Is buy-to-let still worth it in Nairobi? Yields, vacancy and hidden costs

Many Kenyans still see a rental unit as the safest way to grow money. But is buy to let in Nairobi still worth it? The honest answer is: it depends on the price you pay, how often the unit sits empty, and the costs you remember to count. This guide shows you how to check the numbers before you buy.

What buy-to-let means

Buy-to-let means buying a house or apartment so you can rent it out. You earn in two ways:

• Rent - money that comes in every month.
• Capital growth - the property may be worth more when you sell.

Rent pays the bills today. Capital growth is never guaranteed, so this guide focuses on rent.

What rents look like right now

Here are median rents from ISHI Homes listings, as of 26 Oct 2026. The median is the middle figure, so half the listings are above it and half below. Some areas have only a few listings, so treat these as a rough guide, not a full market survey.

Area	Unit	Median rent a month
Toll (Ruiru)	Bedsitter	KES 7,750
Kahawa Wendani	1 bedroom	KES 13,250
Kahawa Sukari	1 bedroom	KES 15,750
Roysambu	1 bedroom	KES 18,250
Toll (Ruiru)	2 bedroom	KES 21,250
Kahawa Sukari	2 bedroom	KES 25,000
Roysambu	2 bedroom	KES 30,000
Kilimani	2 bedroom	KES 71,500

Across all areas, the median 2 bedroom apartment on ISHI Homes rents for KES 28,000 a month, a 1 bedroom for KES 15,750 and a bedsitter for KES 8,500 (as of 26 Oct 2026).

How to work out rental yield

Yield is the rent you earn in a year, shown as a percentage of what you paid for the property.

• Gross yield = yearly rent / price paid x 100
• Net yield = (yearly rent - all costs) / price paid x 100

Gross yield looks good on a sales brochure. Net yield is what actually reaches your pocket. Always ask for, and work out, the net figure.

A worked example

Say you buy a 2 bedroom apartment for KES 6,000,000 (an example price only) and rent it at KES 28,000 a month.

• Yearly rent if full all year: KES 336,000
• Gross yield: 5.6%

Now make it real:

Item	Yearly amount
Rent for 11 months (1 month empty)	KES 308,000
Service charge (say KES 3,000 a month)	- KES 36,000
Repairs and upkeep (say)	- KES 20,000
Management fee (say 10% of rent collected)	- KES 30,800
Monthly rental income tax (7.5% of gross rent)	- KES 23,100
What you keep	KES 198,100

Net yield: about 3.3%. That is very different from the 5.6% you started with. If you used a loan, the interest comes out of that KES 198,100 too, and it can easily wipe it out.

Check the price before you check the rent

A quick test: what price would you need to pay to get a certain gross yield? Below we use 8% gross as an example target (yearly rent x 12.5). It is not a rule, just a way to compare.

Area and unit	Yearly rent	Price for 8% gross yield
Toll (Ruiru) bedsitter	KES 93,000	KES 1,162,500
Kahawa Wendani 1 bedroom	KES 159,000	KES 1,987,500
Roysambu 1 bedroom	KES 219,000	KES 2,737,500
Kahawa Sukari 2 bedroom	KES 300,000	KES 3,750,000
Roysambu 2 bedroom	KES 360,000	KES 4,500,000
Kilimani 2 bedroom	KES 858,000	KES 10,725,000

If the asking price is far above these figures, the rent alone may not justify the buy. You would be betting on the property gaining value.

Vacancy: the silent cost

Vacancy means the unit is empty and earning nothing. Each empty month costs you about 8% of a full year's rent. Two empty months cost about 17%.

What drives vacancy:

• Too much supply. If many new blocks are going up nearby, tenants have choice and you may have to cut rent.
• Wrong unit for the area. Students and young workers often want bedsitters and 1 bedrooms. Families want space and parking.
• Slow re-letting. Painting, repairs and viewings between tenants take time.
• Poor upkeep. Tenants leave buildings with broken water, lighting or security.

How to check before you buy:

• Walk the area and count "To Let" signs.
• Ask caretakers how long units take to fill.
• Search ISHI Homes for your area and unit type to see how many similar units are listed.

The costs people forget

Beyond the price and the rent, budget for these:

When buying

• Stamp duty (a tax paid when the property changes hands)
• Lawyer's fees and valuation fees
• Loan arrangement fees, if you borrow
• Fittings: water tanks, meters, curtain rails, kitchen fittings

Every year

• Service charge, if it is in a managed block
• Land rates to the county, and ground rent if the land is leasehold (land you hold for a set number of years)
• Building insurance
• Monthly rental income tax to KRA
• Common area costs: security, cleaning, garbage, water pumps

Now and then

• Repainting and repairs between tenants
• Big repairs: roof, plumbing, borehole pumps
• Rent arrears - rent a tenant owes but has not paid. Even a few bad tenants can hurt a whole year.
• Legal costs if you need to remove a tenant

Off-plan risk

Buying off-plan (before the building is finished) can be cheaper, but delays mean you pay without earning rent. Check the developer's record and approvals carefully.

So, is it still worth it?

Buy-to-let can still work in Nairobi, but only when:

• The price makes sense against real local rents.
• You plan for at least one empty month a year.
• You count every cost, including tax and repairs.
• You collect rent on time and keep good tenants.

It works less well when you overpay, borrow heavily, or buy a unit type the area does not want. Run the numbers for your exact unit and be honest about them.

Keep vacancy low and rent coming in

Much of the gap between gross and net yield comes down to management: chasing arrears, tracking repairs and filling empty units fast. ISHI property management software helps landlords and agencies collect rent, send reminders, track expenses and see which units are empty, all in one place. You can also list vacant units on ISHI Homes to reach tenants searching across Nairobi and its commuter towns.

Want to see it in action? Book a free demo at www.ishi.digital/contact, call 0116888777 or email hello@ishi.digital.