BY NOVEN OWITI
George Nyagowa is one of the successful real estate dealers in the lakeside city of Kisumu. Nyagowa’s derives his success from a strong desire to eke out a living from self -employment that pushed him to set up his own real estate company, where he is the director.
The decision saw him quit Milligan Company Limited, also real estate dealer, after the firm run into financial difficulties. Armed with a capital of Sh500,000 plus experience he had acquired as a an employee in the same sector, he plunged into business.
First, he acquired about half-an-acre piece of land at Tom Mboya estates, which he subdivided, developed and later sold to a prospect buyer at lucrative profits. The land cost Sh1.5 million but Nyagowa convinced the sellers to take a deposit first and instalments later.
“It was a humble beginning characterised with disappointments, but slowly I found a breakthrough,” he remembers. Today, his Michigen Investment Company has grown in the last 18 years into one of the leading real estate dealers in Kisumu town.
The commercial agency deals with real estate management, buying, developing and selling land. The 45-year-old real estate dealer now boasts contributing to the development of Kisumu by enabling people to acquire land and construct rental housing units.
Other Michigen projects are apartment Makadada apartments and industries. The growth of the company has seen him employ over 10 workers up from three when it was first established in June 2003.
Having tasted the success in self-employment at 27 years, Nyagowa urges young people to take a step of faith and pursue the wide range of investments in business such as real estate development instead of waiting for uncertain opportunities in formal employment.
He also asks the government to consider incorporating institutions like Kenya Industrial Estates in providing loans to the youth besides easing the acquisition process to enable them to start their own businesses.
“The youth have a chance to dominate the business sector. They should avoid the notion that one must amass wealth to make meaningful investments,” he advises. Nyagowa says Kisumu has experienced significant growth in real estate, with new developments in property taking centre stage.
“The city is growing steadily towards the outskirts which is good for investors keen to put up developments such as apartment blocks and commercial buildings,” he says. However, the entrepreneur cites political violence and fraud at the Ministry of Lands as major challenges facing the land and building construction sector.
The business is also being hurt by cases of double title deeds issuance at the Lands department. “Kisumu is known for political violence especially during the electioneering period.
This hampers business for real estate dealers,” he regrets, adding that ethnic politics is a threat to investors in the region. Despite such risks, Nyagowa intends to incorporate partners to build gated community homes at the upmarket Riat Hills in the outskirts of the town. “We have acquired seven acres and construction will start soon,” he says. Other plans in the pipeline include opening a branch in Nairobi.