Land in Ruaka is More Expensive Than Karen, Runda & Kitisuru - New Report

In Summary

• Lawsuits against government institutions hit Ksh43.8 billion in 2024, up from Ksh18.47 billion, with the PSC linking the rise to poor governance and legal non-compliance.
• Land prices in satellite towns stagnated while Nairobi’s suburbs recorded steady growth amid tough economic conditions.
• Parliament demands an audit of the Water and Roads Departments amid financial misuse and project delay allegations.
• The new anti-corruption bill proposes stricter laws to curb graft, protect state resources, and enhance integrity in public offices.
• Increased borrowing and missed tax targets risk derailing efforts to lower interest rates and boost private sector lending.

Land in Ruaka is more expensive than Nairobi surburbs such as Karen, Kitisuru, Runda, and Langata. Land prices in Ruaka now cost Ksh111.2 million per acre compared to Karen, Kitisuru and Runda which go for Ksh69 million, Ksh98.2 million and Ksh93.3 million respectively. In Nairobi suburbs, Upperhill leads with Ksh522.7 million per acre and the lowest growing being Karen with Ksh69 million. The lowest rising in Nairobi Satellite towns is Kiserian with an acre costing Ksh12 million. Land prices in Nairobi’s satellite towns grew by just 1.0% in Q4 2024, marking the slowest rate in 18 months as economic challenges and high interest rates dented demand from middle-class buyers. The Hass Property Index attributes the sluggish growth to reduced developer financing and cooling demand in towns like Thika and Mlolongo, which saw quarterly price growth drop to 0.9% and 1.1%, respectively. According to The Standard, suburbs like Parklands and Upperhill outpaced others with higher price gains, driven by strong demand for standalone units and limited supply.

In a report by The Business Daily, the value of lawsuits awarded against the government rose to Ksh43.8 billion in the financial year ending June 2024, up from Ksh18.47 billion the previous year, highlighting the increasing cost of poor governance and disregard for the rule of law in public institutions. The Public Service Commission (PSC) attributed the rise in cases—dominated by challenges to administrative actions, land disputes, and labour issues—to governance failures, noting a 44.9% increase in the number of civil suits. PSC has recommended reforms, including holding public officers personally liable for decisions leading to legal losses and ensuring compliance with constitutional values and public participation.

President William Ruto has tabled radical anti-graft proposals aimed at speeding up corruption cases and tightening asset recovery laws, as reported by The Star. The proposed Anti-Corruption Laws (Amendment) Bill, 2025, seeks to allow asset seizures without court orders, bar suspects from state jobs, and fast-track corruption cases to be concluded in six months. The bill also empowers anti-graft agencies to monitor call data and financial transactions and introduces harsher penalties for public officers involved in corruption, including a Ksh5 million fine for undeclared foreign accounts.

The National Assembly has called for a special audit into the exchequer releases for the State Departments of Water and Roads over the past five financial years, following concerns about financial mismanagement and project delays. The Auditor General has been tasked to investigate budget allocation, fund use, and project progress, with the report expected in six months. MPs emphasised the importance of transparency in these critical sectors, citing their role in Kenya’s economic growth, as reported by Capital Business.

The Central Bank of Kenya (CBK) and Treasury's efforts to lower interest rates will be tested as government domestic borrowing rises by 32% to Ksh545.8 billion in the 2025/26 fiscal year, driven by a Ksh759.4 billion budget deficit. According to The Business Daily, Analysts have raised concerns over missed tax targets, with the Kenya Revenue Authority falling short by Ksh163 billion in the first half of the year, heightening reliance on both domestic and external borrowing.