Cost of Building Apartments in Kenya | 2025 Update

The cost of building apartments in Kenya is Ksh. 35,500 to Ksh. 70,500 per square meter, with Nairobi apartment construction often reaching the higher end due to premium land prices and high contractor rates. You may ask, “How much does it cost to build an apartment in Kenya?” or even “How much does it cost to build a 20-unit apartment complex in Kenya?” Well, my answer is simple. Construction costs in Kenya are largely determined by factors such as land prices, location, materials, and labor.

But while many wonder how much an apartment is in Kenya for buyers, it’s also common to ask how much a 10-unit apartment building costs, as investors weigh the potential returns against Kenya construction costs, including the land. Please note that prices vary significantly depending on location, size, and amenities. This piece will break down these costs and provide you with statistical insights into Kenya’s apartment construction landscape. We will also address “How much does it cost to build a 20-unit apartment complex in Kenya?” or the cost of building flats in Kenya. Bottom line question — is buying an apartment the right option for you?

Real Estate Development Costs in Kenya/ Kenya Building Costs

The real estate sector in Kenya has witnessed exponential growth, with apartment construction driving much of this development. In 2023, Kenya’s construction industry contributed 8.7% to the GDP, highlighting its importance in the economy. Urban areas like Nairobi account for over 40% of new housing developments, with demand for affordable housing surging by 200% over the last decade.

• Housing Deficit: Kenya faces a housing deficit of 2 million units, with an annual demand growth of 250,000 units, emphasizing the need for new apartment projects.
• Investment Insights: Real estate investments now offer returns of 8-12% annually, making apartment construction a lucrative venture.

Kenya Construction Costs

a. Land Acquisition Costs

• In Nairobi, prime land costs range from Ksh. 20 million to Ksh. 600 million per acre, depending on proximity to the Central Business District (CBD).
• Rural and peri-urban areas, such as Kiambu or Kitengela, offer more affordable land at Ksh. 2 million to Ksh. 10 million per acre.

b. Construction Materials

• Material costs account for 60-70% of the total construction budget.
  • Cement: Ksh. 600-700 per bag.
  • Steel (per ton): Ksh. 120,000-150,000.
  • Sand (per ton): Ksh. 2,000-3,000.
• Recent trends in sourcing apartment building materials in Kenya show a 10% increase in local material usage, reducing reliance on costly imports.

c. Cost of Labor

• Labor constitutes 30-40% of total construction costs.
  • Skilled labor (e.g., masons, plumbers): Ksh 1,500-2,500 per day.
  • Unskilled labor: Ksh 700-1,200 per day.
• Nairobi labor rates are approximately 20% higher than in smaller towns.

d. Architectural and Design Costs

• Professional fees for architectural design in Kenya range from 5-10% of total project costs.
• For a standard apartment project worth Ksh 50 million, architectural fees can be between Ksh 2.5 million and Ksh 5 million.

e. Contractor Rates

• Contractor rates in Kenya average Ksh. 3,000-5,000 per square meter for labor-only contracts. Turnkey contracts, covering both labor and materials, can go up to Ksh. 70,000 per square meter.

Regulatory and Legal Considerations

a. Building Permits in Kenya

• The cost of obtaining a building permit depends on the project size and location.
  • In Nairobi, permit fees for apartments range from Ksh 100,000 to Ksh 500,000, comprising 2-5% of total project costs.

b. Kenya Building Code Requirements

• Compliance with Kenya building code requirements ensures safety and project approval. Non-compliance can lead to penalties or demolition, incurring additional costs.

Financing Apartment Projects in Kenya

• Banks and SACCOs provide loans at interest rates of 12-14% per annum, with most lenders requiring a 20-30% equity contribution.
• Mortgage uptake for financing apartment projects in Kenya has grown by 5% annually, driven by favorable government policies.

Affordable Housing and Cost-Saving Strategies

• The government’s Affordable Housing Kenya initiative targets the construction of 500,000 housing units by 2025. Developers in this program benefit from tax incentives, reducing project costs by up to 15%.
• Cost-saving strategies include:
  • Using pre-fabricated materials, we can reduce construction time by 30%.
  • Employing local labor to save on transport and housing costs for workers.

Trends in Kenya’s Construction Industry

• Kenya construction industry trends reveal a shift toward sustainable and green building practices, with 20% of new developments incorporating eco-friendly designs.
• The sector is expected to grow by 6.5% annually, with increased demand for mixed-use apartments.

How Much Does it Cost to Build a 20-Unit Apartment Complex in Kenya?

The cost of constructing a 20-unit apartment complex in Kenya is approximately KES 120 million to KES 180 million. This cost varies significantly based on factors such as location, design specifications, and construction materials. As of 2024-2025, construction costs for residential buildings range between KES 48,750 and KES 122,860 per square meter, influenced by regional and project-specific factors.

For instance, in Nairobi and the Mt. Kenya region, constructing a standard low-rise apartment block costs approximately KES 55,350 per square meter, while a high-rise apartment block is around KES 59,950 per square meter. Assuming each apartment unit averages 80 square meters, the total built-up area for 20 units would be 1,600 square meters. At a mid-range cost of KES 60,000 per square meter, the estimated construction cost would be approximately KES 96 million.

However, this estimate excludes additional expenses such as land acquisition, architectural and approval fees, utility connections, and contingencies. Land prices, for example, can vary widely, with prime locations in Nairobi ranging from KES 20 million to KES 600 million per acre. Architectural and design fees typically range from 4% to 7% of the total construction budget.

Considering these additional costs, the total investment for a 20-unit apartment complex in Kenya could range from approximately KES 120 million to KES 180 million, depending on the project’s specific requirements and location.

Case Study: Nairobi Apartment Construction Costs

For a standard 3-bedroom apartment in Nairobi:

• Land Cost: Ksh 20 million (prime area).
• Construction Cost: Ksh 45,000 per square meter.
• Total Cost: Approximately Ksh 75 million for a 1,500-square-meter project.

In comparison, similar projects in peri-urban areas like Thika or Rongai can cost 30-40% less, owing to cheaper land and labor.

Building apartments in Kenya requires careful budgeting and understanding of key cost factors such as land prices in Kenya, apartment building materials in Kenya, and contractor rates in Kenya. With construction costs averaging Ksh 35,000 to Ksh 70,000 per square meter, developers must stay informed of industry trends, regulations, and financing options to succeed in this lucrative market.

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