The Somali Takeover
May 8, 2010
Written by Alphonce Oladipoh, in Featured, Recent News
NAIROBI, Kenya
The terrors of the East African seas have moved onto dry land with a variety of investments meant to move their ill-gotten gains into more legitimate areas. The Somali pirates’ most popular pursuit? Kenyan real estate.
War-torn Somalia, which has essentially been without a cohesive government for over fifteen years, offers the pirates few opportunities to invest their profits. But neighboring Kenya is a different story. Relatively stable, Kenya is also East Africa’s largest economy, allowing ample opportunity to launder the over $100 million in ransom money Somali pirates have been paid in the last two years.
A Somali owned Flat coming up in Eastleigh
This laundering has most recently taken the form of large real estate purchases. Even in the midst of a global real estate crunch, in which American housing prices have dropped precipitously, prices in the Kenyan capital Nairobi have doubled or even tripled in the last five years. Although Kenyan officials cannot prove this is entirely the work of pirates, there is a great deal of circumstantial evidence to support this conclusion.
The area of Nairobi most affected by the housing explosion is Little Mogadishu, named for Somalia’s capital city, which is home to most of the city’s Somali expatriates. The now-thriving community has seen huge expansion in large businesses and apartment buildings in the last few years.
Another Eastleigh building....
According to a recent report by the AP, pirates see such investment strategies as a way to ultimately leave their criminal life behind them:
A…pirate, who only gave his name as Abdulle, said he’s investing in Kenya in preparation for leaving the pirate trade.
“Pirates have money not only in Nairobi but also other places like Dubai, Djibouti and others,” said Abdulle. “I have invested through my brother, who is representing me, in Nairobi. He’s got a big shop that sells clothes and general merchandise, so my future lies there, not in the piracy industry.”
Kenya does not have strict money laundering laws, which leaves the pirates’ alleged activities in something of a legal gray area, but that may change. The Kenyan government is currently debating a bill intended to more clearly outlaw the practice, which dovetails with an ongoing investigation into the housing boom by Kenyan law enforcement.
It is claimed that millions of dollars in ransom money paid to Somali pirates are being invested in Kenya, Somalia’s southern neighbour and East Africa’s largest economy. It is thought that pirate money could be going into other African real estate markets as well including Dubai.
Not in Thailand, but in Nairobi....
And the Somali Influence in Kenya’s political and social landscape is already being felt.
Never since independence has the Somali Community had such a big representation in the Government, like right now.
10 years ago, Kenyan Somalis were being treated like second rate citizens, but thanks to their brothers from across the border, that is now a thing of the past.
Either through sheer hard work, determination or maybe the millions of dollars finding their way into Kenya, Kenyan Somalis are fast gaining recognition, to a point of even the Nyanza town of Migori having a Somali mayor, HIs Worship Junet Mohammed!
This must be the proudest moment for the Kenyans from the north eastern province.
Already, a plan by government to conduct an audit on property owned by foreigners has attracted criticism especially from members of the Somali community.
Earlier this year Internal Security Permanent Secretary Francis Kimemia ordered provincial administrators to carry out the property census with Nairobi, the capital city of Kenya, being the point of focus.
The decree came amidst growing local concern that money laundering by foreigners had led to inflation of land and house prices in the city. The audit is expected to target the Somali community – a majority who fled their lawless homeland investing heavily in Kenya.
Khaoya, who works for Crystal Real Estate, explained that under normal circumstances in Kenya it would take 10 years for property values to double, but that real estate prices have tripled in the last five years.
A real estate agent who spoke only on condition he wasn’t identified so as not to draw the wrath of Somali customers said some Somali businessmen pay double what a property’s worth to complete a sale quickly.
A four bedroom home in Karen, a popular Nairobi suburb, that would have sold for $200,000 five years ago, sells for $500,000 today.
photos: newstimesafrica.com, moneyjihad.wordpress.com, CBS News
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you somalians .. you take all the money from canada .. WELFARE europe .. then you come to build houses in kenya .. im a KENYAN CITIZEN . grew up in eastleigh GO BACK TO SOMALIA . LEAVE MY KENYA ALONE OO . Just messing up my home town . LEAVE US ALONE . please and thank you
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The Proceeds of Crime and Anti Money Laundering Bill comes into effect in Kenya from 1st June 2010. It will be that more difficult for illegally obtained money to be laundered through the banking system because banks will face severe fines for allowing such ill gotten wealth to pass through their system. Recent incidences also seem to indicate that the level of scrutiny by banks as they gear up for this is at an all time high forcing those people wanting funds to be laundered through an account in Kenya to go through an intricate process of drawing up fake loan agreements with non existent foreign lenders to legitimate Kenyan companies in a bid to legitimize the source of the funds. The days of the money launderers are indeed numbered.
Stop the hate speech not all Somalis are pirates and thugs. Somalis have very strong communal set up and they are good in business. Thanks to the Somalis that today kenyans can afford to acess reasonably prized goods. The Somali hate campaign that is building in our country is not helping anyone. We equally have so many Kenyans who earn a living abroad some as illegal immigrants and you would not like them to be singled out for discrimination.
We also have so many Kenyan somalis from North eastern who have sold their livetsock to invest in other business lines like import export,real estate etc. Not all the properties in Eastleigh are owned by Somalis from somalia many are owned by hard working kenyan somalis.
