Why Mombasa’s rich are moving out of Nyali

A few years ago, Nyali, an upmarket estate in Mombasa where the wealthy lived had very few high-rise buildings.

The zoning rules did not allow some types of houses, meaning that a bungalow owner sunbathing by his swimming pool on a Sunday afternoon had little chance of being stared at by residents living in a towering apartment building built right near his fence.

But now a gradual transformation is happening in the Nyali suburb. Developers are squeezing high-rise buildings, some as tall as 10 floors, between mansions.

Homeowners are forced to either sell and relocate to Vipingo or Bofa in Kilifi, areas that are less crowded or contend with a lack of privacy.

Developers argue that with a rising working and middle-class population in Mombasa, apartments make sense.

“I had to sell my bungalow in Nyali and move to Vipingo where there is privacy. Where I lived in Nyali for the past 10 years, now sits a five-storey building,” says John Kariuki, a Mombasa businessman.

The 43-year-old who lived on Mombasa’s Links Road says in its heyday, Nyali was a perfect place considering its proximity to businesses and serenity.

“The three-bedroom home which I bought during an auction at Sh6 million was perfect and I had no plans to move but an increasing number of apartments around it infringed on our privacy. Also, most of the buildings affected sewerage causing leakages and affecting the environment,” he says.

Mr Kariuki is not alone. Jackeline Mbugua, who inherited a four-bedroom maisonette had to sell it because of the high cost of maintaining a vacant home.

“The house has a lawn and swimming pool but due to high-rise apartments around it remained vacant for more than six months and I could not sustain it.

I used to pay Sh40,000 per month for security services and Sh20,000 wage for a gardener to maintain the house because I could not live in it as I live in Nairobi,” says Ms Mbugua.

There is also a high demand from people who want to live in Nyali but cannot afford to buy land and build.

Paul Kiagi, the chairman of Pauland Properties Group, owns several apartments with at least 11 flats each. He says the increasing population and demand for houses in Mombasa have made the apartment business more lucrative.

In addition, many prospecting homeowners cannot afford to buy a house in Nyali, therefore opt to rent.

High land prices

“A plot in Nyali currently goes for about at least Sh15 million. The majority of middle-class employees cannot afford to buy but can rent apartments thus increasing demand. With the increasing population of the middle class, those who consider themselves rich are now shifting to areas they consider private such as Vipingo and Kikambala,” says Mr Kiagi.

A building under construction in Nyali area of Mombasa County on August 11, 2023. PHOTO | WACHIRA MWANGI | NMG

But with an increasing number of apartments, Mr Kiagi acknowledges the sewerage management challenge saying the population pressure is overwhelming infrastructure, but technology has come in handy to resolve the crisis.

The great scramble

“The introduction of technology and the use of bio-digesters have helped us manage sewerage as there has no functioning sewerage treatment plant in Nyali. Bio-digesters have helped greatly and that is the way to go,” says Mr Kiagi.

A building under construction in Nyali area of Mombasa County on August 11, 2023. PHOTO | WACHIRA MWANGI | NMG

The increasing population has also seen mushrooming of shopping malls. The area has turned to be a business hub of Mombasa where major retailers are scrambling for space.

Retail stores Naivas and Quickmart opened shop in May this year on Links Road with Carrefour set to take space in of the biggest upcoming malls.

The new structures have also attracted different social clubs such as Waja, Whiteball and recreational areas which keep drawing many renters to the town.

The developments are as a result of the faster rebound of the construction industry than expected from the Covid-19 pandemic crisis lows, with the strong growth of 2023 projected to continue for at least the next two years, even if at a more moderate pace.

The great bounce-back

The industry’s rapid bounce-back is significantly different to the devastating impact of the 2008-2009 financial crisis when it took almost a decade for construction to fully recover.

The recovery, according to real estate experts, despite an increase in construction materials demand, banks and governments reacted quickly to support the sector which was on the verge of collapsing.

According to an economic survey by the Kenya National Bureau of Statistics (KNBS) released in May, the construction sector registered a growth of 4.1 percent in 2022 with cement consumption increasing from 9.1 million metric tonnes in 2021 to 9.5 million metric tonnes in 2022.

A newly constructed apartment at 3rd Avenue in Nyali area of Mombasa County on August 11, 2023. PHOTO | WACHIRA MWANGI | NMG

Housing growth

Overall government-approved expenditure on housing for 2022/23 is expected to increase to Sh19 billion from Sh14.1 billion in 2021/22 while that of roads is expected to rise to Sh191.4 billion in the same period.

Quick recovery has seen the return of renowned real estate dealers such as My Space Properties now in several towns after about two years of storm where different malls have come up including Nyali Bazaar in Mombasa.

Mwenda Thuranira, Myspace Properties Kenya CEO says the sector has recovered and in the last few years different malls have been completed and ready for use.

New Nyali Bazaar Mall, for instance, is steadily coming up in the heart of Nyali, just after Kongowea. The property will host different supermarket chains including Naivas once complete this year.

Nyali Bazaar is representing a steadily growing asset class and the malls are considered safe and prosperous real estate investments.

“The real estate industry is growing. It is hard to ignore the obvious needs of consumers and retailers,” says Mr Thuranira.

An excavation digs a foundation in Nyali area of Mombasa County on August 11, 2023. PHOTO | WACHIRA MWANGI | NMG

New for regulation

But Mr Thuranira warns that developers should be cautious and only put up property that can stand the test of proper planning and design and calls for measures to check unplanned developments and provision of amenities even as the estate takes shape.

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