If you’re living abroad and considering owning real estate in Kenya, you’ve come to the right place.
Real estate in Kenya offers great chances to build wealth, especially with options like Airbnb for short stays and long-term rentals for steady income.
In this post, we’ll talk about buying, managing, renting out, taxes, and more. Additionally, I’ll share up-to-date statistics to help you make informed choices.
Let’s explore how you can own real estate in Kenya without being physically present daily.
Understanding the Real Estate Market in Kenya
First, let’s examine the current state of real estate in Kenya. Kenya’s real estate market is experiencing rapid growth, driven by an increasing number of people relocating to cities and a corresponding demand for housing.
In 2025, the sector experienced a 33.7% increase in output from 2019 to 2023, and this growth trend is expected to continue.
Urbanization is increasing by over 4% each year, and Kenya alone faces a housing shortage of more than 2 million units.
This makes real estate in Kenya a smart pick for investors. Rental yields are also high – in places like Nairobi, you can achieve gross yields of 10-11% on long-term rentals.
Real estate market trends in Kenya indicate that prices are stabilizing, with a greater focus on affordable homes.
Commercial real estate in Kenya is also experiencing significant growth, with demand for offices and retail spaces in expanding areas.
If you’re abroad, being aware of these trends helps you identify real estate investments in Kenya that are suitable for you.
Real estate properties in Kenya range from apartments in Nairobi to land in satellite towns.
Kenya’s real estate market is ahead of many global ones in 2025, with strong growth in hospitality and mixed-use spots.
Real estate returns in Kenya can be solid, especially if you pick areas with high demand. However, real estate owners in Kenya need to stay informed about local regulations.
Steps to Buy Real Estate in Kenya from Abroad
If you want to buy real estate in Kenya from abroad, follow this straightforward step-by-step process.
As a foreigner or Kenyan in the diaspora, owning real estate in Kenya is possible, but there are rules, such as limits on land ownership.
Real estate in Kenya offers good opportunities, and with planning, you can complete the purchase remotely.
Step 1: Understand Ownership Rules
First, familiarize yourself with the laws governing foreigners in real estate in Kenya. Foreigners cannot own freehold land but can hold leasehold titles for up to 99 years, which are renewable.
Kenyans abroad can own freehold if they qualify as citizens. Check your status to avoid issues. This is a key rule in real estate in Kenya.
Step 2: Define Your Investment Goals
Decide what you want from the property. Are you aiming for rental income through Airbnb or long-term tenants, or capital growth?
Consider location, budget, and type, like residential or commercial real estate in Kenya. This helps narrow your search.
Step 3: Research and Identify Properties
Scout for suitable properties online. Focus on high-demand areas, such as Nairobi or Mombasa, for better returns in real estate in Kenya. Request photos, videos, or virtual tours from sellers.
Step 4: Engage a Trusted Real Estate Agent
Hire a reliable agent to handle the search remotely. Real estate companies in Kenya, or hiring an agent on the ground, can provide you with further insights.
They can negotiate and arrange inspections, making real estate in Kenya accessible from abroad.
Step 5: Conduct Due Diligence
Verify the property details. Do a title search via the Ardhisasa platform at the Ministry of Lands to confirm ownership, check for liens, encumbrances, or disputes.
Hire a surveyor for physical inspection if needed. This step helps prevent scams in the real estate industry in Kenya.
Step 6: Hire a Real Estate Lawyer
Get a qualified lawyer to oversee the legal process. They will review documents, confirm the seller’s ownership, and draft agreements.
I recommend Chepchieng and Company Advocates; they’re experts in real estate in Kenya and can guide you smoothly from abroad.
Step 7: Secure Financing If Needed
Arrange funding. You can get a mortgage from Kenyan banks if you have local ties, or international loans from US banks for real estate in Kenya. Provide proof of income and obtain pre-approval to expedite the process.
Step 8: Sign the Sale Agreement and Pay Deposit
Once satisfied, sign the sale agreement prepared by your lawyer in Kenya. Pay a deposit, typically 10% of the price, to secure the deal. The agreement outlines terms, timelines, and conditions for real estate transactions in Kenya.
