Buying property in Kenya is an exciting milestone, whether it’s your first home, an investment, or land for future development. But many buyers make one mistake — they only focus on the purchase price and forget about the extra costs that come with the deal. These hidden costs can catch you off guard and strain your finances if you don’t plan ahead.
Here’s a breakdown of the hidden costs of buying property in Kenya and how much you should budget for each.
- Legal Fees
You’ll need a licensed advocate to guide you through the sale agreement, carry out due diligence, and handle the transfer.
Typical charge: 1–2% of the property value.
- Stamp Duty
This is a government tax paid to the Kenya Revenue Authority (KRA) during property transfer.
4% of the property value in urban areas
2% of the property value in rural areas
- Valuation Fees
Before transfer, the property must be valued either by KRA or a registered valuer to confirm its market worth.
Typical charge: 0.25–1% of property value.
- Survey & Title Processing Fees
For land purchases, you may need new surveys, deed plans, or subdivision approvals.
Cost varies, but can run into tens of thousands of shillings depending on location and complexity.
- Agent/Commission Fees
If you worked with a real estate agent, they earn a commission.
Typical charge: 3% of the purchase price.
- Mortgage & Bank Charges
For buyers using financing, banks charge processing fees, appraisal costs, and insurance premiums.
Estimate: 1–2% of the loan amount, plus ongoing interest and insurance.
- Transfer & Registration Fees
Paid at the land registry to officially register ownership under your name.
Usually a small fixed fee, but essential to complete the process.
- Utility Connection Fees
New homes or plots often require fresh utility connections.
Kenya Power connection: KSh 30,000+
Water & internet connections: variable, but add up quickly.
- Moving & Fit-Out Costs
Once you own the property, you’ll likely spend on renovations, fittings, furniture, and moving.
Budgeting a cushion for this will save you stress later.
Final Word
The hidden costs of buying property in Kenya typically add up to 8–10% of the purchase price. To avoid nasty surprises, always work with a trusted advocate, carry out due diligence, and budget beyond the selling price.
“Buying property isn’t just about the land or the house — it’s about securing peace of mind.“
