For many Kenyans in the diaspora, property investment back home is about more than returns — it’s about security, long-term wealth, and having a tangible asset in Kenya. Nairobi, in particular, continues to stand out as one of the most reliable cities for rental property investment.
But what rental yields can diaspora investors realistically expect, and what should you watch out for? Let’s break it down.
Why Nairobi Appeals to Diaspora Property Investors
Nairobi remains Kenya’s economic and business hub, driving constant demand for rental housing from:
- Young professionals
- Multinational employees
- Students
- Expatriates and diplomats
For diaspora investors, this demand translates into consistent rental income, even when you’re thousands of miles away.
Understanding Rental Yield (Made Simple)
Rental yield shows how much income your property generates annually compared to what you paid for it.
Formula:
Annual Rental Income ÷ Purchase Price × 100
Example:
If you buy an apartment for KES 12 million and earn KES 900,000 per year, your gross rental yield is 7.5%.
Average Rental Yields in Nairobi (Diaspora View)
Most diaspora investors in Nairobi can expect gross rental yields of 6%–9%, depending on location and property type.
- 6–7%: Prime, high-end neighbourhoods
- 7–8%: Middle-income, high-demand areas
- 8–10%: Emerging or commuter zones with lower entry prices
These yields are attractive for investors seeking steady income while holding property for long-term appreciation.
Best Nairobi Areas for Diaspora Rental Investment
Kilimani
Estimated yields: 7–9%
A favourite for diaspora buyers due to strong demand, modern apartments, and ease of management. One-bedroom and furnished units perform particularly well.
Westlands
Estimated yields: 6.5–8.5%
Premium location with reliable tenants, including expatriates and corporate clients. Ideal for investors prioritising stability over maximum yield.
Kileleshwa
Estimated yields: 6–8%
Appeals to long-term tenants seeking quiet, secure living. Lower tenant turnover means fewer headaches for overseas owners.
Ruaka
Estimated yields: 7–9%
Lower purchase prices and strong commuter demand make Ruaka popular with diaspora investors looking for higher returns.
Syokimau & Athi River
Estimated yields: 6.5–8.5%
Excellent for diaspora buyers seeking affordability, modern developments, and good transport links.
Gross vs Net Yield: What Diaspora Investors Must Know
When investing from abroad, net yield matters more than gross yield.
Net yield accounts for:
- Property management fees
- Service charges
- Maintenance and repairs
- Vacancy periods
- Land rates and taxes
For most Nairobi apartments, net yields are typically 1–2% lower than gross yields.
How Diaspora Investors Can Maximise Rental Returns
If you’re buying from abroad, focus on strategies that reduce risk and vacancy:
- Choose high-demand rental locations
- Invest in one-bedroom or studio apartments
- Consider furnished units for higher rent
- Work with professional property managers
- Ensure proper legal and title due diligence
- Avoid speculative areas without rental demand
Convenience and reliability often matter more than chasing the highest yield.
Is Nairobi Rental Property Worth It for Diaspora Investors?
Yes — Nairobi remains one of the safest and most practical property markets in Kenya for diaspora investors. It offers:
- Predictable rental income
- Long-term capital appreciation
- Inflation protection
- A tangible asset back home
The key is buying the right property and having the right local team managing it.
Final Thoughts for Diaspora Buyers
Rental property in Nairobi is not just an investment — it’s a bridge between where you live now and home. With proper planning, professional management, and careful location choice, diaspora investors can enjoy steady returns without constant involvement.
