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REAL ESTATE KENYA

The Impressive Story of Certified Homes Ltd in Under 5 Years.

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Certified Homes Ltd started its journey in 2020 and in less than a decade has achieved milestones that many peers can only envy. Armed with over ten years experience in the vast real estate sector, the founder, Mr. Peter Nyaga set on a course to build Kenya’s top real estate development company thus the birth of Certified Homes Ltd.

The company is a property developer based at Westcom Point in Westlands Nairobi and caters to a wide range of clients spanning from the locals, diaspora community, institutional investors among many others interested in the Kenyan Real Estate market. Since its inception, they have successfully delivered several property projects across the country. Some of their key projects include; Sukari Heights in Kahawa Sukari Nairobi which is a mixed use development offering commercial spaces such as a salon and spa, shopping outlets and residential units ranging from studio apartments, one bedroom, two bedroom etc.

Another innovative investment project by the company include Naserian Holiday Homes in Nanyuki, KWITU Gardens for the members of the Kenya Women in United States Association and the Diani Holiday Homes at the Coast. For those seeking value added plots in either Nanyuki, Rumuruti, Juja, Joska, Malindi, Diani, Syokimau, Certified Homes has several options for you to choose from.

And this begs the question. How did the company achieve this level of success in such a short time and serving such a diverse clientele! This is how it all started.

The Birth of Certified Homes

The story begins when the young Peter Nyaga volunteered at his brother’s real estate firm to gain experience in the sector – a move that would see him make his first million at 21 years of age! “I wanted to get experience in Real Estate. I knew as an errands boy my brother could give me fare, and also, I had relatives in Nairobi so somewhere to sleep was not a problem. If I had fare and somewhere to sleep, the rest would sort itself,” he remarked.

Over time and with resilience, he was able to build his own network of potential clients and with it, his own reputation. Besides this, the opportunity gave Peter the much needed exposure on the best practices, pitfalls to avoid as well as learning on how to structure deals. Skills that would prove to be priceless later on when establishing Certified Homes Ltd. But before its birth, yet another partnership spinned off from this personal growth. One that would see them deliver a record 400 units from concept to handover in less than 3 years.

Consequently in November 2020, the founder finally setup the company as we know it today. Interestingly, unlike most firms that pick any kind of name, they settled on Certified Homes as a constant reminder that every property they would conduct exhaustive due diligence and only bring in the potential buyers once they were satisfactory on the documentations of the plots. Hence the “Certified”concept.

With this meteoric rise in the real estate market in Kenya came with hundreds of jobs with the organization creating opportunities globally.

Company Expansion Strategy

As Certified majorly targets the Kenyans in diaspora drawn from across the world, it works closely with the associations that connects them with the larger diaspora community. Examples of the associations includes the Kenya Women In The United States (KWITU), Kenya Women In Germany (KWIG), Kenya Diaspora Alliance and Sacco among many others. Leveraging on brand ambassadors based in the various states such as Canada, Qatar, Abu Dhabi, United Kingdom, United States, Germany, Dubai, Sweden and many others.

Certified Homes Ltd Titles handover to clients at their offices in Nairobi.

The company is also now venturing into the African continent to reach an expanded diaspora team with previous meetings in Burundi, Ghana and other countries. This will definitely unlock more investment demand and hence more business as they seek to expand beyond their current service offerings. The company’s brand ambassador list is excitingly star studded thus giving a chance for them to also understand the market and in turn be able to invest as well. Isn’t this the idea behind being your “brother’s/sister’s keeper?!

Certified Homes Awards & Reviews

They say excellence never goes unrewarded. The company is not an exception as it bags various recognition awards not only in Kenya but also globally. Here are some of the key awards earned by the company so far:

For more details on any of these projects, feel free to reach out to the company on 0711 128 128

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REAL ESTATE KENYA

Britam Bets Big on Real Estate with Britam Properties

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Britam Properties: Britam Holdings has initiated a diversification initiative aimed at reducing its investment in the money markets and increasing its focus on real estate, targeting a range of 20 to 30 percent of its asset mix, up from the current 16 percent.

The company’s strategic investments are anticipated to elevate its real estate portfolio to a value between Sh25-35 billion over the next decade. Notable projects include the construction of a Sh12 billion mall in Kileleshwa, the development of a 50,000 square-meter logistic park near Mlolongo, and the ongoing construction of serviced apartments in Kilimani, Nairobi.

