when starting a real estate business, from getting training to registering your company and getting the necessary licenses to finding the right properties to invest in.

In this article, we’ll walk you through the 10 steps you need to take to start your own real estate business in Kenya.

Getting Started

If you’re thinking about starting a real estate business in Kenya, there are a few things you need to do to get started. First, you’ll need to obtain a real estate broker certificate offered by the Ministry of land and planning. This license will allow you to buy, sell, manage, and lease properties in Kenya.

Next, you’ll need to find some funding for your business . You can either use your own personal savings or take out a loan from a bank. Once you have the necessary funding, you can start looking for properties to buy or lease.

But that’s just the short way in theory. There are other ways and processes that you must go through if you really want your business to grow fast.

It’s also important to develop a good marketing strategy . You’ll need to find ways to market your business to potential clients. There are many different marketing channels you can use, including online advertising, print advertising, and word-of-mouth marketing.

We will discuss all that as we continue with this guide on how to start a real estate business from scratch.

Where to Apply for a Real Estate Broker Certificate in Kenya

Have I already mentioned that you will need to have a real estate broker certificate if Kenyans are to take your business seriously?

Before you can start working as a real estate broker in Kenya, you need to obtain a certificate from the Estate Agents Registration Board. The Estate Agents Registration Board is the regulatory body for estate agents in Kenya and it works under the ministry of lands.

To apply for a certificate, you need to fill out this form provided by the board and send it with these other documents to the board for scrutiny.

• Recent Passport size Photograph
• Identity Card/Passport
• Curriculum Vitae
• Educational Certificates
• Letter of recommendation from a Registered and Practicing Estate Agent who has trained you, (original letter) see sample overleaf.
• Certificate of good conduct
•  Payment of Kshs. 1,000/= being application fees

After the board has evaluated your application and assuming they are satisfied, they will invite you for an interview

Make sure you go with all the original documents listed below for the interview: –

• Original Academic Certificates
• ID or Passport
• Original Certificate of Good Conduct
• Original Letter of recommendation from a Registered and Practicing Estate Agent who trained you,

If you succeed in the interview, you will be required to pay a certificate fee of Ksh. 3,000.

Once you have your certificate, you can then start your own real estate business.

Real Estate Companies That Train Agents in Kenya

In case I did not emphasize it enough, the Estate Agents registration board will not give you the agent’s certificate, leave alone grant you an interview if you do not undergo real estate training and get a recommendation letter from where you were trained.

So what’s the solution for all this? Get formal training from real estate agents registered with the Estate Agents Registration Board.

There are several real estate companies in Kenya that offer training to agents.

These companies usually have a few Requirements that must be met before starting the training.

1). The first requirement is that the agent must have a clean criminal record.

2). The second requirement is that the agent must pass an exam that tests their knowledge of the Kenyan real estate market among other requirements.

Note: – these requirements vary by agent. So, make sure you ask what will be required of you before you enroll for real estate training.

Once these requirements are met, the agent can start the training process.

The training process typically takes a few weeks to complete and you may also be required to pay for the service.

If your trainer is satisfied with your work, they will give you the recommendation letter which you must submit to the Estate Agents Registration Board when applying for a certificate.

Below are some of the top real estate agents that can train and give you the required recommendation letter to become an agent in Kenya.

Find the full list on the Estate Agents registration board website.

The 10 Step Guide to Starting a Real Estate Business in Kenya

With the registration process out of the way, now let’s look at the real steps of starting a real estate business in Kenya from scratch.

1. Research the Kenyan real estate market.

Just like when starting any other business, you will need to undertake research on the Kenyan real estate market before doing anything or spending any money on the business registration process.

This will help you understand the demand and supply side of the market, as well as what needs to be done to get your foot in the door.

You can start by reading up on the latest real estate news in Kenya, which will give you an idea of what is happening in the industry.

You can also attend industry events and meet with other professionals to get a better understanding of how the market operates.

And if you have time on your hands, use it to work for/or with other established real estate companies to learn a thing or two about the market before branching your own way.

Having any slight experience will save you time and startup headaches when you are just starting out.

2. Identify your target market.

Once you have a good understanding of the Kenyan real estate market, you will need to identify your target market. This will help you focus your marketing efforts and ensure that you are reaching the right people.

For example, if you are looking to sell properties to foreign investors, you will need to make sure that your marketing materials are aimed at this audience. Alternatively, if you are targeting first-time home buyers, you will need to focus on different selling points.

3. Get your licensing and registration in order.

Before you can start operating as a real estate agent in Kenya, you will need to obtain the necessary licensing and registration. This process can be lengthy, so it is important to start it as early as possible.

As mentioned in the previous subtopic, you will need to go to the Estate Agents Registration Board in person to apply for the required certificate.

Also, don’t forget that one of the requirements to get a certificate for your new real estate business is that you get training from an existing and practicing agent.

Also Read: – 10 Best Businesses to Start in Kenya.

This takes us back to our first point. Work for someone else if you have to. Because really, there are no two ways about it. Plus, you will be gaining experience which you can later use in improving your business.

4. Think of a name for your business.

Now that you are ready to open up shop, it is time to think of a name for your new business. This part can be tricky because you will want to choose a name that is not only unique but also one that is easy to remember and associate with your brand.

To help you come up with the perfect name, we have some tips below:

a). Choose a name that speaks to what you do as an agent. For example, if you specialize in handling properties in prime locations, you can incorporate the word ‘prime’ in your business name.

This will help people easily identify what it is that you do and what they can expect from doing business with you.

b). Make sure the domain name for your chosen business name is available. You will need to have an online presence so potential clients can easily find and contact you.

A website will also come in handy when promoting your listings or running marketing campaigns.

So before finalizing on a particular name, do a quick check on the availability of its corresponding domain name. The last thing you want is for someone else to already have it registered when you are finally ready to set up your website!

When you are ready with the name, be sure to register it on eCitizen to also secure it from someone else using it locally.

5. Get the proper licenses and permits.

In order to operate legally, you will need to obtain the proper licenses and permits from your local government. The requirements will vary depending on your location but some of the most common ones include a business license and outdoor advertising permits.

Make sure to check with your local government offices for specific requirements in your area.

Remember, the business license is different from the real estate certificate issued by Estate Agents Registration Board, Kenya.

6. Set up your office space.

Now it is time to set up your new office space! This is where you will be meeting with clients, hosting open houses, and working on listing presentations so it is important to make sure that it is both functional and inviting.

Here are some tips on setting up a new office space for your real estate business in Kenya:

a). Choose a location that is easily accessible for both you and your clients. A central location with good parking and public transportation options is ideal.

b). Make sure the space is large enough to accommodate all of your needs. You will need room for a desk, chairs, filing cabinets, and any other furniture or equipment you may need.

c). Create a welcoming environment by decorating with warm colors, comfortable furniture, and plenty of natural light. You want your clients to feel at ease when they visit your office.

d). Invest in technology that will make your job easier and more efficient. A good computer, printer, and reliable internet connection are essential.

e). Be sure to have plenty of business cards, marketing materials, and other supplies on hand so you are always prepared.

7. Get organized and stay on top of paperwork.

One of the most important things you can do as a real estate agent is to stay organized.

This includes keeping track of all your listings, clients, appointments, and paperwork. There are a few different ways you can do this:

a). Use a paper-based system: This involves using a physical filing system to keep track of everything. This can be anything from a simple folder system to more complex binders or accordion files. The key is to find a system that works for you and stick with it.

b). Go digital: With today’s technology, there are many different software programs that can help you stay organized in your real estate business.

There are customer relationship management (CRM) programs designed specifically for real estate agents, as well as general task management programs that can be used for any type of business.

Find one that fits your budget and that’s simple and convenient to use.

8). Market your business

If your real estate business is ever going to become successful, then you will need to advertise it.

One popular advertising method that’s currently trending in Kenya is the use of social media influencing together with traditional marketing and digital marketing to convert clients.

9). Schedule FREE viewing

Because this is new business and chances are you might not have a good network of ready buyers at inception, it is a no-brainer that you focus your marketing efforts and show all potential buyers your properties.

The more viewing you have, the more your properties get in front of buyers, the more your network grows, and the better chances you have at selling your first property.

10). Sell your first property and press repeat

Since your business is now functional, be ready for anything. You could get a purchasing client soon. When your stars align, sell your first property and do a good job while at it because most property buyers in Kenya end up being repeat clients.

If they are satisfied with how you handle the transaction and the transfer process, they may just buy another property from you sooner. Or, they could refer someone else to you. A ready buyer.

Conclusion.

While the process of starting a successful real estate agency may seem simple in theory it does require upfront investment both, time and money.

Before you waste your money setting up an office and buying properties in areas you may never sell, take a break and learn from other agents already doing the business.

Do you have any questions regarding starting a real estate business in Kenya? Leave a comment down below and I will respond promptly.

Good luck starting your new business.

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How to Start a Real Estate Business in Kenya [Full 2024 Guide]

If you want to learn how to start a real estate business in Kenya, we made this guide just for you.

We have prepared a detailed step-by-step process that you can follow and get your business up and running in no time.

But before we dive into the details, let’s start with the basics.

The Basics of Real Estate Business in Kenya

The real estate business in Kenya is quickly booming as more investors find it to be one of the most profitable passive income investments.

It will require a lot of effort and time on your part, but we believe it is worth it.

So, what exactly is a real estate business?

What is a Real Estate Business in Kenya?

In a broader sense, a real estate business involves the buying, selling, management, investment and operation of buildings and lands. However, real estate may also refer to other assets and natural resources that are either below or above land.

These include crops, water, and minerals.

To narrow this down for you, think of the real estate business as an umbrella term for different types of businesses that work in the real estate industry.

These include:

• Property management
• Construction companies
• Real estate brokers and agents
• Home improvement companies
• Property development companies, etc…

All the businesses mentioned operate in one of two ways: by leasing or selling properties to either individuals or corporations. Depending on the business you choose, you will have to follow a slightly different strategy when setting it up.

For example, property management businesses only lease the properties they manage, while brokers and agents usually get paid when they sell a property.

For the sake of keeping this guide simple, we will be focusing on the rental/selling and land aspects as they are more common in Kenya and easy to set up if you have the right resources.

Renting or leasing a property is simply renting out a house, apartment, office, etc., to a tenant on a contract.

The tenant pays you a monthly fee or rents for the right to live in or use the property until the contract expires or as long as they want.

Is the Real Estate Business Profitable in Kenya?

Yes, the real estate business is profitable in Kenya. One of the reasons why a real estate business has high-profit margins is inflation. This is where the price of your property increases over time.

For instance, if you buy a property now and sell it in two or three years, the price will be much higher.

For example, did you know that the house you live in is likely worth double or even triple what you purchased it for?

That’s because every year, the value of properties goes up. This has to do with inflation and other factors.

This is why it makes a lot of sense to invest in real estate as you can buy a property at one price and sell it for a higher price in a few months.

There is also a higher demand for rental properties in Kenya.

There are several reasons why the demand for rentals in Kenya is so high:

• People Are Moving to Urban Areas – As people continue flocking to urban hubs, they will need somewhere to live. Therefore, the demand for housing is on the rise, especially in major cities like Nairobi.
• The Population Is Rising – Although it’s impossible to tell how many people are moving to urban areas at any given moment, another important factor here is Kenya’s ever-rising population which has now reached over 50 million. This means that there is even less land for people to build houses which forces them to resort to rentals.
• Kenya’s Unemployment Rate – The unemployment rate in Kenya is pretty high at over 7%. This means that there are a lot of people who need somewhere to live but have no income to buy or build a home. This makes renting a sensible option for them as they can pay monthly or weekly instead of upfront in lump sum cash.

So, in a nutshell, you can make money from your real estate business in Kenya in one of three ways:

• Through inflation
• By earning income through renting
• By selling or flipping properties ( a little different from inflation)

What are the Benefits of Starting a Real Estate Business in Kenya?

There are many benefits to starting a real estate business in Kenya.

The most obvious one is that you will be earning good money which makes this business a great way to build wealth and accumulate assets.

However, money is not the only thing you will get by starting a real estate business in Kenya. Here are some other benefits:

• Networking Opportunities – When you have a rental property, you will have tenants coming and going at all times. In fact, since most people rent housing before buying homes, you might even have the same tenant for years on end. This means that you can build relationships with your tenants which will lead to opportunities down the line if they want to buy a house or need other services from you such as insurance, financing etc.
• A Sense of Accomplishment – The real estate business is considered one of the best investments in Kenya. So, when you successfully establish your own business, you feel a great sense of accomplishment which might help you expand your business even more.
• A Safe Investment – As Kenya’s inflation rate is still high, owning property makes for a safer investment than other forms of assets/income which have lower returns over time.
• Tax Advantages – In addition to being a safe investment, investing in real estate also has many tax advantages as depreciation and capital gains can be used as tax deductions by landlords under the Income Tax Act.
• You can Evict/Terminate Tenants Easily – Since you own the building, you have the right to evict tenants if they break their lease and stop paying rent or cause damage to your property which means that you can easily manage losses.

Steps to Starting a Real Estate Business in Kenya

• Decide How You Want to Invest
• Conduct In-Depth Research
• Create a Good Strategy
• Create a Real Estate Business Plan
• Organize Your Finances
• Register Your Business
• Come Up With a Marketing Strategy
• Form An LLC
• Build A Support Network

STEP 1: Decide How You Want to Invest

As we already mentioned, a real estate business comes in different forms. So, the first logical step would be to decide which model you want to go with.

• Invest in a property (buy or build) and earn rental income (multi-family houses, apartments, single houses etc.)
• Buy a property, hold on it, and sell it later (taking advantage of inflation)
• Buy under-construction or completed homes and sell them for an increased price (real estate flipping)
• Create your own business by buying land and then selling it later on when it increases in value (this is usually called ‘land banking’)

These are basically the most common forms of real estate investments in Kenya.

Let’s quickly go through each method to help you pick one that is the best fit for your investment portfolio .

Note: It is absolutely okay to use different methods if you have the financial muscles to do so.

Method 1: Invest in a Rental Property

This model makes the most sense, especially if you want to earn monthly returns for a long time.

You can do this in one of two ways:

• Build your own rentals from scratch
• Buy ready buildings and rent them out

Renting out a property is fairly straightforward as all you need to do is find a tenant, negotiate the rent amount with them, and sign a lease agreement that outlines the terms of their stay in your building.

In most cases, tenants will find you.

The downside of this method is that there is a huge competition which means that you might have to keep your rates affordable to get many tenants.

Method 2: Real Estate Flipping: Buying and Selling Homes for a Profit

This is probably the easiest way to get into real estate since it takes less time than investing in rental property. The idea here is to buy homes at a low price, do some renovations and then sell them at a higher cost.

As we all know, real estate prices in Kenya are still on the rise. This is why this method has become so popular over the past few years.

There are only a few things you need to do when it comes to real estate flipping in Kenya:

• Find a good property that will sell at a higher price after renovations
• Do all necessary renovations
• Put the property on the market

When it comes to real estate flipping, you need to be very careful and understand the market value of a property before buying. This is because you might buy a property for higher than it is worth only to find out that you cannot flip it for a profit even after renovating.

You will also need to factor in renovation costs when deciding how much to resell it for.

Method 3: Buy and Hold onto A Property

This might sound like real estate flipping but it is not. For once, you don’t necessarily have to renovate the property to boost its value. Also, while you can flip a property in a few days or months, holding means staying with it for several years.

The idea is to wait until the price of a property goes up before reselling. So, basically, this method leverages inflation to make you money.

There are several ways you can hold onto a property:

• Let it just sit there
• Live in it yourself
• Rent it out then sell it later

Whichever method you use, the idea is to sell when the price goes up.

Method 4: Land Banking

This is the riskiest and, at the same time, the most high-reward and popular form of real estate investment.

Here’s how it works:

• Buy as much land as you can afford around an area that has a very solid demand for a specific type of property (apartment buildings, single houses etc.)
• Hold on to that land for a few years and then sell it when the price goes up. The more you hold on to your piece of real estate, the higher your profits will be. That is assuming that the price will also be going up.

You can do this by either buying huge plots or by acquiring parcels of land in a specific area.

The downside of this method is that you need to have deep pockets as well as a lot of patience for your real estate business to grow into something really profitable.

If this sounds too risky, then maybe consider the other options we mentioned above.

In any case, if you do decide to buy land, you need to have a good team of people working for you. This is because holding on to real estate offloads a lot of responsibilities from your shoulders and leaves you with nothing but decisions regarding the overall performance and growth of your company.

Also, there are many scams surrounding land buying in Kenya, so you will need to be careful not to lose your money for nothing. Make sure that you follow the right procedure when buying land and avoid shortcuts at all costs.

STEP 2: Conduct In-Depth Research

Now that you know how you want to invest in real estate, the next step is to do some in-depth research into the market.

This way, you can gauge how much money you need to invest and whether or not it makes sense for your business model.

