The Developers Digest Q1 Issue

6
2023 KPDA Annual Conference Main Sponsors Contributions
Riruta: Nairobi’s Real Estate
Hidden Gem
By Samuel Kariuki
Chief Executive Officer, Mi Vida Homes
The renown Precious Blood Secondary School,
the weatherman’s headquarters and a popular
nyama choma belt come top of mind when one
thinks of Riruta and the wider Dagoretti node of Nairobi
County.
Historically, Riruta and the wider Dagoretti area have
been highly preferred by Nairobi tenants owing to their
close proximity to the key commercial nodes of Kilimani,
Community, Upper Hill and the CBD. The area also
neighbors the upmarket Lavington and is well served
by public transport. Similar to other Nairobi suburbs,
Riruta has over the last few years metamorphosed into
a peri-urban neighborhood as seen by the sparsely
populated low-density units that previously dotted the
area now giving way to modern high-rise apartments.
Driving along Wanyee or Naivasha Roads, one cannot fail
to notice new towers above ten levels that have either
been recently completely or under construction.
Again, like other Nairobi areas, this rapid change has
been catalyzed by a cocktail of factors with rapid
urbanization and massive infrastructure projects being
the key ingredients. Upgrading of the 11-kilometer
Ngong Road from a single to a dual carriageway has
enhanced the area’s attractiveness by making it more
accessible. Ngong Road’s expansion has reduced the
time it takes to connect from Riruta to other nodes of
the city including the Central Business District. This
reduced travel time has ushered in a wave of property
developers.
Property developers have also been drawn to the
wider Riruta because of the area’s land affordability
relative to other suburbs. This attractive land value
entry point addresses one of the more important
concerns for investors in affordable and mid-market
housing in Nairobi. Riruta therefore provides attractive
opportunities for affordable housing development.
Owing to its historical location, Riruta area has
benefitted from a mix of social amenities including
many public schools, proximity to shopping malls, and
An image of the proposed KEZA Estate by Mi Vida
hospitals which not only increase convenience to the
area’s residents but are major considerations when
either developing housing units or buying into a project.
Riruta is also yet to see a proliferation of alternative
developments especially commercial offices which
have elbowed potential home buyers from the house
ownership ladder. Kilimani, Riverside, Westlands,
Upperhill are Nairobi suburbs that were previously
the reserve for family units but have now given way to
skyscrapers hosting commercial offices and hotels.
These are some of the reasons that informed Mi Vida
Homes decision to explore investing in affordable
housing in the area.
As with all areas that have seen increasing densification
in recent times, it is important that the newly elected
Nairobi County leadership keeps pace with requisite
public investment in infrastructure. Water and
sewerage infrastructure are a case in point. The county
has an opportunity to take a lead role in supporting
development of affordable housing for its residents on
that front, in addition to minimizing the costs, including
on time, in statutory compliance.
These challenges aside, Riruta area is well positioned
as a location for quality and has the potential to deliver
much needed affordable and quality homes.
Adopting a Long-term Perspective in the Real Estate Sector