Can Raila Bring Down The Cost Of Rent As He Claimed On TV?
By Cyprian Nyakundi -
May 5, 2017
There are more tenants than landlords. Obviously when Raila addresses tenants, he’s talking directly to voters.
Prices of rent and real-estate in Nairobi are ridiculous, compared to economies like South Africa, which has better roads and social amenities, and yet property and rents are a fifth of what Kenyans pay, in a country with dilapidated roads, insecurity and no playgrounds.
Only a few companies in Kenya manipulate the rents. The key companies are Hass Consult, Knight Frank, Cytonn Investments and the likes. They release fictitious reports citing trumped-up statistics claiming of a “boom” in the real-estate and construction industry.
These companies are conduits for laundering money embezzled by cabinet secretaries and Governors, who are currently the people diverting resources meant to build our social amenities, to real-estate.
Through these quarterly “reports” fed to the media as unvarnished truth, hype was generated on false statistics of an emerging housing boom.
Fact: The CEO of ACTIS recently claimed that they conducted their feasibility studies by flying over residential areas and counting the number of Satellite dishes. Koome Gikunda, a director of Actis, the private-equity firm that built Garden City, shared with the Economist of a unique way they determined that their catchment area was populated with “a middle class affluent enough to shop at the mall.” “We hired a firm who flew over the area in a plane and literally counted TV satellite dishes,” he explained.
Surely, is that a logical of conducting a feasibility study and revealing findings in a report which is then treated as Gospel by mainstream media, which in-turn manipulates the prices of land, real-estate and rent?
Raila Odinga NASA flag-bearer pledged to bring down the cost of rent within 100 days of assuming office yesterday during a TV interview on Citizen. All presidents are judged by performances of their first 100 days, so while for him it may be a mere political statement, the fact is that Kenyans took note of it.
Indeed, the quickest way to crackdown of runaway and fictitious rent prices in Nairobi, is just to immediately call for an international audit on Hass Consult, Knight Frank, Cytonn Investments, ACTIS, on the source of their money. They use proceeds of crime to launder money through Real-estate.
Failure to achieve this particular objective of reducing rents within the timeframe he pledged, will only make the public more restless from the pile-up of historical injustices, leading to the widely estimated street-revolution in 2021. Because young Kenyans have continued to be marginalised from nation building due to lack of opportunities, despite their education.
We are just preparing him to avoid sideshows upon assuming office like these arsewipes Uhuru and Ruto, who spent the better part of their tenure doing nothing apart from insulting Raila, as if that was bringing food to the table. Kenyans are done with such boring politics. We will pack your meetings, cheer your bullshit, but on voting day, us young Kenyans will consciously depart from the ways of our Elders who were held back by stone-age reasoning of tribalism and stupidity.
Ask Kabogo. He publicly claimed that he will circumcise Raila Odinga. The crowd’s cheered, and then went home to no electricity, water and food. Then suddenly it hit them, that Raila is not the one who was embezzling their money; it was Uhuru and his proxy Kabogo. And from then on, it became clear that politics of sideshows and insults has no place in the future of Kenya.
Where is Kabogo now? Did his sensational claim to circumcise Raila save him from electoral-defeat?
Young Kenyans are extremely woke. They are not like the idiots over 40 years old, who got carried away by silly politics of tribe. They successfully staged one of the biggest strikes in Kenyan history; the recent Doctor’s strike. The idiots over 40 before them could only run to countries like Botswana to seek refuge and asylum when Moi ruined the country.
Raila is the next President of the Republic of Kenya. Take that to the bank. What he does within his first 100-days, will determine if his tenure will come to a logical conclusion without a street-revolution.
Free market economy is more crucial than Raila nyef nyef; Let Raila and Kidero build cheap housing for the poor - in places like Eastland and Kibera - otherwise this is just lying to urban poor while alarming the mostly kikuyu landlords.This is one of the reasons why Raila or Nasa can't make inroads in kiuk dominated areas. Most kiuks even the poor ones aspire to be landlords and the idea of controlling rents yet the cost of constructing or acquiring land isn't controlled scares every investor. That announcement and wetangula diatribe about central province is being used to motivate kiuks to vote against Nasa.
These are ideological differences between our political movements. The poor would vote for Raila if they knew what is good for them.