While a real estate business in Kenya may sound as simple as building properties and waiting for tenants to flock, there is a lot that you need to factor in.

When doing your research, try as much as possible to answer critical questions like:

• What is the available legal documentation?
• How much capital do you need in order to get your business started?
• What are the procedures in acquiring a plot of land in Kenya?
• Do you know how much it costs to start a real estate company in Kenya?
• What fees must I pay when buying a plot of land in Kenya?
• How much does it cost to hire a real estate agent when selling or renting properties?
• Who are my immediate competitors and how can I beat them?

These are just some of the many questions that you will have to answer before getting started in your own business in this market. However, there is a lot more research that you need to do if you are serious about making any real money in this industry.

For instance, if you already don’t know whether you want to invest in rentals, flip properties or buy land, you determine which is more suitable for you while doing your research.

You can also look into the pros and cons of each method and whether you want to focus on just one or several.

Find out how strong the demand is in your area of choice and whether this demand can be met with what you have to offer.

You also need to look into the local competition that’s already available in the market and whether or not they are a direct competitor to your business model.

Investing in real estate in Kenya can be a lucrative business but it requires a lot of research and patience. If you think you can handle both, then this might be the way for you to go.

STEP 3: Create A Solid Real Estate Business Plan in Kenya

Without a business plan, you will not know how much money you need to start your own real estate business or what to expect for your first few months in operation.

The kind of real estate business plan you write will depend on the size of your business and whether you will be seeking outside financing or not. If you will be using your own money, you can simply come up with a detailed roadmap of what you plan to do while building your business.

In a nutshell, a good business plan should include:

• An overview of the Kenyan market and where it stands right now
• Detailed research on the real estate industry in Kenya
• An analysis of your competition and their strengths and weaknesses
• A list of all the possible expenses that you may incur when starting a real estate business
• The fees that you will charge for your services
• Your potential lead sources
• How much money you need to invest

In general, this is how you should look at your business plan, even if you are just beginning to look into real estate in Kenya.

If your plan is weak, it will only be a reflection of your business and its ultimate failure.

And while a business plan is important, you don’t have to dive into too many unnecessary details.

Just give the basics and take off from there.

Once you have all this information in place, the next thing that you need to do is to start putting down your action plan. This is especially true if you just want to build one rental property or buy land as opposed to starting a massive real estate empire.

On the other hand, if you need a business loan or angel investors, you might need to provide details such as financial projections and your investment milestones.

Understand this, it is very common for potential investors to ask for such information and, if you don’t have them ready, you might scare them away.

STEP 4: Organize Your Finances

Having a good business plan is not enough if you don’t have the financial resources available at all times for your real estate business.

Of course, if you have already written a detailed business plan, you know how much you might need.

However, if you haven’t, let’s give you a rough estimate.

How Much Capital Do You Need to Start a Real Estate Business in Kenya?

You will need at least KSh 5 million to start a real estate business in Kenya if you are simply buying plots or properties. Of course, the value will vary greatly depending on a number of factors. This is merely a rough estimate and might be accurate for some people and way off for others.

So, to get a better idea of how much you will need to start a real estate business in Kenya, let’s look at the factors that will determine these costs.

They include:

The Business Model You Choose

The location of your business, the size of your real estate business.

One of the main factors that will greatly inform how much you need to get this business going is the business model you go with.

In this case, we mean the three methods we discussed above. These are:

• Building or buying rental properties:
• Flipping properties
• Buying land

The first option is probably the most expensive. If you will be building your own properties, you will likley spend a lot depending on:

• The size of those properties
• Where you source your building materials and prices at the time of buying
• Labor costs
• Local regulations on building and construction
• Whether or not you will need to buy land

On the other hand, if you are buying a rental property, the cost will depend on the newness, demand in your area, and size of the property.

Flipping will be a bit cheaper since you will be buying older properties. But again, the prices will vary depending on the:

• The area you are located
• Property demands
• Size of the property
• Age of the property
• Accompanying resources such as the extra land.

Before buying properties with the intention of flipping, ensure that you are not getting ripped off and that you will be able to turn a profit after renovations.

Buying land is straightforward and the cheapest of these methods. The cost of the land will vary depending on:

• The size of the land – The bigger the land you want the bigger the price
• Demand for the land – The more people want to buy the same piece of land, the higher the price will be.
• The location – You can buy a plot of land for less than 500k in rural areas and up to 5 million in urban areas.
• Surrounding amenities – Land closer to towns or learning institutions might be pricier

Another important factor is where you intend to set up your business.

If you are going to build a real estate empire in Nairobi, it will be much more expensive than if you were to do so in Mt. Elgon or the rural areas of Turkana.

This is because land in Nairobi is probably much more expensive than anywhere else.

The size of your business will also determine how much you need in terms of capital. This is because the larger your business, the more money you will need to run it.

If you are just buying a few plots and constructing some rental properties, then the amount that you need to invest might be fairly low when compared with the amount that you need to invest if you were to start a massive real estate empire.

Where to Get Money For Your Real Estate Business in Kenya

Once you have an idea of how much money you need to start a real estate business in Kenya, you will need to start looking for ways to raise the funds.

Of course, this means that there are two options you can work with:

• Take a loan
• Use your savings

If you are going to borrow from a bank, the amount that you need will depend on how much you want to invest. In other words, if you want to build more of an empire, then you might have to take a larger amount.

On the other hand, if you just want something small, you might be able to borrow a smaller amount.

If your goal is to take a loan from a bank or any other financial institution, it might require that you have a good credit history and a solid real estate business plan.

On the other hand, if you are going to use your savings for this business, then there will be no such requirements.

However, you should be careful about how much of your own savings you put into this business.

Again, the amount that you need to invest is also dependent on the model of your business and where you plan to get started.

It will also depend on how long you intend to run this business and if you are planning on expanding it.

Once you have managed to raise enough money, you can now start looking for land and start building or investing in properties depending on what model of business you want to go with.

STEP 5: Register Your Business

Just a while back, the Kenya Revenue Authority (KRA) introduced a geo-mapping system to help them catch landlords who fail to remit taxes.

This means that now more than ever, it is very important to legally register your real estate business to avoid accumulating millions in taxes.

So, how do you do it?

While you might be required to submit some different documents, the process of registering all types of businesses in Kenya is ideally the same.

Let’s show you how…

How to Register a Real Estate Business in Kenya

The procedure of registering your real estate business in Kenya might vary from county to county but it’s mostly the same. If you don’t want to go through the hassle yourself, we recommend that you hire a lawyer who is qualified to do so.

In order to obtain a certificate of registration;

• You must be at least 18 years of age
• You have to register with the lands registry in Kenya
• You have to provide proof of real estate purchase
• You have to provide proof of finance to invest in a Real estate business
• You might have to appoint a Kenyan lawyer to act on your behalf if you are a non-resident

These are just some of the conditions you will have to meet but there might be more.

Now, to register your business name and obtain a certificate, you can check out this in-depth guide on how to do exactly that.

Note that these are general guidelines for registering a business name in Kenya and is not specific to real estate. But don’t worry, the process won’t be much different.

STEP 6: Come Up With a Marketing Strategy

Depending on how you plan to attract clients, you will need to come up with a marketing strategy.

If you are going to look for clients online, you will need to create a website and other online platforms that will allow potential clients to get in touch with you.

If you are going to be working offline, it might not be as expensive because the only cost here would be putting up a few billboards and flyers around your area of interest.

The success of this business will depend entirely on how effective your marketing strategy is and it should be designed in such a way to attract quality clients.

Ways to Promote Your Real Estate Business in Kenya

Here are some ideas on how to get your real estate business in front of the right clients:

• Make sure you are available on all the major social media platforms
• Make sure that you have a good online presence via your website and other platforms.
• If you are interested in marketing on billboards, it will cost some money but it is an effective way of promoting your business.
• You can also promote your business by sponsoring some local events or even offering free services for companies within the same industry as you.
• Invest in a good photographer. A good photographer is crucial for this business because you are going to have clients who are looking to buy or rent a property and they will need some visual aids. This means that photos of the houses, rooms and other properties will be required.
• Make property images on your website easily shareable
• Make sure your real estate images also cover the local area so that prospective clients can clearly see the neighbourhood.
• Make it easy for clients to contact you
• Create videos to provide a virtual tour of your properties. Clients love that.

And so on…

STEP 7: Build A Support Network

A support network is basically a group of people or contacts that you can rely on when things get tough.

This is especially essential for your business when you are just starting out because it will help to take some burden off your shoulders and this, in turn, will allow you to concentrate on expanding your business.

When choosing a support network, make sure that the people you choose are going to be of help. You can choose from your family, friends or even workmates depending on what you feel is most appropriate for you and the business.

The best part about having a support network is that they will always be there to encourage you and provide assistance when things get tough.

You will also have people who will be able to give you advice and mentor you when needed.

Examples of people who can help you with your real estate business include:

• Former schoolmates
• Current or former coworkers
• Family members
• Business associates
• Online forums

Once you have chosen your network, make sure to maintain proper relationships with them because it will be beneficial for both parties in the long run.

BONUS STEP:

Get a Good Accountant and Attorney

When you are starting this business, the accounting aspect is very important.

This is because you have to keep track of all your expenses and revenue so that you know whether you are on the right financial track or you are doing something wrong. Keeping tabs on your finances will also help you pay taxes on time and avoid issues with KRA.

Your accountant should be good with numbers so they can help with the proper recording and reporting of all your expenses and revenue.

Your attorney will come in handy when you need to draft contracts, agreements and other legal documents pertaining to this business.

When hiring an attorney, make sure that he or she is licensed to offer these services and has some experience in the real estate business.

The Bottom Line

After reading this article, you should have all the information you need to start your real estate business in Kenya.

If you want to succeed, it is important that you learn more about this business and get as much experience as possible.

The best thing about starting a real estate business is that anyone can do it regardless of their background or experience.

As long as you have the drive and determination to succeed, this business will be a good choice for anyone looking to get into it.

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L.K. Nathans

I am a personal finance enthusiast and digital marketer. My work here is to help you navigate your financial journey and achieve your main money goals. Through Omoka Digital, I provide practical tips, strategies, and insights on budgeting, saving, investing, and debt management. My aim is to empower you with the knowledge and tools you need to make informed financial decisions and improve your financial well-being.

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How to Start a Real Estate Company in Kenya

By Tristram Ouma

Last updated on March 2nd, 2024 at 05:40 pm

Starting a real estate company in Kenya can be a lucrative venture, given the growing demand for housing and commercial spaces. However, it requires careful planning, investment, and legal compliance. This guide will provide you with a step-by-step process on how to start a successful real estate business in Kenya.

1. Research the Kenyan real estate market thoroughly.

Conducting an in-depth analysis of market trends and economic factors in Kenya helps you learn and understand the Kenyan real estate market properly. Researching your real estate market can help you learn and understand your market upfront before investing in the business and even making the first step.

What are the benefits of doing proper research on real estate investment in Kenya?

There are benefits to doing good research for your investment in the real estate business in Kenya. For example, research helps you make informed investment decisions by identifying profitable market segments, understanding property values, and assessing potential risks and returns. Researching your real estate market in Kenya also helps you reduce transaction costs by avoiding pitfalls and negotiating effectively based on market knowledge; therefore, thorough research can minimize unnecessary costs.

Researching your real estate market can also help you mitigate legal risks by understanding regulations and compliance requirements, often discovered through research, which can prevent legal issues and financial penalties. Finally, market research can also help you identify emerging trends: Staying ahead of market trends through research allows proactive adaptation and capitalization on new opportunities.

How can I do market research for my real estate investment in Kenya?

To conduct market research for real estate investment in Kenya, start by engaging with local market experts, including real estate agents, developers, surveyors, and lawyers, for specialized insights. Utilize online resources for comprehensive data, focusing on reputable sources like Knight Frank, CBRE, and Kenyan government websites, which offer valuable market information. Analyze current property listings and detailed market reports to understand trends and pricing dynamics in the Kenyan real estate market. Lastly, conduct site visits and perform thorough due diligence on potential properties to personally assess their value and verify the accuracy of the information before making any investment decisions.

What are the key insights to look for when researching the real estate market in Kenya?

When researching the Kenyan real estate market, key insights include examining average rental yields across different cities and property types, which provides information on profitability. Analyzing vacancy rates in various property segments helps understand demand and supply dynamics. Monitoring land price trends in different localities offers insight into market value fluctuations. Demographic data, including population growth and urbanization rates, are crucial for predicting future housing needs. Understanding government infrastructure plans can reveal potential areas for growth and investment. Lastly, considering economic growth projections and their anticipated impact on the real estate market is essential for long-term planning and forecasting.

What is the market growth and potential of the real estate business in Kenya?

The real estate business in Kenya is experiencing significant growth and shows substantial potential. The market is estimated to reach a value of US$697.8 billion by 2024, with a projected annual growth rate (CAGR) of 3.84% until 2028. Residential real estate is particularly dominant, expected to account for US$618.8 billion in market volume by 2024. This growth is driven by rapid urbanization, with Kenya’s urban population growing at 4.4% per year, well above the global average, thereby increasing the demand for housing and commercial spaces.

Additionally, stable economic growth, characterized by 5.4% average GDP growth over the past five years, and the expanding middle class are contributing to this upward trend. Government initiatives, including investments in infrastructure and affordable housing, further stimulate the market. The potential for high returns is evident, with apartment units offering average market returns between 6-8% and up to 16% for furnished units. Emerging trends in sustainable developments, co-living spaces, and mixed-use properties offer new investment opportunities, spanning residential, commercial, and industrial sectors.

2. Identify potential niches within the Kenyan real estate sector.

In Kenya’s real estate sector, distinct niches offer robust investment opportunities. The demand for affordable housing is acute, addressing a widespread market need. Upscale properties, particularly in Nairobi, attract an emergent affluent demographic. The burgeoning university population propels the student housing segment. Economic growth spurs the expansion of commercial real estate, including office spaces and retail establishments. Kenya’s vibrant tourism sector boosts the market for short-term vacation rentals.

Investment in agricultural land is on the rise, capitalizing on the country’s agricultural prowess. The industrial real estate niche is evolving in tandem with Kenya’s manufacturing sector’s growth. Properties emphasizing eco-friendliness and sustainability are drawing environmentally conscious investors. Moreover, the preference for gated communities and suburban developments is growing among middle-class families, driven by desires for enhanced security and lifestyle amenities.

3. Create a comprehensive business plan with detailed financial projections.

Creating a comprehensive business plan is vital for starting a real estate business in Kenya. Initially, conduct market research to understand Kenyan real estate dynamics. Identify target customers, whether commercial or residential buyers. Establish clear objectives for property acquisition, development, or rental. Next, outline your business structure, detailing ownership and management roles. Develop a marketing strategy focused on Kenyan market trends and customer needs.

Financial projections are crucial; estimate initial capital, ongoing expenses, and potential revenue. Include costs like property purchase, renovation, legal fees, and marketing. Project revenue from property sales, rentals, or leases. Analyze risk factors such as market fluctuations and regulatory changes. Set realistic, time-bound financial goals. Regularly review and adjust your business plan as the market evolves. This structured approach ensures a solid foundation for your real estate venture in Kenya.

4. Secure the necessary financing or investment.

There are different methods by which you can finance your real estate investment deals in Kenya. You can finance your real estate deals by borrowing money from the bank, or you can use your own capital to finance your deals. However, there are other financing options that you can also leverage, such as venture capitalists and real estate trusts, peer-to-peer lending (P2P), crowdfunding platforms, and microfinance institutions. Below, let’s discuss how each of these financing institutions can help you start your real estate business in Kenya and how you can leverage each of the platforms.

How can you secure financing for your real estate business in Kenya with banks? Which banks offer real estate funding in Kenya?

To secure the right finances for the right investment, you need to have the right bank that can give you the money to buy land or real estate property. That is why choosing a good bank is very important. In Kenya, most banks provide mortgage funding and developer loans. Banks are the dominant players in the real estate market, and therefore most investors and real estate companies use banks to make their deals and purchases. Bank mortgage loans are expensive in Kenya; for instance, for mortgage loans and developer loans, the average bank mortgage rate in Kenya is 12–13%, compared to 3-4% in developed economies. Therefore, the main challenge that real estate investors and developers face with mortgage funding from banks is the high interest rates and strict lending criteria, which limit accessibility for many borrowers.

Can venture capitalists offer real estate funding in Kenya? Which venture capitalists give real estate funding in Kenya?

Venture capitalists can offer real estate funding in Kenya, although their involvement is currently limited. Their focus mainly lies on early-stage proptech startups. There is potential for venture capital to support innovative real estate projects in Kenya, such as affordable housing, green building initiatives, and co-living spaces. The African venture capital industry, which includes Kenya, experienced a surge in 2022, recording investments of $5.2 billion, with a notable growing interest in PropTech. Specific venture capitalists giving real estate funding in Kenya are not explicitly mentioned, but the trend suggests increasing opportunities in this sector.

