IMHO KK going into real estate from my standpoint is a long shot. In the interim I am keeping an eye on LPG which appears to be less stressful & with all the tree hugging campaigns in Africa there lies a broad market for KK & its pan-african presence.

@investOr, the aim is only to grow non-oil income from the current 10& to 20% in six years according to Segman so it's not a heavy investment.
The major investment is the LPG plant in Dar, storage facilities in Mozambique and the other operations in UG and Zimbambwe. It's a smart move if you ask me.

LPG is a good business & if you look at KK's expansion plans [Annual Report for 2009 & 2010] they push LPG everywhere they go.

1) KK's real estate investments are still in its infancy. See the Annual Report + youtube of AGM. This might be a long-term play or a chance to cash out.
- E.g. The farmers in Kiambu becoming real estate developers. Why? Coz the land they owned for 50 years is worth much, much more!
- Not core strategy but profitable to develop & sell off assets [rather than selling raw land]

2) KK has stopped investing in Kenya! I follow KK closely & the 'press releases' [except the war with GoK] are all about the region:
- Tanzania acquisition/lease of storage
- Uganda acquisition of storage & stations
- Zambia acquisition of lube plant
- Burundi acquisition of stations
- Rwanda acquisition of storage
- Zimbabwe (failed) acquisition but trying
- Mozambique greenfield but looking for stations

When is the last time KK 'acquired' anything in Kenya?

At the recent AGM, Segman even asked for suggestions from shareholders on where to locate new gas stations! Or other facilities. I live in Nairobi but if I had a way of 'selling' LPG up-country I would hook up with KK.

We know firewood & makaa is a dying business. LPG is pricey [with upfront investment in tanks] but it can only grow. Kerosene is OK but very dirty.

If you go to many hospitals, etc they use LPG for cooking + other uses like heating which reduces dependence on electricity. Also LPG/LNG is 'cheap' i.e. the Waraabus have so much they flare it off. So the cost is in TRANSPORT not the cost of the product itself!

And Kenya might be lucky to find LNG. Tanzania has found LNG.