Landlords in Kitale town have stepped up investments in real estate as universities, banks and the retail sector drive demand for commercial space. Moi University, JKUAT, KU, UoN, Mt Kenya University and Kisii University College are among institutions operating satellite campuses in Kitale to tap into growing demand for higher education as the town's population increases.

Besides lecture halls, students in these institutions are in dire need of hostels in proximity to the campuses. A number of banks and retail supermarkets have also taken up space in the town, giving impetus to development of commercial properties. The most recent development in the town is a Sh400 million storeyed building being put up by Paresh Tanna, a veteran real estate investor in the town.

"I am putting up the building because of the demand for commercial building and profitability. I have invested in several other buildings in the town," said Tanna. The developer said some retail chains have already expressed interest in renting the space, signalling the high demand for commercial space.

"Several institutions have shown interest in renting the premise on completion, but what is important is to wait until we finish the project." Tanna, who owns the buildings housing branches of Equity Bank and KCB in Kitale, among others, said high construction costs are however slowing the pace of development.