@Mukiha, you are truely a moderator. You raised good points. On the remittances a good chunk is from the Somalis in the Diaspora. But again not everything is recorded and reported by CBK. The fact is alot of Somalis in the Diaspora invest in Kenya, because it's a safe haven compared to Somalia and neighbours like UG & TZ with stringent laws.Also they already occupy a province in Kenya hence this is their 2nd home.
The advantage they have is they are good in business. Trust is what they depend on most of the times. The business model they use is quite strange.
Regarding piracy,i don't think the money is much compared to transaction in real property market. Therefore piracy money is not fueling these market. One unique behaviour is they work in groups based on trust. While most of us Kenyans don't trust even our spouses.
The media is against places like Eastleigh, linking it piracy. This is not fair......dont believe in everything the media reports. And as Mukiha said visit E/leigh and see for yourselves.

Kudos mukiha. No wonder you were SKerian of the year. Good arguments

Good people.

@ Mukiha, saying that piracy money is not affecting the property market much is a gross understatement of fact. To also say that it is mainly piracy money that is affecting the property market in Kenya is also a lack of facts. The reality is that the entire country of Somali is run from Kenya. Believe it or not! Over 80% of the trade in Somali is run from Kenya ( Mainly Eastleigh) from sugar, to weapons. I am not saying that they are delivered in Eastleigh but most deals are struck there and so the profits also end up here. The Somali oil, though in small quantities is also regulated from here. The real estate in Kenya is just being used for money laundering services. The moment it is laundered, it is diverted elsewhere to formal markets abroad. It is also right to say that alot of the foreign remittance in Kenya is from Somali residents abroad. That is how all those 'idlers' for the lack of a better term in Eastleigh and Soucth C use to buy Miraa every weekend.

The question remains why the Somalis are going out for the real estate market. It is because they now realise its potential to launder money and grow it at the same time because every Kenyan wants to own land and so he demand becomes inelastic. At one time, they will pull out and unless someone with good muscle steps in, there might be a crush.( Remeber the story of the monkeys) Our choice of land for speculation is the main problem here

You mean there could be 40 acres available in Ngara? I didn't think the entire of Ngara was even 40 acres! Which side on Ngara is that?
How do individuals get these kind of lands?

120 M is actually a very reasonable price, only thing is very few local developers have the capacity to buy the entire parcel.

If you are willing to subdivide, i won't mind paying around 140 M per acre. What you say?

Be checking the date and time stamps for threads, people. This thread was started more than 2yrs ago!

am a quite a young man.am just concerned and at the same time surprised at the kind of money you guys are talking about! what do you people do for a living?

very true. 2 years ago, an acre in Ngara was going for kes 120m. Currently, a 0.25 acre plot in the same area goes for 60 to 70m translating to 240 to 280m per acre.