Why new construction model has gained huge traction, trust among Kenyans

When Dr Muthoni Kagiri, a Kenyan living in Australia decided to build her dream home in Mweiga, Nyeri County, she was filled with both excitement and fear.

The excitement came from finally bringing to life the place she had envisioned for years — a peaceful home where her family could gather on holidays and eventually retire. The fear, however, was one shared by many Kenyans abroad: the risk of losing hard-earned money to unscrupulous contractors.

From her base, she had listened to countless horror stories from friends and colleagues who had tried to invest back home.

Some sent home millions of shillings only to be left with half-built shells.

Others trusted relatives to supervise the construction, only to discover later that the money had been mismanaged.

These stories lingered in her mind as she considered her own project.

“I wanted to build, but I was hesitant. The distance made it difficult to trust anyone fully. I knew if I lost my savings, I might never recover,” she said.

Her turning point came when she met a Ruiru-based contractor, who proposed a different arrangement. Instead of sending a lump sum and hoping for the best, she would release funds in stages, tied directly to the progress on the ground.

The foundation would be completed first, then the walls, then the roofing, and finally the finishing. Only after she had seen clear evidence of each step would the next payment be made. “For me, it felt like a lifeline.

It gave me peace of mind. “I could see my home taking shape stage by stage, knowing every shilling was going into real work. With photographs, video calls, and regular reports, the miles between Australia and Mweiga seemed to shrink,” she said.

As the walls began to rise, her excitement grew. She would show friends in Australia the progress photos, beaming with pride at the tangible results. By the time the roof was installed, she no longer carried the fear that had haunted her at the beginning.

“When I was in Australia, I started following this contractor online and reading testimonials from clients he had built for. For two years, I quietly observed his work, just to be sure he was someone I could trust,” she noted.

“When I finally flew back to Kenya, we got in touch and he took me through how the stage-payment construction system works. We visited the site together, and the moment I boarded my plane back to Australia, he began building my house. The process was smooth from start because he would only ask for money after completing each stage.”

The approach has since become popular among Kenyans abroad who, like Dr Kagiri, want a safeguard against fraud.

The transparency reassures them that their remittances are not disappearing into thin air.

For many, it is the only way they can confidently invest in real estate back home. Kenyans living abroad have been sending home record amounts of money.

According to the Central Bank of Kenya, remittances hit $5.084 billion (Sh657 billion) in the 12 months to June 2025.

New record

In June alone, Kenyans abroad sent Sh54.7 billion, while the first half of 2025 recorded Sh325.4 billion, a 5.8 per cent increase compared to the same period last year. If this pace continues, remittances could reach $5.23 billion (Sh675 billion) by the end of the year, setting a new record.

Much of this money ends up in the property market.

Analysts say over 60 per cent of diaspora remittances go into real estate, either through building projects, land purchases, or housing investments.

According to Rax Company chief executive Morris Kariuki, it is not only diaspora clients who are turning to this model. Locally, middle-class families are finding it useful too, as it allows them to build slowly without falling into heavy debt. Retirees are also embracing it, putting up modest homes in phases that fit within their pensions.

“Middle-class Kenyans, squeezed by high interest rates and limited mortgage access, are also turning to the model. Instead of borrowing heavily, many are choosing to build slowly — paying in stages as income allows. Locals see it as a way to avoid debt,” he said.

“They can pause at any stage if finances are tight, then resume later. It keeps the dream alive without overwhelming them. Retirees, too, are adopting the method, building modest homes for their twilight years without stretching their pension.” He explained that the stage-payment construction model is a system where payments are made step by step, from foundation to finishing, only after visible progress is achieved.

“Unlike lumpsum building contracts or off-plan purchases, stage-payment breaks down the construction journey into manageable milestones. A client pays for the foundation, then the walls, the roofing, and later the finishing touches — each phase triggered only after the previous one is completed and verified,” he said.

He stated that for diaspora clients, the appeal is clear: transparency and trust.

Regular updates and photos enable them to monitor progress from thousands of miles away, confident that their money is not vanishing into thin air.

“Most of my clients abroad tell me they like this model because they see exactly what their money has done before sending more. It removes the guesswork and builds trust,” he said.

 He noted that while stage-payment construction is winning trust, it is not without challenges. Rising costs of cement, steel, and other materials can derail budgets between stages.

“Whenever challenges like inflation or sudden price changes come up, we don’t rush to burden our clients with new budgets. Instead, we sit down with the suppliers and negotiate based on the amount available. Our goal is to protect the client from unexpected costs, because before any construction begins, we agree on a budget and we do everything possible to stick to it,” he said.

For locals, the story is no different. Purity Ngima from Wanjerere village in Murang’a County began building her three-bedroom home on a modest salary.

She could not afford to borrow from the bank. Instead, she signed a stage-payment contract with a local builder, contributing from her income and savings.

“I had already worked with an architect who designed my house, but I didn’t have the money to begin construction right away. That’s when I approached a contractor, and he assured me that I could still start small. So, I began with the foundation and then paused until I had saved enough to put up the walls. It took time, but it gave me peace of mind because I was building within my means and without debt,” she said.

Kariuki says that while stage-payment construction is winning trust, it is not without its challenges. “Clients must have watertight contracts that spell out the responsibilities of both parties.

There is always a risk of disputes if timelines are not met or if material costs rise drastically. Transparency and accountability are critical to avoid misunderstandings,” he said. The system can drag out projects if clients stall on payments, creating frustration on both sides.