The Hidden Costs of Buying Property in Kenya (That Most People Forget)

By Team Makao on 03/09/2025

Many Kenyans save for years to buy land or a house — but often, the excitement of closing a deal overshadows the fine print. Beyond the purchase price, there are several hidden costs of buying property in Kenya that can catch buyers off guard. Knowing them upfront helps you budget wisely and avoid surprises.

1. Stamp Duty

This is a tax charged by the government during property transfers.

Residential property: 4% of the property value in urban areas, 2% in rural areas.
Example: Buying a KSh 10M house in Nairobi? Expect KSh 400,000 in stamp duty alone.

2. Legal Fees

You'll need a lawyer to draft, review, and process sale agreements.

Typically 1%–2% of the purchase price.
On a KSh 5M property, that's about KSh 50,000–100,000.

3. Valuation Fees

Banks and lenders require a valuation before approving a mortgage.

Usually around 0.25%–0.5% of the property value.

4. Title Search & Land Registry Fees

Before buying, you must confirm the seller truly owns the land/house.

Costs: Around KSh 500–1,000 for a title search, plus extra fees for registry services.

5. Mortgage Processing Fees (If Financing)

Banks often charge:

Loan appraisal fees
Insurance premiums (life + property cover)
Processing/admin charges (typically 1% of loan amount).

6. Moving & Renovation Costs

Once the deal is done, most buyers forget the cost of moving in:

Renovations, fittings, painting, interior design.
Even moving trucks and setup costs (Wi-Fi, water, electricity).

7. Service Charges & Maintenance Fees

For apartments and gated estates, monthly service charges cover security, garbage collection, landscaping, and common amenities.

Ranges from KSh 2,000 to 15,000+ depending on the estate.

8. Agency Fees (Optional)

If you use a real estate agent, expect to pay 1–2% of the property value.

✅ Final Thoughts

Buying property in Kenya is more than just the listing price. When budgeting, always add an extra 10–15% cushion to cover hidden costs.

At Makaobora.com, we don't just showcase listings — we help you understand the true cost of property ownership, so you can plan smartly and avoid nasty surprises.