The highest returns in Kenyan Real Estate industry.

The highest returns on investment in the Kenyan real estate industry can be seen on those who initially acquired land in Nairobi CBD.

In the early 1900s, Nairobi CBD was a simple village with small time shops as seen below.

nairobi 1900s

During this time, some people were wise enough to acquire the land and invest, knowing that the returns would be high.

At the same time, others did not see the opportunity.


New stanley hotel in the early 1900s.

New stanley hotel in the 1920s

Nairobi view from the Stanley Hotel in 1949.

New stanley hotel currently.


Nairobi CBD 100 years ago.


Nairobi CBD currently

Currently, Nairobi CBD price per acre is in the range of kes 300 to kes 500 million.


This land alone would make any  real estate investor rank highly amongst the wealthiest in Africa.


Pooling resources.


Its not usually possible that at any given time, all investors would be able to afford acquisition of real estate. has made it easier for investors to come together and reap the benefits of the high return on investment.

This is done by pooling of resources to acquire property where the property is divided into shares which investors buy and become part owners.

This will enable investors to increase in wealth commensurate with the shares they own in the property.

For example, if 100 people came together in the 1900s to own an acre of land in the CBD, they would now be worth kes 500 million/100=kes 5m with the current values.

If the property was to be developed, the rental income plus capital gain would be in the region of tens of millions.


During the early 1900s, the land could not have been much more than kes 100, meaning that all they needed was kes 1 to  invest, which was a very achievable mark.

New Rwathia.


Gerald Gikonyo, currently an octogenarian, came close to this with his Rwathia hotels in Nairobi Downtown.he companies boast such investments in Nairobi as Magomano Hotel, New Kinangop Hotel, Timboroa Hotel, Alfa Hotel, Rwathia Distributors — a beer distribution company — and numerous other businesses, especially in real estate.

He started the businesses in 1947 with a capital base of only kes 700.

Those who saw his dream and partnered with him are currently laughing ll the way to the bank.


Time aspect.

Real estate is very dependant on the time aspect.

The earlier one starts to invest in real estate, the more the returns. The ones who came and acquired property in Nairobi CBD in the early 1900s, mainly European settlers and Indian coolies, are today the greatest beneficiaries.

The ones who came in in the 1940s such as Mr Gikonyo have also reaped big, having returned their initial kes 700 investment many thousands of times .

Thogoto Southern Bypass hotel.

thogoto hotel



a4architect is inviting investors to buy rooms in the 30 room Thogoto southern bypass hotel. See details here

Investors will own a room and will stand to gain from the monthly income generated and also from the high property appreciation rates in Kenya.

This is in the hope that after many years, the investors will be able to reap the financial benefits of the wealth they have created over the years.

Francis Gichuhi Kamau, Architect.



Francis Gichuhi (692 Posts)

Architect Francis Gichuhi . B.Arch. University of Nairobi. Registered Architect, Kenya. Member, Architectural Association of Kenya. Contacts. email Telephone +254721410684


Leave a Reply

Your email address will not be published. Required fields are marked *