Real Estate investment in Kenya. Best returns for year 2014.

Current Real Estate investments in Kenya have return on investment within 14 to 18 years.

Lets look at curent available options around Nairobi.


The average 2 bedroomed apartments for sale go for kes 4m.

These attract rents of kes 25,000 per month.
This gives a return on investment of 13.3 years.

Ngong road, Racecourse area.

The average 2 bedroomed apartments here sell for kes 6.5m.

These can attract a rent of kes 40,000 per moth.
This translates to a return on investment of 13.5 years.

In other words, if one spends their money on the average Nairobi property on sale, they will recover their money back after 13 years, from here is where they can start calculating the profit in rent.

A4architect investment solution. has come up with real estate investment solutions that make possible for investors to return their investment within a maximum of 6 years.

After research on the most cost effective methods to invest in Real estate in Kenya, the solutions have led to conception of a Motel project along the Southern Bypass near Thogoto town.

30 room hotel.

The concept is simple. Its a 30 roomed hotel whereby each of the 30 rooms will be translated and represented by 1 share.
Investors will then buy 1 room which is equivalent to 1 share from a Limited Liability company registered under the Companies Act of Kenyan laws.

The 1 share can then be resold at a profit, or transferred to another owner in case of inheritance or can act as collateral in case of borrowing.

Appreciation in value.

This 1 share bought will immediately start appreciating in valuue with the current high property appreciation rates around Nairobi.
The investor will then immediately start increasing their wealth as the property value goes up.

Monthly income.

This 1 share that translates to 1 hotel room will then start to earn monthly income for the benefit of the investor.
Assuming minimum rate per night at kes 1,000, and a 60% occupancy rate per month, this 1 share will guarantee a monthly income of kes 18,000. This rate of kes 1,000 shillings is on the lower side considering other hotels in the neighbourhood charge as high as kes 7,000 per night for the same sized room.

Sale price.

The initial sale price per hotel room is set at kes 1.2m.
This translates to a return on investment of 5.5 years.

This is very impressive considering that the average return on investment for Nairobi property investors is between 13 to 18 years.
The 5.5 years return is calculated at the worst case scenario since after the 1st year, the occupancy rate will go up from the 60% envisaged, to nearly 100% and the rate per night will then increase from the kes 1,000 per night up to a possible kes 7,000 per neigh as charged by the current nearby hotels.

Investors .

Potential investors can join in to the conversation at our forum here to learn more
Investors can send email to on information on joining in.

Francis Gichuhi Kamau, Architect.

Francis Gichuhi (692 Posts)

Architect Francis Gichuhi . B.Arch. University of Nairobi. Registered Architect, Kenya. Member, Architectural Association of Kenya. Contacts. email Telephone +254721410684


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