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The rise and rise of Ruaka : The Standard




Building under construction part of Ruaka fast growing area on February 4, 2019. (Jenipher Wachie, Standard)

Marjorie Wanjiru was born in Ruaka 23 years ago. She recently finished her college education and is looking for a job. She has seen her home area transform from a laid-back agricultural community to a bustling real estate destination whose land prices are quoted in hundreds of millions.

We meet Wanjiru outside her modest, semi-permanent home tending to a small garden. The shade from a nearby banana farm provides a welcome relief from the scorching midday sun.
Wanjiru’s home stands in sharp contrast to nearby apartments that house a big chunk of Nairobi’s workforce. She has seen most of them come up. More are in the pipeline.
Such developments are putting pressure on local families, including Wanjiru’s, which have occupied ancestral land here for decades under immense pressure.

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“People do approach us with offers to sell the property. But we are not moving any time soon,” she says. “Many have sold their land only to squander all the cash before they could find an alternative home.”
I show Wanjiru a newspaper clipping of a story that ran early last year and which showed that an acre of land that cost between Sh100,000 and Sh300,000 about 20 years ago is now valued at Sh100 million.
Staying put
She dismissively taps at it after a brief glance: “Yes, this is correct, but we are not moving. Who says we will find another place like what we have here?” 
Her story mirrors those of many other original residents of Ruaka who cannot understand why land in their once nondescript hood has become coveted property, attracting top real estate developers from Kenya and beyond. Catchy phrases from realtors now define the little enclave 10 kilometres northwest of Nairobi’s city centre: “Ruaka is a ‘fast-growing, upper-market neighbourhood’ that attracts discerning investors and the home of the biggest mall in East Africa.”

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This is not just a marketing gimmick. Ruaka is next to the United Nations Office in Kenya. And so is Two Rivers, currently the biggest mall in sub-Saharan Africa. Nearby is the Rosslyn Riviera, Village Market and the Northern Bypass.
It borders high-prized estates such as Runda. It has cooler climate than Kitengela or Athi River. Many locals have caved in and sold the land where dozens of apartments now stand.
Late last year, investment firm Cytonn published a report that for the umpteenth time reiterated the “unique” investment opportunities in Ruaka. Key among the findings is the property appreciation in Ruaka that makes established city suburbs such as Karen trail.
“Land in Ruaka is currently priced at about Sh89.7 million per acre, and this is relatively high compared to other satellite towns such as Ngong, Utawala and Ruiru, whose prices per acre are Sh13.8 million, Sh12.8 million and Sh20.6 million, respectively,” said the report.
According to Cytonn, the growing demand for land and housing in such satellite towns together with the construction of the Western Bypass will continue to drive investments in Ruaka. The firm has already made forays into the region with their signature development, The Alma, a 453-unit development whose first phase will be handed over to investors in May this year. While some are taken aback by the apparent meteoric rise in Ruaka’s property prices, land and planning experts say this is not unexpected.

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Few controls
Abraham Samoei, Institution of Surveyors of Kenya chairman, says Ruaka’s fortunes are characteristic of similar peri-urban regions where prices increase dramatically.
In addition, he says, there are few development controls here unlike Karen where one cannot subdivide land beyond a particular acreage or build high-rise apartments. “In Ruaka, developers get more units on a small piece of land, thus giving better returns on investments. The more units you can erect on a given piece of land the better for an investor,” says Samoei.
He says such rapid developments come at a heavy social cost, especially for the locals who have held onto ancestral land for years. He says such suburbs are creating instant millionaires and at the same time having peasants who are asset-rich but cash poor. “For example, you find an old lady who has lived here all her life but does not know how to add value to her land. She only practises subsistence farming and will never think of selling the land and move to a cheaper place. She has put a sentimental value on the land, a value she hopes to pass on to the next generation,” says Samoei.
While Ruaka’s growth is a case of supply and demand, of more concern to experts, however, are the undesirable effects of property development getting ahead of urban planning.