Benson Wairegi, Britam’s Group Managing Director, revealed in an interview with journalists conducted two weeks after the firm’s AGM that the company intends to make property development and management its core business. This shift is underscored by the creation of a distinct business unit named Britam Properties (Kenya) Limited.

Britam Properties Projects

“Real estate consistently proves to be a lucrative investment, especially in prime areas where our focus lies in establishing these structures. The value of properties, particularly in sought-after locations, tends to appreciate over time. We are pursuing the development of a mall in response to the evident demand in Kileleshwa, where a notable absence of malls exists in close proximity,” stated Mr. Wairegi.

“The envisioned mall will be a mixed-use development, incorporating offices, serviced apartments, and a hotel. The overall project is valued at approximately Sh12 billion, inclusive of the land acquisition cost.”

Britam, a multifaceted company with interests in insurance, asset management, and property development, has invested in land totaling Sh10 billion. The company stands among prominent corporate investors seeking alternative avenues beyond the stock market for their investments.

Mr. Wairegi announced that the leasing process has commenced for spaces within the 32-storey Britam Towers, poised to become the third-tallest building in Africa, soaring to a height of 195 meters above ground level.

In addition to the ongoing leasing activities, the company is actively engaged in the development of serviced apartments in Kilimani and Hurlingham, residential projects in Mlolongo, and mixed-use developments in Ngong Township. Notably, Britam secured a financial injection of Sh3.5 billion from the International Finance Corporation, acquiring a 10.3 percent stake in the company.

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Britam is strategically aligning itself to capitalize on a growing trend wherein investors are shifting away from Treasury bonds towards the fixed asset class. This asset class has demonstrated an average capital appreciation of 24.3 percent over the last five years, particularly in areas designated for commercial use, including Kilimani, Upper Hill, and Westlands.

Serviced apartments, in general, are increasingly gaining prominence as a lucrative avenue in the real estate sector, offering enhanced annual yields on investments.

In the realm of serviced apartments, industry specialists note that developers, mainly hailing from the hospitality sector, are directing their focus toward non-resident Kenyans, expatriates, and even local investors. This segment proves attractive to investors due to its potential for both capital value appreciation and rental returns.

Over the past decade, real estate has emerged as one of the fastest-growing sectors, driven by the expanding middle class. Returns on investment in this sector have surpassed those of equities and government securities. The proliferation of shopping malls in Nairobi reflects a concerted effort by retailers to tap into a growing middle class characterized by disposable incomes and a limited range of leisure activities.

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RETAIL BUSINESS

The Story of Naivas Supermarket Since 1990

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Naivas Supermarket is clearly the biggest retail store chain in Kenya. And does not seem to be slowing anytime soon as it launches its 101st supermarket in Kakamega. The chain’s campaign dubbed “#Beyond100” has seen it expand beyond the a hundred mark. It now has stores in all the major towns in Kenya such as Mombasa, Nairobi, Nakuru, Kisumu, Eldoret, Bungoma, Naivasha, Nanyuki, Meru, Kisii, Thika, Kiambu towns among many others. Lately, it has started expanding into estates and city avenues with a high cashflow capacity such as the newly launched Branch at Lavington and the upcoming Mwanzi Road store.

Interestingly, this kind of hyper expansion strategies of Naivas Supermarket comes at the backdrop of the various retail stores closing shop in Kenya. With the majority barely surviving as they leaned their budgets. As we all know, the previously well known household brands such as Tuskys Supermarket, Uchumi Supermarket, Nakumatt all went down in a span of five years apart. Then you would wonder what kind of magic this company that also traces its roots to the enterprising city of Nakuru – just as Gilanis, Nakumatt that started as Nakuru Mattresses and Rivanas Supermarket uses to achieve this unimaginable success. In this article, we delve into its story, ownership and the opportunities it presents to the country.

How Naivas Supermarket Started

The supermarket’s humble beginnings can be retraced back to the late founder: Mr Peter Mukuha Kago who was the visionary behind this iconic brand as we know it today. It started as Rongai Self-Service Stores that was family owned on 27th July 1990. Exactly 33 years ago! The family’s relentless pursuit for entrepreneurial excellence, pushed the store’s growth to include wholesale and distribution services within a short time. Later on, the business got registered as a company in 1993. Just 3 years since opening its doors.

