Which way—capital markets or real estate? Online debate pits Nyoro against Kariuki

Composite image of Kiharu MP Ndindi Nyoro and Comfort Homes CEO Hezekiah Kariuki.

A lively debate has emerged online pitting Comfort Homes CEO Hezekiah Kariuki against Kiharu MP Ndindi Nyoro over which investment avenue—land banking or the stock market—offers better returns.

The exchange was sparked by the circulation of a video clip in which Nyoro was speaking at a public forum in September.

Addressing a business breakfast meeting in Nyeri on September 16, the MP argued that returns from buying shares in well-performing companies can be higher and realised faster than investing in land, which he said may take up to 15 years to yield profits.

Nyoro cited examples of several leading Kenyan companies whose shares, he said, had delivered significant gains within weeks or months.

He pointed to one reinsurer whose shares were trading at Sh1.06 at the beginning of December 2024, rising to an average of Sh3.50 per share by mid-September 2025.

He further noted that within a year, shares of the state-owned and publicly listed Kenya Electricity Generating Company (KenGen) had climbed to Sh9.70 from an initial offer of about Sh3—a price he described as “cheaper than a sweet”.

“It doesn’t happen all the time. I’m not telling you Monday go buy those shares, no!” Nyoro said.

According to the legislator, successful stock market investing requires studying market cycles, buying at low points and selling during bullish periods.

“What I’m saying is you can make money passively. It doesn’t happen all the time, but you can recover all your money in two and a half years,” he added.

Kariuki, however, strongly disagreed, blaming the MP for encouraging idleness, particularly among young people.

He warned that the economy would stagnate if Kenyans focused solely on shares in pursuit of what he termed “handsome returns”.

He said Kenya had witnessed numerous cases of rogue investment firms that lured investors with promises of quick gains, only to collapse with billions of shillings in losses.

“Let me tell you, Kenyans, it’s not sustainable. The turbulence of Kenya’s economic atmosphere is not very predictable because it always revolves around election cycles,” Kariuki said.

“Take, for instance, you have been told your shares will earn you 15 per cent interest. The returns are taxed, and you will go home with, say, 12 per cent. But what will you be doing all the while if you have given all your money to someone else to work with it on your behalf?” he posed.

Kariuki, winner of the CEO of the Year award 2024, argued that an overreliance on passive income would render young people idle, with a ripple effect of economic stagnation.

“Hon Nyoro, you are killing the economy unknowingly,” he said. Drawing from his experience in real estate, Kariuki maintained that no economy can develop if its population depends entirely on passive income, as this implies a lack of productive activity.

“Imagine if all the people taking the loans being given by the government invested in shares—what would happen? The President is saying take the loans and invest in businesses like rabbit rearing. Does he not know there are shares?” he asked.

“So I ask my friend Hon Nyoro, stop misleading people. A country cannot develop if its people are not working and are only focused on buying shares all through.”