What are other real estate funding opportunities in Kenya?

1. Crowdfunding platforms:

Kenyan crowdfunding platforms, such as M-Changa and Utulipi, are experiencing a growing presence in the real estate sector, particularly focusing on smaller-scale development projects. Despite the increasing activity, there is a notable scarcity of detailed data on specific real estate financing through these platforms, similar to the situation with peer-to-peer (P2P) platforms. For instance, Utulipi has played a role in supporting a land purchase for a women’s cooperative, and M-Changa has been instrumental in facilitating community construction projects, demonstrating the platforms’ impact in localized real estate initiatives.

2. Peer-to-peer (P2P) lending platforms:

Crowdfunding platforms and peer-to-peer (P2P) lending platforms in Kenya represent an emerging financial trend, with platforms like Acre Africa and Land Lay being pioneers in real estate lending. However, most P2P platforms are privately held and lack transparency in data disclosure. This sector offers potential benefits, such as competitive interest rates for borrowers and appealing returns for investors seeking alternatives. Despite these advantages, the Kenyan P2P market faces challenges in terms of regulatory clarity and establishing trust among its users.

3. Microfinance institutions (MFIs):

Crowdfunding platforms and microfinance institutions (MFIs) have become pivotal in supporting low-income Kenyans, especially in financing land purchases and construction. Data from the Kenya National Bureau of Statistics (KNBS) and the Consultative Group to Assist the Poor (CGAP) reveal the significant activity of MFIs in this sector.

These institutions primarily focus on providing affordable housing solutions to low-income earners, who often do not meet the eligibility criteria for conventional bank loans. However, they face challenges, such as restricted loan sizes and limited repayment periods, which constrain their capacity to fund large-scale projects.

5. Understand and comply with Kenyan real estate laws and regulations.

Kenyan real estate law is pivotal for successful property investment. The law primarily governs property rights, ensuring secure ownership and transfer procedures. Investors must comprehend the Land Registration Act, which regulates land registration and rights. The Kenyan Constitution provides the legal framework for property ownership, emphasizing equal rights and nondiscrimination.

Investment regulations in Kenya are designed to protect both local and foreign investors. The Land Control Act plays a crucial role, in overseeing transactions in agricultural land. This Act requires investors to seek approval from local land control boards for such transactions. The Urban Areas and Cities Act influences real estate development in urban areas, setting guidelines for planning and land use.

Foreign investors should pay close attention to the Foreign Ownership of Land Regulations. These regulations stipulate specific conditions under which foreigners can own land in Kenya. Compliance with these regulations is critical to avoid legal complications.

For commercial real estate, the Sectional Properties Act is significant. It governs the division of buildings into units, sold or owned individually. Understanding this Act is essential for investors in apartments and office spaces.

The environmental impact of real estate development is governed by the Environmental Management and Coordination Act. Developers must ensure compliance with environmental standards, necessitating impact assessments for major projects.

In summary, mastering Kenyan real estate law, particularly property rights and investment regulations, is fundamental. It involves understanding various legal acts and regulations that govern land ownership, foreign investment, urban development, and environmental compliance. Adherence to these laws not only ensures legal security but also enhances investment success in the Kenyan real estate market.

6. Register your business with the relevant Kenyan authorities.

When registering a real estate business in Kenya, it’s crucial to balance legal thoroughness with efficiency. Begin by identifying the appropriate legal entity for your business, such as a sole proprietorship, partnership, or limited company. This choice impacts tax obligations and liabilities.

Next, register the business name with the Registrar of Companies in Kenya. Ensure the name is unique and reflects your real estate focus. Following this, obtain a Personal Identification Number (PIN) from the Kenya Revenue Authority, which is essential for tax transactions.

The registration process also involves acquiring the necessary permits and licenses specific to real estate operations in Kenya. These may include land acquisition permits, construction permits, and business operation licenses from local authorities.

To streamline the process, consider leveraging online government portals for registrations and submissions. This approach reduces bureaucratic delays. Additionally, maintaining clear records of all legal documents is vital for future reference and compliance.

Throughout this process, it’s important to consult with legal experts in Kenyan real estate law. They can provide guidance on specific legal requirements and ensure that all aspects of the law are adhered to, preventing future legal complications.

In summary, the business registration process in Kenya demands a careful approach that respects legal requirements while avoiding unnecessary complexities. By following a structured, informed path, you can establish a compliant and efficient real estate business foundation in Kenya.

7. Build a network of real estate professionals in Kenya.

In the Kenyan real estate sector, building a robust professional network is crucial. Start by attending industry events, such as real estate conferences, workshops, and local meetups. These gatherings are prime opportunities to connect with agents, brokers, investors, and property developers. Participation in online forums and social media groups focused on Kenyan real estate also expands your network.

Simultaneously, seek out mentors with a proven track record in the field. Experienced mentors provide invaluable insights, guidance, and practical advice. They typically have a deep understanding of the market dynamics and regulatory landscape in Kenya. Establishing relationships with such mentors can be achieved by identifying leaders in the industry, reaching out for informational interviews, and expressing a genuine interest in learning from their experience.

Remember, a mentor-mentee relationship is reciprocal. Show eagerness to learn, but also be willing to share your perspectives and ideas. This approach not only strengthens your network but also enriches your understanding of the Kenyan real estate market, thereby enhancing your business strategies and decision-making processes.

8. Invest in high-potential properties based on thorough market research.

Investing in high-potential properties requires thorough market research and a keen eye for untapped potential. Start by analyzing current real estate trends, focusing on emerging areas with growth potential. Examine economic indicators like employment rates and infrastructure developments, as they often signal rising property values. Prioritize locations with increasing demand but limited supply, as they offer lucrative investment opportunities.

Look beyond conventional hotspots; sometimes the most promising properties are in overlooked neighborhoods on the cusp of gentrification. Trust your instincts, but back them with data. For instance, properties near new public transportation lines usually appreciate in value. Consider properties that need renovation; they can be bought at a lower price and remodeled for significant returns. Always assess the property’s potential for rental income and resale value.

In summary, successful property investment combines thorough market research with an instinct for spotting hidden gems. Focus on areas poised for growth, backed by solid economic fundamentals. By doing so, you increase your chances of investing in properties that yield high returns.

9. Develop effective marketing strategies for your properties.

Integrating Digital Platforms for Global Exposure: In today’s real estate market, digital platforms offer unparalleled opportunities for global reach. Utilizing these platforms effectively requires innovative strategies. Firstly, create a robust online presence through a professionally designed website showcasing property portfolios. This website should be optimized for search engines to enhance visibility. Next, engage in targeted social media advertising, focusing on platforms with substantial real estate interest. Platforms like Facebook, Instagram, and LinkedIn provide tools for demographic targeting, ensuring ads reach potential buyers or renters. Additionally, virtual tours and 360-degree property views on these platforms can significantly boost interest in properties.

Leveraging Social Media and Word-of-Mouth: Social media’s role extends beyond advertising; it’s crucial for building brand authenticity. Regularly update social media profiles with engaging content related to real estate trends, success stories, and customer testimonials. Encourage satisfied clients to share their experiences, effectively harnessing word-of-mouth in a digital format. Engagement with followers through timely responses and interactive posts builds trust and a sense of community. This approach not only attracts new clients but also retains existing ones, creating a loyal customer base. Integrating user-generated content, such as client photos and stories, can further authenticate the brand and enhance relatability.

Maximizing Reach and Authenticity: To maximize the effectiveness of these strategies, regularly analyze data from digital campaigns. Monitor metrics such as website traffic, social media engagement, and conversion rates. Use this data to refine strategies, focusing on what resonates with the audience. Simultaneously, maintain a consistent tone and message across all platforms to ensure brand cohesiveness. Authentic storytelling about the business journey and client experiences can differentiate the brand in a competitive market. Emphasizing transparency, reliability, and a customer-centric approach in all marketing endeavors reinforces authenticity and can lead to sustained business growth.

10. Focus on customer service and build a strong client base.

Establishing a reputation for unparalleled customer service and industry expertise is essential in the real estate business. To achieve this, prioritize client satisfaction in every interaction. Treat each client as your most important one, ensuring their experience is personalized and exceeds expectations. Build trust through transparency and consistent communication.

Demonstrate your industry expertise by staying informed about market trends and legal changes. Share valuable insights with clients, helping them make informed decisions. Cultivate strong relationships with clients, leading to positive word-of-mouth and referrals.

In every transaction, highlight your unique value proposition. Show clients why your service stands out, focusing on your deep market knowledge, negotiation skills, and commitment to their needs. Consistently delivering exceptional service solidifies your reputation, turning clients into long-term advocates for your business.

What is the cost of starting a real estate business in Kenya?

Here is an estimated cost breakdown for starting a real estate company in Kenya:

Also Checkout: How to Start a Cleaning Company in Kenya

What are the requirements for starting a real estate investment in Kenya?

To start a real estate company in Kenya, you need to comply with the following requirements:

• Business registration: Register your company with the Registrar of Companies and obtain a certificate of incorporation.
• Business permits and licenses: Obtain relevant permits and licenses from the County Government and other regulatory bodies.
• Staffing: Hire competent staff such as sales agents, property managers, and accountants.
• Legal compliance: Familiarize yourself with the real estate laws and regulations in Kenya and ensure that your company complies with them.
• Office setup: Rent or buy office space and equip it with necessary furniture, equipment, and supplies.
• Marketing: Develop a marketing plan to promote your real estate company and reach out to potential clients.

Read Also: Real Estate Jobs

How much can you make from your real estate business in Kenya? What are the profit margins?

In Kenya, real estate business profitability varies significantly. Developers who acquire fully-serviced land and build properties typically see profit margins of 35-40%, as exemplified by Charles Kibiru of Thika Greens. However, those investing in infrastructure, such as access roads, water, and sewer lines, often report lower profit margins, around 20-25%. This figure is supported by the experience of developer Ounga.

What factors affect profit potential of the real estate business in Kenya?

The type of property greatly affects profit margins; for instance, high-end apartments in Nairobi generally yield higher margins compared to budget houses in rural areas. Location also plays a crucial role: prime areas like Nairobi, Mombasa, and coastal regions usually offer better profitability than less developed regions. Additionally, the specifics of a project, including development costs, financing options, and market demand, are vital in determining profitability. Lastly, the chosen investment strategy impacts earnings: flipping properties quickly often leads to faster profits, whereas buy-and-hold strategies can provide long-term returns through rental income and capital appreciation.

What are pros and cons affecting real estate business in Kenya?

Here are some pros and cons of starting a real estate company in Kenya:

• Lucrative business opportunity with high-profit potential
• Growing demand for housing and commercial spaces
• Opportunity to contribute to the country’s economic growth
• Flexibility to set your own work schedule
• High initial investment costs
• Intense competition in the market
• Fluctuating market conditions can affect profitability
• Legal and regulatory compliance can be challenging

Conclusion: Starting a real estate company in Kenya can be a rewarding venture if you plan carefully and comply with legal and regulatory requirements. By following the steps outlined in this guide, you can set up a successful real estate business that meets the needs of the market and generates substantial profits.

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How to Start a Real Estate Business in Kenya

The real estate business is one of the most profitable ventures for entrepreneurs in Kenya. The sector has experienced tremendous growth in the recent past due to urbanization and an increase in population. The demand for residential houses, raw land and office spaces is always rising. This has created business opportunities for entrepreneurs who want to meet the growing demand.

If you want to venture into the real estate business in Kenya and make good profits, it is important that you first decide on the type of real estate you want to invest in. This is how you can start a real estate business in Kenya.

Conduct a Thorough Research

Like any other business, it is important to conduct thorough research before starting your real estate business. Research real estate properties available before choosing a niche to invest in.

Decide on the Real Estate Properties to Invest in

Some of the best real estate properties to invest in Kenya include:

• Your own home. The first step for venturing into this business is to build your own home. A home is a good investment because it has monetary value and can be used as leverage when seeking loans from financial institutions. You can even decide to sell it later on when its value appreciates.
• Commercial investments. With many businesses coming up, they will need space to carry out their activities. As such, you can put up property and lease it to business outlets.
• Residential houses. With the growing population, most Kenyans are in need of houses and many more will still need home. It is for this reason that residential property remains one of the most lucrative real estate investments.
• Raw land. Many investors are currently investing in raw land (land with no development). If you want to make good money from this investment, watch out for catalysts that will allow you push up the price of land when selling it (catalysts can be external developments like roads, hospitals, etc.)
• Industrial property. Industrial property includes warehouses, depots, distribution centers, and other property set up for industrial purposes. Industrial property requires smaller capital to set up.

Write a Real Estate Business Plan

After doing thorough research and deciding on the real estate niche you want to concentrate on, draft a business plan. The business plan should include details of how you will start the business, capital requirements, your marketing strategy, business management structure, your business location and potential market and competitor analysis. 

Read more: How to write a business plan. 

Find a Strategic Real Estate Business Location

One of the factors that greatly determine the success of your real estate business is finding the ideal business location. From the research you conduct at the beginning, find out the areas where people want to set up businesses. As such, you will know the ideal location to put up your commercial property. Other factors to consider include urbanization and security.

If an area is well developed; has social amenities like hospitals, schools, and a good transport system, people will want to rent houses here, giving you an opportunity to build rental houses around such areas. In the same way, people will want to live in safe environments. You do not want to be stuck with a rental property that no one is willing to occupy. It is also important to look at market saturation. If an area has many vacant houses, do not set up a rental property here. Look for areas with a growing population.

Raise the Required Capital for your Real Estate Business

Every business requires capital to start. The amount of money you need to start a real estate business will vary depending on the nature of your business; the niche or real estate investment option you decide to venture into.

Factors that will determine the amount of capital you need include the number and size of properties you want to invest in, the cost of land, office space size, etc. For example, if you want to buy property in Kenya through a bank, most banks in Kenya will require at least 20% - 30% of the value of the property as down payment.

Related: How to sell land fast in Kenya.

Build a Brand for your Real Estate Business

It is crucial that you build a brand that potential customers will identify with. Look for a good business name that is easy to remember. Many successful real estate businesses in Kenya started to build brands from the early stages of their businesses. Some of the best real estate companies in Kenya include Knight Frank Kenya, Villa Care Limited and many more.

Register your Real Estate Business and Get the Necessary Permits and Licenses

It is important that you first register your business before you start any operations. A business that is not legally registered will put off clients. No one wants to buy a house from an owner who is running a business that is not registered. In this case, you will need a real estate certificate. To obtain this certificate you must fulfill the Kenya’s instructional specifications and Restrictions on Access to Property.

Related: How to make money in real estate in Kenya.  

Market your Real Estate Business

Once your business is set up and legally registered, you need to have a perfect marketing strategy in place. Your potential customers need to know that your business exists. You can create a real estate business website for marketing or market your business on social media platforms like Facebook, Instagram, or Twitter.

Alternatively, you can distribute pamphlets and flyers or put-up posters in public places. It is important that you develop different channels through which potential customers can reach you. It can be through email or phone.

Read More: Sales and marketing strategies for small businesses. 

Manage your Real Estate Business in Kenya

Once you set up your real estate investment, the race does not stop there. You will need to manage your properties. Property management involves handling tenancy leases, inspecting your property and making renovations in good time, collecting monthly rent, screening of new tenants, sending late payment and eviction notices, arranging for payback of deposits after a tenant moves out, and more. If you do not have the time to do this yourself, you can hire a property management agent.

Real Estate Business Returns in Kenya

If you are wondering if real estate is profitable in Kenya, the answer is yes. However, to make huge profits, you will need to get it right from the very beginning. Conduct proper research and work with facts to make informed decisions. Choose the right business location, come up with a good marketing strategy , and manage your property responsibly.

Tips on How to Start a Successful Real Estate Business in Kenya 

To build a successful real estate business in Kenya, you need to do the following:

• Sell genuine land without disputes 
• Offer ready title deeds to buyers 
• Take your potential customers to the land for viewing
• Ensure your business meets all the necessary legal requirements 
• Encourage your customers to do a land search before buying land

Summary of How to start Real Estate Business in Kenya

The real estate business is one of the most profitable ventures to start in Kenya but its good to know that it is not a get-rich-quick investment. It will require hard work and effort to realize the profits that come with a well-managed real estate business. Then identify the right real estate property you want to invest in and get started. 

• How to start house rental business in Kenya 
• Best investment opportunities in Kenya  
• Best investment companies in Kenya

Get in touch

For business consultancy, business plan writing, market research, strategic planning, risk management, financial management & accounting at an affordable fee, please reach out to us through:

• [email protected]
• +254 728 621 138
• 1503 -01000, Thika KIBS Plaza, Thika

Last Updated on July 16, 2020

Home » Business » How to start a real estate business in Kenya

How to start a real estate business in Kenya

Starting with the right real estate business in Kenya is something that may not be as easy as it sounds. However, once you get the right tips about it, you can be sure of making quite a profit. There will always be a demand for property, no matter where you are. This is the key reason many businessmen are interested in the real estate business.

