Yields are moderate to good in Nairobi, Kenya: expect around 6.5% from an apartment.

September 30, 2016

Last Updated: Sept. 30, 2016
NAIROBI - Houses COST (US$) YIELD (p.a.) PRICE/SQ.M. (US$)
2 BR 140,800 697 5.94% n.a. n.a.
3 BR 202,391 1,123 6.66% n.a. n.a.
NAIROBO - Houses
3 BR 500,984 2,207 5.29% n.a. n.a.
4 BR 718,740 2,565 4.28% n.a. n.a.
5 BR 1,126,429 3,303 3.52% n.a. n.a.
NAIROBI - Apartments
4 BR 474,666 2,396 6.06% n.a. n.a.
5 BR 679,739 2,874 5.07% n.a. n.a.
Districts researched
Nairobi: Karen, Langata, Muthaiga, Gigiri, Westlands, Milimani, Runda
Kilimani, Kileleshwa, Kitisuru, Lavington, Parklands, Spring Valley, Riverside, Hurlingham and Highridge
Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule

Nobody would say that Nairobi is inexpensive. A nice big house can cost $1.1 million in what is still a poor country. But the rental returns are rather good.

  • A 3 bedroom apartment in an elite district of Nairobi can be bought for around US$200,000.
  • A 3 bedroom house may go for US$500,000, and a 5-bedroom house may go for US$1.1 million.
  • Townhouses are somewhere between these two prices.

How much will you earn? Gross rental yields on Nairobi apartments are moderately good, at around 6.0% to 7%. Townhouses yield around 5.0% to 6.0%. Yields on detached houses are lower, at 4% to 5.5%.

Conclusion: Nairobi property is attractive, with significant capital gains potential. The best combination of rental yield and capital gains seems likely to be offered by townhouses.

Round trip transaction costs are very low in Kenya. See our Property transaction costs analysis for Kenya and Property transaction costs in Kenya, compared to the continent.


Rose Murage | June 23, 2010

What is the minimum notice period is landlord required to give to a tenant to vacate premises

Mathew Thomas | July 12, 2010

Who is supposed to pay the land rent? The lessor or lesse?

Dude | July 31, 2010

@Mathew, the owner pays the land rent.

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