As Kenyans we should spend more time fighting our own who steal our tax money meant for school kids, maize scandals, we cant even spare land meant for the dead. Somalis have not denied Kenyans anything and let us move away from this scarcity mentality.
I wouldn’t agree more with Mohamed Hersi. Its perfectly in our nature as humans to happily point fingers at others for the woes with experience, what I call ‘victim mentality’.
We don’t solve our social-political issues in our country by invoking xhenophic attitude in our people.
Aside from the fact many Somali investments have been hard earned, even those earned from ‘piracy’ have been ploughed into our economy and have contributed to our positive economic growth. We should be up in arms against those who plunder our economy only to ‘invest’ in foreign nations.
As Kenyans we need to stop propagating cheap profiling statements and look at the big picture. For God’s sake, how does increase in prominence of Kenyan Somalis have to do with ‘piracy’ in Somalia. This is just sheer display of ignorance on the writer’s part.
Last para should read…
*As Kenyans we need to stop propagating cheap profiling statements and look at the big picture. For God’s sake, how does increase in prominence of Kenyan Somalis **IN PUBLIC POSITIONS** have to do with ‘piracy’ in Somalia. This is just sheer display of ignorance on the writer’s
You pirates keep up the money u get invest in because its a free and democratic country but dont bring your ujika here in kenya plz we dont tolerant it if you start showing signs like that we chase u like magaidi and all you have invested will be left so be calm as kenyans
Samocha, wewe ulitoka wapi? Kingereza chako kinatisha! I think you are Southern Sudanese purporting to be a Kenyan. It is you and your dad who will be chased out of Kenya before Somalis go anywhere. Somalis (NEP Somalis) arrived in Kenya while you were eating grass in the Great Lakes. Stupid. They work hard, have a strong communal bond and many of them assist one another and invest together. Some of the buildings shown above were built in 1991 and 1993. Some of them are owned by Kenyan Somali cabinet members. Are they pirates too? Wacha wivu na ufanye kazi and ujisaidie wewe. If you are dreaming of getting Somali wealth, then the wolves have a better chance, carcass!
Editor, I find this article quite offensive and bigoted. Somalis never displaced anyone and they never grabbed anyones’s land, neither did they steal anyone’s wealth. I’m amazed that the writer chose to highlight Migori’s Mayor. He is a Migorian, born in Migori, doesn’t he have a right to lead his fellow Migorians if they find him up to the task? How come you forgot to highlight Kisumu Town MP Shakeel Shabir? Is he a Luo? What Basil Criticos who was the former MP for Taita despite being a Greek? What about the Italian who was narrowly defeated in Magarini by Kingi? Is he a Mijikenda? I from Wajir and I have thousands of Kikuyus and Kambas who have flooded our markets and opened business and took over the barbershops, vegetable stalls and other stuff. Do we appreciate these brave enterprising Kenyans and work with them or do we blame them and even try to subjugate to them. Finding excuses in defeatism and blaming others won’t help. Somalis worked hard to be where they are. While there are some miscreants and petty elements, (and every community has that), the majority are genuine people who toiled hard to be where they are.
I wonder why some of you here are clearly targeting a particular tribe in this county and telling me you are educated people.
but let me tell you that you are assholes, uneducated fucking jealous guys.
and let me tell you one more thing very clear if you hate a tribe (Somali) or any other one there is nothing you can do.
and now you hate somali tribe or like them that is your choice but you can’t ignore them. and by the way somalis will prosper here and there is nothing you can do only you can kill yourself.
Hello people,
I am a Kenyan living in Nairobi. I love my country and I love our neighbors. It is a pity that Somalia has had no government for so many years. We should pray for each other so that there is stability in our regioin instead of hating one another.
We call ourselves a religious country, God would be honored if we were considerate of each other. Somalis are a tribe just like any other and we are ALL children of God. All equal in HIS sight…
Thank you Mwende,
God bless you for being real and positive. There is enough for everyone on this earth. Somalis have not robbed anyone if anything it is our leaders who misuse our tax payers money and we should be upset with them. We should get very angry with our corupt public office berarers who divert resources meant for public use like free primary education, money for ARV’s money for roads etc. We should also realsie that we have very many Kenyan somalis who are respectable in the private sector and we contribute heavily to the development of our country.
Even the Somalis from Somalia or from Europe have a right to put up busineses and they can also choose to reside here if they so wish as long as they are not brekaing the laws of the land.
My fellow kenyans Somalis are not the source of our problems, It is bad governance and impunity by our leaders.
Good day
In every forum that come its way, our government is sourcing for FDI (foreign direct investment) and at the same time the FDI inflows from our easten neighbors whos economy has been devastated by internal conflicts and are forced to look for safer economies where they can invest, is not welcome.
It doesn’t make any economic sense. why beg for western investors to come all the way from europe and disregard the next neighbor who is willing to invest.
When the government announced the audit measure that was to look into properties that belong to Somalis from somalia, the business comunity from the war torn country realised that their investment is not safe in Kenya and looked for safer destination.
Currently Rwanda who’s government has very good and open investment policies is the destination of this community. the result in our economy? the shilling lost value by 10% in the past couple months and it might hit the 90 shilling mark to against the green back.
let us avoid hate statements and build a united and prosperous Kenya.