When it comes to making money from property, there are several different ways. 

Deciding on what path to take depends on various factors, including (but not limited to) the available capital, risk appetite, location constraints (if any) and so on.

If you are looking to start a real estate business in Kenya, then you have already taken the first step towards a profit- that of making the right choice.

The Kenyan real estate market is one of their most promising investment avenues right now.

For any investor on the hunt for a good opportunity, this is the place to start.

Before entering the property market, it is vital to understand different property offerings and what to look for in those.

Let’s first go over some precautions and must know points before getting into a real estate business in Kenya.

After that, the next thing is to understand the various types of real estate property in Kenya.

Along with that, knowing what factors influence them will help in getting a complete picture of the market before entering it.

What should one know before getting into Kenya’s Real Estate business?

Kenya has a very promising real estate market, and it is slowly expanding from the big cities to tier-II and III cities as well.

This is one of the best times to get into a real estate business in Kenya, that does not mean that it is all easy.

Recent market trends, as mentioned, have favoured growth in Kenya’s real estate and property market.

Opportunities are abundant for both domestic and foreign investors looking to start their real estate business in Kenya.

The most important thing with starting a real estate business in Kenya is to do significant research.

With the market growing at such a pace, there is a lot of competition, and that brings in people looking to make a quick buck.

Reading about those who sell a property three or four times the buying price in less than a day (more on that ahead) makes it sound like it is easy money.

However, it is important to understand that a lot of research, effort, and groundwork go into such deals.

Taking time to build a team

Often, people spend months just scouting the market for a property, performing analysis and speaking to owners & buyers before investing anything into it.

For one’s first time in starting a real estate business in Kenya, speaking to seasoned investors and agents in the market is a good way to understand the ground reality of the property.

Next, one must have a trusted lawyer or someone who specializes in real estate and property law.

Property contracts can be complex, especially in Kenya, and one must know what he or she is getting into.

A contract that lists all the agreed-upon terms and protects your assets and interests is a must-have before any money goes through.

Along with a fair and binding contract, performing due diligence before purchasing any real estate business in Kenya is a must-do.

Especially in residential real estate such as homes, there is no way to ‘return it’ if the property is not as expected.

Due diligence, paying a little extra for the right set of inspections and home-owners’ insurance are some of the small yet highly effective instruments in protecting land and property.

Understanding the Market-Types of real estate to invest in

Start with a home of your own.

This may sound like an obvious thing, but its importance cannot be stressed enough.

For those preparing to enter the real estate business in Kenya, the first step is to invest in a home for self.

It serves as the base property element for a real estate portfolio.

A residential property in a prime location adds to one’s assets.

Also, this is one of the best guarantees in terms of property for taking loans for any business.

For those who cannot afford to buy out a home, mortgaging at an affordable rate is the smart step.

Monthly mortgages increase your equity in the home over time, contrary to rent payments that go to the landlord.

Once completed, these mortgage payments will add up to give you ownership of the property.

Property insurance

It’s the most important thing while buying a home for yourself.

This protects the house as well as the owner. It protects damages to the property as well as any injuries that may be caused by staying in it.

This, along with a qualified inspection before purchasing the house, provide a great deal of peace of mind and security.

These are not just ‘extras’, but essentials that one must get before purchasing any residential property in Kenya.

Additionally, having these things helps sell the home quickly as the next buyer knows that the home was protected and covered.

Having one’s own home also gives peace and security.

These two things are quite important while starting any new venture, including a real estate business in Kenya.

Once this is taken care of, the risk of venturing into other forms of real estate decreases slightly, for one investment is already secured.

Residential Real Estate

After setting up one’s property, investing in other residential property is another good option.

As per the National Housing Corporation stats, there is a deficit of 200,000 houses in Kenya currently.

This gap in demand and supply is one of the reasons why developers hold on to properties indefinitely in many cases.

Even after earning back the principal and a profit, many owners do not further sell their residential properties.

Residential properties are comparatively easy to rent out.

Depending on the type of area the property is located in, you can include suitable facilities.

With this, you can also market it accordingly for bachelors, families, students, etc.

Study the market, demands of the area, average rent and type of population before you invest in real estate for rentals.

Having a large residential real estate also doubles up as a home for the owner can also stay in one of them.

This makes property management easier and allows for a better understanding of the area for more opportunities.

Real estate properties

Further, any property sale or purchase will consist of over 10-12 people, right from the bank to buyers’ agents, inspection agencies and many others.

For those who cannot afford the time or effort to do it all, having a trusted real estate agent is a good step.

Investing in multiple real estate properties will increase the need to have an agent or more to manage these with ease.

It is important to know that handling residential property and tenants isn’t as easy as it seems.

Just because it was easy being a tenant doesn’t mean managing one (or several) will be easy too.

A couple of basic things like signed contracts, background checks on tenants, following all local regulations and laws should be taken care of before venturing into this.

Industrial Real Estate

Industrial property investment is simpler and comes with fewer capital requirements.

It does not require complex designs or construction, which may be the case in residential properties.

With industrial property in Kenya, location is the most important factor.

Distribution centres, depots, warehouses, and the likes requite less capital.

Also, these are hassle-free to set up, unlike residential property.

Light industries like bakeries require several of these, so investing in an area where bakeries are in demand or already doing well is a good move.

Some of the best aspects of investing in industrial real estate are the type of tenants and the agreements involved.

Most such real estate is rented for a long duration, which is a relief for both the owner and tenant.

In Kenya, the minimum period for industry rentals stands at 5 years and 1 month.

All these factors come together to make this a good option for smaller developers.

While this may sound like an easy market to break into, it does have its own set of issues.

There is quite a lot of bureaucracy involved in changing of owners as well as in getting permits.

Instances, where investors had to face issues even after all permits were in place, are not rare.

More so, there are cases of local bodies interfering in the same.

Commercial Real Estate

Shopping malls are all the rage in Kenya right now, and this opens up the investment channels of commercial real estate.

This involves using a property to lease out to different business owners.

Currently, retail property is among the most lucrative real estate avenues out there.

However, this is easier said than done and is not for those who are just starting in the business.

Commercial real estate requires high capital.

Often, the advisable strategy in this avenue is to have a contract with an anchor tenant.

This anchor tenant, in simple words, is nothing but a popular large-scale retailer.

The size and popularity of this business should serve as the base for drawing other commercial tenants.

Additionally, anchor tenants also finance some part of the construction.

Their return is in the form of rent-free premises for a suitable number of years.

For the seasoned real estate business in Kenya, raw land is where the big profits lie.

This is nothing more than a piece of land that does not have any development.

Raw land buying should involve a catalyst- which could be any event that would push up the price.

Common catalysts including an upcoming development plan, such as the construction of a major road or highway.

Renting or leasing out land by dividing it into smaller plots is also a suitable approach.

With raw land, bank appraisals may not be the most accurate way to get an idea of the price.

It involves gathering knowledge about the local government, reading about their development plans and advice of the locals to know what the next potential catalyst will be.

Property agents who have been in the area for years can help get a better idea of this.

The Factors

The key to making a profitable investment in any property in Kenya is knowing the market and its trends.

Over the last 20 years, there has been a lot of growth in the real estate segment.

Kenyan real estate has become a major part of their total GDP.

While recent trends have seen some decline, experts say that it will be able to recover over the coming years.

As of 2019, the Kenyan real estate sector stands at number 6 in terms of contributions towards the Kenyan GDP.

A brief look at some of the factors that one should look out for will help understand this market and its property better.

Interest rates

Investing in real estate has 2 basic needs- capital and attractive interest rates.

Kenyan banks have strict rules when it comes to giving out loans for real estate investment.

There have been attempts by the Kenyan government to help people with that.

At present, Kenya’s Central Bank has lowered the interest rate to 9%.

There is also a limit of 4 points on these lending rates.

The City & Area

As mentioned earlier, knowing the area is key to any real estate investment.

Major cities like Nairobi have seen a sharp rise in land prices, which has made small and mid-sized investors and buyers both look for other avenues.

Nairobi was the fastest growing real estate market around 2012, ahead of the likes of Monaco and Miami.

However, for those without high capital, mid-sized cities are the smart choice now.

In these cities, the rates have not increased that much, and there is enough demand, which is steadily growing.

However, these prices need to be combined with the type of land to get the complete picture.

For instance, the Kenyan retail market has seen decentralized growth, and it has spread from major hubs like Nairobi and Mombasa to Kisomo and Eldoret.

For industrial lands, rents are still affordable even along Mombasa road.

Residential lands have already seen a sharp increase along the Greater Nairobi area, as well as in cities like Kisumu and Naivasha.

In terms of offices and business spaces, Nairobi continues to be the hub.

This market had a trend of oversupply of retail land, but this is slowly coming towards stabilization.

What should be the next step?

Once one gets an idea of the market, the next obvious question is how to go about investing in a suitable land?

There are several ways of investing in this market. A look over some of those can serve as a starting point for the savvy investor.

Construct and Transfer – The VC Approach

Owning land in a prime area is one thing but developing something on it is another.

It may seem like there is no approach other than selling it if one does not have the capital to develop on it, but that is not so.

One approach that can be utilized here is finding a VC or Venture Capitalist who would develop on that land.

There is an agreement between the owner and the VC developer, which lets the VC operate it for a suitable number of years.

This allows them to get a return on the investment and recover it. After that, it is transferred to the landowner.

This investing strategy has gotten a significant boost over the past few years.

Nairobi was recently ranked as the top FDI (Foreign Direct Investment) destination Africa.

Land investors from outside Africa are on the lookout for getting into partnerships with local owners of lands in prominent areas.

This opens opportunities for investors both in and outside of Africa.

Additionally, since capital gains are low in Europe as well as Asia, investors from those regions look to invest in Nairobi and surrounding lands for better gains.

These investors require ‘ready land’ that allows them to start working on for a span of a few years.

Most such investors operate and cash out after this period with significant profits.

Real Estate Investment Trusts- REITs

For those investors who wish to get into this market but do not have the time or resources to manage it actively, REITs provide a great solution.

REIT refers to the process wherein several investors (generally small investors) buy stakes in some entity. This entity then proceeds to buy commercial lands or developed real estate.

The investors get income from this entity in the form of monthly or yearly payments, depending on the individual contribution.

REITs are a part of the Nairobi Securities Exchange as well.

This can thus be thought of as the meeting point of the stock market and real estate.

Since the risk involved in REITs is quite low, the returns are also lower than other avenues.

However, the benefit of REIT is that it allows those with low capital to invest in Kenya real estate without too much hassle.

‘Chama‘ (Property Groups)

This approach involves investment groups, in most cases from different professions and experiences.

It may also include land agents too.

They are provided with much-needed expertise and help avoid high consultation fees.

Such an investment group should form clear guidelines on what the investment plan will be.

While there is a high possibility of disagreements in Chamas, they do have a benefit too.

Discussion and disagreements are helping to forecast risks and further critical analysis.

Weeding out bad investments is even more important in real estate, and Chamas can do just that if operated efficiently.

Short Term Buying-Selling (Flipping)

Property flipping involves investing in and then selling a property for profit within a short period.

Often, this short span is not more than a few weeks. 

While it sounds highly lucrative, it is not as easy an invest as it may seem.

There is a lot of effort and time that needs to be dedicated to accomplishing this.

Some people have made entire careers from property flipping.

However, bad deals are also not uncommon, hence the caution.

The key here, as stated by many professionals, is to make a profit before you even buy.

This means that one should have an idea of to whom the property will be sold before buying it.

The real estate market has an imperfect nature, which is what allows one to buy land for Sh1 million shillings and sell the same piece of land for Sh3 million or even more within a day.

It is important to discuss with seasoned real estate valuers to know the highest value of the property with accuracy.

Wholesaling

Wholesaling sounds like property flipping, but if done right, it can be done with little capital investment.

In this method, a speculator enters a contract to buy all the property from a seller with little or no down payment.

This contract is then sold to another buyer by the speculator.

Whatever the difference is between the wholesalers buying and selling price becomes the profit.

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The gains coming through this can be quite high, but so are the risks.

Wholesalers often include a clause in the contract that allows them to get out of it if there are no buyers found by some fixed date.

Wholesaling has been gaining popularity in Kenya lately.

Speculators commit to purchasing the property, and then find buyers as its construction progresses.

This makes it possible for them to do a lot with limited investment.

Real estate business in Kenya what next?

This brief yet detailed study into the Kenyan property and investment market can serve as the starting point for one looking to start a real estate business in Kenya.

However- that is not all there is to it. As Kenya continues to grow and evolve, so does its real estate sector and the potential investment one can do in it.

For those who want to make the right set of investments into it, research and knowledge are the way to go about it.

How to start a real estate business in Kenya can be as easy as one wants it to be with the right facts and choices!

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This is where and how to start a property business in Kenya

How to start a real estate business in Kenya: Investing right in the property business is a skill that takes time to learn but  which, if mastered,  can guarantee you a comfortable life because you will be able to successfully manipulate your assets to get maximum profits. However, a common problem many first-timers have is deciding on the type of real estate they should put their money in.

“We get many clients who have spent the better part of their adult lives savings with the hope of investing in the property sector but when the time comes, they are often unsure how to go about it since they do not fully understand the dynami­cs of the industry,” says Mr Gilbert Kibire, the CEO of Icon Valuers Ltd, a real estate firm based in Westlands, Nairobi.

“There are different ways of making  money when dealing in property,” notes Mr. Kibire’s colleague, Martin Cheboror. “It is up to the investor to choose a niche they are comfortable enough with to sink their teeth in.”

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According to valuer Paul Kiome Matumbi, when deciding on the type of real estate to venture into, you need to consider the location and size of the land, as well as the envisaged profits and the time you are willing to wait to recoup your principal capital.

When deciding on the niche to invest in, it helps if an aspiring investor understands the two ways in which property pays back. The first, current income, refers to the money you will be collecting from your property monthly or yearly as rent after you have deducted all the expenses.

Second, a good investment should also appreciate handsomely with time so that you can always make a considerable profit if you decide to sell it later on. So it is advisable to consider both the expected current income and appreciation rates before entering into a property deal.  However, avoid the temptation to invest in too many areas.

“The most successful investors are those who choose one or two niches and take time to master them,” says Mr. Kiome, the CEO of Nairobi-based real estate firm Prudential Valuers.

Below are some investment options the local real estate market has to offer:

• 1 . Your own home

According to Mr. Matumbi, building one’s home should be the stepping stone to creating a budding real estate portfolio.

“Even the birds of the air and the ants on the ground build their own nests, so why should a human being continue paying rent for the rest of his life?” he wonders.

“A home is a wise investment because even if you do not plan on selling it soon, it still has monetary value and it can be used as leverage when seeking loans from financial institutions. The appreciation aspect of it cannot be ignored because if you decide to sell your home, later on, it will certainly be a worthy investment,” Mr. Matumbi adds.

Even when you don’t have enough money to buy or build your home, consider taking a mortgage. Rent payments go to the landlord’s pockets and at the beginning of the month, one doesn’t have anything to show for it. Mortgages, on the other hand, go towards increasing your equity in your home and in the end you will have a house to show for it.

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“The comfort of having your own home gives you peace of mind that enables you to confidently venture into other real estate investments,” the valuer says.

• Residential houses

According to the National Housing Corporation estimates released last year, Kenya has an annual housing deficit of more than 200,000 units. To ease the problem, 150,000 new units are needed per year. If you decide to spend your money easing this deficit and say, build an apartment complex, you will be making hay while the sun shines.

“Residential property,” Mr. Cheboror says, “is one of the best real estate investments when it comes to long-term income. Even after recouping the principal investment, most developers prefer to hold on to their property indefinitely.”

Noting that residential units are easy to rent, sell and finance, Mr. Kibire says that they can serve as both solid investments as well as personal residences because the investor could decide to live in one of the units.

However, do not let your experience as a tenant fool you that it is easy to manage rental houses. According to Mr. Kibire, some developers end up under-estimating the costs it will take to manage their building.

“Carefully screening your tenants and appointing a competent manager will go a long way in shielding you from losses,” he says.

3. Commercial investments

Mr . Matumbi defines this as putting up property with the aim of leasing it to business outlets. He points out that, with shopping malls now the craze, retail property is proving increasingly more lucrative than residential property. However, he is quick to caution that the sector is not recommended for beginners, unless one has a solid financial base.

To get it right, Mr Matumbi advises, you should approach an anchor tenant for a contracted deal before the construction begins. An anchor tenant, usually a large-scale retailer, is a big business whose presence on your property will draw other commercial tenants.

“Most investors negotiate with anchor tenants so that they (the anchor tenants) finance part of the construction costs. The anchor tenant then recoups  their contribution by not paying rent for a number of years,” he explains.

• Industrial property

These include depots, warehouses, distribution centres and other property set up for use by light industries such as creameries and bakeries.

