In 2014, land prices in Nairobi kept appreciating with an 1/8 acre going for between 1.5 - 2 million in Ngong, Rongai, Kitengela and Ruiru! I actually think these are the only places that you can still find reasonably priced land to develop in Nairobi.

Fast forward, in 15 years to come, if the current trends continue, the same plots might retail at almost 10 million a piece! Now my question is this, in those 15 years, the people who will have the urge to own plots and homes are currently still in high school. Will the income by then have increased so that graduates are able to buy them at the 10 million or this aspect of owning 1/8th acre plots will then belong to the rich people in the society? Affording an 1/8th plot within 60 kilometers radius of Nairobi will become a pipeline dream!! Even if you don't have the money, i think owning a plot somewhere to cushion you against the increases in land values and their unaffordability in the future is of very great importance.

My suggestions to keep land prices in check, especially in Nairobi County:

i) Most people buy land for speculation without having the intention of developing it but waiting for it to appreciate in value then disposing it.

Heavy Taxation of all idle land will ensure that a person only buys land when he is ready to develop it. it will also ensure that there is a high supply of housing units to Nairobians hence lower rental rates. Within Nairobi County i would suggest that all 1/8th plots should pay 8% of the value as tax, such that the owner of a 2 million vacant plot in Kitengela pays Kshs. 160,000/= annually as tax.

This will correct this speculation menace, and within a correctional path of 2 years, you will be able to purchase the same plot at Kshs.500,000. this has been proven to work both scientifically and practically!

Kidero and Co. should involve professionals like Land Economists (Valuers) and planners when drafting those city by laws instead of using illiterate and mannerless goons to draft laws that they dont understand!

ii) The Central Bank of Kenya, in conjunction with all commercial banks should come up with a special loan for mortgage purposes with a bid of enabling most Kenyans to be home owners. Lower mortgage rates to 4% and increase tax on luxurious items like iPhones, Toyota Land Cruisers VXs, Benz. The high interests rates are very discouraging, imagine at the current prevailing rates, taking a mortgage of 10 million and ending up paying 25 million eventually after 15 years!!

iii) The final is a bit primitive but it can work. Boycotting any dealings in real estate for a whole year, the sellers will be desperate after a year and will sell their apartments and plots at cheaper prices because banks will be on their necks with their loan repayments!

lOVE YOUR WISHFULL thinking in 2006 i failed to purchase a 50x100 plot in tassia for 300k. My salarly was a gross of 60k then. Today my income has tripled but the same plot is now on offer for 7m and takers are flocking the site a deal might be done by week end. The laws of demand and supply do not care what we earn if u cant afford 7 million others can. Land will not increase prices will

The best thing is to avoid buying those overpriced pieces of land and look for better ones near big towns where the madness hasnt set in yet such as Nakuru. Sooner or later people will realize that life does not revolve around Nairobi. Better still, people should focus on other assets apart from land. Learn from Buffet

what do you mean by over priced land? someone is buying an acre in upper hill today at Ksh 300 million. It all depends on how you look at the whole thing and how much money you have at disposal.