This is one of the most common questions among aspiring homeowners in Kenya—whether they’re based in Nakuru, Dubai, Birmingham, or New Jersey. Is it cheaper to buy or build a house in Kenya? The answer? It depends. It’s like asking whether it’s cheaper to cook your own ugali or buy a plate at a kibanda or supermarket. Yes, it depends—on time, money, effort, and how much stress you’re ready to handle.
Let’s serve this discussion on a hot plate.
Buying a house: The “ready-made ugali with greens and meat” option
Buying a house is like walking into a kibanda and ordering a full plate of ugali, sukuma, and nyama choma. You’re paying for the convenience. You don’t have to shop for ingredients, light the jiko, or wash sufurias. Just sit, eat, and go.
That’s how it works with a ready-made house. The developer has done the heavy lifting—land acquisition, approvals, construction, marketing. You move in, or start earning rental income, in months—not years.
But just like the plate at the kibanda costs more than buying unga and cooking at home, you’re paying for more than just the house. Convenience comes at a premium. You’re also paying for:
- Developer’s profit
- Project financing costs
- Premium location
- Shared amenities (which come with service charges)
And here’s the kicker—if you’re financing through a mortgage, brace yourself. With high interest rates (often between 12%–15%), and repayment periods of up to 20 years, that KSh 10 million home could end up costing you KSh 18 million or more over time. Plus, Kenya’s economic landscape is unpredictable—fluctuating inflation, job instability, and rising living costs can make it hard to stay on track.
In fact, the average mortgaged house in Kenya changes hands up to four times before it’s fully paid off—often due to defaults. Many homeowners start off strong, then stall halfway, forcing banks to repossess and resell. It’s a sobering reality.
The convenience premium: Is it cheaper to buy or build a house?
So, yes. Buying a house in Kenya is like ordering a ready-made meal. You get convenience, speed, and less decision fatigue. Whether it’s a modern apartment in Kilimani, a townhouse in Syokimau, or a bungalow in Eldoret, the house is already standing. You can see it, touch it, and move in right away (well, after paperwork and payment).
But convenience comes at a price. Developers factor in the cost of land, construction, approvals, infrastructure, marketing, and yes—profit. So, you’re likely paying 20–30% more than what it would cost to build the same house from scratch.
Also, some developments come with service charges, estate rules, and limited flexibility in design. But if you’re short on time or live abroad, buying might be worth every extra shilling.
Building a house: The “cook-it-yourself” option
Now imagine you’ve got your unga, sukuma, and meat from the market. You head home, prep everything, and cook your meal exactly the way you like it. That’s what building a house feels like.
You get to say “I want the kitchen facing the sunrise” or “I want an extra guest wing.” You choose the land, the design, the finishes—even the colour of the kitchen tiles. You can build pole-pole (in phases), monitor quality, and stretch your shilling. If you own the land, or build outside urban hotspots, you can save a lot.
In many cases, building can be cheaper, especially if:
- You already own the land
- You can pay as you go
- You’re hands-on or have a trusted project manager
- You’re patient and can cook in phases (starting with mabati, ending with marble, for instance)
- You’re sourcing materials smartly and avoiding inflated contractor quotes
However, it comes with hidden costs: stress, permits, unreliable fundis, delayed timelines, budget overruns. One month you’re laying the foundation, next thing you know, you’re stuck trying to trace a missing plumber or chasing down a county approval. It’s real work. (in Kiswahili, Ni kazi)
The customization hustle (Is it cheaper to buy or build a house?)
So, yes. Building a house is like cooking your favourite meal from scratch. You control the ingredients—location, layout, finishes. It’s fully yours, down to the last tile.
Here’s where building shines:
- Cost flexibility (You choose what to prioritize)
- Design freedom
- Potential savings (especially if you manage the project well)
BUT (and this is a big one) — building assumes you have access to cash, ideally most or all of it. If you want to get that 4-bedroom, all-ensuite, gypsum-ceiling, solar-powered house — it needs money. Loans for self-builds are hard to come by, and interest eats into your “savings.”