Naivas Supermarket Launch

In an interview with David Mukuha, the late Peter Kago’s son, he alludes to the early days. “The business was initially established to serve the local Rongai Community. Its success paved the way for a new branch at Elburgon area in 1995”. With the founder aggressively reinvesting back the profits realized in the business, he was able to expand further into Naivasha and changed the name to Naivasha Self-Service Stores. And later finally rebranded to NAIVAS!

By 2001, the company had expanded vigorously beyond the Nakuru region and had stamped its presence in major towns in Kenya. By this time, the retailer had setup branches in Mombasa, Nairobi, Naivasha, Eldoret, Machakos, Kitui, Embu, Nakuru among many others. Naivas supermarket has since grown through leaps and bounds to reach now over 100 branches employing over 10,000 employees. And this begs the question, who owns Naivas?

Who Owns Naivas Supermarket

The late founder Peter Kago was the owner of the retail brand till his demise when four of his children; David Kimani, Simon Gachwe, Wairimu Linet and Wambui Grace inherited his stake in the company with his firstborn son, Newton Gakiri Mukuha missing out. Newton Gakiri contested the same decision in court and lost the case as reported by Business Daily. Simon Gachwe served as the company board chairman till his passing in 2019 when the three surviving siblings took over the reigns.

With the company now currently valued at over Ksh. 54 Billion according to Pulse, its new divestment strategy has seen it bring onboard regional investors to take it to the next level. Initially, the family through its family holding company, Gakiwawa Family held their entire stake before bringing onboard other investors such as the International Finance Corporation (IFC), German Fund DEG and private Equity Funds Amethis and MCB Equity Fund. In the first share sale transaction in 2020, IFC, DEG and the Private Equity companies through Amethis Retail Ltd bought a 31.5% stake in the company at Ksh. 6 Billion diluting the founder family’s ownership to 68.5%.

Later on, the representative company Amethis Retail Ltd sold its 31.5% shares at Ksh. 14.37 Billion thereby more than doubling their investment while the Gakiwawa Family topped up the 8.5% stake in the sale thus pocketing Ksh. 3.8 Billion to a consortium led by a Mauritius based conglomerate IBL Group through an investment vehicle: Mambo Retail Limited. “On 10 August 2022, Mambo Retail acquired 40 percent stake in Naivas International, representing all shares previously held by Amethis Retail Limited and … part of the shares held by Gakiwawa Family,” IBL in a circular to its shareholders.

Furthermore, other institutional investors have an indirect stake in Naivas International through Mambo Retail Ltd. Through IBL Group’s majority equity investment in Mambo Retail of 65.8%, it owns an indirect ownership of 26.32% of Naivas Supermarket. Proparco and DEG also holds indirect stakes in Naivas of 8.29% and 5.39% respectively.

In June 2023, the family sold another 11% stake to Mambo Retail Ltd at an estamated value of Ksh. 5.8 Billion hence relinquishing majority control to foreigners; IBL, DEG and Proparco through Mambo Retail. The latest transaction dropped the family ownership to 49%.

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REAL ESTATE KENYA

The Story of AMG Realtors In Kenya 12 Years Later

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AMG Realtors limited has reshaped the land selling business in Kenya since 2012. The company was established by Andrew Gitau, a Kenyan who at the time had just returned home to begin life afresh. while living abroad Andrew had been conned in a fake land deal where he lost money to people he had entrusted to help him acquire Parcels of land back in Kenya.

“When we were living with my wife we had a little bit of savings that we decided to buy a plot with. We actually gave the money to one of our friends in 2006 who was in the land business and he sold us this plot. And up to today, we have never seen the title for that plot and we have never seen the land itself I can’t tell you this is the particular plot,” Andrew quips. He says he had to find a solution to a problem that was becoming common affecting many clients in the diaspora.

“When we were in New York and the little savings that we could make because of the allowances that I used to get, my biggest dilemma was how do I who can I trust this money with to invest back home who will I give this money and can give me a genuine land with a title deed. I used to think that one day I will start a company that will actually be able to deliver titles to people and will sell genuine land. That is actually the Genesis of AMG realtors“.

Birth of AMG Realtors

In an effort to actualize his dream, he began buying parcels of land in bulk in Prime locations. A decision that eventually birthed AMG realtors limited. “A friend of mine called me to Nanyuki and told me there were parcels of land on sale that I should check them out. Once there, I fell in love with the beautiful place because of the Mount Kenya on one side and the Lol Daiga Hills on the other side. Besides, the Aberdares also overlooking as well. So I went sent a write up to everybody I knew including people had worked with in New York I was able to sell 25 acres which was just shocking.