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Mairura Omwenga, an urban planner, says as much as the new developments in Ruaka are changing lifestyles, both national and county governments need to arrest any lack of prerequisite infrastructure before Ruaka ends up like “all the other unplanned “cities” around Nairobi”.
“From a planning perspective, the area might soon be ungovernable as unplanned settlements crop everywhere. There is little thought given to infrastructure such as sewerage, water lines or access roads. Sadly, authorities only react to such situations as developers extract fortunes in the new frontiers,” he says.
Ruaka, adds Omwenga, is part of the agriculturally rich Kiambu County that serves as Nairobi’s breadbasket.
The new estates, he says, are erected on formerly fertile soils where coffee has been grown for decades, thus threatening food security.
“Environmentally, this is part of a water catchment area for the city. The rapid urbanisation in Ruaka and nearby areas is having a negative effect on Nairobi rivers, most of which have their sources in the region. We better plan ahead since we know such developments are here to stay,” says Omwenga.
But even as Wanjiru and her family continue to hold onto their piece of paradise in Ruaka, they too cannot ignore the rise of their village as the preferred destination for big investments in real estate.
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RuakaReal EstateHousingKiambu County



BCCI: The bank ‘that would bribe God’



Bank of Credit and Commerce International. August 1991. [File, Standard]

“This bank would bribe God.” These words of a former employee of the disgraced Bank of Credit and Commerce International (BCCI) sum up one of the most rotten global financial institutions.

BCCI pitched itself as a top bank for the Third World, but its spectacular collapse would reveal a web of transnational corruption and a playground for dictators, drug lords and terrorists.

It was one of the largest banks cutting across 69 countries and its aftermath would cause despair to innocent depositors, including Kenyans.

BCCI, which had $20 billion (Sh2.1 trillion in today’s exchange rate) assets globally, was revealed to have lost more than its entire capital.

The bank was founded in 1972 by the crafty Pakistani banker Agha Hasan Abedi.

He was loved in his homeland for his charitable acts but would go on to break every rule known to God and man.

In 1991, the Bank of England (BoE) froze its assets, citing large-scale fraud running for several years. This would see the bank cease operations in multiple countries. The Luxembourg-based BCCI was 77 per cent owned by the Gulf Emirate of Abu Dhabi.  

BoE investigations had unearthed laundering of drugs money, terrorism financing and the bank boasted of having high-profile customers such as Panama’s former strongman Manual Noriega as customers.

The Standard, quoting “highly placed” sources reported that Abu Dhabi ruler Sheikh Zayed Sultan would act as guarantor to protect the savings of Kenyan depositors.

The bank had five branches countrywide and panic had gripped depositors on the state of their money.

Central Bank of Kenya (CBK) would then move to appoint a manager to oversee the operations of the BCCI operations in Kenya.

It sent statements assuring depositors that their money was safe.

The Standard reported that the Sheikh would be approaching the Kenyan and other regional subsidiaries of the bank to urge them to maintain operations and assure them of his personal support.

It was said that contact between CBK and Abu Dhabi was “likely.”

This came as the British Ambassador to the UAE Graham Burton implored the gulf state to help compensate Britons, and the Indian government also took similar steps.

The collapse of BCCI was, however, not expect to badly hit the Kenyan banking system. This was during the sleazy 1990s when Kenya’s banking system was badly tested. It was the era of high graft and “political banks,” where the institutions fraudulently lent to firms belonging or connected to politicians, who were sometimes also shareholders.

And even though the impact was expected to be minimal, it was projected that a significant number of depositors would transfer funds from Asian and Arab banks to other local institutions.

“Confidence in Arab banking has taken a serious knock,” the “highly placed” source told The Standard.

BCCI didn’t go down without a fight. It accused the British government of a conspiracy to bring down the Pakistani-run bank.  The Sheikh was said to be furious and would later engage in a protracted legal battle with the British.

“It looks to us like a Western plot to eliminate a successful Muslim-run Third World Bank. We know that it often acted unethically. But that is no excuse for putting it out of business, especially as the Sultan of Abu Dhabi had agreed to a restructuring plan,” said a spokesperson for British Asians.


A CBK statement signed by then-Deputy Governor Wanjohi Murithi said it was keenly monitoring affairs of the mother bank and would go to lengths to protect Kenyan depositors.

“In this respect, the CBK has sought and obtained the assurance of the branch’s management that the interests of depositors are not put at risk by the difficulties facing the parent company and that the bank will meet any withdrawal instructions by depositors in the normal course of business,” said Mr Murithi.