In addition, just like cooking, it can go wrong:
- Your fundi disappears with your deposit
- Cement prices double mid-project
- County approvals drag for months
- The ugali comes out mushy
- Unexpected costs pop up (extra steel, roof redesign, water tanks…)
- Milk boils over just when you look away
- A relative in Kenya sends you progress photos while you’re in the diaspora — only for you to discover (horror of horrors) they’re either fake or, worse, of his house built with your money
Also, economic conditions can change midstream. That KSh 6 million plan might balloon to KSh 9 million if inflation kicks in or the shilling weakens. Kenya imports clinker — a key ingredient in cement manufacture — so any fluctuation in global prices, forex rates or import taxes, hits local construction costs hard. Building is not for the faint-hearted—it needs grit, a good team, and a realistic budget buffer.
The “move-in-and-finish” culture
Now here’s the Kenyan way: move in while still building. Just get it to “Ensure it’s not leaking” stage. (Kenyan parlance for ‘roofed’)
It’s common. ‘Run away from rent.’ The logic is simple: Why keep paying KSh 35,000 in rent when you can live in your own unfinished house and redirect that cash to roofing or plastering?
So many families settle into their homes once the shell is done — maybe before windows are installed or even without tiles or paint. The hope? “We’ll finish slowly as we live in it.”
While it makes financial sense (and builds pride), it comes with real challenges:
- Living in a construction site: Dust, noise, cement bags in the living room
- Stress on relationships: Constant fundis disrupting your peace (No privacy, friction between spouses, parenting stress)
- Slow pace: Life gets in the way, and that “we’ll finish in 6 months” turns into 3 years
- Security and health concerns: Exposed wiring, no perimeter wall, unsealed roofs
For many, the house becomes livable — but never quite “done.” So yes, you’re in your house — but you’re not really home. You successfully ran away from rent, but walked straight into years of unfinished ceilings, dusty floors, exposed wiring, and the daily stress of living in a construction zone.
Is it cheaper to buy or build a house? Let’s crunch some numbers
As of 2025, here’s a ballpark comparison:
| Item | Buying Ready-Made | Building from Scratch |
| 3-bed house (urban) | KSh 9M – 15M | KSh 5.5M – 8.5M |
| 3-bed house (rural) | KSh 5M – 7M | KSh 3.5M – 5.5M |
| Timeline | 2–6 months | 6–18 months |
| Mortgage total cost (20 years) | Up to KSh 18M | Not applicable |
| Upfront capital needed | 10–20% (deposit)* | 70–100% (over time) |
| Ownership risk (defaults) | Higher | Lower (self-paced) |
| Flexibility (Design) | Low | High |
| Control over quality | Moderate | High (if well managed) |
| Stress level | Low–Moderate | High |
Note: These figures vary depending on location, land cost, finishes, and who you know.
So, what’s cheaper? Price vs cost — know the difference
At the end of the day, both building and buying come with their own price tags — but the cost goes deeper.
Buying a house has a higher price — you pay more upfront or through a mortgage (or cash). But the cost? Less time, less hustle, fewer moving parts. You’re paying for convenience, speed, and peace of mind — like ordering a full plate at the kibanda. If you go the mortgage route, though, understand that you’re in it for the long haul — and at the mercy of interest rate changes and vagaries of the economy.
Building, on the other hand, may have a lower price, (on paper) especially if you already own land or can manage and finance your project well. You save on profit margins and enjoy flexibility. And the cost? Time, energy, planning, resilience, decision fatigue, living in an unfinished house, and the mental toll of construction chaos.
So when choosing between building and buying, don’t just ask: “How much will it cost?”
Ask: “What will it cost me?”
What next?
Whether you’re cooking ugali at home or being served a hot plate at your local kibanda, the goal is to eat. Same with housing. Whether you’re building or buying, the goal is to have a place to call home.
At Karibu Kwako, we don’t just show you houses for sale — we walk with you to figure out what works for your budget, lifestyle, and future. We help you make the choice that’s right for you — not just your wallet. Price is what you pay. Cost is what you live with.
So—would you rather build your ugali, or be served a ready plate? Let’s help you decide. Let’s talk — and find your path to a home you’ll love.
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