The real estate market in Kenya has been booming
in the last decade with new commercial and
residential projects springing up across the
country’s major urban centres. In the capital
Nairobi and its environs, local and international
investors are building golf and gated estates,
shopping malls, hotels and offices to meet high
demand for property.
Alice Kariuki, a professional accountant, teamed up
with three other women entrepreneurs in 2009 to
develop serviced apartments in Nairobi. Last month,
they broke ground with Serenita Apartments, which
are targeted at business travellers and consultants
who visit Nairobi for weeks at a time.
Kariuki says she was drawn to real estate after
discovering how lucrative the sector could be. She
worked as an investment manager and was tasked
with finding investment options for her employer
that mostly included property, shares and treasury
bills.
“We revalued all the properties every three years
and the value always went through the roof. In fact,
it was better business than what our company
actually did. I knew this was a sector worth investing
in.”
Kariuki and her business partners did “small
businesses that are often associated with women”
and later decided to embark on a larger project.
“We were never afraid of going bigger because all we
would have to do is invite investors,” she says. “We
realised that a lot of what men can do, women can
do. That has been instilled in us from childhood. As
we grew up we were told we could do anything a
man could do. Even in finance there are more men
than women but sometimes we contribute better
ideas in meetings and I feel women should be able
to do anything they set their minds on.”
Serenita Apartments comprises 84 luxury units that
sell for KSh. 19.75m (US$228,000) each. The project,
which is to be completed by January 2016, is located
next to Upper Hill, an upcoming commercial centre in
Nairobi.
“Most corporate firms are moving from the city
centre to Upper Hill and that is driving land prices
and demand for real estate and budget hotels. All
the banks have built their headquarters there. These
firms have consultants who come here for even six
months and would prefer to live in a serviced
apartment than stay in a hotel. The demand is there
and it can only grow.”
According to Kariuki, demand is partly fuelled by the
city’s standing as a regional hub, the entry of
international firms and Kenya’s growing middle class
who are increasingly investing in the sector.
“There is a lot of new money in the market, which is
likely to go towards buying land and property.”
A tough journey
However, the journey has not been smooth sailing for
Kariuki and her partners.
“Sometimes people get surprised that the project is
being run by women. Mortar and brick has not been
a domain for women in this country. Most people
often question how much we actually know about the
construction process. Right from the beginning we
decided to hire the best talent and we have been
learning along the way. We have a good grasp of
what is going on.”
When they sought additional funds to raise KSh. 90m
($1m) for the purchase of the land, banks turned the
team away.
“Many banks did not take us seriously. They made
their evaluations and gave us all sorts of excuses and
refused to lend to us. Eventually we settled for
private equity,” says Kariuki. “We want to have good
capital appreciation so that we can do another
project and prove wrong the doubting Thomases.”
Lessons from entrepreneurship
Kariuki says entrepreneurship has taught her to be
resilient and persistent. Since starting the project,
she says, they have faced a court battle, encountered
bureaucracy in government and had to adhere to
changing regulations, none of which deterred them
from their goal.
“If you go into business you will encounter
numerous challenges along the way, but I think
giving up on the dream is the last thing someone
should do. It is not easy but you have to persist.
There is no learning if you chicken out. You learn
more in difficult times. They make you better.”
She advised other entrepreneurs to “consult less in
friends because most times they cannot see your
vision”.
“They will advise you based on their ‘feelings’ and
ignore the facts. I think it is important to work with
professionals and experts, share risk with other
investors and stay the course regardless of the
hurdles you face.”
For those aspiring to invest in real estate, Kariuki
says research is crucial.
“Sit with a marketer first and run your idea through
them to find out if what you want to establish is
something that can actually sell. A lot of people
have developed projects and found themselves
caught up because they did not research.”
She says women entrepreneurs should not to shy
away from taking risks.
“That is not the best way to do business. It is good
to take a little bit of risk, otherwise we shall tip toe
and arrive safely to the grave.”
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