The fall of an empire as Mt Kenya rapidly loses control of real estate

From being controlling landlords in the property market, Mt Kenya developers are fast relinquishing their domination and are now becoming tenants after a property disposal spree that has worried area investors and elders.

"There was a time we were doing well especially in Nairobi, controlling majority ownership of land and buildings. But for the past 10 years we have seen properties change ownership at a rate that beats comprehension," says Kikuyu Council of Elders Chairman Wachira Kiago.

Cooperatives CS Wycliffe Oparanya in his September 24, 2024, visit to Murang'a County alluded to this dilemma when he said "from a home of solid assets acquisition cooperatives, Murang'a is now losing the sparkle to bad management, choices and manipulation".

The rate at which locals are losing properties to third parties either in clean or shady deals has become a matter of concern, Lands and Housing CS Alice Wahome saying it is a matter that needs to be investigated and a stopper for shady ones be enacted.

Ms Wahome admitted that there are crooks that grab real estate heritage from legal owners.

"The composite network of shady deals manipulate land records, use weaknesses in law, preside kangaroo courts in land boards and eventually use court injunctions and police force to win evictions," Ms Wahome said, adding that "digitisation of land records will address this tragedy".

Ms Wahome gave an example of a dispute between 3,000 realtors in Kiambu County’s land ref: Ruiru/Ruiru East Block 4 –Gikumari/ LR NO 5000 and IR Numbers 72811 and 172788 measuring 2,500 acres.

“Some powerful people have manipulated land records' search and presented findings that purport to have emanated from my ministry depicting the 3,000 poor owners to be squatters. I have checked and confirmed from both the Ruiru land registry and ministry records and discovered the hand of land grabbers,” she said.

“The legal mischief that they were applying was to present findings of a search under Registration of Titles Act (Cap 281) instead of the Registered Land Act (Cap 300) that covers Ruiru. With the aid of wicked legal help, the schemers intended to grab the land through soliciting for judicial eviction orders,” she said.

Mr Kiago said some of the avenues pioneer property owners are losing their estates is attributed to reckless beneficiaries of inheritance who proceed to dispose the properties at throw away prices.

While many properties since independence had been acquired jointly by groups of investors from upcountry, after the pioneer investment members died, those who started taking over management roles have ended selling them off.

The situation has not been helped by the entry of market players not shy to offer acquisition prices way above market value for the properties, leaving poor landlords salivating to strike a jackpot.

"This has been a very enticing avenue of relinquishing our properties. There are investors of Somali origin who offer even three(3) times value of properties and many have been unable to resist," says Rwathia Distributors Director Kanene Kabiru.

Mr Kabiru says "the Somali investors are offering, for example, Sh100 million for a property worth Sh30 million".

He says that allure has seen many property owners get into a disposal spree, citing it to be the cause of change in the control of estates like Eastleigh Estate, South B, South C and many others in Nairobi.

"Some 10 years ago we had many upcountry natives owning dilapidated and old designed buildings in Nairobi. They also owned undeveloped plots. The Somali craze came and today an estate like Eastleigh is known as Mogadishu in Nairobi," Mr Kabiru said.

Eastleigh Business Community Secretary General Omar Hussein said the takeover of properties is above board and has nothing to do with foul play.

"Ours is a modern way of doing things… being organised in investment groups bonded by unity, determination and trust. Our members shop for properties and through clean willing buyer willing seller deals, we acquire," Mr Hussein said.

He said people--some living outside the country--have agreed that joint ownership of properties is the way to go and as a result managing to rapidly take over any property placed in the market.

"We are above board developers, employers and tax payers," Mr Hussein said, dismissing suspicions that some of his business community members engage in vices like money laundering as well as receiving cash from proscribed outfits.

"We follow all the laid down procedures of acquiring property. Those who find it difficult to unite, pool capital and trust each other are the ones who come up with all manner of negative theories about us, which explains why they are poor," he said.

Ms Margaret Wangui,79, who says she has lived in Eastleigh's St Theresa area long enough, says devolution came with many property acquisition issues.

"Apart from the willing buyer willing seller deals that have become too common, cases of outright grabbing have also gone up," Ms Wangui said.

Ms Wangui said "I know of several families that were left buildings and land by their deceased family members, but have since lost then to corruption".

She said government officials in collaboration with corrupt lawyers fake ownership documents and sell off the properties and taking advantage of inability of the affected families to sue for justice, ends of disinheriting many.

One of the pioneer property owners in Nairobi was Mr Gerald Gikonyo Kanyuira (1914-2024) who died in June 2024.

