The True Cost of Building a House in Kenya in 2023

Building your own house in Kenya is a dream most Kenyans harbor. It promises the comfort of custom design and relief from the endless cycle of house rents. But how much does it cost to transform this dream into a brick-and-mortar reality? The answer to this query is as varied as dreams, governed by many factors.

This comprehensive guide will unravel the current cost of constructing a house in Kenya in 2023, which should help you develop a realistic budget and effectively plan your dream home.

Factors Determining the Cost of Building a House in Kenya

Before diving into the specifics, it's essential to understand the underlying factors that significantly influence the construction cost in Kenya.

1. The Preferred Location

The first and foremost factor is the location of your plot. Prices differ significantly based on whether it's an urban or rural area. For instance, the cost of buying a 1/8 acre of land in Nairobi varies considerably, with Kangundo being around Ksh. 80,000, and upscale locations like Runda and Karen, commanding higher prices.

2. The Type of Building You Want

The type of building is another significant consideration. The cost of constructing a bungalow differs from that of a maisonette or an apartment. Each comes with its design specifications, material requirements, and labor costs.

3. The Construction Cost Per Square Meter

Lastly, the cost per square meter plays a pivotal role. The cost of a quality finish will cost around Ksh. 30,000 per square meter for a simple house and approximately Ksh. 60,000 per square meter for a luxurious house.

READ ALSO: How to Apply for Affordable Housing in Kenya: A Complete Guide

Cost of Building a House in Different Kenyan Regions in 2023

Now that we have explored the key factors, let's delve into the specific construction costs in different regions of Kenya in 2023:

1. Nairobi Region and Mt. Kenya

The Nairobi Metropolitan area and the larger Mt. Kenya region are known for higher construction costs compared to other regions in Kenya. Here are the average building rates per square meter in this area:

Residential Houses:

• Standard Bungalow: Kshs 41,600 per square meter
• Middle-Class Maisonette: Kshs 46,800 per square meter
• Luxurious Bungalow: Kshs 55,000 per square meter
• Luxurious Maisonette: Kshs 72,000 per square meter

Commercial Buildings:

• Standard Low-Rise Office Block: Kshs 54,100 per square meter
• Standard High-Rise Office Block: Kshs 70,350 per square meter
• Luxurious High-Rise Office Block: Kshs 100,800 per square meter

Industrial Projects:

• Double Storey Factory: Kshs 44,000 per square meter
• High Tech Factory/Lab: Kshs 81,700 per square meter
• Warehouse: Kshs 40,500 per square meter

2. Coast Region

The Coast region also experiences significant construction costs. Here are the average building rates per square meter in this area:

Residential Houses:

• Standard Bungalow: Kshs 43,250 per square meter
• Middle-Class Maisonette: Kshs 50,000 per square meter
• Luxurious Bungalow: Kshs 58,400 per square meter

Commercial Buildings:

• Standard Low-Rise Office Block: Kshs 58,700 per square meter
• Standard High-Rise Office Block: Kshs 75,000 per square meter
• Luxurious High-Rise Office Block: Kshs 97,450 per square meter

Industrial Projects:

• Double Storey Factory: Kshs 43,500 per square meter
• High Tech Factory/Lab: Kshs 82,250 per square meter
• Warehouse: Kshs 36,000 per square meter

3. Western Region

The Western Region offers comparatively lower construction costs. Here are the average building rates per square meter in this area:

Residential Houses:

• Standard Bungalow: Kshs 42,000 per square meter
• Middle-Class Maisonette: Kshs 51,750 per square meter
• Luxurious Bungalow: Kshs 65,400 per square meter

Commercial Buildings:

• Standard Low-Rise Office Block: Kshs 58,000 per square meter
• Standard High-Rise Office Block: Kshs 80,150 per square meter
• Luxurious High-Rise Office Block: Kshs 95,000 per square meter

Industrial Projects:

• Double Storey Factory: Kshs 46,200 per square meter
• High Tech Factory/Lab: Kshs 83,000 per square meter
• Warehouse: Kshs 46,900 per square meter

How do I choose suitable construction materials for my house in Kenya?

A house is a significant investment, so choosing suitable construction materials is essential. The materials you choose will affect your home's durability, appearance, and cost. In Kenya, there are a variety of construction materials available, so it's essential to do your research and choose the ones that are right for you.

