The price of the cheapest newly built house in Kenya spiked in 2017, reaching KSh. 3 million, the highest over the past nine years. This is according to the Centre for Affordable Housing Finance in Africa (CAHF) which tracks housing markets across the continent. The price refers to a house of 200 sqm in size.
However, the price of the cheapest house built by a formal developer dropped by more than half from KSh. 3 million in 2017 to KSh. 1.15 million in 2018. The CAHF data on rent shows that it costs KSh. 5,170 to rent such a house in Kenya, implying a rental yield of 5.4%.
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According to the data, the cost of a newly built house in the country in 2018 (KSh. 1.15 million), was the second lowest over the nine-year period beginning 2010. The lowest price over the period was recorded in 2014, at KSh. 1.11 million.
Kenya had the cheapest house prices per unit of space in 2018, in comparison to her East African neighbours according to the data. Ethiopia had the most expensive housing per unit of space during the same period, requiring KSh. 5.13 million for a 93 sqm house.
The price of a 60 sqm unit in Uganda was KSh. 2 million in 2018 while Tanzania’s housing markets required KSh. 1.67 milion for the same house size. In Somalia, the price of the cheapest unit was KSh. 7 million.
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