7 ways to grow your wealth by investing in land in Kenya

Land is one of the prized assets around the world. Even though buying land in Kenya can be risky, the returns on your investment can be astronomical. This is especially so for those investing in land for purely economic purposes like using the land to produce consistent financial returns.

You’ll need a solid development plan for your land. If you’re looking to buy land, it is advisable to work with the most reputable real estate companies in Kenya. As professionals, these firms make buying easier and more streamlined.

But you can invest in land and draw handsome financial rewards without buying said land. Read this to discover how this is possible beyond just using the land you own.

So, if you own a commercially viable piece of land or have the right to use one for commercial purposes, here are seven ways to invest in land and grow your wealth in Kenya.

Investing in land to grow wealthier 

Common ways of land investments include residential and commercial development, agriculture and livestock production, mining, and using it as a recreational centre.

1. Residential land development

This is whereby you can develop houses and commercial centres for sale or rental. You can be a landlord and accrue rent from the residents.

2. Lease and Hire

You can also lease your land to individuals, firms, or the government for a certain time.

3. Row cropland

You must first determine the type of cultivation suitable and allowed in your area.

An investor can also grow vegetables such as garlic in large-scale farming. Here, one can also exploit the construction of dams, poultry, and fish ponds. Also, get experts to measure your soil before cultivation.

5. Livestock-raising land

Use your land for dairy and livestock production.

6. Timberland

New land buyers are always encouraged to fence their parcels and grow trees first. Trees can be sold for timber production and enrich the soil for future cultivation.

7. Recreational land

Land can be developed for tourism, especially in serene areas that attract thousands of tourists yearly. There are many ways to develop your land and contribute to the local tourism industry.

Our take:

Potential land investors must be aware of the specific land-related investment options available through investment products such as exchange-traded funds (ETFs) and exchange-traded notes (ETNs).

In the case of small investors, real estate investment trust (REIT) ETFs are a solid, cost-effective choice as they do not require direct management, are broadly diversified, and can be purchased or sold on a real-time basis.

Several ETFs and ETNs cover most land-based investment categories, including timber, minerals, and farming.