How Much Does it Cost to Own an Apartment in Kenya?

If you’re considering buying an apartment in Kenya, two essential questions come to your mind: how much does an apartment cost in Kenya? and how much does it cost to own an apartment in Kenya? While these questions seem similar, they address different aspects of real estate investment.

My guide will provide you with an in-depth breakdown of apartment prices in Kenya, key factors that influence costs, and the complete financial implications of ownership.

Factors Affecting Apartment Prices

Apartment prices in Kenya vary significantly based on the following factors:

1. Location – The most influential factor. Apartments in Nairobi, especially in prime areas like Kilimani, Westlands, and Kileleshwa, cost significantly more than those in satellite towns like Kitengela, Ruiru, and Syokimau.
2. Size & Type – A studio apartment is cheaper than a three-bedroom penthouse. The larger the apartment, the higher the price.
3. Developer & Quality – High-end developments with luxury finishes and amenities (e.g., swimming pools, gyms, security systems) cost more.
4. Market Demand – Prices fluctuate based on demand, with high-demand areas commanding premium prices.
5. Infrastructure & Accessibility – Apartments in well-developed areas with good roads, schools, hospitals, and shopping malls tend to be more expensive.

Average Apartment Prices in Kenya

Here’s an approximate price range based on location and apartment size:

Nairobi (Prime Locations – Kilimani, Westlands, Lavington, Kileleshwa)

• Studio Apartment: Ksh 4M – Ksh 7M
• 1-Bedroom: Ksh 6M – Ksh 12M
• 2-Bedroom: Ksh 10M – Ksh 20M
• 3-Bedroom: Ksh 15M – Ksh 35M

Nairobi (Affordable Locations – Ruaka, Ruiru, Syokimau, Kitengela)

• Studio Apartment: Ksh 2M – Ksh 4M
• 1-Bedroom: Ksh 3M – Ksh 6M
• 2-Bedroom: Ksh 5M – Ksh 10M
• 3-Bedroom: Ksh 8M – Ksh 18M

Mombasa, Kisumu, Eldoret

• Studio Apartment: Ksh 1.5M – Ksh 3M
• 1-Bedroom: Ksh 2.5M – Ksh 5M
• 2-Bedroom: Ksh 4M – Ksh 8M
• 3-Bedroom: Ksh 6M – Ksh 15M

As seen above, the cost of an apartment in Kenya is highly dependent on location and apartment size.

How Much Does It Cost to Own an Apartment in Kenya?

Buying an apartment is just the beginning. Owning an apartment comes with additional costs beyond the purchase price. These include legal fees, taxes, mortgage rates, and maintenance expenses.

1. Legal & Transactional Costs

When purchasing an apartment, buyers incur various legal charges, including:

• Stamp Duty: 2% to 4% of the property value.
• Legal Fees: Typically 1% to 2% of the property price.
• Valuation Fees: 0.25% to 1% of the apartment’s market value.
• Title Transfer Fees: Varies but can range from Ksh 50,000 to Ksh 200,000 depending on the county.
• Agent/Commission Fees: Typically 1% to 3% of the apartment price (if using a real estate agent).

2. Mortgage & Financing Costs

If you are not buying in cash, you will need a mortgage. Mortgage rates in Kenya vary between 11% and 14% annually, depending on the bank and loan duration. For instance:

• Ksh 10M apartment with a 15-year mortgage at 12% interest will have a monthly repayment of approximately Ksh 120,000 – Ksh 140,000.
• Deposit requirements: Most lenders require a 10% to 20% down payment.
• Processing fees: Banks charge between 1% and 3% of the loan amount as processing fees.

3. Maintenance & Service Fees

Owning an apartment involves ongoing costs for upkeep. Some key expenses include:

• Service Charge: Paid monthly to cater for security, garbage collection, and shared amenities (ranges from Ksh 3,000 to Ksh 20,000 per month).
• Repairs & Renovations: Budget for minor and major repairs over time.
• Property Insurance: Recommended to protect against fire, theft, or natural disasters (costs range from Ksh 10,000 to Ksh 50,000 per year).

4. Property Taxes

As a property owner, you are required to pay annual land rates and rental income tax (if renting out the apartment). These taxes depend on location and property value.

Understanding both how much does an apartment cost in Kenya? and how much does it cost to own an apartment in Kenya? is crucial for making an informed decision. While the purchase price is the most obvious cost, additional expenses such as legal fees, mortgage payments, maintenance, and taxes significantly impact the total cost of ownership.

If you’re planning to buy an apartment in Kenya, consider all these financial aspects to ensure a smooth and well-planned investment. Whether you’re purchasing in cash or through a mortgage, owning an apartment is a rewarding but financially demanding commitment.