ODM/NASA - economic and social liberals who like social "safety nets" for the vulnerable, same as the western Left
Jubilee - center-right pro-business/free market coalition. The Ruto wing is socially conservative: recall the anti-abortion, anti-gay, family values URP
Of course tribalism blinds everyone and we are left with rich and poor folks scoring against themselves.
Free market economy is more crucial than Raila nyef nyef; Let Raila and Kidero build cheap housing for the poor - in places like Eastland and Kibera - otherwise this is just lying to urban poor while alarming the mostly kikuyu landlords.Why does the government control the price of petroleum?
This is one of the reasons why Raila or Nasa can't make inroads in kiuk dominated areas. Most kiuks even the poor ones aspire to be landlords and the idea of controlling rents yet the cost of constructing or acquiring land isn't controlled scares every investor. That announcement and wetangula diatribe about central province is being used to motivate kiuks to vote against Nasa.(http://omollosview.com/wp-content/uploads/2017/05/Central-Votes-for-Musyoka.jpg)(http://omollosview.com/wp-content/uploads/2017/05/Mudavadi-Results-Central.jpg)(http://omollosview.com/wp-content/uploads/2017/05/Rent_Tribunal.jpg)
I could be wrong, but I believe the law also stipulates that controlled rent are those of 2500 and below. Even in most slums rent is 3k. Rent of 2500 above isn't controlled and the landlord can raise rent depending on the lease since its a contractual agreement. The law can control increment but can't force landlords to arbitrary lower rent, from my understanding I could be wrong.
I could be wrong, but I believe the law also stipulates that controlled rent are those of 2500 and below. Even in most slums rent is 3k. Rent of 2500 above isn't controlled and the landlord can raise rent depending on the lease since its a contractual agreement. The law can control increment but can't force landlords to arbitrary lower rent, from my understanding I could be wrong.Your understanding is wrong. Simply put
This old law that need to be repealed. We are liberalized free market economy. It probably why there is no serious investment in lower segment housing.
Pundit
There you go again unable to see the forest because of the trees! I asked you why are there price controls on petroleum? What reasons were cited that would be different from the same happening to rents? Where was economist HK? Is that not impacting on "investment"? Merchants of double standards!
Again make your point clear so at least I can know how to approach laws I consider "old and need[ing] to be repealed".
The law exists. I cited it because here and elsewhere Jubilee propagandists, supporters, sympathisers and apologists are busy questioning how Raila would deliver on the undertakings on rent and general cost of living costs that are catastrophic.
I have pointed out some of the many tools put in place and used by successive governments since 1959 to tame greedy landlords as well as protect them. It is an instrument used under Kenyatta, Moi and Kibaki. I dare point out that it was there and being used when Uhuru was named Minister for Local Government by Moi in 2001 until January 2003 and again 2008 - 2013 - making him serve in Government LONGER than Raila Odinga!
It is amazing that he and Ruto (Minister in the Office of the President by President Daniel arap Moi in January 1998 - 2003; Minister for Agriculture - 17 April 2008 – 21 April 2010; Minister for Higher Education - 21 April 2010 – 19 October 2010; Deputy President - 2013 - 2018) are unaware of the instruments available to them to control rents and save tenants and landlords.This old law that need to be repealed. We are liberalized free market economy. It probably why there is no serious investment in lower segment housing.
No country in the world, that wants to progress, espouses to a free market economy. The most advanced economies - Sweeden et al, have lots of controls to check on greed. Humans are born to be greedy and it is the reason we have some of the most expensive real estate in Kenya.
If there is monopoly or oligopoly like in downstream oil sector then price controls are welcomed. The regulation by so called rent tribunal are plain rubbish. I know of several cases of people living illegaly in other people house after running to such tribunals.
It need to be repealed. Once you allow free market in the lower housing; the market will provide housing for any prices.
The USA? Free market - curb greed - it just that it not possible to have completely free market - so gov has to regulate - to ensure everyone is playing by the rules.No country in the world, that wants to progress, espouses to a free market economy. The most advanced economies - Sweeden et al, have lots of controls to check on greed. Humans are born to be greedy and it is the reason we have some of the most expensive real estate in Kenya.
Pundit
Clearly you are no fan of this law. I am sure you are not alone. If I go by what HK wrote, "Kikuyus" would definitely not welcome that law. From my own experience I know many landlords who hate the law. When I owned some houses and was a landlord I too got irritated by the law until I sold some and gave away the rest as sadaka. I think I felt great relief perhaps similar to what Tax Collectors who came to Jesus to repent felt!
