New crop of property barons
2 November 2010
Nation Reporter - Daily Nation
New crop of property barons
Industrialist Vimal Shah and former Central Banker governor Nahashon Nyagah have become the new face of Kenya’s very high-end real estate business, being part of Tatu City, the Sh240 billion project unveiled last week. The Business Daily reported that little known coffee dealer Steve Mwagiru is also part of the crop of new property barons, who hold a combined 50 per cent stake in the project alongside Renaissance Capital, the Moscow-based investment bank.
Mr Mwagiru, said to be in his 40s, owns coffee farms in Ruiru, part of which will be occupied by the multi-billion shilling real estate project. He has interests in Waguthu Farmers, a major coffee dealer.
In the Tatu City project, Mr Mwagiru is believed to have brought to the table the land, while Mr Shah brings in the cash. Renaissance Capital is pumping in additional seed money and about 300 acres of land that it gained last year after acquiring a 62 per cent stake in Eaagads, a Nairobi Stock Exchange (NSE) listed coffee grower.
In the Tatu City structure Mr Nyagah with his elaborate network of friends in Kenya’s business and political arena is being seen as the power broker.
Tatu City project involves the use of private capital to construct a whole new city of 62,000 residents who will live in a well planned environment of manicured homes, office blocks, shopping malls and industrial parks on 1,000 hectares in Kiambu County, behind Kenyatta University.
A deep look at planned workings of the private city indicate that Renaissance Capital and the three local investors plan to subdivide the land into small plots and resell it to developers complete with the earmarked design for each.
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