Finance and property pundit Dr. Hezekiah Kariuki accepting honorary doctorate degree in past event
By: Our Reporter
Real estate firms are reeling from myriad challenges in the course of selling land to their clients.
The major challenges are related to in-house management that needs to be rectified without delay as they revolve around blackmail and high expenditure.
An expert Dr Hezekiah Kariuki, the CEO of Comfort Homes admits that the sector is faced with in-house challenges, despite the look of the business by the outsiders
Kariuki said the business venture may look lucrative to onlookers, which may be due to the merchants’ posh life they portray to the clients when they are in business transactions.
“The sector is compounded by many threats but the dealers use high-end vehicles apart from living in palatial homes. These are some of the challenges the real estate dealers go through without knowledge of the public,” he said.
Kariuki said the firms have invested in advertisements and influencers eying to attract more customers but in the end, make loses owing to the high expenditures.
He observes that high expenditures eat on the capital investment in many of the companies.
He reveals that a parcel of land in Kitengela sells at appropriately Sh700,000, with advertising cost estimated at 20 percent of the sale amount.
Also eating on the capital of the investment is hiring of the sale influencers-cum-celebrities despite some being unreliable and inconsistent in the contracts.
“The celebrities are handsomely paid exposing the land companies to challenges, as some divert resources remitted from abroad to their personal use,” said Kariuki.
He disclosed three influencers are on record of siphoning money remitted from clients in the diaspora meant to buy pieces of land.
“The matter is under police investigation, as they turned to malign the image of the real estate dealers.
They target the investors to withdraw from the agreements,” he explained.
Another bottleneck facing the sector is a delay in the processing of title deeds from the land registries, despite the applicants having adhered to the requirements.
The real estate players regret that transferring the titles of leasehold to freehold takes more than six months, despite one having followed all the procedures.
“There are a lot of bottlenecks that should be addressed as it makes the cost to be high thus massive borrowing of resources. The costs make it difficult to make sub-divisions,” said Kariuki.
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