What Type of Apartment Can You Build with Kshs.70 Million in Nakuru City?

1. Introduction

Nakuru City has quickly risen through the ranks to become one of Kenya’s top urban growth zones. With its strategic location along the Nairobi–Nakuru–Eldoret corridor, scenic landscapes, and thriving economy, Nakuru is drawing attention not just from tourists, but also from savvy real estate investors.

In recent years, the apartment investment in Nakuru has gained serious momentum. As more residents—especially students, civil servants, and working professionals—relocate to the city, the demand for quality rental housing has skyrocketed. This growing market presents a lucrative opportunity for investors looking to build apartments in Kenya.

This article examines what type of apartment you can build in Nakuru with Kshs.70 million, exploring unit options, construction types, rental income potential, and ultimately the ROI on apartments in Nakuru. Whether you’re new to real estate or scaling up, this guide will help you make data-informed decisions.

2. Why Choose Nakuru City for Apartment Investment?

Nakuru City officially gained city status in late 2021, becoming Kenya’s fourth city. This upgrade has had a ripple effect on infrastructure development, economic activity, and property investment. The result? Nakuru is now one of the most promising towns for real estate investment in Kenya.

Key Investment Drivers:

  • Population Growth: Nakuru is home to over 500,000 residents and growing. Urban migration from rural Nakuru, Nairobi, and other counties fuels continuous rental demand.
  • Infrastructure Development: Ongoing road upgrades, water systems, and electricity grid expansion make construction and occupancy smoother for developers.
  • Economic Anchors: Proximity to industrial parks, agricultural processing plants, hospitals, and public universities drives long-term housing demand.
  • Diverse Rental Market: Tenants range from Egerton and Kabarak students to tourists and government workers.
  • Affordable Land Compared to Nairobi: The cost of land and permits is significantly lower, meaning higher margins on projects.

In short, property investment in Nakuru Kenya offers attractive entry costs, strong demand, and healthy returns—especially for those considering a Ksh 70 million apartment project.

3. Understanding the Kshs.70M Apartment Budget

To understand what apartment you can build with 70 million in Nakuru, we need to break down the key budget categories:

Budget Allocation Overview:

Cost ItemEstimated Amount (Ksh)
Land (2 plots @ Ksh 4M)8,000,000
Design & Approvals2,000,000
Construction (Main Works)55,000,000
Contingency (5%)3,500,000
Total70,500,000

This budget supports a mid-range apartment with 3–5 storeys and approximately 1,400–1,600 sqm of built-up area. Construction costs in Nakuru range between Ksh 35,000–45,000 per square meter, depending on materials and finishes.

Apartment Design Options:

  • Bedsitters (25–30 sqm): High density, budget-friendly
  • 1-Bedroom (35–45 sqm): Balanced cost, strong demand
  • 2-Bedroom (55–65 sqm): More space, higher quality tenants

Construction styles vary between:

  • Flats: Concrete slab multi-storey walk-ups (common)
  • Maisonette blocks: Less common, costlier per unit

Flats are recommended for this budget range due to efficiency and rental potential.

4. Apartment Configuration Possibilities

With a Ksh 70 million budget, there are multiple viable configurations based on your tenant target and investment strategy.

Option A: All Bedsitters (High Density)

Unit TypeNo. of UnitsSize (sqm)Cost/UnitTotal Cost
Bedsitter40251.3MKsh 52,000,000

Ideal for student housing or low-income renters. Offers high occupancy but may have higher maintenance turnover.

Option B: Mix of Bedsitters and 1-Bedrooms

Unit TypeNo. of UnitsSize (sqm)Cost/UnitTotal Cost
Bedsitter20251.3M26,000,000
1-Bedroom16401.8M28,800,000
Total Units36Ksh 54.8M

Balanced tenant base and mid-level income potential.

Option C: 1BR and 2BR Combination (Premium Market)

Unit TypeNo. of UnitsSize (sqm)Cost/UnitTotal Cost
1-Bedroom14401.8M25,200,000
2-Bedroom10602.5M25,000,000
Total Units24Ksh 50.2M

Higher rental rates, lower turnover. Appeals to professionals and families.

