A few years ago, Ol Kalou town was nothing more than a neglected, dusty, bushy one-street town with shrubs and stinging nettles dominating much of the landscape.
Investors often overlooked Ol Kalou, instead choosing Nyahururu due to its status as the district headquarters, which fuelled its growth.
But the situation is rapidly changing. The stinging nettles have disappeared from the Central Business District (CBD) and the highway has been replaced by a surge of new businesses, with locals studying or working abroad returning with investments.
Modern hotels and other commercial buildings now dot the highway from Captain Market—where Nyandarua University will be built—through to Rurii Market, rapidly consuming agricultural land over a 10-kilometre stretch.
Meanwhile, banks and financial institutions are dominating the CBD.
Less than five years ago, the town had only a handful of traditional banks with Kenya Commercial Bank as the pioneer, followed by Equity Bank and Cooperative Bank.
But in the last three years, more banks have set up shop. Sidian Bank opened a branch just days ago, while Diamond Trust Bank entered the market last year. Numerous microfinance institutions have also flooded the town.
By 2022, Ol Kalou had only two supermarkets. Today, that number has grown to at least six.
Investors attribute the influx of investments to unexploited opportunities, high growth potential and a conducive business environment.
Alex Kabia, a Kenyan working and studying abroad, is among Nyandarua residents seizing these opportunities. He is the proprietor of La Montana Hotel.
Nyandarua Governor Kiarie Badilisha joined by Sidian Bank officials during the opening of the Ol Kalou Sidian Bank Branch on August 22, 2025.
Photo credit: Waikwa Maina | Nation
“On visiting Nyandarua two years ago, I was impressed by the town’s rapid growth,” he said. “I did my research and established that there is high growth potential and the business environment is conducive. My initial idea was to invest in Nairobi, Nakuru, Mombasa or another major town. But I changed my mind after the visit. I invested in Nyandarua, and the business is doing very well—far better than I expected.”
Kabia is already expanding the hotel, less than a year after opening its doors in January.
When asked why he chose Ol Kalou, Kabia explained: “I chose to invest here because of the town’s potential as the headquarters of Nyandarua County.”
Customer Mr Maina Ngugi says the introduction of world-class services has motivated many other investors.
Other new entrants in the hospitality industry include Premier Holiday Hotel, located along the Ol Kalou–Gilgil road, and 816 Hotel, less than a kilometre from Ol Kalou town towards Nyahururu.
Mr Thumbi Chege, the CEO of Sidian Bank which recently opened a branch in Ol Kalou, said the town’s growth motivated their entry.
“Opportunities for growth guided investors. Nyandarua is very promising. Friendly investment conditions and county government policies are also encouraging. We plan to open new branches in other Nyandarua towns,” said Chege.
“We have noted an influx of investments in Nyandarua, which has forced us to tailor more products. Our housing finance product, for example, is becoming increasingly popular due to rising real estate investments. Diaspora customers are also rapidly increasing, with strong interest in commercial buildings. Many investors are applying for working capital and agribusiness financing,” Mr Njenga said.
He credited investor-friendly policies and incentives from the county government for fueling the growth.
According to Nyandarua Cooperatives and Trade Executive John Muriu, the county government has introduced measures such as business license waivers, enhanced water and sanitation services, cabro installation in urban centres, faster land titling and expanded electricity connections.
“Tax holidays, the governor’s willingness to meet investors, and our department’s end-to-end support are among the incentives driving investment. We are not only focusing on external investors but also building the capacity of local traders through partnerships with financial institutions and agricultural training centres,” said the CEC.
The county has also streamlined construction approvals and introduced an investor’s guidebook outlining bankable projects.
Governor Kiarie Badilisha said deliberate strategies were adopted to woo investors, including removing bureaucracy, reviving cooperatives and fostering collaboration between the county assembly and executive.
“The entry of banks and other financial institutions is vital for supporting farmers, traders, and youth enterprises by improving access to affordable credit. These investments create jobs and provide markets for agricultural produce,” he said.
However, Governor Badilisha warned that the recent destruction of property during the June 25 anti-government protests had reversed some gains. The county lost property worth more than Sh2 billion, including 26 vehicles, Ol Kalou Police Station and the Assistant County Commissioner’s offices.
“The destruction by hired goons has affected services critical to investment, but we are working to ensure businesses are not disrupted,” said the governor.
“Funds that would have gone into infrastructure and development must now be used to replace what was destroyed. This negatively affects investor confidence,” she said.
