More malls pop up in Nakuru despite existing ones struggling to get tenants

For years, investors in commercial buildings in Nakuru have grappled with the challenge of getting clients to fill their spaces.

This has been attributed to the low business occasioned by limited economic drivers which has led to limited cash flow.

However, the city has in the recent past witnessed increased construction activities as businesses continue pumping huge sums of money in the development of malls and other commercial properties.

Having previously been touted for having insignificant number of malls as is the case of other cities in the country, investors seem to have identified the gap and are now competing to put up the mega business centres.

Currently the fourth city only has four malls but only one, Westside mall, seems to be bustling with activities. The rest including Jeniffer Riria hub, The Golden Life Mall and the Imani Mall are barely full.

A property agent Rosemary Mundia of Captial Homes explains that the main reason behind the little uptake of space in Nakuru’s commercial buildings, is the high rent and the tough conditions set by owners.

According to Ms Mundia, most upcoming malls are charging the rent by feet which according to the realtor is an alien concept for the Nakuru business population.

“Businesspersons in Nakuru are used to being told the wholesome amount for a space in the buildings. They find the new charging style to be a bit new and expensive. In addition, the land lords are demanding for goodwill, the potential tenants bank statements as well as that of their guarantors,” says Ms Mundia.

This discourages people from taking the spaces to avoid going through all that hustle.

The realtor further indicates that the City is generally slow in terms of economic activities, which means not much revenue is realized from the business ventures to support the high rents.

To fill the spaces, the property agent suggests that the investors need to consider reducing the rents and lessening the conditions.

Nakuru county Chief Executive member for trade Stephen Kuria explains that the county has embarked on a mission to market the city to investors which is evidenced by the increased investments.

Mr Kuria notes that the county has approved a number of malls to be put up in the city including one at the former Eveready company land, another one is ongoing construction next to Cathys Hotel and another one on a three-acre parcel of land opposite Taidy’s hotel.

In addition, the CEC indicated that the owners of Westside mall have acquired another parcel of land next to it for the expansion of the mall while a number of commercial buildings have been approved for construction within the town.

According to him, the county has taken a number of steps to improve the business environment with an aim of hastening development.

To deal with the challenge of delayed approvals for the permit, Mr Kuria notes that the county has unified the licenses to enable investors begin the development.