Kenya is the 144 least corrupt nation out of 175 countries, according to the 2018 Corruption Perceptions Index reported by Transparency International. Corruption Rank in Kenya averaged 125.32 from 1996 until 2018, reaching an all-time high of 154 in 2010 and a record low of 52 in 1996.
Corruption has been a major thorn in our country’s side. It affects our economy which in turns affects every industry aside from politics which seems to benefit greatly from it.
This may lead you to wonder how it affects the real estate side. Because just like any industry in Kenya, corruption is rampant. Case and point the real estate scams that keep popping up. Hence, it’s concerning when the government ignores victims pleas to increase more restriction to weed out fake realtors.
Related: How A Real Estate Scam Can Affect Everyone
Increase in property prices
Property prices around the country are rising steadily, with no end in sight to the trend. Some industry players and insiders believe that grand corruption in the government, could be contributing significantly to this trend.
When our politicians obtain huge sums of money in unscrupulous ways, they have a tendency of channelling it into real estate. Albeit indirectly through proxies. The proxies might be close friends and family members. And they are usually directed to invest the money in land and houses. Property is preferred to other investments because of it can be managed passively.
In addition, the effect of this on the property market is highly destabilising.
Right now, Nairobi has an over-abundance of shopping malls because corrupt politicians have been setting up malls left, right and centre in a bid to launder money. Moreover, it’s disheartening that grand corruption creates an uneven playing field in real estate that is heavily skewed in favour of a few.
Most properties are owned by Kenyan politicians, its common knowledge that’s where they clean their dirty money. For example, some major malls have many politicians as majority shareholders.
Common mwananchi has no chance to score big when politicians have the loot to buy major land and erect great properties. Corruption in Kenya is so common that no one is surprised anymore. It has become the norm.