Joseph Waweru is preparing to open another Bata depot in Molo, betting on a town that many investors once avoided.
Just a decade ago, its past was enough to keep capital away. Today, rising land prices, a growing population and renewed business activity are turning it into one of Nakuru County’s most closely watched growth centres.
That shift is perhaps most visible in the land market. In 2015, an eighth-acre plot in Molo sold for about Sh350,000. Today, similar parcels fetch between Sh2 million and Sh2.5 million.
A 50 by 100 plot in the outskirts now goes for about Sh1.3 million, up from Sh600,000, while plots near the main tarmac linking the town to Kuresoi, Elburgon and Njoro are selling for between Sh1.4 million and Sh1.5 million.
The surge reflects renewed investor confidence in a town still rebuilding its economic identity. Molo’s population has grown to about 270,000, according to the 2019 census, driven by rising demand for housing and business space.
Several factors are underpinning the town’s revival. Its location along the Nakuru-Eldoret highway provides a strategic link to major markets, while the agriculturally rich areas of Njoro and Kuresoi continue to anchor trade in the region.
Devolution has also played a role. In July 2022, Molo, alongside Gilgil, was elevated to municipality status, unlocking funding from county and national governments as well as development partners. The town now receives at least Sh50 million annually for urban infrastructure development.
A difficult past
Yet Molo’s resurgence comes against the backdrop of a difficult past. The town was among the hardest hit during the 2007-2008 post-election violence, which disrupted businesses, displaced residents and stalled development.
It had experienced similar unrest in 1992, leaving a lasting imprint on investor sentiment. For residents, the turnaround has been gradual but visible.
‘I came here in 2005 when people were moving to Molo in search of jobs and business opportunities. Construction of commercial buildings had picked up, but everything stalled during the violence,’ says Peter Onduso, a long-time resident.
Recovery began to take shape after 2013, following the onset of devolution.
‘Since then, the town has bounced back and is now one of the busiest commercial centres in Nakuru County,’ he says.
As confidence returned, stalled construction projects resumed and new ones emerged. Investors who once avoided the town are now competing for space, drawn by its growing commercial potential.
Expanding business footprint
Banks, telecommunications firms and small businesses have steadily expanded their footprint. Financial institutions such as Co-operative Bank, Equity Bank and KCB have strengthened their presence, while businesses ranging from hotels and restaurants to M-Pesa shops, salons and mini-supermarkets have proliferated.
The influx has in turn driven demand for housing, prompting private developers to put up residential and commercial buildings. However, the growing population has also led to a housing shortage, pushing rents higher over the past five years.
Despite the upward pressure, Molo remains relatively affordable compared to larger urban centres.
‘Food is affordable and readily available compared to major towns in the region. Rent is also relatively low, you can get a single room for about Sh2,500, while a one-bedroom house can cost as little as Sh5,000,’ says Milka Kemunto, a local teacher.
An economist’s take
Economic analysts attribute the town’s growth to a combination of available land, improved security and its proximity to key transport corridors.
‘Molo’s expansion is anchored on its strong agricultural base, supported by surrounding areas such as Njoro and Kuresoi,’ says analyst John Kimani, adding that more businesses may increasingly relocate from larger towns in search of lower costs.
Data from the Nakuru County Department of Finance and Economic Planning shows that annual revenue collection from Molo has risen to between Sh50 million and Sh60 million, up from about Sh20 million before devolution.
Lingering challenges
Still, challenges remain. Residents cite poor road networks, unreliable water supply and frequent power outages as constraints to faster growth.
‘If roads like the Molo-Njoro route are improved, it will boost business and reduce transport costs,’ says Jimson Ndung’u, who runs an M-Pesa outlet in the town.
Others believe infrastructure upgrades could position Molo to compete with larger regional centres such as Nakuru, Kericho and Naivasha.
Railway boost
The town’s prospects may also receive a boost from the ongoing revamp of the Nakuru-Kisumu metre-gauge railway line, which passes through Molo. Improved rail connectivity is expected to enhance the movement of goods and people, further strengthening its appeal to investors.
For entrepreneurs like Waweru, as well as Jimson Ndung’u, who runs an M-Pesa shop, the shift is already clear. A town once defined by uncertainty is now attracting fresh capital, with investors from different communities moving in and expanding their footprint.