Sabaki Green Estate

How to pencil in your home buying costs in Kenya

ByComplete Circle Properties

Featured Image: Sabaki Green Estate in Sabaki, Athi River.

Penciling in your home-buying costs in Kenya requires considering several upfront and ongoing expenses. Below is a breakdown of the costs involved in buying a home:

1. Home Price

  • Purchase Price – The agreed-upon price for the home. This is the largest cost, and it will vary depending on location, size, and other factors.

2. Deposit / Down Payment

  • Deposit – In Kenya, most mortgage providers require a down payment of between 10-20% of the property price. Ensure you have this amount saved up.

3. Legal Fees

  • Conveyancing Fees – You’ll need a lawyer to facilitate the transfer of ownership. Legal fees typically range from 1-2% of the property’s value.
  • Stamp Duty – This is a government tax on the transfer of property. It ranges between 2% and 4% of the purchase price, depending on the property’s location:
    • 4% in urban areas.
    • 2% in rural areas.

4. Valuation Fees

  • Valuation Fee – A valuation is required by mortgage lenders to assess the property’s value. Fees range between 0.25% and 1.5% of the property value.

5. Mortgage Costs (If Applicable)

  • Mortgage Processing Fees – Lenders charge a processing fee to approve your mortgage, typically 0.5% to 1% of the loan amount.
  • Interest Rates – In Kenya, mortgage rates can range make sure you check with the mortgage lenders on the current rates. This will affect your monthly repayments. Calculate this based on your loan size and tenure.
  • Mortgage Insurance – Some banks may require you to take mortgage insurance, which covers the loan balance in case of death or inability to pay. Costs vary based on loan amount.

6. Agency Fees

  • Real Estate Agent Commission – If you are buying through an agent, they typically charge 1.5-3% of the sale price. (In most cases this is payable by the Vendor)

7. Title Transfer Fees

  • Title Transfer – The cost of transferring the property title at the Lands Registry is usually between 0.1% and 0.5% of the property value.

8. Property Survey and Inspection Fees

  • Survey Fees – A surveyor may be required to confirm the boundaries or condition of the property. This costs around Ksh 20,000 to Ksh 50,000, depending on the complexity.
  • Inspection Fees – You might need a professional inspection (e.g., for structural integrity, pests, or mold). This typically costs between Ksh 10,000 and Ksh 30,000.

9. Moving Costs

  • Moving Services – Depending on the distance and the volume of your items, moving costs could range from Ksh 10,000 to Ksh 50,000.

10. Other Expenses

  • Utility Connection Fees – Some homes may require you to pay for water, electricity, and other utility connections. This varies by provider but could range from Ksh 5,000 to Ksh 30,000.
  • Renovation or Repair Costs – If the house needs any modifications or repairs, this could be a significant additional expense.
  • Homeowners Insurance – Covers property damage or theft and is typically paid annually.

11. Property Taxes and Maintenance

  • Annual Property Tax – This is calculated based on the value of the property and varies by county.
  • Service Charge or Maintenance Fees – If you buy in a gated community or apartment complex, you may be required to pay a monthly or yearly service charge for maintenance.

By considering these costs, you’ll have a clearer picture of how much you need to budget for the entire home-buying process in Kenya.

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