CBK added that it had maintained surveillance of the local branch and was satisfied with its solvency and liquidity.

This was meant to stop Kenyans from making panic withdrawals.

For instance, armed policemen would be deployed at the bank’s Nairobi branch on Koinange Street after the bank had announced it would shut its Kenyan operations.

In Britain, thousands of businesses owned by British Asians were on the verge of financial ruin following the closure of BCCI.

Their firms held almost half of the 120,000 bank accounts registered with BCCI in Britain. 

The African Development Bank was also not spared from this mess, with the bulk of its funds deposited and BCCI and stood to lose every coin.

Criminal culture

In Britain, local authorities from Scotland to the Channel Islands are said to have lost over £100 million (Sh15.2 billion in today’s exchange rate).

The biggest puzzle remained how BCCI was allowed by BoE and other monetary regulation authorities globally to reach such levels of fraudulence.

This was despite the bank being under tight watch owing to the conviction of some of its executives on narcotics laundering charges in the US.

Coast politician, the late Shariff Nassir, would claim that five primary schools in Mombasa lost nearly Sh1 million and appealed to then Education Minister George Saitoti to help recover the savings. Then BoE Governor Robin Leigh-Pemberton condemned it as so deeply immersed in fraud that rescue or recovery – at least in Britain – was out of the question.

“The culture of the bank is criminal,” he said. The bank was revealed to have targeted the Third World and had created several “institutional devices” to promote its operations in developing countries.

These included the Third World Foundation for Social and Economic Studies, a British-registered charity.

“It allowed it to cultivate high-level contacts among international statesmen,” reported The Observer, a British newspaper.

BCCI also arranged an annual Third World lecture and a Third World prize endowment fund of about $10 million (Sh1 billion in today’s exchange rate).

Winners of the annual prize had included Nelson Mandela (1985), sir Bob Geldof (1986) and Archbishop Desmond Tutu (1989).

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East Africa celebrates top women in banking and finance




The Angaza Awards for Women to watch in Banking and Finance in East Africa took place Online via Zoom on 8th June 2021.

The event was set to celebrate the top 10 women shaping banking and finance across East Africa. The 2021 Angaza Awards, which will be a Pan-African Awards program, was also announced at the event.

Key speakers at this webinar were Dr Nancy Onyango, Director of Internal Audit and Inspection at the IMF; and Gail Evans, New York Times Best Selling Author of Play Like a Man, Win Like a Woman and former White House Aide and CNN Executive Vice President.

Dr Nancy Onyango advised women to deep expertise in their fields, spend time in forums and link with key players in that sector.
“Gain exposure with other cultures by seeking for employment overseas and use customized CV for each job application,” said Dr Onyango.

According to Gail Evans, women should show up and be fully present in meetings and not be preoccupied with other issues.
“Be simple and avoid jargon. Multi-tasking only means that you are mediocre Smart people ask good questions in a business meeting. Most women face drawbacks due to perfectionism, procrastination and fear of failure, said Evans.

She advised women to play like a man and win like a woman, be strategic, and intentionally make their moves to get to the top.

“For us to pull up businesses that have been affected by effects of COVID-19 pandemic, we need to re-invent business models, change the product offering and make more use of digital platforms,” said Mary Wamae Equity Group Executive Director.

Mary Wamae emerged top at the inaugural Angaza awards( East Africa) ahead of other finalists.

While women continue to excel in banking and finance, the number of that occupies top executive positions is still less.

“There is a gap for women occupying C suite level and it continues to widen in the finance sector. At entry level, there is still an experience gap for women,” said Nkirote Mworia, Group Secretary for UAP-Old Mutual Group.

She said that at the Middle Management level, women do not express their ambition. For this reason, UAP-Old Mutual has developed an executive sponsorship program to help women get to the next level.

Mworia added that most women hold the notion that top positions in management have politics and pressure.
“One needs leadership skills and not technical expertise to get to the top,” said Mworia.

According to Catherine Karimi, Chief Executive Officer and Principal Officer of APA Life Assurance Company, women need to focus on the strengths and natural abilities that they already have.


“Take risks and raise your hand to get to the high table. Find mentors along the way and develop your own brand and not compare yourself with others Focus on your strengths because it will make you move faster in the career ladder,” said Karimi.

