In Kenya, most residential properties—especially apartments and gated homes—are sold using developer payment plans. These plans are designed to make property ownership more accessible while allowing developers to fund construction progressively.
Whether you’re buying in Kenya as a local buyer or from the diaspora, understanding how these payment plans work is critical before committing.
This guide breaks down typical Kenyan developer payment structures, realistic timelines, and what buyers should watch out for.
Why Kenyan Developers Offer Payment Plans
In the Kenyan market, payment plans help developers:
- Sell units early (off-plan)
- Finance construction without relying entirely on bank loans
- Attract buyers who cannot pay cash upfront
For buyers, payment plans:
- Reduce upfront financial pressure
- Allow payments to align with income or remittances
- Lock in today’s price before completion
Common Developer Payment Structures in Kenya
1. Reservation / Booking Fee
This is the first payment made to secure a unit.
Typical in Kenya:
- KES 100,000 – 500,000
- Paid to reserve the unit for 7–14 days
- Often deductible from the deposit
- Usually non-refundable after contracts are signed
This removes the unit from the market.
2. Deposit (Down Payment)
After reservation, buyers pay a deposit.
Standard Kenyan range:
- 10% – 30% of the purchase price
- Paid within 14–30 days
Projects in high-demand areas like Nairobi often require higher deposits.
3. Installments During Construction (Off-Plan)
This is the most common structure in Kenya for apartments and townhouses.
Payments are spread across construction stages such as:
- Foundation stage
- Structural works
- Roofing
- Finishing stage
Typical Kenyan example:
- 20% on foundation
- 20% on structure
- 20% on finishes
This reassures buyers that payments match visible progress.
4. Fixed Monthly or Quarterly Payment Plans
Many Kenyan developers now offer time-based payment plans, especially for diaspora buyers.
Common terms:
- Monthly or quarterly installments
- 12, 18, 24, or 36 months
- Usually interest-free during construction
- Longer plans may attract a slightly higher price
This option is popular for salaried professionals and buyers paying through remittances.
5. Balance on Completion (Cash or Mortgage)
Once construction is complete, buyers pay the final balance using:
- Bank mortgage financing
- SACCO loans
- Cash savings
Developers typically allow 30–90 days after completion to clear the balance.
Typical Kenyan Payment Plan Example
For an apartment priced at KES 10M:
- Reservation fee: KES 200,000
- Deposit (20%): KES 2M
- Installments over 24 months: KES 6M
- Balance on completion: KES 1.8M
This structure is very common in off-plan projects across Nairobi and its suburbs.
What Kenyan Buyers Must Check Before Signing
Before committing, always confirm:
- Payment deadlines and penalty clauses
- Whether installments are truly interest-free
- Price differences between cash and installment plans
- Completion timelines and delay clauses
- That all terms are written in the sale agreement
Never rely on verbal promises.
Are Payment Plans Negotiable in Kenya?
Yes — especially:
- During early construction stages
- When buying multiple units
- If paying a higher deposit
Buyers may negotiate:
- Lower deposit percentages
- Longer installment periods
- Customized payment schedules
Working with an experienced agent significantly improves negotiation outcomes.
Final Thoughts
In Kenya, developer payment plans make property ownership more achievable—but only when fully understood. The best plan is one that fits your income flow, minimizes risk, and is clearly documented.
Always seek professional guidance before signing any sale agreement.
