Rent or buy in Kenya?

Renting or buying a home in Kenya is a big decision. Whether you value flexibility or are dreaming of a place to truly call your own, understanding the costs, responsibilities, and long-term benefits of each path can help. 

Read on for some of the key factors to weigh when deciding whether to rent or buy in Kenya, and remember that you can always connect with a UNFCU mortgage representative when you are ready to explore homeownership. 

Upfront costs 

Renting a home in Kenya may require a deposit, often equal to 1–2 months’ rent. Homebuyers can expect a down payment¹ plus fees including stamp duty, legal fees, valuation fees, registration, and government fees.

If you buy an apartment or a home in a gated community, you may also need to make a service charge deposit. Usually, this is equal to six months’ worth of service charges. 

Monthly and yearly expenses 

Monthly expenses for renters in Kenya include rent payments and utilities. For homeowners, monthly expenses include mortgage payments (principal and interest), taxes, mortgage protection and property insurance, and utilities. Homeowners in apartments and gated communities can also expect to pay monthly service charges. Yearly expenses for homeowners include land rates.

How your expenses will change over time 

As a renter, you will make monthly payments to a landlord for the entire time you stay in the home. These payments could increase over time if your landlord increases your monthly rent. 

As a homeowner, once your mortgage is paid in full, you will no longer need to make mortgage payments. On the other hand, you may experience increases in taxes, insurance, and other fees over time. 

Ownership of the property 

If you rent a home in Kenya, your landlord owns the property. The monthly rent payments you make do not add to your wealth. If you buy a home, you become the owner of the property. The monthly mortgage payments you make can help build equity. 

Your freedom to customize the home 

As a renter, because you do not own the property, you must ask your landlord for permission before making changes to your home. You have comparatively more freedom to make changes as a homeowner. Keep in mind, though, that changes are subject to estate rules, management company approvals, and county regulations.² 

Your responsibility for maintaining the home 

Renters in Kenya have less responsibility for maintenance compared to homeowners. As a renter, your landlord is typically responsible for repairs. If you prefer, you can carry out repairs yourself (with your landlord’s permission) and receive a refund for the costs you incur. As a homeowner, you are responsible for any necessary repairs. 

Your responsibilities if you leave the home 

If you leave a rented home in Kenya, you are not responsible for finding a new tenant to occupy the home. To receive your deposit back in full, you are responsible for restoring the home to the same condition as when you moved in. If you leave a home that you own, you are responsible for finding a new owner. 

How long you plan to stay in Kenya 

If you plan to relocate after a few years, renting may be a better option because: 

• There may not be enough time to understand the property market and identify the right property for you. 
• The upfront costs to buy a home are substantial. A short period may not be enough to recover these costs. 
• As we saw above, the homeowner is responsible for finding a new owner when they leave the home. The time required to find a buyer and complete the sale can vary, which may disrupt your plans. 

If you plan to stay in Kenya for five years or more, buying a home is worth considering for several reasons: 

• You will have more time to build equity. (Remember, rent payments do not build equity.) 
• The property is more likely to gain value, helping to offset the upfront costs. 
• If you eventually choose to sell the home, you will be more likely to profit from the sale.