Housing Principal Secretary Charles Hinga might have sparked a debate after revealing that some of the highest real estate returns in Nairobi are not in upscale estates like Kilimani but in slums.

🇰🇪 Breaking It Down

Speaking during the 4th International Research Conference, Skills Competition and Expo at Kabete National Polytechnic, Hinga said many investors misunderstand where profitability in real estate truly lies.

He argued that while high-end apartments in areas such as Kilimani and Muthaiga may appear lucrative, slum housing actually generates higher returns mainly due to higher charges for basic services.

“Some of you in real estate may think apartments in Kilimani are very lucrative, or that a palatial home in Muthaiga gives good returns. Let me shock you, the best returns in real estate in Kenya are in the slums,” he said.

📌 What You Need to Know

According to him, informal settlements operate in a system where tenants often pay more for basic utilities compared to formal housing setups.

Among several Nairobi estates where such dynamics are common are Kibra , Mathare, Embakasi, Kasarani, Huruma, Kawangware, Kangemi, Dandora, Kariobangi, and Eastleigh.

He claimed that in some of these areas, electricity is accessed through informal connections from nearby transformers, yet tenants are still charged commercial-like rates by landlords.

Hinga further said that residents in informal settlements may end up paying nearly 140 per cent more for electricity compared to consumers who receive power directly from Kenya Power.

He also highlighted water access as another major cost burden in these areas, saying residents are rarely supplied directly and must rely on vendors.

According to him, these water vendors often sell the commodity at highly inflated prices, making basic access significantly more expensive than in formal estates.

📰 Source: Kenyans.co.ke