Political analyst Pauline Njoroge has sparked massive reaction on the ongoing dead capital challenge on Facebook.
The political blogger has taken sides explaining that Nyanza has better structured towns compared to central Kenya.
The chatter started when a medical doctor shared his palatial home in the village prompting the discussion of building back in the rural area.
Some users felt that building a palatial home was a waste of money and it creates property that can be termed as dead capital.
Let me tell you Maina, those houses in Nyanza are a sight to behold!” pauline stated
“Have you seen their city and towns? Very clean, well organized and nice buildings. Wait until you land in Central Kenya towns, the complete opposite.” Pauline interjected.
Consequently, Pauline said “A place like Maragwa town has no bank. But we will be here bragging that sisi ndio watu smart sana wa biashara, na wale wengine ni wa kurusha mawe.”
Paulines’ thoughts caused a flood of response with both sides showcasing the fleet of holywood houses built in Nyanza and central Kenya.
According to the IMF, dead capital is a term used to refer to informally held property that cannot be equated to capital acquisition.
Normally, dead capital is mostly referenced in relation to informal settlements which can’t be used as collateral for loans.
However, Prof Bitange Ndemo disagrees with political pundit Pauline Njoroge on the views she shared on facebook
“In Kenya we have a segment of similar property that falls within the realms of dead capital. These are the rural shopping centers that are built for prestige, not as an income generating asset.”
The professor formally from the school of business at the University of Nairobi says “Some $20 billion lie idle in the villages.”
In addition, “Another $5 billion is buried in second homes of the urbanites who travel perhaps once a year to sleep in their mansions.” Prof Ndemo said in an op ed on the Nation.
Comedian Oga Obinna came forward advising Kenyans to not invest in building a home in their rural area.
“I’am one of the comedians who build a house in the village early enough. But I rarely spend my time there. When I go home I spend in a hotel in Kisumu, and just pass by to see if the compound has been well maintained. The most I spend in my house is one week when I go upcountry with my children,” Obinna said.