Mr Kibire points out that industrial property requires relatively smaller capital to set up since their designs are usually not complicated.“Provided you get the location right, they are particularly lucrative because the landlord thrives on long-term leases with a single big tenant, so the problem of defaulting  on rent is minimised,” he adds.

While noting that the minimum period for leasing industrial property in Kenya is five years and a month, Mr Matumbi concurs that it is a viable option for “small” developers because county governments are currently encouraging industrialisation. However, he notes that the bureaucracy involved in change of user and getting the relevant permits can be discouraging. “There have even been cases where, after an investor has got all the relevant permits, local residents have lobbied the authorities to veto the setting up of the industrial property,” he says.

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5 . Raw land

This is just a parcel of land without any development on it. When buying raw land, it is important for speculators to watch out for catalysts that  can work in their favour in pushing  up the price. Mr Cheboror says a catalyst could  be an upcoming external development, most often a road.

Raw land can also be leased or rented to provide cash flow. To get even more from it, you can subdivide it and sell it in smaller units.

Alternative routes

1. The build, operate and transfer method

Sometimes, the owners of prime land find themselves disadvantaged in that do not have enough capital to optimally develop their land. In such cases, Mr Cheboror suggests that the land owners  consider the build, operate and transfer approach. This is where the land owner partners with a venture capitalist who  builds on the land. The two parties then enter into an agreement whereby  the venture capitalist operates the property for a number of years to recoup his investment, after which ownership of the property reverts to the land owner.

Citing a recent report that ranked Nairobi as Africa’s top foreign direct investment (FDI) destination,  Mr Gilbert Kibire, Icon Valuers Ltd CEO, explains that foreign investors are increasingly looking to get into joint ventures with local land owners.

“In foreign markets such as Asia and Europe, capital gain is low and unattractive. Investors from these countries bring their money to Nairobi with the hope of making bigger returns and when they come here, they look for ready land where they can operate for a few years before cashing out and exiting the market,” he reveals.

2. The ‘chama’ approach

“There is power in numbers,” notes Mr Kibire, who acknowledges that his job has made him a member of several chamas that have invested heavily in real estate as joint ventures.

“What I have learnt is that when putting together an investment group, it helps to have a diverse membership, ranging from lawyers to accountants and even real estate agents. This will provide you with a ready pool of crucial expertise and save you a fortune on consultation fees,” he offers.

A good investment group should have a constitution with clear guidelines explaining the methods through which the group plans to invest its money.

He says although disagreements are inevitable in chamas, they should be encouraged since they help forestall risks and assist in critically analysing a deal to filter out bad investments.”

3. Property flipping

Flipping involves buying real estate with the  intention of selling it within a short time (usually a few weeks) for profit. It is a lucrative field but it can be taxing in terms of time and effort as it requires a wholly hands-on approach.

“People have made successful careers out of this highly speculative trade, but bad deals are rampant as well,” says  Mr Kibire. To avoid bad deals, he advises those getting into the flipping business to begin with the end in mind.

“We teach our clients the principle of making profits before they even buy the property. With flipping, you need to have an idea as to whom you’ll sell the property to before you even buy it,” he explains.

To reap maximum financial gain from flipping, an investor needs to understand the imperfect nature of the property market. While an investor can find a land owner willing to sell his land for Sh2 million shillings, he or she can resell the same land for Sh5 million the very next day.

Speculators should consult with real estate valuers to determine the highest amount for which they can dispose of their property.

4 . Wholesaling

In real estate circles, wholesaling refers to the practice where a speculator spots a real estate deal and enters into a binding contract to acquire the property from the seller after putting down a little or no money at all. The speculator then sells the contract to another buyer. The difference between the contracted price and the amount paid by the buyer constitutes the wholesaler’s profit.

A vital tip for a wholesaler is to add a clause in the purchase contract that allows him  or her to back out of the deal if he cannot find a buyer by a certain date.

According to Mr Matumbi, the practice is gaining momentum with houses that are selling off-plan, with speculators only committing to buy the property and then hunting for buyers as the property comes up.

Wholesaling can be a great way for those with limited capital to gain entry into real estate.

This feature was first published in the Daily Nation .

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How to start a real estate company in kenya.

How to start a Real Estate Company In Kenya – Real estate is undoubtedly a very lucrative sector in Kenya. Real Estate deals with the buying, selling and managing operation or investment of lands and buildings. Its a lucrative venture but its not as easy to start.

When looking to start a real estate company in Kenya , there are several factors you need to consider before deciding on the path to take. Some of those factors include the available Capital, Risk appetite, Location constraint etc.

Kenya has a very promising real estate market that is slowly progressing from the big cities to tier II and tier III cities. Opportunities are abundant for both domestic and foreign investors to start the venture.

Below we highlight what you need to start a real estate company in Kenya.

Table of Contents

1. Define Your Niche

Real estate is a fairly broad market and before getting  started you should find the niche that you would want to invest in. Perform a SWOT analysis on the market, see what your competitors are doing and find out how you would stand out from the competition. Establish the segment of people you want to sell to, You have a better chance at success if you narrow down your audience.

2. Conduct Significant Search 

With the  real estate market growing at a high rate, there are a lot of people looking to make a quick buck. Coming across those who sell such properties three or four times the buying price in less than a day makes it sound easy. However, it’s important to understand that a lot of research, effort and groundwork goes into such deals.

3. Take Time to Build A Team

When looking to start a real estate company in Kenya for the first time, You should spend time scouting the market for a prime property that would suit your niche market. Next you should have a lawyer who specializes in real estate and property law as property contracts can be complex and you should know what you are getting yourself into.

A contract that lists all the agreed upon terms and protects your assets and interests is a must-have before any money goes through. It’s equally important to look for a qualified lawyer in the field so as to avoid expensive mistakes in  your legal issues going forward. Also make sure your lawyer has experience handling other real estate clients as experience is important.

4. Real Estate Company Registration and Branding

Come up with a  unique  name for your business and start the process to register a company in Kenya . A limited company is a type of business structure where the company has a legal identity of its own, separate from its owners (shareholders) and its managers (directors) .

Registering a limited company has several advantages.

• You are able to run your own show. As of 2015, one can register a company as an LLC even as a sole proprietor.  
• It limits personal liability as it’s a legal entity separate from its owners.
• You are able to avoid double-taxation as well as passthrough deductions
• There is ease of succession when the director passes on or wants to exit the company as it is a legal entity of its own.
• It offers a company credibility as opposed to a sole proprietorship a limited company sounds more credible even to investors as they know their money is legally protected from risks and liabilities.

Requirements to start a  Real estate company in Kenya include the following

• Three preferred names of the proposed company
• Valid Travel passport / ID Card copies of all the Directors/Shareholders.
• Notarized Copy of the Parent Company Certificate of Incorporation (If Parent Company will be a shareholder in the subsidiary)
• Passport size photographs of all the Directors and Shareholders
• Postal, physical and e-mail address, Telephone number and occupation of all Shareholders/directors of the proposed company
• Share Apportionment percentage

Once the company is registered, you can go ahead and reserve your domain name, design your logo, business cards and other marketing materials to help you stand out from the crowd .   

5. Come Up With A Business Plan

A business plan is a document that outlines your ideas and defines your objectives as well as provides information on how your business will achieve the goals you have set. A business plan does not have to be 100 pages long, You just need key information which we can help you with. Studies show that businesses with  professional business plans are 2.5 times more likely to achieve their goals as they have their plans written down as they have a stipulated direction to follow.

6. Setup an Accounting And Bookkeeping System

It is important to keep track of your finances when starting a real estate company. You will need to set up an accounting and bookkeeping system so as to understand your business’s cash flow and also for tax filing purposes . This will help you track the monthly and annual taxes to maintain your tax compliance. Do not neglect doing this because non compliance is very expensive in the long run. 

7. Plan Your Marketing Strategy

Having a successful real estate company is directly proportional to your branding and marketing strategy. This is also the time to settle on a logo, mission statements and core values. After creating a foundation for your business it’s time to create a marketing plan for your business which we will help you with as well.

8. Build a Support Network

This has been said so many times in the past that it may sound like a cliché, but its not. No man is an island”. You will need connections and networks especially since you are starting out in Real Estate. Most deals will come from the networks you cultivate, whether its from friends, business partners or competitors. Make sure you take time to cultivate and foster these key relationships.

The Process to start a real estate company in Kenya might sound so complex, but with these tips as well as help from us, the entire process will be seamless. Make sure you do extensive research on the industry, get your finances right as well as foster meaningful networks with people in the industry and you will be on your way to having a successful Real estate business.

Incase of any queries reach out to us we will be more than willing to help you.

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How to Start a Real Estate Business in Kenya

Blog Contents

Last Updated on: 4th April 2024, 09:28 am

You should start a real estate business in Kenya if you are financially able. I’m confident in this particular business because there is promising growth in the future. Can you see how the population is growing day and night? Well, that’s how the demand for housing in Kenya is still growing.

However, if you have never heard of, or ventured into a real estate business before, you will definitely need a blueprint to start. Those who are used to the real estate in Kenya can comfortably attest to that.

Before I show you where and how to start a real estate business in Kenya, I need you to understand the whole meaning of real estate.

What Is a Real Estate Business in Kenya?

You could think of either a developed or undeveloped land to be real estate. So, whether you want to buy an already developed land or raw land that you wish to develop, that’s all real estate business.

Real estate can also mean land with natural resources such as cash crops, dams, or even minerals. What depends is what you need to do with the land. All that matters is that you will still earn money through whatever you do with the land.

Let’s say you got some funds that you need to utilize on real estate. First, you need to understand the different types of real estate.

What Are the Types of Real Estate Business in Kenya?

Before you venture into the real estate business in Kenya, you need to know the best type to suit your investment plan.

Residential Real Estate

Residential real estate in Kenya is growing at an alarming rate. So you can imagine how the demand for housing is increasing day and night.

To invest in a residential real estate business, you can get the best buy to let areas in Kenya or buy undeveloped land. If you get a completed resident estate, you will be sure to start gaining your Return On Investment (ROI) as soon as you get tenants.

However, if you start on undeveloped land, you will have to build everything from scratch. Therefore, you have to do your calculations right before jumping on this particular move.

The residential real estate business in Kenya can also be selling houses to people who need to own permanent homes. You have to buy land, build houses, and sell them at a one-off cost.

However, before you can start selling houses to individuals, you should first build your residential home. Of course, you cannot sell houses without owning one.

We have different segments of residential real estate :

• Apartments . These houses are individually divided into small spaces from one home to another. However, there are no gates, and a door protects each house.
• Single-family home. These houses do not share walls, but they stand alone in a field. The places could still have private parking lots.
• Condominium. These houses share walls with other units on the same building or row. There are no individual parking lots or fields.
• Townhouses. Townhouses have multiple floors whereby each floor could e occupied by a single-family. The houses share one or two walls.
• A multi-family home is a single home that you can turn into multiple units depending on the size. You can choose to rent it all if you are going out of the country or stay in one unit and rent the rest if you are not moving out.

Mixed-use Real Estate

Like the term portrays, a mixed-use property can fit any form of development in one space. For instance, you can have buildings that accommodate residential flats, retail areas, institutions, firms, or even entertainment areas. Therefore, that’s what we call mixed-use real estate.

However, not all locations can fit mixed-use real estate. Therefore, you should be more careful with the site you choose.

Industrial Property

You can also venture into industrial real estate, where you will rent your property to investors who need to set up manufacturing sites. Most individuals who venture into manufacturing or the supply chain need more space for offices or storage.

Therefore, your property space should comply with the leaser’s needs that they prefer. Industrial property can also accommodate manufacturing plants and factories, and warehouses.

However, you can not set up an industrial property anywhere you wish. Therefore, the location you chose should abide by the Kenyan laws of industrialization.

Commercial Real Estate business in Kenya

Commercial buildings are always the interest of entrepreneurs who want to set up businesses. In most cases, commercial buildings thrive in urban centres and semi-urban centres.

Recently, after Coronavirus invaded the world, most people in Kenya and the entire globe lost their jobs. As a result, the majority are now starting up small businesses to help them survive. So, I would say that Covid-19 is an eye-opener. And to add to that, I have always said that there is no longer job security.

Commercial real estate will always grow as long as demand for products and services increases. Therefore, you should not fear when venturing into Kenya’s retail real estate business.

Now that you know about the common types of real estate business in Kenya, I want you not to rush yet. Instead, here comes the most critical part that you should consider to succeed in the real estate business in Kenya.

What To Consider Before You Venture Into Real Estate Business In Kenya

If you want to invest in the real estate business in Kenya, location is a critical factor. If you plan to gain financial freedom through the real estate business, it’s an excellent idea to choose a location where you’ll thrive.

For instance, if you focus on a residential estate, a location with proper infrastructure and security, not close to an industrial waste dump, will be a good site.

To make the residential in demand, if possible, you can get places close to beautiful scenarios like water or any other natural view. This is because people tend to feel good while next to nature.

In addition, the nature of your residential estate can also be in factor. For example, let’s say that you want to build. Most clients who need apartments for hire or buy usually need quiet places with high security, the best roads, and a proper network.

Still, if you focus on the industrial real estate business in Kenya, choosing a location close to other industries is an added advantage. And commercial real estate grows much in urban centres.

For any residential property you need to build, you should also make an effort to keep using the land surrounding it. This is because it can be developed into a more disruptive property like an industry in the future. As a result, that may chase away the residents you have. Hence a loss.

How is the real estate market?

The main aim for any business is to gain profits, which doesn’t exempt the real estate business. Therefore, before you venture into the real estate business in Kenya, you should study the real estate market trends.

Of course, you would like to buy at a lower price and sell or rent at a relatively higher cost. For instance, ROI in Nairobi, Kenya, cannot be similar to other towns like Machakos, Nakuru, Eldoret, or Garissa. Therefore, study the area’s trend before you dip your feet.

How do you want to earn money through your real estate business in Kenya?

Well, this is a good question. Do you want to rent or sell your property to make a profit? Those are the two primary sources of income in the real estate business in Kenya.

If you choose to sell your property thoroughly, you will enjoy the one-off profit, and that’s all. That’s why most individuals choose to buy or develop real estate for renting.

However, if you have enough capital to keep buying and selling at a profit, it will be good to venture into that. But I would advise you to be fast in the current real estate business trends.

The good thing about selling real estate properties is that you usually get your ROI when you get a potential buyer.

If you choose to develop your real estate property to be renting it, there will be a continuous flow of income. However, you will take years, if not decades, to gain your Return On Investments.

Where will you get your funding to start real estate business in Kenya?

Here comes the money question. In most cases, you will only manage to invest in the real estate business in Kenya if you take a mortgage loan .

You can not invest in the real estate business if you don’t have enough cash. This is because real estate consumes a lot of money to establish, not forgetting other costs like maintenance costs. But you can always find banks that will help you get your property.

However, it would help if you were careful since when you default on the loan, the lender will repossess your property and be left with nothing.

That’s why you should do your calculations well before you venture into this business. Ensure that you have the first year’s instalments from different sources of income. And that will save you from possible frustrations.

If you have chosen the best location and suitable property investment, you should be able to pay for the instalments as soon as possible.

How much do you expect in return from the real estate business in Kenya?

Regardless of the type of real estate property you want to invest in Kenya, you should have a figure in mind of what you expect in return.

This will help you know whether it’s worth the trial or not. It will be advisable to get an accurate evaluation expert in Kenya to help you approximate figures.

For instance, you need to do some calculations to get an annual rental yield.

If you want to gain the best from the real estate business in Kenya, the ROI should be more than 6%.

In addition, getting an expert will reduce the chances of falling into the wrong hands and losing your money in the end.

Now, I’m sure you want to make the bold step towards your financial freedom journey. I got your back.

The Best Buy-to-let Areas In Kenya

I know this has been the most awaited moment in your life; you are about to get into the financial freedom journey. A journey that you can only start with a single step!

Remember the factors I said earlier you should consider? Well, I have put all that into consideration. Now let’s roll.

Nakuru Town and its Metropolitan Area

Being the largest town in Kenya, Nakuru is genuinely thriving in entrepreneurship. And as a result, all other types of real estate businesses are growing at a faster rate. Therefore, if you invest in Nakuru town, you should expect an ROI of not less than 6% and a capital appreciation of 8%  or more.

The city has the proper infrastructure, hence attractive to tenants and business owners. That’s why it’s a sure bet to place on Nakuru real estate development.

The cost for land in this town can be as low as Ksh. 300,00($3000); thus, it’s cheap and high returns. So why don’t you try this one today?

Konza Technical City

Konza city is still under construction, part of the government project for vision 2030. However, since the South Korean government has invested approximately 10 Billion dollars into this city, it’s attracting investors all over the globe.

From the Technical part, there is a plan that Konza will host the first Information Technology University in Kenya. Therefore, that promises a massive growth in the technology sector, hence more demand for housing in the area.

