In an era of rising inflation, volatile currencies, and uncertain economic growth, the question on the safest place to keep money has become more critical than ever.
While saving in the bank has traditionally been viewed as the safest option, an increasing number of investors are turning to real estate and for good reason.
Unlike cash sitting idle in a savings account, real estate offers tangible value, long-term appreciation, and consistent returns that often outpace inflation. Property investment is no longer just a preserve of the wealthy; it has become a practical wealth-building tool for the middle class and young professionals seeking financial security.
- Resilience against inflation
One of the strongest arguments for real estate is its resilience against inflation. When the cost of living rises, so does the value of property and rent. In contrast, the real value of money held in a bank account diminishes over time as inflation erodes purchasing power.
According to Username Investments co-founder and Board Chairman Reuben Kimani, the majority of savings accounts only yield 2–6% annual interest, which is significantly less than the average annual rate of inflation.
Kimani explains that over time, inflation reduces the investor’s money in banks ultimately eating away their wealth.
“For instance, the Sh1,000,000 you currently have in a bank may appear to be the same after five years, but in practice, it will buy you significantly less of anything you want to buy, whether it be real estate, building supplies, or even household items,” he explains.
“Meanwhile, if you bought land today with the same amount, you will be able to sell it for a higher cost in a few years, despite the rate of inflation. Unlike money that depreciates quietly in the bank, land grows in worth, often outpacing inflation by a wide margin. Within a few years, the value of a plot bought for Sh1,000,000 today in a desirable location could double or even triple, particularly in high-demand areas close to Nairobi, Nakuru, or other expanding towns,” he adds.
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- Passive Income and Capital Growth
Beyond value preservation, real estate offers the dual benefit of steady income and capital appreciation. Rental properties, for instance, provide a predictable monthly cash flow, while the underlying property appreciates over the years.
According to Kimani land is one of the few assets whose value nearly always rises unlike bank money. As population increases and infrastructure advances, land steadily increases in value each year, protecting the investors’ assets.
“As populations increase and infrastructure advances, key areas like Kikuyu, Ngong, Nakuru and Kisumu have demonstrated steady growth. Land improves over time and grows with you, unlike bank money. It is one of the most dependable methods to create wealth for future generations because it is a physical, immovable asset that cannot be replaced.”
A well-located apartment in Nairobi’s satellite towns such as Ngong, Syokimau, or Kitengela can yield annual rental returns of 7–10 percent, far higher than the average bank savings rate of 2–6 percent.
- Tangible & Secure Asset
Real estate offers a degree of control rarely available in financial markets. Investors can improve property value through renovations, better management, or strategic positioning. This flexibility contrasts sharply with the passive nature of bank savings where returns are entirely dependent on external interest rate policies.
“You can construct a house, start a business, rent it out, or just keep it as its value increases. Additionally, having a legitimate title deed in hand guarantees that your investment is safeguarded and can be passed down to future generations because your ownership is not merely symbolic but is legally recognized and transferable,” Kimani explains.
- Flexibility & Use
Land is a versatile asset with countless uses. With a plot of land, you can construct your ideal house, turn it into rental apartments or business space, rent it out for farming or other uses, or just keep it as its value rises.
Additionally, it can be divided and sold for a profit, converted into recreational facilities like gardens, resorts, or event venues, or used as collateral to obtain funding for other endeavors. Land offers long-term security in addition to financial gains, as it can be inherited by future generations, ensuring that your investment will outlive you.
