Buying Scenario: CBD – 3 Bedroom Apartment in Nairobi, Kenya

As the process and costs of buying real estate in Kenya can vary by location and property type, this scenario helps explain one of the most popular real estate investment options: a 3-bedroom apartment in the central business district of Kenya. Nairobi.

Buy any real estate in Kenya it is an easy process guided by Kenya property laws and regulations. Be that as it may, the process will often differ slightly depending on the type of property you wish to purchase and how you are going to finance the real estate investment. The location is always a factor that can change the process of buying properties in Kenya, since those located in urban environments require additional authorizations and documentation than those located in rural areas.

Being a minefield of inefficiencies and red tape, buying a property in Nairobi should be approached with caution and it is important that you are aware of the many loopholes you need to navigate to get the desired property.

Guide steps to buying a 3BR apartment in Nairobi CBD

1. Hire a real estate agent (5.51% commission)

• An agent will not only help you find and compare the various 3 bedroom apartments available, but also has critical information on where it is best to invest and the rates charged at various locations within the CBD.

• There is a top Nairobi CBD that has exclusive 3-bedroom apartments that are more sophisticated and expensive than those located in the lower parts of the CBD.

• You will have to pay the agent the search and display fees of approximately Ksh2,000 and Ksh1,000 respectively.

2. Hire a lawyer (1.5% rate).

• After the agent helps you find the right property, an attorney will guide you through the buying process.

• The lawyer will do a title search for the 3-bedroom apartment to make sure it is registered with the Land Registry and Persons Registration Office (cost Ksh500).

• Upon confirmation of ownership, you can go ahead and begin the negotiation process.

3.Pay deposit (10-30%)

• Once the terms of sale have been agreed, you will be required to pay a refundable deposit with the remainder due at the end of the transaction.

• If a lender is going to finance part of the property, you must pay the seller’s attorney the portion that is not financed, while the lender’s attorney or your attorney must provide the seller’s attorney with sufficient professional liability to secure the amount of the portion financed.

• Stamp duty of Ksh20 is levied on duly signed sales agreements.

4. The lawyer prepares for the transfer of property.

Your attorney will get:

• From the Nairobi City Council the certificate of settlement of fees

• From the Land Commissioner the certificate of settlement of land rent

• Transfer consent (approximately Ksh7,500).

• From the Land Office a stamp duty, paid by bank check for Ksh600

Your attorney will also arrange a property inspection, property appraisal and finally, the record of transfer of ownership.

5. Settle the balance with the seller of the apartment.

• Legal fees and taxes are due 30 days after finalizing the transaction.

• As of this stage, you are a proud owner of a 3-bedroom apartment in the Nairobi CBD!

• Remember that foreign investors have to pay 30% of gross rental income and 1% annual property tax.

• Additional fees may be incurred, such as survey fees, appraisal charges, and utility fees (electricity and water), etc.