VS
Build vs Buy a House in Kenya 2025
Should you build or buy a ready house? Compare costs, timelines, and benefits. Make the right homeownership decision.
Real Cost Comparison: 3-Bedroom House in Nairobi Suburbs
Typical scenario for middle-income Kenyans buying first home
| Cost Breakdown | Building (120m²) | Buying Ready House |
|---|---|---|
| Land Cost | KES 2,000,000 (1/8 acre, Ruiru/Kitengela) | Included in house price |
| Construction/House Cost | KES 4,500,000 (120m² × KES 37,500/m² standard finish) | KES 6,500,000 (Developer premium included) |
| Professional Fees | KES 450,000 (Architect, engineer, quantity surveyor) | KES 0 (already built) |
| Approvals & Permits | KES 80,000 (County, NCA, NEMA) | KES 0 (already approved) |
| Stamp Duty (4%) | KES 0 (owner-occupied, no transfer) | KES 260,000 (4% of KES 6.5M) |
| Legal & Transfer Fees | KES 50,000 (land purchase only) | KES 150,000 (conveyancing) |
| Total Cost | KES 7,080,000 | KES 6,910,000 |
| Timeline | 8-12 months | Immediate (1-2 months for transfer) |
| Value for Money | Higher quality control You choose materials | Convenience premium Pay for immediate occupancy |
💡 Key Insight:
For this scenario, buying is slightly cheaper (KES 170K difference), but building gives you: better quality materials, custom design, and land ownership clarity. Building becomes significantly cheaper if you already own land or can get cheaper land upcountry. Many Kenyans build incrementally over 2-3 years to avoid loans.
Building a House
Best for: Land owners, patient builders, quality seekers
✅ Advantages
- Save 20-30% compared to buying ready house
- Full control over design and materials
- Choose exact location and plot size
- Quality assurance (you supervise construction)
- Incremental payment (pay as you build)
- No VAT on owner-occupied construction
❌ Disadvantages
- Takes 6-12 months to complete
- Requires active project management
- Risk of contractor delays and disputes
- Material price fluctuations during construction
- Need to handle approvals (NCA, County, NEMA)
- Living elsewhere during construction
Buying Ready House
Best for: Immediate housing needs, busy professionals, mortgage buyers
✅ Advantages
- Move in immediately
- No construction stress or management
- Easier to secure mortgage financing
- Fixed price (no budget surprises)
- Already approved and connected (water, power)
- Can inspect final product before purchase
❌ Disadvantages
- Premium pricing (developer margin 25-40%)
- Limited customization options
- Unknown quality of materials used
- Potential hidden defects
- Stamp duty 4% (on property transfer)
- Competitive market (best houses go fast)