The cheapest house in Kenya may cost KES 2.5 million. According to one Director from Serene Valley Properties, Mr Kimiti Wanjaria, this is the most viable price for a 2-bedroom structure with basic fittings, located in one of the “less friendly” urban parts of the country. This, of course, includes zoning fees, planning expenses and the value of the land.
While some people may opt for a “less expensive” alternative, bear in mind that the one mentioned above refers to a government-approved and structurally-legitimate housing unit. A mud-thatched house doesn’t count. Neither does a flat, an apartment, an iron sheet unit, a makeshift brick house or a stone structure made in the absence of certified professionals.
Maybe KES 2.5 million feels a little bit steep for the average consumer. After all, someone with that much money can decide to buy a cheaper structure with only one bedroom. And even if it is the average cost of a government-approved structure, you can always get a 4 bedroom townhouse in Nyali for that exact amount.
“Low-cost housing is a niche (specific) market,” says Wanjaria. Speaking to one of the local dailies, the real estate agent notes that the financial implications of developing low-cost housing units outweigh the need to bridge the gap between the rich and the poor.
While there may be a demand for 200,000 units every year, most real estate developers prefer to target the upper echelon within the housing market.
In spite of these high end market developers, other real estate service providers like Makao Mashinani have chosen to take up low-cost housing projects. The developer signed a KES 40 million deal with Shelter Afrique a while ago and plans to come up with 2000 homes by the end of 2013. Anyone applying for a mortgage will be able to get a loan of anywhere between KES 1 million and KES 5 million (the cost-range of the housing units).
But 2000 homes are barely enough to cater for millions of Kenyans living under poor housing conditions. According to a report by Shelter Afrique, 90% of Kenyans cannot even afford developer-built housing in its current form.
Nonetheless, there are some developers like MiNeco House who have housing deals for as low as KES 999,000 (land not included). Others like the Sureya Property group offer bedsitter apartments for as little as KES 900,000 (KES 1.05 million with a 10% deposit on a mortgage).
Just so you know what you’re paying for, here’s what KES 2.5 million can get you if you just happen to have it sitting idly in your bank account:
- KES 2.5 million worth of Treasury Bonds
- 10 months’ rent for a 5 bedroom Villa in Kilimani
- 7 Toyota Vitz (2002 Model)
- 4 Acres of Land in Namanga
- 3 Subaru Imprezas (2005 Model)
- 2 Peugot 206 (2006 Model)
- 1 Mercedes ML350 (2011 Model)
- 1 Acre of Land in Kiserian
- 1 Townhouse Maissonette in Nyali (4-Bedrooms, 4 Bathrooms)
*Data is based on price lists from Property Kenya, PataUza and the Kenya Car Bazaar.