The fact that I sold some made me feel a bit like Ananias. I placed my personal interests ahead of my humanity! I had to make serious sacrifices.
I urge you reconnect with your humanity and stop fighting laws that mildly help the poor!
Anyway worry not because Raila will take power in August and as he promised will bring down the rent within 90 days.
I am sure HK and "Kikuyus" fear that they will be lynched or some such thing. No. Standard rents will be assessed and established and landlords granted incentives such as waiving the huge taxes which they pass on to tenants.
I am sure "Kikuyus" and HK will be happy to be released from the tax burden by Raila Odinga. A tax burden imposed by Uhuru Kenyatta to collect money which is then wasted in corruption.If there is monopoly or oligopoly like in downstream oil sector then price controls are welcomed. The regulation by so called rent tribunal are plain rubbish. I know of several cases of people living illegaly in other people house after running to such tribunals.
It need to be repealed. Once you allow free market in the lower housing; the market will provide housing for any prices.
Most kikuyus are tenants and not landlords.Pundit
Clearly you are no fan of this law. I am sure you are not alone. If I go by what HK wrote, "Kikuyus" would definitely not welcome that law. From my own experience I know many landlords who hate the law. When I owned some houses and was a landlord I too got irritated by the law until I sold some and gave away the rest as sadaka. I think I felt great relief perhaps similar to what Tax Collectors who came to Jesus to repent felt!
The fact that I sold some made me feel a bit like Ananias. I placed my personal interests ahead of my humanity! I had to make serious sacrifices.
I urge you reconnect with your humanity and stop fighting laws that mildly help the poor!
Anyway worry not because Raila will take power in August and as he promised will bring down the rent within 90 days.
I am sure HK and "Kikuyus" fear that they will be lynched or some such thing. No. Standard rents will be assessed and established and landlords granted incentives such as waiving the huge taxes which they pass on to tenants.
I am sure "Kikuyus" and HK will be happy to be released from the tax burden by Raila Odinga. A tax burden imposed by Uhuru Kenyatta to collect money which is then wasted in corruption.If there is monopoly or oligopoly like in downstream oil sector then price controls are welcomed. The regulation by so called rent tribunal are plain rubbish. I know of several cases of people living illegaly in other people house after running to such tribunals.
It need to be repealed. Once you allow free market in the lower housing; the market will provide housing for any prices.
Rather most kikuyu are like other Kenyans - live in slums.
Yes if the govt does not address housing issues early on, they'll have to hire more police to address the social evils or poverty.
On the contrary, government doesn't have power to arbitrary reduce rent. What the government can control is the increment. No government official can come to my building and tell me what I should charge rent. If someone wants to address house shortage, they should start with giving titles to slumlords so that they can put up proper buildings with all the amenities. This will lead to increased supply of available houses thus reducing rent.I could be wrong, but I believe the law also stipulates that controlled rent are those of 2500 and below. Even in most slums rent is 3k. Rent of 2500 above isn't controlled and the landlord can raise rent depending on the lease since its a contractual agreement. The law can control increment but can't force landlords to arbitrary lower rent, from my understanding I could be wrong.Your understanding is wrong. Simply put
On the contrary, government doesn't have power to arbitrary reduce rent. What the government can control is the increment. No government official can come to my building and tell me what I should charge rent. If someone wants to address house shortage, they should start with giving titles to slumlords so that they can put up proper buildings with all the amenities. This will lead to increased supply of available houses thus reducing rent.
On the contrary, government doesn't have power to arbitrary reduce rent. What the government can control is the increment. No government official can come to my building and tell me what I should charge rent. If someone wants to address house shortage, they should start with giving titles to slumlords so that they can put up proper buildings with all the amenities. This will lead to increased supply of available houses thus reducing rent.HK
precisely. Or gov can step in and building cheap mega cities like Angola or chinese have done...that would depress the rent increment. Any rent control will send wrong message to investment in the sector.On the contrary, government doesn't have power to arbitrary reduce rent. What the government can control is the increment. No government official can come to my building and tell me what I should charge rent. If someone wants to address house shortage, they should start with giving titles to slumlords so that they can put up proper buildings with all the amenities. This will lead to increased supply of available houses thus reducing rent.