5. Expected Monthly Rental Income

Rental rates in Nakuru City vary by neighborhood, proximity to CBD/universities, and unit quality. As of 2025:

  • Bedsitter: Ksh 6,000 – 8,000
  • 1-Bedroom: Ksh 10,000 – 14,000
  • 2-Bedroom: Ksh 15,000 – 20,000

Income Projections by Option:

Option A (40 Bedsitters @ 7,000 avg)

  • Monthly Gross: 40 × 7,000 = Ksh 280,000
  • Yearly Gross: Ksh 3,360,000

Option B (20 BS + 16 1BR)

  • 20 BS × 7,000 = 140,000
  • 16 1BR × 12,000 = 192,000
  • Total Monthly: Ksh 332,000
  • Yearly: Ksh 3,984,000

Option C (14 1BR + 10 2BR)

  • 14 × 12,000 = 168,000
  • 10 × 17,000 = 170,000
  • Total Monthly: Ksh 338,000
  • Yearly: Ksh 4,056,000

Occupancy Rate (90%):

Most landlords assume 90% occupancy for planning:

  • Option A: Ksh 3.02M/year
  • Option B: Ksh 3.59M/year
  • Option C: Ksh 3.65M/year

Monthly Expenses:

Estimate 12% of gross income for:

  • Repairs & maintenance
  • Property management
  • Water, security, garbage
  • Vacancies

6. Annual Income and ROI Analysis

Let’s now compute the ROI for each configuration.

ROI = (Net Annual Income / Total Investment) × 100

MetricOption AOption BOption C
Gross IncomeKsh 3.36MKsh 3.98MKsh 4.05M
Expenses (12%)Ksh 403,200Ksh 477,600Ksh 486,720
Net IncomeKsh 2.96MKsh 3.50MKsh 3.56M
ROI (%)4.2%5.0%5.1%
Payback Period~17 years~14 years~14 years

Compared to treasury bonds (9–11%) or SACCO returns (7–10%), apartment investment in Nakuru is more capital-intensive but offers asset-backed income with long-term appreciation.

7. Risks and How to Mitigate Them

Key Risks:

  • Construction Delays: Delayed timelines lead to cost overruns
  • Approval Bottlenecks: Delays from NEMA, County Government
  • Low Occupancy or Defaulting Tenants

Mitigation Tips:

  • Hire experienced contractors and consultants
  • Build in phases if necessary
  • Use professional property managers
  • Choose high-demand locations near town, schools, or transport hubs

8. Long-Term Benefits of Investing in Apartments in Nakuru

Investing in Nakuru city apartments goes beyond rental cash flow. Key long-term gains include:

  • Property Appreciation: Nakuru land and property prices are rising ~10–15% annually.
  • Refinancing Options: Use equity from the first project to finance a second.
  • Retirement Security: Steady income in retirement years.
  • Wealth Transfer: Apartments create generational assets.

Over 10–20 years, this becomes a self-sustaining income stream with minimal effort.

9. Professional Support You Need for the Project

To execute a Ksh 70 million apartment project, you’ll need:

  • Architect: Design and floor plans
  • Structural & Civil Engineers: Stability and compliance
  • Quantity Surveyor (QS): Cost control and valuation
  • Contractor: On-site execution
  • Project Manager: Overall timeline and budget
  • Property Manager: Post-construction tenant management

Each professional plays a vital role in reducing risk and optimizing returns.

10. Conclusion & Call to Action

If you’re looking to make a strategic apartment investment in Nakuru, Kshs.70 million gives you access to mid-sized, high-return projects with excellent growth potential. Depending on your apartment mix, you can generate between Ksh 2.9M and Ksh 3.6M in net annual income, with an ROI of 4%–5%+ and asset appreciation over time.

Nakuru stands out for its balanced tenant pool, growing economy, and manageable development costs. With proper planning and professional guidance, this can be a foundational investment toward long-term financial freedom.

Ready to build your apartment in Nakuru? Consult with a qualified construction and real estate professional to begin feasibility analysis and design today.

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