Buying a house in Kenya is a major financial step, and knowing how much you actually need—beyond just the price tag—is key to planning wisely. Whether you’re using cash or a mortgage, there are several costs involved.
Here’s a clear breakdown of how much money you need to buy a house in Kenya in 2024.
1. The House Price (Main Cost)
House prices vary by location and type. Here’s what you can expect:
| Affordable Apartment (2-bed) | 4M – 8M | $30,000 – $60,000 |
| Townhouse / 3-Bed House | 8M – 20M | $60,000 – $150,000 |
| Mid-Range Home (Nairobi) | 20M – 50M | $150,000 – $370,000 |
| Luxury Home (Karen, Runda) | 70M – 200M+ | $500,000 – $1.5M+ |
| Beach House (Diani, Nyali) | 50M – 150M+ | $350,000 – $1.1M+ |
You can find affordable options in Syokimau, Ngong, Ruiru, Machakos, and Naivasha.
2. Deposit (Upfront Payment)
How much you pay upfront depends on whether you’re using cash or a mortgage:
| Cash Buyer | 100% of house price |
| Mortgage Buyer | 10% – 30% of house price |
| Developer Installment Plan | 10% – 20% booking fee, balance in installments |
💡 Example:
For a KSh 10 million house:
- Cash: Pay KSh 10M
- Mortgage: Pay KSh 1.5M – 3M deposit, bank finances the rest
- Installment Plan: Pay KSh 1M booking, then KSh 30,000–50,000/month for 3–5 years
3. Additional Costs (6–10% of House Price)
Even with the deposit, you’ll need extra funds for legal and government fees:
| Stamp Duty | 4% (individuals), 6% (companies) |
| Legal Fees | 1% – 2% of house price |
| Valuation Fee | KSh 10,000 – 50,000 (for mortgages) |
| Land Search & Registration | KSh 5,000 – 15,000 |
| Agent Commission | Usually 5% (paid by seller, but confirm) |
| Mortgage Processing Fees | KSh 10,000 – 50,000 (bank charges) |
👉 Total extra costs: KSh 600,000 – 1M on a KSh 10M house.
4. Minimum You Need to Start
You don’t need millions to begin. Here’s how to start small:
- As low as KSh 500/month: Join NHF (National Housing Fund) to qualify for future mortgages.
- KSh 10,000 – 100,000: Booking fee for off-plan or installment homes.
- KSh 1.5M+: Realistic starting deposit for a mortgage on a mid-range home.
💡 Tip: Use SACCOs like Mwalimu or Stima to save and access low-interest home loans.
5. Can You Buy a House with No Money?
You can’t buy a house with zero money, but you can start with very little:
- Save KSh 500/month in NHF
- Use developer payment plans (pay as you go)
- Apply for a 10% deposit mortgage after building credit
But beware of scams promising “free houses”—they don’t exist.
Frequently Asked Questions (FAQs)
Q: What is the cheapest house I can buy in Kenya?
A: As low as KSh 2.5 million in government or private affordable housing projects (e.g., Pam Pam Estate, Soweto Ngong).
Q: How much deposit do I need for a KSh 5 million house?
A: With a mortgage: KSh 750,000 – 1.5 million (15–30%). The rest is financed.
Q: Can I buy a house with only KSh 200,000?
A: Not outright, but yes as a booking fee for an installment plan or to start saving toward a mortgage.