In addition, Konza is at the Major Mombasa-Nairobi highway, and the SGR is still passing near the area. Therefore, that will be fit to get anything you wish on this earth with no strain at all.

With a bit of cash like Ksh200,000($2000), you can quickly get a plot in this area. So you can buy one plot soon before they are depleted.

Nairobi City and its Metropolitan Area

Being the capital city in Kenya, Nairobi is still leading in all sectors of the real estate business in Kenya. That’s because Nairobi city has the largest metropolitan area, growing fast, primarily in residential real estate and commercial real estate.

People are moving to stay away from the city’s pollutants, hence focusing more on settling in the metro areas.

The Bottom Line

The real estate business in Kenya is an excellent investment to venture into to gain financial freedom faster. Remember that my sole goal is to help you gain more money by whatever means possible.

Stay on board by subscribing to my mailing list to receive first-hand information as soon as I release it. Remember, sharing is caring, so don’t mind sharing this post to your friends on Facebook, Twitter, WhatsApp, and don’t forget to pin it on Pinterest.

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How To Start A Real Estate Business In Kenya Easily For Profits

Real Estate Business is one of the most lucrative businesses that one could delve into and make more profits. Besides, many people have not discovered yet so it is less competitive. Perhaps you are wondering how to invest in real estate with little money in Kenya, do not stress yourself because you are in the right place.

Without further ado, let us get started on how to start a real estate business in Kenya:

Step 2: Have a strategic real estate business plan that will act as your compass in the starting and managing of your business.

Step 4: Obtaining contracts. Before signing contracts, perform a due diligence since once a property is purchased it cannot be returned.

Step 7: Market your business by advertising in televisions, newspapers, radios, social media platforms, among others.

Requirements to Open a Real Estate Company in Kenya

7.Issuing of the certificate registration of the real estate.

These are the requirements to start a real estate company.

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Stay connected, how to start real estate business in kenya.

This article will give tips for starting your real estate business in Kenya .

Real estate development is a lucrative investment option for entrepreneurs who don’t want to invest in unfamiliar areas.

Kenya’s economy has been on the rise, and now may be one of the best times to start this business, as there are still many undeveloped areas that you can cash in on.

How to start a Real Estate Business?

The following tips will guide you in starting a real estate business in Kenya.

1. Research

Before starting any business, you must research and determine if this field is lucrative and what your target market is. For more information, you can conduct surveys or talk to experienced entrepreneurs who may have started something similar before.

2. Have a strategic business plan

Once you have done your research, now is the time to draft a business plan . This plan will include details of how you will start the business, management structure, capital requirements, and other things related to creating this type of business.

A business plan will guide you in starting a business and answer some problems or questions that may arise while running this business.

3. Build a unique brand ​you can be proud of

Having a unique brand that people identify with is essential to success. Many real estate businesses that have been successful in Kenya, like Nyayo Estate and Brookside Investments, started as small-scale ventures and eventually grew into large corporations due to the trust they built for their brands.

4. Legally register the business

It would help if you got your business legally registered before starting the operations. The registration will give you legitimacy when dealing with clients or investors and help identify who owns the company if anything happens that requires legal responsibility.

5. Raise the required capital to start the business

Many investors even look at the capital requirements to start a business before investing in it. The amount of money you will need to create this type of business may vary depending on factors like:

• The number and size of properties that you want to buy for your project
• How much is each plot going to cost
• The size of the office that you want to rent.

You may start this business with as little as Kshs100,000 if you look for low-budget properties. It would help plan how much capital it will require before starting the real estate business in Kenya.

6. Market your brand and the business

Once you have registered your business, you can now start marketing it. This process includes creating a website for your business or advertising through social media platforms like Facebook or Twitter. You can also put up posters around town to inform people about what type of property you deal with and how they can contact you if they are interested in buying any of them.

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5 Strategies to turn your real estate startup into a success

• July 22, 2020
• Kenneth Ikiara
• Category: Uncategorized

If you are starting a real estate business it is essential that your investment earns you income. The real estate industry in Kenya has huge potential for growth in technology and infrastructural development, thus attracting new developers and investors into the real estate sector. 

Starting a real estate business is not for the faint of heart, it takes planning to start and grow your startup company. It will take dedication, hard work, commitment and at times even failure before you succeed. The founder of Fanaka Real Estate, CEO Moses Muriithi advises entrepreneurs to be focused and be disciplined to attain success in the real estate industry.  

It is important to avoid any mistakes that hijack your momentum as you grow in starting up your real estate business. The main challenges to a successful real estate business include greedy brokers, dubious regulatory government agencies, conspiring government officials and a web of complex cartels. It is key to find a trustworthy agent as the industry lacks proper structures with too many fraudsters and brokers. Bribing is another factor that has led some government employees to collude with brokers facilitating illegal transactions. This has resulted in agent conmanship. Although the Ministry of Lands has digitised all land purchase processes it is necessary to be aware of fraud in the real estate sector. 

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Here is a list of five strategies and tactics you can use in a real estate business to bring additional revenue. You can use this as a guideline for launching your startup company.

Legitimate business plan  

A business plan needs to be the first thing in your list in order to be efficient and successful in the real estate sector. You require money to start and operate a new business, in addition a proper business plan gives you a significant advantage. Entrepreneurs who start companies with a completed business plan 64 percent grew their business, 36 percent obtained a loan and 39 percent received investment capital. 

A business plan is the written description of your company’s future outlining the first 2 to 5 years of your business strategy.  

Adequate capital 

You will need to secure appropriate funding to get yourself off the ground. All business plans contain a financial plan such as sale forecast, cash-flow statement, balance sheet, profit and loss statement. Research indicates that 82 percent of businesses fail due to cash-flow problems. Financial statements help determine how much funding you require to raise in order to get  started. This will help you secure the appropriate funding you need to startup your real estate business, moreover contributing to your growth and success.Banks are less likely to give large amounts of funding to new companies with no assets or income to default on. The vast majority of business loans are for large companies that are already established as 24 percent of business loans go to small firms. Other sources of starting a real estate company include personal savings, trustworthy business partners, angel investors and venture capitalists. It is important to be careful not to give away a significant equity of your company before you get started.    

Company structure and management

You will need help while launching your startup company in the real estate industry.

You will require a property manager and appropriate staff to help run your company. The property manager should be capable of handling all responsibilities and property management which will include maintenance, inspections, leasing, property owner communication, rental collection and fees. The staff members should be able to perform certain duties and roles. The vast majority of startup companies are small teams.

You will need to consult with an accountant, a lawyer and a financial advisor. They will help save your business from costly mistakes and any occurring risks. They will help you understand the legal requirements and tax obligations based on the structure of your business such as sole proprietorship, partnership, corporation and limited liability company. It is key that your real estate business is insured.

Location and networking

You need to buy or lease a property to operate your real estate business. Securing enough funding to buy property is worth the investment and will save you money in the long run. The location of your company is important as it will allow easy access for potential buyers or new investors. Furthermore it will help you keep track with the competitive real estate sector, thus helping you meet the needs and requirements of an interested client.

One way to widen your SOI is by going to networking events and interacting with other business owners in the community. The more you interact and engage, the more your name will stick in their minds. You definitely want that should they ever need you in the future. You also need to create a website. It is never too early to start promoting your business. 

Marketing and building customer base

It is important to become a marketing expert for your startup to be successful. Learn to use digital marketing techniques like affiliate marketing, content marketing, email marketing, social media marketing (SMM), search engine optimization (SEO) and search engine marketing (SEM). You can also take advantage of some older and conventional methods such as radio advertisements, print advertising, billboards and television. You can hire a marketing director or even a marketing team in launching your real estate startup.

The customers’ needs should be your main priority. They are the lifelines of your business and they need to be treated accordingly.  Once you establish a customer base you can use it to your advantage. Establishing, building and maintaining a customer base will help turn your real estate startup into success. 

Launching a startup company is not easy, for an entrepreneur you need to determine if your idea is with turning into a business. To succeed in the real estate business you need to be persistent.  

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How to Start a Real Estate Business in Kenya

Posted by KenyaSihami | Jul 29, 2023 | Real Estate | 0 |

How to start a real estate business in Kenya is one of the million-dollar questions we have seen online recently.

The property market in Kenya is expanding rapidly. The proliferation of new condo complexes and gated communities proves this trend. 

Even in remote parts of the country, numerous advertisements touting the benefits of land ownership exist. 

Most Kenyans, however, have yet to realize that there are alternative, modern ways to invest in real estate that do not involve purchasing land.

Table of Contents

1. Investigate the Market

If you dive headfirst into a business venture, you will inevitably fail. Before making any real estate purchases in Kenya, you need to take some time to learn about the market. You must also know the legal hurdles you will need to jump.

Use books, newspapers, and magazines for your research. However, a lot less time-consuming option is to read the blogs posted on the websites of real estate agencies.

2. Come Up With an In-Depth Business Plan

Since real estate investments typically demand sizable sums of money, a well-thought-out business strategy is essential for attracting the necessary funding.

A company strategy can serve as a guide to accomplishing your building objectives. Additionally, it aids in letting others know what you do for a living and how you make money.

3. Come Up With a Catchy Title

The cutthroat nature of the market necessitates a distinctive and easily remembered brand identity. The name must convey that if you want people to take you and your business seriously.

You can cultivate trust and confidence in your company through a strong brand identity. In this approach, satisfied clients will feel comfortable referring you to their friends and family.

4. Obtain Initial Funding

After some preliminary investigation, you have an excellent notion of how much money will be required to launch your real estate firm.

Putting money aside is one option for getting cash. However, there is often a shortfall in savings, even after investing in branding and market research.

You can also ask a bank for a loan if you have collateral, another capital-raising option. Sharing costs with other investors is a more cost-effective strategy.

5. Make a Beautiful Website 

One in two Kenyans now owns a smartphone, so having a solid web presence is just as crucial as word of mouth.

Your brand name and contact information will be prominently displayed on your website. You can also promote your listing by making your social media accounts public.

You can also make the sorting process more accessible by including images of the property and a detailed description.

Kenya Property Choices

Real Estate Options In Kenya

After doing some research on the topic, we present the following real estate business opportunities;

1. The Landlord and Property Owner

Acquiring land in Kenya is easy. After receiving land, you can lease it or construct a rental structure. You must see a lawyer and get a lease agreement to rent the property. The lessee must sign the lease.

You can now enter the landlord business if you construct rental properties. You can now legally charge rent. But before you start construction on a rental property, you’ll need a permit from your city or county.

• You would keep all the rent money if you built the rental property without a loan.
• You will never again have to worry about money.
• Depending on several factors, rent for properties typically increases.
• Sometimes renters need to arrive on time with their payments.
• When tenants cause damage to the properties, you end up footing the bill.
• Tenants can cancel their lease if they experience an unforeseen problem.

2. Supervising Tenant

In some cases, landlords will hire property managers to handle rent collection. Property managers must have expert knowledge of real estate law and finance.

In addition, you need to have a minimum quantity of cash on hand to make a rent prepayment to the landlord. Now it is up to you to collect rent from your tenants.

If you want to work in real estate in Kenya, you must join the Kenya Professional Realtors Association.

• Setting up shop will take little time if you’ve done your homework.
• Profits can be relatively high, depending on the terms of your lease with the landlord.
• If you manage multiple homes, this might be a source of revenue for years to come.
• Tenants can be challenging to work with.
• It’s possible to get sued if you try to evict a tenant without following the law.
• The length of time a property can sit empty is extended.

3. A Property Broker

If done correctly, real estate sales can provide a comfortable living for the seller. In this section, you can post ads for potential buyers or renters. Land and structures alike are fair game.

However, to succeed in Kenya, you must join the Kenya Professional Realtors Association. Moreover, the Land Registry’s approval and license are prerequisites for doing business.

• Real estate sales can provide a comfortable living for the right person.
• Selling real estate allows you to travel throughout the country.
• The learning curve is low, making this a promising field for financial investment.
• The industry is risky and rife with con artists.
• You need to join KPRA to rely on the organization for representation in court.
• You must be familiar with the legal requirements of selling real estate.

4. Developer 

This is one of the most lucrative segments of the Kenyan property market. Acquiring property in various locations to resell is a common strategy.

But before they can profit from the land, developers must increase its worth. A developer must create a building plan, advertise the site, and secure necessary permits and licenses from local, state, and federal agencies.

In addition to these requirements, a developer must be a Kenya Property Developers Association member.

• In Kenya, land is a hot commodity.
• In recent years, most Kenyans have come to respect land with additional value and even carefully planned developments.
• If you manage your money well, you won’t have to worry about it.
• Possibilities for cross-country travel are virtually limitless.
• Obtaining the necessary licenses and permits from the government can be lengthy.
• Corruption is pervasive in the business world.
• The initial investment required is high.
• If you don’t do your homework, con artists and crooks will try to sell you contested land or road reserves.

5. Property Management Advice

Without purchasing physical property, one can start a consulting firm. To operate legally and establish a solid reputation, you must first obtain a registration certificate, just like an agent or agency would.

Having an office and employees is also required. You will be providing advice to clients in the areas of real estate transactions, development, and financing.

• If you want to be your boss, you can.
• When you have a solid reputation, getting large contracts is simple.
• It’s a thrilling profession with the potential for exposure on major networks.
• Reputation is something that takes years to build.
• It’s costly to get going.
• Long hours spent prospecting for customers are a reality for many self-employed workers.
• To legally conduct business, you must have the appropriate certifications and licenses.

6. A property blogger

Because so many Kenyans now reside in cyberspace, property searches are conducted exclusively electronically. Because of this, numerous real estate websites directly provide blogs devoted to discussing various property-related topics.

Freelance writing is a viable career option for those with solid research skills, an extensive understanding of the real estate sector, and the necessary writing equipment.

• You can choose your hours since you do most of your job from home.
• It’s thrilling to go on a nationwide interviewing tour.
• If you’re a freelancer, you have the flexibility to work for multiple clients at once.
• Working from home all day might be exhausting.
• Good writing tools can be pricey.
• When conducting research, you may have to cover your travel costs.

7. Producer of a Real Estate Show for Television

Starting a real estate television show is another fruitful way to enter the industry.

All you need is the required filming gear, the appropriate permissions to film on various properties, and extensive familiarity with the Kenyan real estate market.

You also need a fantastic team composed of well-versed individuals in their roles.

• It can be rather profitable.
• You get to see some of the most impressive works of architecture in the United States.
• You get to know and mingle with the affluent.

It’s a great way to broaden your understanding of the real estate market.

• Investing in the proper machinery and hiring qualified personnel is costly.
• Due to the intense competition in the industry, getting your show picked up by a significant media outlet is challenging.
• The process of making a television show is lengthy.
• In some regions, you need the proper authorization to shoot, or you could face criminal charges.

In Conclusion 

Before launching your company in Kenya, arm yourself with the aforementioned real estate investing opportunities. While the majority are simple, some may necessitate official sanctions before you can move on.

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KenyaSihami

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7 Best Ways to Grow Your Real Estate Business in Kenya

Real estate is a profitable venture business, but it is often challenging to get into . Everyone wants to grow their real estate business, and many are looking for ways to do so. This article highlights the best strategies for growing your real estate business and achieving success in this rewarding field!

1.      Have a Plan

You need to know where you want your business to go and have a clear idea of what you need to do in order for your business to grow successfully. Establish the level of growth you really want. Examine your budgets carefully and make a resource list. Add or subtract where necessary. Once you have a plan, you can start implementing some of these strategies that will help you grow your real estate business.

A good start would be to find out what type of property your audience are looking for, where they live and how much they can afford. Then you should create a marketing plan with a strategy that will fit your target audience, which could include social media advertising, blogging or networking events.

2.    Build a strong brand identity

An effective brand identity will make you stand out from your competitors and attract more clients. This can be done by providing relevant content on your website and social media profiles, investing in advertisements, developing a logo and branding strategy, etc.

3.    Stay connected with your past clients

The best sources of new business are your past clients. Once you have closed a deal with a client, it is important to stay connected with them. Keep in touch with them by calling, texting, or using email. Send them periodic updates about the real estate market or new listings that may be of interest to them. Let them know you’re still there for them and that you’re eager to help with their next real estate transaction.

Additionally, you can stay in touch with your clients by staying active on social media and responding to their comments and questions.

4.    Create a marketing plan and stick to it

The term “marketing” is broad and covers  a wide range of platforms, including, social media , SEO , email marketing , and others. A properly executed marketing campaign will help you retain customers longer in addition to growing your customer base. A wide range of tools are available for marketers to use nowadays and it is up to you to choose which ones will be most effective for your business. In the real estate industry, a well-written and designed website is an essential tool for any company. A website can be an effective marketing and sales tool by highlighting your accomplishments, services, and expertise to potential customers.

