There is a tense political situation in Kenya as the Supreme Court of the country declared the recent general election null and void and called for a new re-election. This has had serious consequences for the Kenyan economy and has dealt a body blow to the property market. What does this mean for you if you have a property for sale in Kenya? Let’s analyse.
There is a real fear that the recent political upheaval in Kenya will transcend into violence and even into a civil war. Africa as a continent has been ravaged by civil wars and millions have died in them. One hopes that such a thing does not happen to Kenya. Regardless it makes sense to sell your property in Kenya fast rather than wait for the situation to get worse.
Barack Obama, the former President of the United States, who has family ties with Kenya and has a massive following in the country has strongly advised the people of the country to remain calm and reject violence.
Mr. Obama said, “I urge Kenyan leaders to reject violence and incitement; respect the will of the people; urge security forces to act professionally and neutrally; and work together no matter the outcome. I urge all Kenyans to work for an election — and aftermath — that is peaceful and credible, reinforcing confidence in your new Constitution and the future of your country. Any disputes around the election should be resolved peacefully, through Kenya’s institutions and the rule of law.”
“In Kenya’s election we have already seen too much incitement and appeals based on fear from all sides. But I also know that the Kenyan people as a whole will be the losers if there is a descent into violence. You can make clear that you will reject those that want to deal in tribal and ethnic hatred,” Mr. Obama added.
The real estate community in Kenya is very anxious about the recent turn of events. Home prices increased only by 3.8% in 2017 compared to 7.4% in 2016. This indicates that there are fewer people who want to buy property in Kenya online this year than before.
Cytonn Investments research analyst Nancy Murule explains that this could just be a temporary blip and that the market could get back to where it was once the political uncertainty pans itself out.
Ms. Murule says, “This is attributed to investor anxiety over the 2017 elections and thus they postponed making long-term investment decisions. We expect the market to stabilise through 2018 after the elections period. Investors, therefore need to invest in proper market research and trend analysis to identify specific market niches.”
“We expect continued growth in real estate sector on the back of improved macroeconomic conditions, sustainable high returns and a changing operational landscape as developers strive to satisfy the high housing deficit,” Ms. Murule added.
There is certainly a lot of demand for properties in Thindigwa in the Kiambu region, as well as in Ridgeways, Lang’ata and Juja in Kenya. That is unlikely to disappear any time soon.