I have just been shown some stall in town where the owner is asking for Kshs 1.3m goodwill - the stall faces the street and measures roughly 7feet by 5 feet.

Someone is making a killing with with goodwill thing. I estimate that that fellow will make Kshs 5m from a space only slightly larger than my living room!!!!

Jameni,starting a biz especially in the CBD is becoming near impossible coz of this goodwill monster.

@Robinhood, one reason why goodwill prices are high in CBD is that the returns are astronomical.

I have a friend who sold a plot in 2000 and paid 3m goodwill for a nice shop in river road. Today, he has parlayed that 1 shop into 4 shops...and the most recent one is a mega shop on moi avenue which he paid 6m goodwill. He says that off all his shops, no shop does better than the old shop in river road, which he pays a monthly rent of 220k a month, but the shop does sales of even 60-80k per day!

1.3m is nothing for goodwill in tao my friend. If u have it, and the shop is infront of high traffic street, pay it and work hard in that business. Take care of it kama maziwa kwa stove, and u will succeed. Good luck.

Goodwill is usually charged on the first tenant of a space and consecutive tenants only pay the outgoing tenant.It is just normal business practice which is not recognised in official real estate practice.Most people dont even give receipts for it!It was much of a 3rd world Nairobi thing(ie moi ave tom mboya river road etc)but it is now very much present in 1st world Nairobi.For guys to be willing to pay 200000 for a tuckshop,they must be making a kill from it

@kadonye - Goodwill is goodwill... no matter who you pay it to...