Enter your details to compare renting vs buying costs
Rent vs Buy Comparison
Total cumulative costs for renting vs buying
Common questions about renting vs buying property in Kenya
The decision to rent or buy in Kenya depends on factors like your financial situation, how long you plan to stay, property prices, and rental costs. Generally, buying makes sense if you plan to stay 5+ years and have stable income. Use our calculator to compare costs based on your specific situation.
In Kenya, rental yields typically range from 6-12% annually, meaning monthly rent is usually 0.5-1% of property value. In Nairobi, this ratio varies by location - areas like Westlands may have lower ratios (higher property prices) while emerging areas may have higher ratios.
Most Kenyan banks require 10-20% down payment for residential mortgages. KMRC-backed mortgages may require as little as 5-10%. The larger your down payment, the better interest rates you're likely to get from lenders.
When buying, consider: legal fees (1-2%), valuation fees, stamp duty (2-4%), insurance, maintenance, and property taxes. When renting, consider: security deposits (typically 2-3 months), agent fees, and potential annual rent increases.
The break-even point is when total costs of renting equal total costs of buying. It considers your down payment, monthly mortgage vs rent payments, and cumulative costs over time. Our calculator automatically computes this based on your inputs.
Property appreciation can significantly impact the rent vs buy decision. In Kenya, property values have historically appreciated 5-15% annually in good locations. However, appreciation isn't guaranteed and varies by location, economic conditions, and market cycles.
