Real estate in Murang'a rises above shadow of Mungiki group

Factories, residential houses, hotels and other commercial structures are slowly replacing banana farms in Maragua, Murang’a County.

This is an area that investors had given a wide berth due to retrogressive activities of the infamous Mungiki before the sect was driven out of town.

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Before 2010, an acre of land sold at between Sh150,000 and Sh350,000, then rose to about Sh800,000 by 2013.

Now it attracts Sh10 million.  A 50 by 100 plot that sold at Sh30,000 in 2010 and Sh350,000 in 2013 is now selling at Sh1.2 million.  

In 2013, Africa Harvest, an NGO, introduced tissue culture banana farming in the area and soon the crop became a major income earner. Hundreds of youth made good business hawking ripened bananas on the busy road. 

But the plantations are now fast disappearing, giving way to commercial structures.

Those who like nyama choma (roast meat) will find the town inviting due to the various joints offering the delicacy.

The price of bananas, meanwhile, has shot up. A bunch of 10 that sold at Sh20 is now retailing at Sh50. 

At Kaharati, one is welcomed by a recently constructed petrol station.

A few metres away is a multi-million macadamia processing factory, Afrimac Nut Company, started two years ago.

Nearby is Equatorial Nuts. And between the two factories is an upcoming Sh700 million private health facility, Virgin Hospital.

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Mr Munene Karani, a production manager at Afrimac Nuts Company, says land merchants and brokers have invaded the area, taking advantage of upcoming industries to make a killing.

“The industries have given the area a new image, creating many jobs and employing people from all over the country. This has led to an increase in population and business. The workers need residential houses, refreshment joints and other services,” said Mr Karani.

Big improvement

Like other investors, he is convinced that in five years the place will be busier than Murang’a town itself, the county headquarters.

Virgin Hospital proprietor Irungu Maguta says business has improved tremendously in the past five years, which he attributes to increased population and devolution.

But he is worried by the escalating price of land.

“A few weeks ago, a friend intending to invest in the hospitality industry bought a 1.2-acre piece of land at Sh16 million. We invited a bank valuer who placed the value at Sh3 million,” said Mr Maguta. 

The latest entrant in the hospitality industry is Stop Point Maragua Inn, which is about three weeks old. The management is happy with its performance.

“We were encouraged by the improved security. Maragua used to be in the news for all the wrong reasons, especially Mungiki gang that had taken charge and was collecting illegal taxes.

"We also wanted to take advantage of the growing population and the busy Murang’a-Nairobi highway,” said hotel manager Ng’ang’a Ndung’u.

Mr Ndung’u says the joint is doing better than most peers in major towns like Nairobi and Thika. 

He also voiced concern on the price of land, saying “We spent a lot of time scouting for potential land.

'Merchants and brokers'

"Nearly every piece is in the hands of merchants and brokers. Many investors are moving from Nairobi and other major towns to rural areas.” 

Other reasons investors avoided Maragua include lack of crucial services such as clean tap water.