September 30, 2022
  • September 30, 2022

A former banker makes a fortune in real estate

By on July 11, 2022 0


A former banker makes a fortune in real estate

James Muturi Kimani, Managing Director of AMCCO Properties Limited during the interview at his office of THE ARCARD along the Thogoto-Mutarakwa road. PICTURES | MILLICENT MWOLOLO | NMG

In September 2020, James Muturi Kimani, who worked in transport, sells all his trucks, consolidates his resources and goes into real estate.

Her transport business has been crippled by the lockdowns and has been forced to look for other opportunities. He established AMCCO Properties Limited, a business which has grown since its inception.

“During the height of Covid-19, Nairobians were looking for any affordable land for residential. I saw this gap and jumped into it, which is how AMCCO Properties Limited was born,” says the former banker.

His business grew rapidly thanks to the huge appetite for middle-class land and homes.

AMCCO has implemented 12 projects so far – one in Kamulu, along Kangundo Road, and more than ten in Ndeiya sub-county in Kiambu.

But his main target now is Ndeiya. The entrepreneur is banking on the region’s rapidly growing fortunes, a hot piece of the real estate pie, to expand his business.

“The first time I went to Ndeiya, I couldn’t understand why the established real estate companies hadn’t seen this opportunity. My second plot here was bought by a Chinese,” he says.

Land in Ndeiya has appreciated rapidly over the past two years as Kenyans in the Diaspora and Nairobians seek to invest in the area following government efforts to transform the socio-economic outlook of the region.

One of the reasons investors are flocking to Ndeiya, raising Mr Kimani’s business, is the government-implemented amenities and infrastructure projects. These include piped water, tarred road networks, upgrades to level three health centers and investments in security.

New police stations in Ndeiya and a new OCPD in Thigio have strengthened security in the area.

Moreover, with Ndeiya’s new status as a sub-county and various development projects, the businessman notes, demand for land has increased as prices skyrocket.

“In the last three projects, we bought land for double the price we bought a year ago. For example in Kamangu, plots that were selling for 550,000 shillings in June 2021 are currently selling for more than 850,000 shillings,” Mr Kimani said. Company.

“With more people moving in, private schools and hospitals on Waiyaki Way, Dagoretti, Kawangware and Ngong Road are establishing branches in Ndeiya and along the newly tarred Dagoretti Road,” Mr. Kimani says, noting that he betting on Ndeiya because it’s “so green and serene, and neighboring Karen which is about 10 minutes away, as well as the bustling neighborhoods of Sigona, Tilisi and Zambezi.

Currently, an acre of land in Karen sells for around 35 million shillings and 12 million shillings in Tilisi, while an acre in Ndeiya costs around 3.5 million shillings. Most of the Nairobians who were compensated by the government during the construction of Waiyaki Way bought land in Ndeiya which has seen land prices soar in the area.

‘This place looks like Karen. The opportunity for growth was there but people didn’t see it…”, he explains.

Most of their clientele is made up of 60% women, aged 27 to 47. Diaspora clients represent 10% of AMCCO clients.

“They are Kiambu born and bred Kenyans who don’t want to invest outside of Kiambu as they know the land appreciation rate here is high. They are also looking for affordable properties in Kiambu,” says Mr. Kimani.

Currently, AMCCO has three ongoing projects in Ndeiya. Neema Court in Gikambura retails 50X100 plots at Sh1.5 million. The project is one kilometer from the tarmac. Kamangu Green Garden Phase III, about three kilometers from the tarmac and 10 minutes from the southern bypass, costs 650,000 shillings. In Thigio, along Ha-Koinange Road, Amcco Genesis Gardens Phase II sells for 799,000 shillings.

“The price difference is part of our product diversification so that we can cater to different consumer segments with affordable budgets,” he says.

Due to good road networks and easy traffic, the area favors Nairobians working in Westlands, Ngong Road and Nairobi CBD. AMCCO is selling land that the company already owns with title deeds in its name.

“It takes us 90 days to issue title deeds to customers after we finalize payment,” he says.

The neighborhood has become more cosmopolitan as residents have sold their plots of land.

Previously, land in Kamulu was more expensive than in Ndeiya. “However, within a year prices have matched and by the end of this year land in Ndeiya should be more expensive than what we have in Kamulu,” the MD adds.

A continuing challenge is that land prices in the Ndeiya area have, over the past two years, continued to double every six months, and sellers are not willing to lower prices, “it’s either you take it or leave it”.

It is not like before when no one wanted to settle in Ndeiya due to the harsh environment and lack of social amenities. At the time, locals used donkeys to transport water over long distances.

However, with the connection to running water by the Kiambu County government, life in the area has completely changed. Since 1991, Ndeiya had no new land titles until June this year when President Uhuru Kenyatta issued land titles to residents.

With the new titles, land prices have not only increased, but it will help solve any existing land issues.

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