Lina Mukashyaka Higiro, a Rwandan businesswoman and chief executive officer of the NCBA Bank Rwanda since July 2018, has three lessons for women who want to excel in banking and finance.
“Always spend at least 20 minutes each day reading, seeking genuine feedback from other staff members and widen your network,” Higiro told the webinar.

Women picked for Angaza awards

Mary Wamae, Executive Director, led this year’s Top 10 Women in Angaza Awards, Equity Group (Kenya)(2)Catherine Karimi, Chief Executive Officer, APA Life Insurance Company (Kenya)(3)Lina Higiro, Chief Executive Officer, NCBA Bank (Rwanda)(4)Elizabeth Wasunna Ochwa, Business Banking Director, Absa Bank (Kenya)(5)Joanita Jaggwe, Country Head of Risk and Compliance, KCB Group (South Sudan)(6) Millicent Omukaga, Technical Assistance Expert on Inclusive Finance, African Development Bank (Kenya)(7)Emmanuella Nzahabonimana, Head of Information Technology, KCB Group (Rwanda)(8)Judith Sidi Odhiambo, Group Head of Corporate Affairs, KCB Group (Kenya)(9)Rosemary Ngure, ESG & Impact Manager, Catalyst Principal Partners (Kenya) and(10)Pooja Bhatt, Co-Founder, QuantaRisk and QuantaInsure (Kenya).

The Kenyan Wallstreet, a financial media firm, partnered with Kaleidoscope Consultants to raise awareness of seasoned women shaping and influencing the sector through their organizations.

The Angaza Award criteria included assessing the applicants’ area of responsibility and contribution to firm performance. Professionals in Banking, Capital Markets, Insurance, Investment Banking, Fintech, Fund Management, Microfinance, and SACCOs were invited to submit their applications or nominations via the Kenyan Wallstreet Award Web page.

ALSO READ: Angaza Awards Top Finalist; Mary Wangari Wamae

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IFC in New Partnership to Develop Affordable Housing in Mombasa County




NAIROBI, Kenya, Jun 14 – International Finance Corporation, a member of the World Bank Group, has signed a new deal in support of affordable housing in Kenya.

The corporation has partnered with Belco Realty LLP, to develop a mixed use affordable living complex that will consist of 1,379 residential units and over 4,500 square meters of retail and commercial spaces in Kongowea, Mombasa County.

Together with the Kenyan firm, IFC says the partnership will help meet surging demand for housing in Kenya.

Under the agreement, IFC will help identify suitable international strategic partners to invest equity of up to $12 million, or Sh1.3 billion in Belco and to provide the company with the necessary technical support to develop the project.

The development, known as Kongowea Village, will be developed to foster inclusive and affordable community living within the city.

Jumoke Jagun-Dokunmu, IFC’s Regional Director for Eastern Africa says the project, which will be located on eight acres within the heart of Mombasa city, will aim to be a catalyst for wider city regeneration.

The project will be developed to meet IFC EDGE certification requirements and will incorporate the latest technologies in passive cooling, energy efficiency and water conservation to support sustainable urbanization.

 Kongowea Village is expected to create 1,160 jobs and business opportunities during the three-year construction period and many more after completion of the project within the themed retail arcade.


 “Access to quality housing is a growing problem in Kenya and across Africa,” said Jumoke Jagun-Dokunmu, IFC’s Regional Director for Eastern Africa.

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“Developers often target the high end of the market, but this project is aimed squarely at the lower-income bracket. Helping Belco identify the right partners for this project is expected to attract more developers to Kenya and other parts of Africa to help meet rising demand for housing.”

 IFC‘s engagement with Belco will help Kenya support its rapidly growing and urbanizing population by increasing access to affordable housing. The problem is similar across most of Africa, where population growth and demand for quality housing are combining to outstrip supply.  We are pleased to partner with a company such as Belco that is committed to contributing to solving this challenge,” said Emmanuel Nyirinkindi, IFC‘s Director for Transaction Advisory Services.

 IFC’s partnership with Belco is part of its broader strategy to support better access to affordable housing in Kenya.

In 2020, IFC invested $2 million in equity in the Kenya Mortgage Refinance Company (KMRC) to help increase access to affordable mortgages and support home ownership in the country.

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