The real cost of buying a home in Kenya, beyond the asking price

Almost every buyer we meet has a number in their head. Very few have the right number.

The asking price is the largest single figure in a property purchase, but it is not the total. Between the offer and the keys sit a series of costs that, taken together, routinely add a meaningful percentage to what you actually pay. Budget for them at the start and the purchase stays comfortable. Discover them at completion and it does not.

Stamp duty

Stamp duty is charged on the value of the property as assessed by the government valuer — which is not always the same as the price you agreed. In urban areas the rate is 4%; in rural areas it is 2%.

On a KES 6,000,000 apartment in an urban area, that is KES 240,000. It is usually the largest of the additional costs.

First-time buyers purchasing under certain affordable housing arrangements may qualify for relief. Ask your advocate whether your purchase falls within any current exemption rather than assuming it does.

Advocate's fees

Conveyancing fees in Kenya are governed by the Advocates Remuneration Order, which sets a scale based on the transaction value. Expect a figure in the region of 1% to 1.5% on a typical residential purchase, plus disbursements.

Use your own advocate. The developer's advocate acts for the developer, however helpful they are.

Valuation and bank costs

If you are financing, the lender will require a valuation, and you will pay for it. Add the bank's arrangement or processing fee, and mortgage protection insurance, which is usually mandatory and priced against the loan amount and your age.

These are worth comparing across lenders. The headline interest rate is not the whole picture.

Registration and transfer costs

Registering the transfer, obtaining searches and clearances, and the land registry's own fees all carry charges. Individually small, collectively not.

Service charge

For an apartment, the service charge starts when you take possession — not when you move in. It covers security, water, common-area power, lifts, maintenance and the sinking fund.

Ask for the figure in writing before you commit, and ask what it covers. A service charge that looks low may simply mean the sinking fund is underfunded, which becomes your problem when the lift needs replacing.

The costs of the home itself

Finally, the ones buyers forget entirely: water and power meter deposits, any fittings not included in the specification, and moving costs. On an off-plan unit, also check whether things you consider standard — wardrobes, kitchen units, light fittings — are actually in the specification schedule or priced as extras.

Putting a working figure on it

As a planning assumption, set aside somewhere around 6% to 9% of the purchase price for costs, more if you are financing. Then get exact numbers from your advocate for your specific transaction, because the variables — urban or rural, financed or cash, new or resale — move the total considerably.

The point is not the precise percentage. It is that you decide what you can afford using the total, not the asking price.