Why investors are rushing to build businesses near affordable housing units
Real Estate
By
Boniface Gikandi
| Nov 06, 2025
Eager to capitalise on the opportunities presented by the Affordable Housing Project sites, several private investors are racing against time to set up major business ventures targeting those who will occupy the new housing units in various towns.
Towns like Nanyuki, Makenji, Gichugu and Engineer are among the localities where the investors have bought land next to affordable housing units, targeting to establish businesses once the houses are occupied.
Families owning parcels of land next to the housing programmes are now even selling part of their lands to potential investors.
The businesses are rental houses, cooking gas distribution points, beauty shops, eateries and entertainment joints, among others.
The Nanyuki and Gichugu projects in Laikipia and Kirinyaga Counties respectively, which are already complete, have attracted tens of investors whose investment plans have been approved by the county government.
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Moses Njoroge, a resident of Nanyuki says majority of the traders are currently working on approval of the construction of business premises that are likely to hosts a wide variant of businesses such as drycleaning, night clubs and eateries.
“Major transformation is expected in Nanyuki; the housing programme has 200 units with the second phase of 400 units set to start after the public participation approved the proposal by the Ministry of Lands and Urban Planning,” Njoroge said.
Susan Mwangi said the upcoming investments apart from adding value to the land in Nanyuki, will provide the locals with employment.
“Those occupying the units will be permanent residents, therefore bringing in alot of opportunities with them,” said Mwangi.
In Gichugu, the project at Kianyaga market, after it was completed in May this year, the land owners have minted millions through the sale of land.
Francis Kamau, a resident says his family has subdivided an acre of land for the purpose of selling plots to the business persons.
A quarter acre of land, Kamau said will be sold at Sh3 million and will be lease at Sh100,000 per year.
“We held a meeting where the family resolved to subdivide the land next to the Kutus/ Kianyaga road to help the family have money,” said Kamau.
At the Makeji project next to the Nyeri-Nairobi highway, residents around Nguthuru are looking for investors to buy off their land.
Patrick Gakuna and Mercy Wambui, residents of the Nguthuru village, say they are happy that the project has uplifted the living standard of the locals after years of having the locality being associated with criminal activities.
“The area has been transformed and many of the investors have bought parcels of land for businesses and others eyeing to engage in farming,” said Gakuna.
Wambui said majority of the families have subdivided and disposed of the lands to investors.
Mt Kenya Housing Director Albert Gakuru, says the projects once complete are expected to transform and uplift the lives of the people.
“Most of the affordable housing units have been bought with the buyers awaiting the handing over to the government once completed,” said Gakuru.