African-Americans eye property market as U.S dollar strengthens

The real estate market in Kenya is currently experiencing a surge in interest and purchases as the local currency, the Kenya shilling, continues to weaken against the U.S. dollar, now standing at 152 to the greenback. This trend has caught the attention of many African-Americans, who see the opportunity to invest in luxury homes and properties in Kenya as a lucrative prospect. CNBC Africa's Aby Agina recently sat down with Kea Wakesho Simmons, Founder of Traverze Culture, to delve into the shifts and movements within the East African real estate market. During the interview, Simmons highlighted the attractiveness of owning property in Africa, emphasizing the appeal of outright ownership without the potential risks associated with property ownership in the United States. She pointed out that many guests coming to Africa through her company are drawn to the real estate industry in Africa due to these factors. Simmons mentioned that there is a significant trend among the Black American community towards investing in real estate in Africa, particularly in Kenya. She noted that real estate, healthcare systems, and education are the primary areas of interest for investors. In Kenya, the focus is primarily on high-end real estate, with luxury homes, bungalows, and single-family homes attracting a growing number of clients. When asked about the sustainability of the real estate market amidst global economic challenges, Simmons expressed optimism, predicting an increase in investments in Africa, particularly from the Black American market. She cited Ghana's success in attracting African-American investors and tourists, emphasizing the potential for continued growth in real estate investments. Simmons also addressed potential challenges such as taxes and legal issues related to home and land ownership in Kenya. While acknowledging the tax hurdles, she highlighted the appeal of outright ownership in Kenya, which outweighs some of the challenges investors may face. The interview also touched on the impact of the strengthening U.S. dollar against local currencies in Africa, including Kenya. Simmons noted that the strong dollar is a significant attraction for investors, as it reduces the cost of living and offers the opportunity to tap into luxury living while being in the motherland. She emphasized the advantage of transacting in dollars and leveraging the currency exchange rates. In terms of property prices in Nairobi, Simmons indicated that they are appreciating, offering significant returns on investment for their clients. She mentioned a project in Zika, the Gitu Freedom Estate, where African-Americans and Kenyans will have the opportunity to live together and potentially earn returns through holiday rentals or Airbnb. As the conversation concluded, Simmons highlighted the potential for a 100 percent return on investment for their clients, driven by the impact of the U.S. dollar and the unique investment opportunities in Kenya's real estate market. Furthermore, CNBC Africa had a discussion with Daisy Ansia-Nitwe, country lead in charge of derivatives and structured solutions at Standard Bank Group Uganda, who analyzed the market developments and currency fluctuations affecting East African economies, shedding light on the region's economic outlook.