5.     Increase your online presence

Increasing your online presence is one of the best ways to grow your real estate business. This can be achieved by creating a powerful online presence on social media and maintaining an active real estate blogs.You can generate more leads and convert them into clients by posting relevant and helpful content on your blog and social media platforms .

6.    Develop a Referral System

Another great way to grow your real estate business is by developing a referral system. This entails asking previous clients to refer you to their friends and family members who are looking to purchase or sell a property. By providing excellent service and building strong relationships with your clients , you will be able to generate a steady stream of referrals that can help you grow your real estate business.

7.     Get involved in your community

Join local groups and organizations, volunteer at community events, join real estate associations and get to know the people who live near you. When people see you as a valuable member of the community, they’ll be more likely to trust you with their real estate needs.

Providing excellent customer service is one of the most effective ways to grow your real estate business. You should always be available to respond to your clients’ questions and address their concerns so that they always feel like they are your top priority. By delivering superior customer service, you will build trust and credibility with your clients, which will lead to repeat business and referrals.

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Real estate business plan in Kenya

Prepared by Fred M’mbololo Page 1

BUSINESS PLAN

A HOUSING REAL ESTATE IN KENYA.

Prepared by Fred M’mbololo Page 2

Table of contents:

1.0 Executive Summary

1.1 Objectives of the Real Estate Project.

1.2 Vision Statement

1.3 Mission Statement

1.4 Target Market

1.5 Swot Analysis

1.6 Start up financial summary notes

1.7 The People Needed

1.8 Sales Strategy

1.9 Profit Margins and Overheads

1.10 Important Assumptions

2.0 Reasons to invest particularly in the Housing Sector in Kenya.

2.1 Kenyan’s General Prospects

2.2 An overview of the Kenya Vision 2030

Prepared by Fred M’mbololo Page 3

1.0 Executive Summary:

The Proposed Real Estate organization will be based in Nairobi County or some few kilometers nearby.

The Organization will construct 50 residential housing units and offer them for sale. The housing units

will balance safety, cutting edge features and a positive atmosphere for all potential investors. These

housing units will be provided with unmatched levels of customer service and attentions, sales are

projected to be very substantial in the first year after the completion of the housing units.

Players in the business:

With the launch of Kenya’ vision 2030 which is a new long term development blue print for the country.

The aim of Kenya’s Vision 2030 is to create “a globally competitive and prosperous country with a high

quality of life by 2030. It aims to transform Kenya into “a newly industrializing, middle-income country

providing a high quality of life to all its citizens in a clean and secure environment.

Consequently, there a few major housing developers in Nairobi but given that there are very many

opportunities in the Real Estate sector makes this proposed project worthwhile.

The Market:

The Real Estate will target three distinct customer segments these are the expatriates, the working class

groups and professionals of various fields.

Prepared by Fred M’mbololo Page 4

Profit Margins and Overheads

We have estimated that £1(Sterling pound) will be exchanged at Kshs150 (Kenya Shillings). Therefore

using the Kenyan Shillings, we estimate that the total sales(revenue) of the sale of the 50 completed

housing units will be sold at Kshs 7,000,000 per unit which amounts to Kshs 350,000,000, which

translates to £2,333,333. We also estimate that the total costs of the entire project to be Kshs

189,050,000 which translates to £1,260,333

Details Kshs

Costs Sub-Total Sub-Total

Total Revenue

7,000,000.00 50

350,000,000.00

2,333,333.33

Cost of Sales

189,050,000.00

1,260,333.33

160,950,000.00

1,073,000.00

£ Converted to £ at

Kshs150 per 1£

Prepared by Fred M’mbololo Page 5

Development Plan:

We intend to recruit at least two Architects and a quantity surveyor to do feasibility studies and come

up with proposed drawing for the housing unit and identify the exact location for the project to take

place. We thereafter hire a construction firm to undertake the construction of the housing units. We

intend to hold monthly meetings to assess the progression of the entire project. We estimate that the

entire project will be completed within a maximum period of two years.

Prepared by Fred M’mbololo Page 6

Business Plan of Real Estates

1.1 Objectives of the Real Estate Investments:

The primary objectives of the organization are to:

To build about 50 apartments for sale within a period of two years.

Become an established and profitable estate organization that’s able to take up new investment

opportunities in Kenya as they become available in the future.

Provide decent housing units for sale and rental

To develop a solid, corporate identity in our specified targeted market area.

To establish a good working relationship and begin working as a team, promoting

communications and suggestions from all participants and stakeholders.

To realize a positive return on investment within the first 12 months after completion of the

construction of the housing units.

1.2 Vision Statement:

The vision of the Housing Real Estate will be to achieve the highest possible standards of the real

estate industry while establishing our agency as the preferred real estate company within our

market area and also in ten years’ time to expand to the neighboring countries

1.3 Mission Statement:

The Real Estate will provide high-quality comfortable saleablel units in Nairobi County. The apartments

units should offer state-of-the-art living conditions reflective of the rapid advancements in technology

and a growing need for quality housing.

The organization will be dedicated to a hassle free living environment in which tenants can enjoy all of

the benefits of safe, attractive and inviting units. The houses to be constructed ideally should have an

edge over their competitors in that they should have broad or Wi-fi Internet connections, a water

borehole, installed stand by solar panels, a good sewage system and other amenities should be with

easy reach such shopping malls, gyms and restaurants.

Whilst maximizing profits will be our ultimate goal, our other primary objectives will also be to maintain

the highest level of customer satisfaction that is achievable. Tenant safety, happiness and comfort will

be our main goals. We will maintain competitive market prices, while working towards expanding the

number of units built and owned over the years thus increasing total profits earned.

Prepared by Fred M’mbololo Page 7

Within the company, we will strive to work as a cohesive, harmonious unit focused on exemplifying our

mission. Just as customer satisfaction will be intricate part of our success, so will employee satisfaction

We believe that employee satisfaction will make the company a success and will be key to our longevity.

The proposed housing units will target the professionals, expatriates and the working class group either

for sale or rentals.

The company will also foster the ideals of the importance of house buyers and tenants needs alongside

with healthy environment, understanding relationships and a professional commitment to satisfaction.

1.4 Target Market:

The Organization will be an enterprise that is involved in numerous aspect of the housing industry.

Primary experience and expertise will be in the development of high-quality, lower cost living for the

working class, expatriates and professionals seeking the most up-to-date technologically advanced living

environment. This project will be relevant in Kenya as we try and meet our Vision 2030 target of

achieving a middle income level status and it will realize the standards of living.

The first 50 completed housing units will be easily sold out to the target market within a period of 12

months and occupied continuously thereafter. Our big dream will be that in five to ten years will be well

established and owning numerous estates across the East Africa region including Uganda, Rwanda,

Burundi and South Sudan.

High profit margins

Well established customer base (potential for business to expand).

The team has sufficient experience and skills to operate business.

Owner is knowledgeable in business management

Good customer relations.

Improved Infrastructure facilities.

Well established Selling Agents and Advertising companies.

Major customer segment is unaware about the product.

Information gaps exist. Updated information on technology and credit facilities (Revolving Fund)

is not readily available to all potential clients.

Prepared by Fred M’mbololo Page 8

Regular needs assessments are not done.

Delays in process application and registration of business.

High capital layout & transaction costs

Opportunity

Increasing demand for the services.

Few numbers of Competitors in the Market.

Market is expandable, demand of the product increasing day by day.

Qualified consultants are available and have expressed interest in monitoring and evaluation of

The sound political, commercial & social setting of our country has and instilled a confidence in

suppliers, investors, lenders and insurers.

Someone who is financially strong may enter the industry.

Excessive Business Regulations.

Increase in taxation or re-introduction of the capital gains tax.

Economy recession or Stagnation.

1.6 Start-up Financial Summary notes:

The total start-up expenses will include legal, stationery, architect, brochures, consultants, insurance,

rates, land, construction costs, land, stamp duty and legal fees, machinery and equipment.

Initial cash will be needed to handle the architect and contractor fees prior to opening, additional cash

will be needed to pay for government regulations.

We will finance growth mainly through cash flow. We recognize that this means we will have to grow

more slowly than we might like.

1.7 The People Needed:

A team of working people will be required we will need at least two qualified architects to draw up the

proposed housing unit, a construction company to hire for period of construction, a quantity surveyor

and an accountant to estimate the entire cost and time anticipated to complete the project. We will

need a secretary and a few messengers to send around. This team will eventually take over the running

of the business.

Prepared by Fred M’mbololo Page 9

1.8 Sales Strategy:

An attractive brochure is an important marketing tool. Relatively inexpensive brochures need

to be developed to provide information about your type of experience, unique features,

location, bathroom arrangements, and getaway aspects, rules, nearby restaurants and

recreational activities, and sightseeing ideas. We will make sure the brochure fits into a

business envelope, is rack size (approximately 4 inches wide by 9 inches long), and has good rack

visibility. Be very careful to select images and words that will represent your proposed business

in an accurate and inviting manner.

We will aggressively pursue opportunities for stories in newspapers and magazines. Media

coverage is very important for new housing units. We will send regular news releases to

national, radio and television stations.

TV and radio appearances describing the uniqueness of your business can be extremely

effective. We will also consider contracting with a freelance writer to develop articles.

To objectively evaluate our property and its architecture, imagine that you are a tenant/house

buyer, looking for a nice place to live or a decent house to buy.

About your business for submission to regional newspapers. Some newspapers have a weekly

calendar and tourism section that lists the area’s new accommodations.

We will occasionally use the selling and letting agency to market and collect revenues on our

behalf and pay them standard commission percentage charges.

Develop a website advertising all our products and services also use face-book and twitter

accounts to get new potential clients.

Advertising in the yellow pages magazines and other real estate magazines.

Advertising on Billboards and Daily Newspapers

Prepared by Fred M’mbololo Page 10

1.9 Profit Margins and Overheads:

Business Plan of 50 housing Units Cost of Construction

Details Kshs Costs Sub-Total

Cost of Land

Land Cost 80,000,000.00

Stamp Duty 4,000,000.00

Legal 300,000.00

Misc 10,000,000.00 94,300,000.00

NCC Costs & Approvals

Land Rent & Land Rates 1,000,000.00

NCC Plan Approval - Architectural 500,000.00

Occupation Certificate

Reinstating Charge-Water

Road Plan Approval

Sign Board Approval

Storm Water Planning

Street Lights Planning

Structural Planning

Consultancy Fees For Plans 2,000,000.00 0.00

3,500,000.00

Professional Costs

Prepared by Fred M’mbololo Page 11

Architect - 2,000,000.00

Quantity Surveyor - 1,000,000.00

Structural Engineer 3,000,000.00

Electrical Consultant 1,000,000.00

Nema 1,500,000.00

Change of Use 500,000.00

Sub-Division

Golden Terrace

Knight Frank

9,000,000.00

Civil Works Drawings & all Approvals

Surveyors: Include

Liaising with City Council & Lands

Debt & Survey of Kenya

Obtaining individual Deed Plans 750,000.00

K.P.L.C Service Line 1,000,000.00

Water service Line 500,000.00

1,500,000.00

Legal Costs/Stamp Duty

Legal Cost on Sale 3,000,000.00 3,000,000.00

Sales & Marketing 20,000,000.00 20,000,000.00

Construction Costs

Costs 50,000,000.00 50,000,000.00

Finance Costs 2,000,000.00 2,000,000.00

Misc. 5,000,000.00 5,000,000.00

Gross Total Costs 189,050,000.00

Prepared by Fred M’mbololo Page 12

Business Plan of 50 housing Units

Sale of the Construction Houses

Sales No of units Total Revenue

Less Cost of Sales

Converted to £ at Kshs150

Prepared by Fred M’mbololo Page 13

The above current valuation are based on the current prevailing market rates which have been

extrapolated from a current ongoing project , the estimates are further adjusted by an Inflation Rate of about 14%

1.10 Important Assumptions:

We assume that the economy will continue growing at about 10% per annum for the next five years

We assume that the taxation system will remain largely the same.

We assume that the level of political stability will continue in the foreseeable future.

The Inflation rate will not exceed 14% for the next five years 2.0 Reasons to Invest particularly in the Housing Real Estate: Housing and Urbanisation: Given the current demographic trends, Kenya will be a predominantly urban country by 2030. The country must, therefore, plan for high quality urban livelihoods for most of her people by that date. The 2030 vision for housing and urbanization is “an adequately and decently-housed nation in a sustainable environment.” This will be attained through:

better development of and access to affordable and adequate housing;

enhanced access to adequate finance for developers and buyers;

pursuit of targeted key reforms to unlock the potential of the housing sector;

initiation of a nationwide urban planning and development campaign, starting with Kenya’s major cities and towns.

Prepared by Fred M’mbololo Page 14

I got this idea from a friend who works for a real investment company that just buys land, construct

houses and then sale them off for profit. Given that there is no capital gains tax presently in Kenya, the

company makes super profits in such engagements.

2.1 Kenya’s General Prospects

Perhaps the best summary of Kenya’s prospects is that they are as bright as Kenya chooses to make

them. While this could apply elsewhere, it is particularly apt for Kenya, given the country’s enormous

advantages. Kenya has a strategic location, a port and a coastline, a broad manufacturing base, the best

business infrastructure in the region, an able and enterprising workforce, and excellent resources for

agriculture and tourism – the list is not endless, but it is long. The challenges to be met are

serious but hardly insuperable. An investor with an interest in any of the major opportunity areas

mentioned above would be most unwise to ignore the potential of a country that is working hard to

renew itself and strengthen its status as a regional powerhouse.

Prepared by Fred M’mbololo Page 15

Prepared by Fred M’mbololo Page 16

2.2 An Overview of the Kenyan’s Vision 2030

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Last updated on February 26th, 2023 at 02:49 pm

Are you looking for a way to increase your real estate sales in Kenya? There are many ways that you can market your properties in Kenya, but the most important thing is to find an avenue that resonates with potential buyers. 

A great way of doing this is through social media marketing in Kenya. Social media is one of the fastest-growing forms of marketing because it’s easy and accessible to everyone. 

This article will give you some tips on how to use social media marketing as well as other marketing strategies in order to successfully market your plots in Kenya!

Where to start?

First, you need to create a social media account for your company. If you already have one, then set up an additional profile that is dedicated specifically to promoting your real estate business. 

You should also consider adding relevant hashtags and location tags so people can find information about properties in their area!

What’s Next?

Make sure that all of the images and videos on your accounts are high quality and engaging. 

A great way of doing this is by hiring a professional photographer or videographer to take some beautiful photos or footage of potential listings in Kenya. 

This will help increase engagement with users who might be interested in purchasing them! 

Make sure not to add too many posts per day because it may overwhelm followers – try posting once every few days instead!

How to market your real estate business on social media in Kenya

There are many different ways that you can market your properties in Kenya on social media. 

The first thing that you should do is create posts about listings and the benefits of each property! 

Try to include as much information as possible, such as asking questions or including hashtags so users can find more relevant content. 

You should also try creating themed weeks where every post will be related to a certain subject – this will allow followers to look forward to new content! 

Another great idea is hosting competitions where winners receive free real estate products like gift cards. 

This helps build brand loyalty amongst customers and it’s perfect for sharing with influencers who have large followings! 

Lastly, make sure that all of your accounts link back up to one another by adding links in bios, pinned posts, and header images.

Other strategies you can use to market plots/land in Kenya fast include;

1). Use Facebook ads in Kenya

This is one of the most effective strategies for selling properties fast in Kenya. 

You can target specific audiences depending on how much you’re willing to pay with Facebook ads. 

This will help generate leads and it’s great for branding because users may check out your other social media accounts!

2). Build an email list

Another way to market real estate in Kenya is by collecting emails from potential customers. 

This will allow you to send out newsletters with updates about new listings, promotions, and exclusive deals. 

You can also incentivize sign-ups by adding a contest where the winner receives free land or even cash!

3). Create an Irresistible Content Offer to Capture Leads

In order to market plots/land in Kenya, you need to make sure that your website is optimized for SEO and that it’s easy for users to find information. 

You should also create a premium content offer where customers have to provide their contact information – this can be done through a lead magnet, which are special offers available on the blog or other pages. 

This will help generate leads and increase real estate sales in Kenya!

4). Create a Virtual Tour 

Virtual tours are a great way of selling properties fast in Kenya. 

This is because they give potential buyers a preview of what the property looks like. 

Having a virtual tour will help increase your conversion rate and it’s also an effective SEO strategy for getting more traffic to your website!

5). Local Sponsorship 

Another way to market real estate fast in Kenya is by hosting local events or community projects. 

You can sponsor these activities and present your business as a partner. This will help increase brand awareness amongst customers in the area, which increases sales!

6). Build Your Google My Business Page 

Make sure that you have a Google My Business page for all of your listings! 

This will allow potential customers to find information about the property, such as location and contact details. 

You should also include a virtual tour so users can preview the inside before scheduling an appointment!

7). Use Emotional Storytelling 

Emotional storytelling is a great way to market the real estate business in Kenya. 