Lily Richards is one of the diaspora clients of AMG Realtors. She is the chairperson of a diaspora community of about 14,000 Kenyan women living and working in the United States. Through AMG Realtors, they have been able to invest back home. Reverend Dr Kennedy Njenga is another diaspora client of AMG Realtors. The 60-year-old man preacher who had lived in the United Kingdom for 30 years was planning to return home in 2021 when he reached out to AMG Realtors.

Currently, AMG Realtors sells land in different parts of Kenya such as Nanyuki, Nakuru, Naivasha, Malindi, Kangundo Road among others. Furthermore, AMG Realtors is transforming the land selling business in the country giving more confidence to potential buyers that it is not all doom and gloom. For instance, 70% of our customers are repeat and referrals so they have been able to spread the word for us therefore we don’t have competition. Our only competition is to make our service better every time to the next customer.

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PUBLIC RELATIONS, Uncategorized

WHY PUBLIC RELATIONS FOR YOUR BUSINESS

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The majority of businesses fail within the first three years, and research indicates that only 33% of businesses maintain success over a ten-year period. This led me to pursue understanding why these numbers are the way they are, in addition to my own passion. It made me realize that the most overlooked yet crucial aspect of a successful business is Public Relations.

Now, I understand what you may be thinking. Public Relations is often misunderstood; some see it as manipulation, others as mere advertisement. In fact, even when we joke with one another and say, “you’re playing PR with me,” it implies someone is deceiving or playing games. However, today, we will explore what Public Relations truly encompasses and how profound its influence can be.

Public Relations goes beyond creating a good logo, using the right words for advertisements, or conducting press briefings and releases. There are several key elements within Public Relations that deserve attention. Communications, for instance, involves strategic, straightforward, and audience-oriented messaging. This includes tasks such as executive speech writing, employee handbooks, annual reports, house journals, trade journals, and more. Effective and well-presented communication is vital in addressing an organization’s objectives, plans, products, and services while enhancing relationships with both internal and external audiences.

Furthermore, communications extend to advertising. Public Relations offers a thorough thought process when crafting campaigns, focusing on storytelling and selecting the most effective delivery methods for each message. This is why maintaining excellent media relations is advantageous and considered a bonus for any PR practitioner.

Strategic Advisory is another crucial aspect of Public Relations. It delves into the future of an organization, considering the ever-changing market trends and dynamics. Organizations should be capable of planning ahead, implementing strategic plans, and reaching milestones. As PR practitioners, we are often asked to provide a strategic perspective, envisioning the bigger picture, and offering advice on important decisions. This aligns with the target audience and client base of any given organization. Additionally, it involves understanding the company’s objectives for both internal and external stakeholders, while utilizing tools and resources to facilitate the achievement of these objectives.

Crisis management is a vital role of Public Relations, as organizations often face challenging situations. A skilled PR professional ensures that an organization emerges from a crisis even stronger and more trusted, despite the costs incurred. By conducting thorough research on the organization and identifying potential gaps and impending crises, a PR consultant/manager can help develop an effective Crisis Management Strategy.

Let’s take Johnson & Johnson as an example of exemplary crisis handling. In 1982, seven people in Chicago died after consuming cyanide-laced capsules of Tylenol, an over-the-counter medication manufactured by Johnson & Johnson. Although the incident remains unsolved, the company’s response serves as a textbook example of crisis management. Immediately, Johnson & Johnson initiated a comprehensive response, suspending all product advertising and sending 450,000 messages to healthcare facilities and other stakeholder groups. The company also issued safety warnings to consumers. Despite evidence indicating that the toxic substance was accidentally introduced through store shelves and not the company’s fault, Johnson & Johnson did not hide the truth and eventually introduced tamper-proof packaging. James Burke, the CEO at the time, even expressed regret for not immediately transitioning to more secure packaging following the incident.

The key takeaway from this case is that Tylenol’s handling of the crisis is widely regarded as one of the best crisis management strategies in history. It has set the standard that corporations continue to follow today. The media praised Johnson & Johnson for its actions, which helped the Tylenol brand recover. One of the most important lessons from this example is that transparency and integrity greatly contribute to successful crisis management.

I invite you to join me every week on a delightful journey of learning and understanding Public Relations. Together, we will explore the latest trends in various industries and discover the tools that can help your organization achieve its goals while maintaining profitability. If you have any inquiries or suggestions, please feel free to reach out to me via email at msgrakuriangina@gmail.com.

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