During his burial ceremony in Mathioya Constituency, former Equity Bank Chairman Mr Peter Munga observed that "when we were inspired by the deceased to own properties in the capital city, unfortunately we are now losing trademark entitlements to trading spree... I would urge our sons and daughters to remain true to the cardinal principles that saw our fathers and ourselves come together to acquire those properties," Mr Munga said. 

The then Deputy President Rigathi Gachagua who attended the burial ceremony evoked nostalgic memories saying “our grandfathers had a dream of bequeathing us long lasting wealth by going to Nairobi and conquering it in ownership”.

"It is unfortunate lack of wisdom down the line is making us lose that identity and from majority landlords, we risk becoming majority tenants," Mr Gachagua said.

The grandfathers of Mt Kenya region especially from Murang'a County had also formed land buying companies to help them own Nairobi.

One such company was Embakasi Ranching Company Limited that founding father of the nation Mzee Jomo Kenyatta together with the late politicians like Njenga Karume (Kiambu) and Muhuri Muchiri (Nairobi) founded in 1970s.

While the company owned more than 50,000 acres of land in Nairobi's Eastlands and more than 30,000 in other areas, today, one of the ranch's lawyers Mr Timothy Mwangi says, ownership is distorted and no longer dominated by pioneer founders' next of kin.

"The company has been characterised by blatant cases of irregularities that litter corridors of justice. Suffice it to say that the original plan got adulterated and was poisoned by runaway cases of corruption as who is who in all powerful sectors went into scramble for Embakasi land parcels," Mr Mwangi said.

He said "this explains why most of the shareholders are yet to know the physical location of their land let alone seeing title deeds".

He added that "so far the cases in court are in their hundreds and so complicated owing to the nature of wheeler-dealers in control".

The company has since degenerated into leadership crisis owing to numerous court injunctions which has in turn made it hard for members to get title deeds.

Among the shareholders is Mr David Mbuuri,90, whose family says he acquired two shares after listening president Kenyatta articulate how in future the investment returns would make his old age be that of comfort.

“And he had a great foresight…it was good advice. If he had acquired the 10 acres that initially the two shares equated, he today would be Sh700 million rich in asset value,” his spokesman, Mr Joseph Njenga says.

Government assurance that real estate sector will be sanitised to eradicate market capture by unregulated groups has not served to assuage suspicions that dirty money is also a factor in the rapid takeover of properties in Nairobi and the trend spreading other regions like Kajiado, Machakos, Murang'a, Kiambu, Embu, and Nyeri counties.

"We have cases of suspected illegal groupings said to be targeting old fashioned buildings and placing buy off bids that are too good to be resisted hence creating market imperfections and distortions in the property market and in some cases, displacing locals from tenancy," Mr Kabiru said.

As the deep pockets take over buildings and open spaces, locals are crying.

“When they target a building, all the existing tenants are kicked out. Those who were running businesses in those buildings are denied stability since they are forced to go shopping for new trading spaces and start all over the hustle of building themselves,” said Ms Anne Wanjiru, who is Ruiru Small Importers and Traders Association chair.

Ms Wanjiru said that “even if the government denies that most of those involved are illegal immigrants, we are aware that the kind of corruption in registering aliens and awarding them Identity Cards (IDs) and working permits is one whose impunity knows no law”.

Juja MP George Koimburi recently caused a furore when he publicly accused some government officers of by their own volition or by due duress, “writing introductory letters to aliens describing them as Kenyans to be issued with National IDs and ending up becoming real estate dealers”.

Juja Town MCA Jeremiah Kiama said such aliens are first arriving as tenants and taking over apartments.

Long serving administrator Mr Joseph Kaguthi said alcohol is one of the catalysts of the ‘strangers’ takeover of Mt Kenya region.

“We have these sons who are busy selling off their ancestors’ lands and parents' properties for no other reason at all, but raise money for indulging in alcoholic adventures. Our sons and daughters are even selling their parents' graves so as to raise money for the bar. The buyers are all over and they are known by their origin… it is a takeover and soon, Mt Kenya shall not be known by Gikuyu, Embu and Meru Association…It will be something else,” Mr Kaguthi warned.

Some Administration Officers are also blamed for helping in disinheritance schemes against the illiterate and the poor through conspiring with corrupt brokers and dealers to grab land from rightful owners.

A recent case in Ngelelya village in Murang’a County where a chief is under investigations for allegedly tricking a 20-year-old male to sign an agreement between him and a local land broker of disposing his widowed mother’s 2.5 acres of land for Sh10,000 cash money and a rickety motorbike.