Step 9: Pay Stamp Duty and Complete Payment
Pay the remaining balance. Then, settle the stamp duty, which is 4% of the market value for urban areas and 2% for rural areas.
Your lawyer handles submission to the Kenya Revenue Authority, and you should budget for other fees, such as legal costs.
Step 10: Transfer and Register the Property
Finalize the transfer at the Lands Registry. Get the title deed in your name. This completes ownership. The whole process of investing in real estate in Kenya usually takes 3-6 months.
Follow these steps, and you’ll successfully own real estate in Kenya from abroad. Many investors undertake this process annually, and with professional assistance, it’s a straightforward task.
Managing Your Property from Abroad
Owning real estate in Kenya requires effective management, especially if you’re not physically present.
This is where real estate management companies in Kenya play a crucial role. They handle everything from finding tenants to repairs.
Look for reliable real estate management companies in Kenya. They collect rent, conduct inspections, and address issues. Fees are usually 8-10% of rent. This ensures that your real estate in Kenya operates smoothly.
Technology also helps; use apps for remote monitoring. Real estate management companies in Kenya often provide online portals to track income and expenses. If you have multiple properties, they can manage your portfolio.
For landowners, partnering with real estate management companies in Kenya frees up time. Investors love this because it boosts real estate returns in Kenya without daily hassle. Choose one with good reviews to avoid problems.
Airbnb and Long-Term Rentals in Kenya
Now, let’s discuss earning money from your real estate in Kenya through rentals. Airbnb is popular for short stays, especially in tourist spots like Nairobi or Mombasa.
The market is expected to grow, with lenient regulations in 2025. You need a license from the Tourism Regulatory Authority, which requires a one-time fee and annual renewal.
To start Airbnb, furnish your place nicely and list it online. Earnings can be high, up to $46 daily in Nairobi with a 46% occupancy rate. But follow local rules; some counties want guidelines for operations.
For long-term rentals, it’s steadier. The long-term rental market in Kenya is strong, with demand in urban areas. Leases over 6 months provide consistent income.
Mix both for the best results. Utilize real estate management companies in Kenya to handle bookings and property maintenance. This way, you earn money in Kenya from abroad.
Income Tax on Rental Income in Kenya
Taxes are essential when owning real estate in Kenya. Income tax on rental income is straightforward.
For residential rentals, the rate is 7.5% on gross rent if your annual income is between KES 288,000 and KES 15 million. No deductions allowed – it’s a final tax.
For non-residents, income tax on rental income is the same; however, it must be filed through KRA’s system. Commercial rentals might differ, so check. Taxation of real estate in Kenya includes a withholding tax of 10% on rent for residents.
Use eRITS for easy filing. Income tax on rental income applies to Airbnb, too – treat it as a rental property. Consult with real estate lawyers in Kenya, such as Chepchieng and Company Advocates, to ensure compliance. They help with income tax on rental income setups.
Avoid penalties by paying monthly. Income tax on rental income is key for real estate owners in Kenya.
How to Join the Real Estate Business in Kenya
If you want to join the real estate business in Kenya, follow this straightforward step-by-step process. Real estate in Kenya is a growing field with numerous opportunities, but getting started correctly is key.
Step 1: Get the Right Education
Begin by obtaining a diploma or degree in real estate, land management, business, or a related field. While not always mandatory, this gives you an edge in understanding real estate in Kenya. Many universities, such as the University of Nairobi, offer these programs.
Step 2: Gain Practical Experience
Build hands-on skills through internships or entry-level jobs with established real estate companies in Kenya. Work as an assistant or junior agent to learn about property marketing, client dealings, and market trends in real estate in Kenya. Networking at industry events helps too.
Step 3: Register with the Estate Agents Registration Board (EARB)
To operate legally, register as a real estate agent. You must be 18 years or older, a Kenyan citizen, and possess the required qualifications.
- Download forms from the EARB website, fill them out
- Attach ID
- Academic certificates
- Certificate of Good Conduct
- Pay the KSh 1,000 fee via M-PESA (Business No. 522522, Account No. 1104163829).
Submit your application in person, attend an interview (with an additional cost), and receive your license upon approval. This is essential for practicing real estate in Kenya.