This is because it makes your company more relatable and personable. Try to use videos or images that will evoke feelings of empathy from users so they can see what life would be like if they moved into the house!

8). Host Free Seminars For Home Buyers 

Another great way to market your real estate properties in Kenya is by hosting seminars for potential buyers. You can advertise these events on social media, which will increase traffic to the page and it’s a good opportunity for branding! 

Try sharing testimonials from past customers too so that other users have proof of experience with your company!

9). Create a Popular Blog 

Create a popular blog that covers all aspects of real estate in Kenya! 

This is extremely helpful because it allows you to reach out to potential customers who are interested in buying homes. 

Most people want the best possible deal, so they will likely come to your website for information on how much land costs and what kind of payment plans are available.

Attention: Are you looking for the best content writing services in Kenya ? Follow this link

10). Reach Out to Social Media Influencers 

Another way to market real estate in Kenya is by reaching out to social media influencers in Kenya. 

You can do this on a local or regional level and it’s one of the best ways for getting free promotion. 

Influencers in Kenya will help spread the word about your business, which means more real estate leads in Kenya.

11). Get Active In The Community 

Try going active in the community as much as you can! 

This is great for building relationships with customers because they’ll know that there are people behind the brand who care about making an impact through service. 

It also increases trustworthiness and shows users that you’re passionate about what you do!

If you are selling land/plots in Nairobi, Nakuru, or even Eldoret, find activities within the community that you can engage in.

12). Optimize Your Website For Mobile Users 

Since most online searches happen via mobile devices , it’s important that your website works correctly on both tablets and smartphones.

This is one of the simplest ways to market real estate fast because it allows potential customers to access your page anytime, anywhere!

13). Build a System for Referrals 

A great way to market real estate in Kenya is by building a referral system. 

This allows you to reward previous clients for their service. 

For example, you can give them gift certificates or discounts on new properties! 

This encourages loyalty and it’s one of the best ways for increasing sales!

14). Write Testimonials 

Another good idea is writing testimonials from past customers so that other users have proof of experience with your company! 

You should also consider including images in each review because this will help increase conversions and trustworthiness. 

It shows potential buyers that people are happy with your services and they’ll likely be just as pleased if they choose to use your business too.

15). Improve Your SEO With Blog Posts 

Make sure that you’re using blog posts to your advantage.

This is because blogging in Kenya allows you to get more traffic and it’s a great way for getting links back to your site. 

The more ways that potential customers can access information about real estate in Kenya, the better!

16). Use PPC Campaigns 

Another good idea is using paid ads such as Google Adwords or Facebook Ads in Kenya. 

You should target keywords related to home buying so that users who are searching on these platforms will find your page easier. 

It may seem like an investment at first but it’s one of the fastest ways for reaching targeted audiences and boosting land sales in Kenya!

If you want someone to write the land/plots/property ads in Kenya for you, reach out now.

How to sell land fast in Kenya

Selling land in Kenya can be a complex and time-consuming process, but there are several steps you can take to sell your land quickly. Here are some tips on how to sell land fast in Kenya:

• Set a realistic price: Research the local real estate market and set a realistic price for your land. Avoid overpricing or underpricing your land, as this can discourage potential buyers.
• Advertise your land: Advertise your land on online marketplaces, social media platforms, and real estate websites. Use high-quality photos and descriptions to showcase the features and benefits of your land.
• Use a real estate agent: Consider hiring a reputable real estate agent who has experience in selling land. They can help you market your land, handle negotiations, and ensure that the sale is legally binding.
• Make your land more attractive: Consider making improvements to your land to make it more attractive to buyers. This can include clearing any debris or trash, planting trees or flowers, or installing fencing.
• Be flexible: Be flexible with your negotiation terms, such as payment plans or closing dates. This can attract more buyers and increase the likelihood of a successful sale.
• Ensure all documents are in order: Ensure that all necessary documents, such as title deeds and land maps, are in order and readily available. This can help speed up the sale process and avoid any legal issues.
• Offer incentives: Consider offering incentives to potential buyers, such as discounts, free consultations with architects or contractors, or free property inspections.

Selling land in Kenya requires patience, persistence, and a willingness to adapt to the needs of potential buyers. By following these tips, you can increase your chances of selling your land quickly and at a fair price.

How to sell land online in Kenya

Selling land online in Kenya can be a convenient way to reach a wider audience and find potential buyers quickly. Here are some steps to follow to sell land online in Kenya:

• Prepare your land for sale: Before you start marketing your land online, make sure it is in good condition and ready for sale. This may include clearing any debris, fixing any damage, and ensuring that all necessary documentation is in order.
• Take high-quality photos: Take clear and high-quality photos of your land from different angles. You can also consider taking aerial photos using a drone.
• Create a listing on online platforms: There are several online platforms in Kenya where you can create a listing for your land for sale. Some popular platforms include Jumia House, Property24, and BuyRentKenya. Be sure to provide accurate and detailed information about the land, including its location, size, and any other relevant details.
• Use social media: Social media is a powerful tool for promoting your land for sale. Share your listing on your personal and business social media accounts, and ask your friends and family to share it with their networks.
• Respond to inquiries promptly: Be sure to respond to any inquiries or messages promptly, and provide any additional information or documentation that potential buyers may need.
• Be transparent: Be transparent and honest about any issues or concerns related to the land. This will help build trust with potential buyers and increase the chances of a successful sale.

Selling land online in Kenya requires patience, diligence, and attention to detaiL.

How to start a real estate business in Kenya

Starting a real estate business in Kenya can be a lucrative venture, but it requires careful planning and preparation. Here are some steps to get started:

• Conduct market research: Before starting any business, it is important to research the market and understand the demand for your services. Look into the real estate market in Kenya, including property prices, rental rates, and trends in the industry.
• Develop a business plan: A business plan is a blueprint for your business, outlining your goals, strategies, and financial projections. This will help you secure funding and make important decisions.
• Register your business: Register your business with the Registrar of Companies in Kenya. You will also need to obtain any necessary licenses and permits to operate legally.
• Build a team: Assemble a team of professionals to help you run your business, including real estate agents, property managers, and accountants.
• Secure funding: Depending on your financial situation, you may need to secure funding to start your business. Consider applying for a business loan, seeking investment from partners, or using your own savings.
• Build your network: Networking is essential in the real estate business. Attend industry events, join professional associations, and build relationships with other professionals in the field.
• Build a marketing strategy: Develop a marketing strategy to promote your business and attract clients. This may include advertising, social media, and other forms of outreach.

Starting a real estate business in Kenya requires dedication, hard work, and a willingness to learn. By following these steps and staying focused on your goals, you can build a successful real estate business in Kenya.

In conclusion, there are many different ways that you can effectively market your real estate business in Kenya. 

By creating high-quality posts about listings, hosting competitions, and adding links between each account, customers should find what they’re looking for quickly!

In addition to this, make sure not to overwhelm followers by posting too frequently – once a few times per day should suffice! 

If you follow these tips properly while using relevant hashtags or location tags, then potential customers can easily find your brand!

Do you follow us on social media? Find our accounts here: Facebook, Instagram, and Twitter. 

If you have any other questions about marketing strategies in Kenya or how we can help grow your business then feel free to contact me at [email protected]!

What do you think of these ways to market your real estate business in Kenya.

Thanks for reading and good luck in all of your future real estate business in Kenya.

Tagged With : how to market plots in kenya • how to sell land fast in kenya • international land buyers in kenya • land buyers contact numbers in kenya • land buying saccos in kenya

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Reprieve as tax amnesty deadline pushed to 2025

Clients seek services at KRA headquarters in Nairobi on February 23, 2024.

By  Kepha Muiruri

Business Reporter

Nation Media Group

The ongoing tax amnesty that was set to expire this Sunday has been extended to March 31, 2025 as part of new changes to the Finance Bill that seeks to drive compliance and lift state revenues

The extension of the amnesty represents yet another U-turn by MPs who had previously rejected the plea of small traders to extend the tax pardon by a year with the goal of realising more revenues of the taxman.

The amnesty, which sought to waive penalties and interest on unpaid tax, is a relief to persons and businesses that were wary of the pardon’s deadline date on June 30.

KRA waives Sh209bn fines, interest for taxpayers

WATTANGA: Amnesty programme offers taxpayers a rare chance to start with a clean slate

The Kenya Revenue Authority (KRA) has collected Sh20.8 billion through the amnesty scheme between September and April out of the Sh50 billion it was targeting in the current fiscal year.

“By extending the amnesty, it allows Kenyans who had an outstanding payment to earn reprieve from penalties and interest. This marks a big relief for Kenyans who were worried about the expiry,” said Kuria Kimani, the chair of the Finance and National Planning Committee.

“When the Finance Act of 2023 introduced the tax amnesty, 1,058,734 Kenyans applied with a principal tax of Sh42 billion. So far, Sh31.2 billion has been paid by the taxpayers while a balance of Sh10.7 billion remains.”

The 2023 Finance Act had introduced the pardon where the KRA Commissioner was barred from recovering penalties, interest and fines on a tax debt where a taxpayer had paid the full principal tax before 31 December 2022.

Where the principal tax had not been paid before the date, a taxpayer was allowed to apply for the amnesty for interest and penalties accrued to December 31, 2022 but was required to propose a payment plan for the outstanding amount.

Taxpayers liable for the tax avoidance penalty do not qualify for the amnesty.

Without the extension of the pardon, taxpayers with outstanding principal tax would have seen penalties and interest accruing once again, handing down fresh pain.

The amnesty was expected to incentivise out-of-court settlement of tax disputes where principal taxes are agreed upon and settled within the life of the reprieve window.

Last year, President William Ruto noted that the waiver was intended at alleviating financial burdens by assisting taxpayers facing financial challenges relating to unpaid taxes.

As at the end of April, KRA said it had netted Sh20.8 billion from the programme which translated to 41.6 percent of the Sh50 billion target.

Earlier, the taxman had identified 2.8 million taxpayers with penalties and interest and who qualified for the programme. Last week, small traders and lobbies pushed for an extension of the pardon as well as the prolonging of the period to clear principal tax sums.

Read:  MPs reject small traders’ pleas to extend KRA tax amnesty

“With the increased collections witnessed by KRA and the previous voluntary tax disclosure program, extending the current amnesty may boost revenue collection by encouraging self-disclosure of liabilities by taxpayers,” the Kamukunji Community Empowerment Centre said in submissions to the Finance Committee.

Collections from the amnesty programme have been paramount in growing revenues for KRA even as the taxman remains under pressure to meet an increased target.

KRA is expected to mobilise Sh2.45 trillion in the financial year ending on June 30 down from Sh2.04 trillion in actual nettings in the year ended June 2023.

The taxman has a higher target of mobilising Sh2.91 trillion in the fiscal year starting July 1.

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Kenyan President Rejects Bill That Led to Deadly Protests

A day after at least 23 people were killed in demonstrations against a tax increase, President William Ruto withdrew the law that he said was necessary to avoid defaulting on the country’s debt.

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By Abdi Latif Dahir

Reporting from Nairobi, Kenya

In a sudden reversal, President William Ruto of Kenya announced on Wednesday that he would not sign a finance bill that he had long said would stabilize the country’s economy — a response to devastating protests a day earlier that left nearly two dozen people dead.

Though the precise toll was still being tallied, human rights groups said that 23 people were killed and over 300 others injured after the police used tear gas and bullets to respond to demonstrators who had marched on Parliament to protest the tax increases in the bill.

Some people broke into the Parliament building and set it on fire hours after lawmakers voted to pass the legislation. The death toll makes Tuesday’s violence one of the bloodiest days in the country’s recent history.

“Listening keenly to the people of Kenya who have said loudly that they want nothing to do with this finance bill, I concede, and therefore, I will not sign the 2024 finance bill, and it shall subsequently be withdrawn,” Mr. Ruto said in an address to the country on Wednesday.

Among those sitting behind him were lawmakers who, just a day earlier, had passed the bill in Parliament, some while being loudly condemned by their constituents for supporting the legislation.

The announcement was a change of course for Mr. Ruto, who in an address on Tuesday night had called the demonstrators “dangerous criminals” and “treasonous,” and deployed the military to join the police in quashing the protests.

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Kenya’s president vows calm ‘at whatever cost’ after parliament stormed, set ablaze

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Kenya’s president called the storming of parliament on Tuesday a national security threat and vowed that such unrest won’t happen again “at whatever cost,” after thousands of protesters against a new finance bill pushed their way in, burning part of the building and sending legislators fleeing. It was the most direct assault on the government in decades.

Journalists saw at least three bodies outside the complex where police had opened fire, and medical workers reported five others killed. Clashes spread to other cities. There was no immediate word on arrests.

“Today’s events mark a critical turning point on how we respond to threats to our national security,” President William Ruto said, calling the events “treasonous.” Kenya’s defense minister said the military had been deployed to support police during the “security emergency” and “breaching of critical infrastructure.”

Protesters had demanded that legislators vote against the bill imposing new taxes on East Africa’s economic hub, where frustrations over the high cost of living have simmered. Youths who had voted Ruto into power with cheers for his promises of economic relief have taken to the streets to object to the pain of reforms.

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But lawmakers voted to pass the bill, then fled through a tunnel as protesters outmaneuvered police and poured in. The fire was later put out.

At least five people were shot dead while treating the wounded, the Kenya Medical Assn. and other groups said in a statement. It said more than 30 people were wounded, at least 13 with live bullets. Police fired live ammunition and threw tear gas canisters at protesters, who sought treatment at a medical tent at a nearby church. Elsewhere in town, Kenyatta National Hospital said it received 45 victims.

One person shot dead was wrapped in a Kenyan flag and carried away. Another lay on the sidewalk, their head in the gutter.

Internet service in the country noticeably slowed in what NetBlocks called a “major disruption,” and at least one broadcaster issued a statement saying that “we have received threats from the authorities to shut us down.”

Ruto had been outside Nairobi attending an African Union retreat. He was expected to sign the finance bill into law this week. He has two weeks to act but faces calls from religious and other leaders to think again.

The nearby office of the Nairobi governor, a member of the ruling party, was also briefly on fire Tuesday, smoke pouring from its white facade. Police water cannons were used to extinguish the fire.

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Protesters could be heard shouting, “We’re coming for every politician.”

The Kenya Human Rights Commission shared a video of officers shooting at protesters, and it urged Ruto to issue an immediate order to “stop the killings.”

The president instead said the government had “mobilized all resources” to ensure order.

On Sunday, Ruto tried to calm the rising public tensions, saying he was proud of the young Kenyans who came out to exercise their democratic duty in earlier protests. The politician who had promoted himself as a “hustler” from humble beginnings said he would engage them on their concerns.

Youths had announced they were uniting to keep the government in check as prices for fuel, food and other necessities have soared. In Nairobi, a regional hub for expatriates and home to a United Nations complex, the inequality among Kenyans has sharpened along with long-held frustrations over state corruption.

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Opposition to the finance bill has united a large part of the country, with some explicitly rejecting the tribal divisions that have torn Kenya apart in the past. Some who had passionately supported Ruto felt betrayed.

“I fell for his lies. Now I’m out here regretting why I voted for him,” youth Oscar Saina told the Associated Press last week

As throngs of protesters rushed through the streets Tuesday, defiance emerged elsewhere in the country — including in the town where the president was, Naivasha, as protesters chanted, “Ruto must go.”

Protesters tried to storm the State House in the western city of Nakuru, a witness said. There were clashes in the western lakeside city of Kisumu. The governor of Mombasa, Kenya’s second-largest city, joined protesters outside his office and expressed his support for them.

Protesters burned ruling party offices in Embu in central Kenya, the Nation newspaper reported. Citizen TV showed video from Nyeri in central Kenya with police confronting protesters in the smoking streets.

A national gathering of Catholic bishops urged police not to attack protesters and pleaded with the government to listen to citizens’ pain over the “unwarranted” taxes, saying “the country is bleeding ... families are immensely suffering.”

Two people died in similar protests last week, and civil society groups have raised the alarm about a crackdown.

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The Kenya Law Society President Faith Odhiambo said earlier Tuesday that 50 Kenyans, including her personal assistant, had been “abducted” by people believed to be police officers. Some had been vocal in the demonstrations and were taken from homes, workplaces and public spaces ahead of Tuesday’s protests, according to civil society groups.

A statement by diplomats from 13 Western countries including the United States said they were shocked by the scenes outside parliament and expressed concern about the violence and abductions of protesters.

Police officials did not immediately return calls seeking comment. Parliament Speaker Moses Wetangula had directed the inspector general of police to provide information on the whereabouts of those missing.

Also Tuesday, hundreds of Kenya’s police officers, long accused of abuses by human rights watchdogs and others, arrived in Haiti to lead a United Nations-backed multinational force against the powerful gangs that have the country in their grip. The deployment faces a legal challenge in Kenya, but Ruto’s government has gone ahead, with the thanks of President Biden.

Musambi writes for the Associated Press.

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