Lilgaa Property Management: Property Investing in Eldoret, Kenya
(5 pages of text)
In 2013, a successful entrepreneur in Eldoret, Kenya was considering her options. In 2007, after a history of operating several small businesses, only one of which failed, she founded Lilgaa Property Management Ltd., a real estate and property management business. She had focused her energies on the real estate industry in spite of its many challenges, which included corruption and lack of regulation, enforcement and trust. In 2013 she needed to decide how to grow her business, specifically, whether she could buy a building in Eldoret and rent it out or buy a plot of land on the outskirts of town and build a hotel; if the latter, would it cater to the middle or upper class? She had to assess the various elements of the business, political and social environments and consider the potential risks that could affect the outcome of her investment.
After completion of the case and assignment questions, students will be able to
- learn that in business there are problems that may not have an exact right answer;
- learn to make decisions based on an analysis of the political, environmental, social and technological environments of a country and industry; and
- calculate the net present value of various options for growth and to consider what other factors should be taken into account when deciding which option to choose.
Real Estate and Rental and Leasing
Kenya, Small, 2013
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