Investing in Land in Kenya
Land is one of the best ways to invest due to its high returns. After purchasing a piece of land, there are many ways one can transform it into an income producing asset even in its raw state.
Below are a few business ideas of vacant land that owners can device to make money off of their property;
Lease it out
As a country (Kenya), most people practice farming hence the economy is agricultural based. After purchasing your piece of land and as you wait to ponder on what to do next, you could always lease it to an individual or a group who will put it to use by doing either crop or livestock farming.
Note that the income you get from this will be directly proportional to the size of your vacant land. All you have to do is to prepare a lease agreement and reach out to the potential investor(s).
This is also another popular option especially for a large parcel of land. The space can be rented out for events such as weddings, birthday parties, even teambuilding activities and many more.
If you have land near a tourist attraction site i.e. lake, Park, Mountain or even good resort, you can turn your land into a camping ground and rent it out to visitors.
Other plots provide a very serene and scenic view of the overall landscape of the area hence making it a good choice for camping sites.
If you have purchased land with timber or forestry vegetation in it, this could pass as a plus to the buyer. Wait for the timber to mature then harvest it and sell the timber either as firewood or just processed wood. This is a very profitable business. Make sure to replace the trees so as to conserve the environment.
Parking in Kenya has become such a nightmare for most car owners. Nearly everyone owns a vehicle hence the demand for more parking spaces has increased. Returns on this business venture are obviously high as one get Ksh. 200 for each vehicle parked. A quick math shows that if you own 1/8-acre plot in Nairobi town, you could comfortably accommodate 25 vehicles to that space each paying Ksh. 200. So 200 multiplied by 25 will give you a sum of what to expect each day; indeed rewarding.
Land strategically located near a busy highway is a good consideration for market or telecommunication companies. These companies pay good sums of money to set up their billboards or network mast base stations on your piece of land.
This can be a more lucrative business for those whose land is around airports and ports. Money in this business comes from statistics, our exports and imports as a country exceed our storage capacity. The capital needed might not be much hence a good option.
Drill a well
In cases where your plot is located in a large community or neighbors, this is a sure way of gaining clients and providing water services for the community. Ensure to get proper permits and higher the services of professionals for the job.
If you have a big parcel of land, consider repurposing your land for greening the community; going green. Families get to connect with nature and you get money by renting out picnic sites, outdoor event and even grills for the meat lovers aka nyama choma.
Furniture has been on demand for the longest time. Land that is located near busy highways can be used to set up furniture shops which will in turn generate you with passive income.
There are very may ways one can profit from a vacant plot. Some of them might be as simple as;
- Bee keeping
- Selling the land again
- Using it as collateral to get a bank loan
- Junk yard