The dream of most Kenyans to own their dream homes is slowly fading as dishonest and unprincipled real estate developers numbers continue to grow in the market. The only way to save Kenyans is by using the government, which has the needed power to end this trend in the industry. It’s disappointing to see the government ignoring this crisis and allowing these developers to steal from Kenyans, walking away from their promise to build their homes.
But enough is enough, the government must now take care of its citizens. The real estate industry in Kenya needs a strong legal and regulatory system that protects investors from further suffering by:
- Making sure building standards are met
- Making sure completion dates are met as documented
- Auditing of off-plan projects is done.
- Running a track record on all developers to wipe out fraudsters
Also, all the developers who are not financially able to complete at least 25% of their projects should not be given construction approval. Even though the system might not favour the upcoming developers in the industry, the security of Kenyans in the market should not be an option.
There is a need for the function of selling land and selling of real estate to be split. Developers stay on the treadmill by selling land while at the same time developing properties. This leads to a division of interests. Just like different skills and experience are needed in each, different persons or companies should manage each.
As for safeguarding real estate funds, developers should make authenticated reports to independent institutions frequently and hold regular meetings with investors. Besides, all funds must be deposited in an escrow account. This will make sure funds are not misused at the expense of the Kenyan citizens. We are all familiar with the story of the Gakuyo real estate victims and the pain of regret they have to deal with. No investor deserves to end up in such a situation. This rule would have saved so many Kenyans from agony if it was ever exercised.
Finally, a regulatory should be put in place for all developers to get bank guarantees such that in case the project collapses, all the investors are refunded their money. This would save resources and money used to chase these offenders. Some even go uncaught, as they bribe officials. Greed for money cannot allow them to serve their duty and bring these thieves into justice.
As the government awakens and makes sure players in the real estate market are safe, every Kenyan must make sure they don’t fall into the hands of fraudsters. For example, choosing commercial property Kenya today is a guarantee to safe investment. We have had no case of fraud and we specifically deal with real estate properties. Further, our clients are proof of integrity and sincerity. Call 0784448888 to explore our property options.