Step 4: Secure a KRA PIN and Set Up Your Business
Apply for a Kenya Revenue Authority (KRA) PIN online for tax purposes. If you are starting your own agency, register your company name, and then revisit EARB for firm registration. This step ensures compliance in real estate in Kenya.
Step 5: Build Your Presence and Operations
Create a professional website, email address, and social media accounts to effectively market your services, and design business cards and flyers. Hire an assistant for administrative tasks, such as handling taxes on rental income.
Consider renting office space or starting a virtual office if your budget is tight. Focus on a niche, such as plots or apartments, in the real estate market in Kenya.
Step 6: Start Selling and Marketing
List properties, use digital marketing on platforms like Facebook, host open houses, and build a referral network. Stay informed about market fluctuations and legal developments to succeed in the Kenyan real estate industry.
Follow these steps, and you’ll be on your way in the real estate business in Kenya. Jobs in this sector are growing, with entry-level pay ranging from KES 47,000 to KES 387,000.
Network at events. Real estate in Kenya needs persistence, but it’s rewarding.
Real Estate Investment Opportunities in Kenya
Real estate investment opportunities in Kenya are plentiful in 2025. Focus on satellite towns, affordable housing, and REITs. Nairobi’s market offers high yields.
Top real estate developers in Kenya build high-quality projects. Invest in gated communities or tourism spots.
Diaspora investors are drawn to real estate investment opportunities in Kenya for their steady growth potential. Real estate news Kenya shows REITs as smart picks. Earn money in Kenya through these.
Role of Real Estate Companies and Jobs in Kenya
Real estate companies in Kenya drive the sector. They offer sales, rentals, and advice.
Real estate management companies in Kenya handle daily operations and management. For jobs, real estate jobs in Kenya are diverse, ranging from sales to administration.
Real estate companies in Kenya create numerous job opportunities in the sector. Investors use them for smooth deals.
Conclusion
Owning real estate in Kenya from abroad is achievable with the proper steps. From buying to rentals and taxes, you’ve got the info. For legal assistance, contact Chepchieng and Company Advocates, a trusted real estate law firm in Kenya. They’re pros at making real estate in Kenya work for you. Start today and watch your investment grow.
FAQ
How does real estate work in Kenya?
Real estate in Kenya encompasses buying, selling, renting, or developing land and buildings, which are governed by the Constitution and laws such as the Land Act. Properties can be freehold (full ownership for citizens) or leasehold (up to 99 years, renewable for foreigners).
The market focuses on residential, commercial, and industrial types, with transactions handled via title deeds on the Ardhisasa platform. Demand is high due to urbanization, with the sector projected to be valued at US$773 billion by 2025. Use agents and lawyers for safe deals.
How much do real estate agents make in Kenya?
Real estate agents in Kenya earn commissions, with average annual salaries ranging from KSh 270,000 to KSh 1.7 million, depending on experience and location, such as Nairobi.
Entry-level pay starts at KSh 37,000 per month, while top earners can reach KSh 2.4 million annually through sales. Success depends on networking and market knowledge.
Is Kenya a good place to invest in real estate?
Yes, Kenya is a strong spot for real estate investment in 2025, with high rental yields of up to 10% and projected market growth to US$944 billion by 2029.
Urbanization and infrastructure boost demand, outpacing global markets. Focus on affordable housing or satellite towns for the best gains, but be sure to check the regulations.
How to start a real estate business in Kenya?
To start a real estate business in Kenya, register your company with the Registrar of Companies, get a KRA PIN, and certify with the Estate Agents Registration Board (EARB). Create a business plan, secure funding, and build networks.
Costs start low at KSh 1,050 for a sole proprietorship; focus on niches like property management. Hire a lawyer for compliance.
What are the current real estate market trends in Kenya?
In 2025, Kenya’s real estate market trends include booming affordable housing, eco-friendly developments, and mixed-use projects, driven by urbanization and remittances of over KSh 600 billion yearly.
Satellite towns and commercial spaces are proliferating, with a 5% annual increase in construction. Investors see high ROI in gated communities and REITs.
