YouTube KE · KES
METRIKA/Compare/metrika.co.ke/comparisons/rent-vs-buy-kenya/

Compare your choices

Rent vs buy calculator Kenya

Compare buying a home with a mortgage against renting and investing the difference. See who ends up with more wealth, and when buying starts to pay off.

Updated 26 Sep 2026Kenya · KESFree · no sign-up

Your numbers

Filled with example figures. Change them to yours.

KES
KES/ mo
years
%
KMRC-backed affordable mortgages allow deposits from 10%.
% / yr
Commercial mortgages ~12–15%; KMRC-refinanced affordable loans are lower.
years
% / yr
% / yr
% / yr
e.g. money market funds, T-bills or bonds.
% of price
Stamp duty (4% in municipalities), legal, valuation fees.
% of value / yr
Maintenance, service charge, land rates.
% of value
Your resultMETRIKA
Rent +2.82M after 10 yrs

Renting and investing leaves you KES 2,815,537 wealthier after 10 years.

21Rent-leaning
Mortgage / month
KES 84,353
Rent today
KES 45,000
Cash to buy
KES 1,280,000
Breakeven
Not in horizon
Rent vs buy · Kenyametrika.co.ke · 26 Sep 2026

What does it mean?

Buying needs KES 1,280,000 upfront and KES 84,353 a month on the mortgage, against rent of KES 45,000. METRIKA assumes the renter invests the deposit and any monthly difference at 9% a year.

Buying does not overtake renting within 10 years with these assumptions.

This home's gross rental yield is 6.8%. When yearly rent is a small share of the price (under about 5%), renting often wins. Home value growth and the mortgage rate move the result most, so try changing them.

Net worth: buying vs renting

Home equity after selling costs plus investments, versus the renter's invested savings

02.50M5.00M7.50M10.0MY0Y2Y4Y6Y8Y10
BuyRent & invest
After 10 yrsBuyRent
Total paid for housingKES 11,151,502KES 7,117,629
Home valueKES 13,031,157—
Mortgage still owedKES 5,649,523—
Net worthKES 6,990,699KES 9,806,236

Watch it explained. Short METRIKA videos on money, tax and big decisions in Kenya.

Watch on YouTubeSubscribe
Share your result

Show your number

Instagram, TikTok and Snapchat don't accept links from websites. Tap one to copy your result, then paste it into your post, story or bio.

Challenge a friend

Think they'll beat you?

Rent or buy? My numbers say RENT. Run yours and tell me which way you land:

Compare results

You vs them

Enter their score to compare.

Save results to track changes over time.

How METRIKA calculates this

METRIKA simulates both paths month by month:

  • Buyer pays the deposit and buying costs, then the mortgage (reducing balance) plus ownership costs. Net worth = home value − selling costs − mortgage balance + any savings invested in months when owning cost less than rent.
  • Renter invests the same upfront cash and, in months when owning would cost more than rent, invests the difference. Rent rises once a year.

Both portfolios earn the same return, so the comparison is fair. Taxes on investment returns (15% withholding on interest) and mortgage interest relief are not modelled.

What to know in Kenya

Kenyan home ownership decisions often weigh land or a family plot against renting in town. Stamp duty is 4% of value in municipalities and 2% elsewhere. The Kenya Mortgage Refinance Company supports single-digit-rate mortgages for qualifying affordable homes through partner banks and SACCOs; if you qualify, try a lower mortgage rate here.

Frequently asked questions

Is it better to rent or buy in Nairobi?

It depends on the price-to-rent ratio, your mortgage rate and how long you'll stay. Where yearly rent is a small share of the price, renting and investing often wins over 5–10 years.

What is a breakeven year?

The first year when the buyer's net worth passes the renter's. If you plan to move before then, renting is usually the better financial choice.

Why include selling costs?

Your home only turns into cash after agent, legal and transfer costs. Leaving them out makes buying look better than it is.

Sources

Rates checked 26 Sep 2026. METRIKA gives estimates, not financial or tax advice.