Here are some factors to consider when choosing construction materials for your house in Kenya:

• Your budget: Construction materials can vary widely in price, so it's essential to set a budget before you start shopping.
• The climate: Kenya has a tropical climate, so you'll need to choose materials that can withstand heat and humidity.
• The location: If you're building in a rural area, you'll need to choose materials that are easy to transport and install.
• Your personal preferences: Consider the style of your home and the look you want to achieve.

Once you've considered these factors, you can start narrowing down your choices. Here are some of the most common construction materials used in Kenya:

• Bricks: Bricks are a popular choice for walls and foundations. They're durable, fire-resistant, and can be made from various materials, including clay, concrete, and sand.
• Concrete blocks: Concrete blocks are another popular choice for walls and foundations. They're strong, durable, and can be made to look like brick or stone.
• Steel beams: Steel beams are used to support roofs and floors. They're solid and durable, but they can be expensive.
• Wood: Wood is famous for roofing, flooring, and framing. It's relatively inexpensive and easy to work with.
• Metal roofing: Metal roofing is a durable and long-lasting option. It's also resistant to fire and weather damage.
• Tiles: Tiles are a popular choice for flooring and countertops. They're durable and easy to clean.

Once you've chosen your materials, you must find a reputable supplier. Ask around for recommendations or check online reviews. It's also essential to get quotes from multiple suppliers before deciding.

Are there any government schemes or incentives for homebuilders in Kenya?

The cost of housing in Kenya is a significant challenge for many people. The average house price in Nairobi is now over 10 million Kenyan shillings, which is beyond reach for many people. To address this problem, the government has introduced several schemes and incentives to encourage homebuilders.

One of the most essential schemes is the Affordable Housing Programme. This program aims to provide affordable housing to low- and middle-income households. Under the program, the government will provide land, infrastructure, and tax breaks to developers who build affordable housing units.

Another important scheme is the Kenya Mortgage Refinance Company (KMRC). KMRC is a government-owned company that provides loans to banks and saccos so that they can offer affordable mortgages to home buyers. KMRC has already provided over 10 billion Kenyan loan shillings and is expected to provide even more.

The government has also introduced other schemes and incentives to encourage home builders. These include:

• Reduced customs tariffs on imported building materials
• Scrapping of stamp duty for first-time buyers of homes
• Reduced corporate tax for property developers who build affordable housing units

READ ALSO: Inside Kenyatta Family's Sh500bn Dream City in Ruiru

Conclusion

Constructing a house in Kenya in 2023 involves several variables. Understanding these nuances and their influence on the total cost will aid you in better budgeting and preventing unforeseen expenses. However, note that these are average estimates, and the exact costs can differ based on specific situations and fluctuations in material and labor prices.

FAQs

Q1: What is the average cost of building a house in Kenya in 2023?

A: The cost varies widely depending on factors like location, type of building, and finishes. The price can start from as low as Ksh. 989,000 and go up based on the factors mentioned above.

Q2: Does location significantly impact the cost of building a house in Kenya?

A: Absolutely, location can dramatically influence the price. Generally, urban areas have higher construction costs compared to rural areas.

Q3: What type of building is more cost-effective to construct - a bungalow or a maisonette?

A: The construction cost heavily depends on the design and finishing of the building. Generally, bungalows are cheaper due to a more straightforward design and less construction material than maisonettes.

Q4: How much does it cost per square meter to construct a house in Kenya in 2023?

A: The cost per square meter varies depending on the finishing. A simple finish costs around Ksh. 30,000 per square meter, while a luxurious finish costs around Ksh. 60,000 per square meter.

Q5: How can one save costs while building a house in Kenya?

A: You can save costs by choosing affordable yet durable construction materials, using energy-efficient designs, and hiring experienced contractors to optimize resource use.

Q6: Are there region-specific fluctuations in construction costs in Kenya?

A: Yes, the construction costs differ regionally due to variations in land prices, local regulations, labor costs, and accessibility to resources.

Disclaimer

This article offers an average estimate of construction costs in Kenya for 2023 based on available data. You should seek professional consultation for precise costs based on your specific circumstances. The author doesn't take responsibility for any decisions based on this information.