August 5, 2025

1. Introduction

Real estate investment in Kenya has rapidly expanded beyond Nairobi’s city center, with satellite towns gaining immense popularity. One such town is Limuru, a fast-growing urban node in Kiambu County. It is increasingly attracting developers, investors, and homeowners due to its accessibility, tranquility, and growing demand for housing.

If you’re considering building apartments in Kenya, you’re likely wondering what you can achieve with a Kshs.60 million budget. Specifically, how many units can I build with 60 million in Limuru? And just as importantly—what rental income and return on investment (ROI) can you expect?

This article provides a detailed breakdown of apartments in Limuru, what Kshs.60M can realistically build, potential rental income, and the expected real estate ROI in Kenya for such a development. Whether you’re a seasoned investor or a first-time developer, this analysis will help you determine if Limuru offers the right mix of affordability, demand, and profitability.

2. Why Invest in Apartments in Limuru?

Strategic Location and Connectivity

Limuru is strategically located along the Nairobi–Nakuru highway and is part of the Nairobi Metropolitan area. This makes it an attractive place for Nairobi-based workers who prefer more affordable accommodation outside the city. With infrastructure upgrades, commuting to Nairobi CBD, Westlands, or Upper Hill is faster and more predictable.

Urbanization and Housing Demand

Limuru’s growth is also spurred by the establishment of learning institutions, agribusiness ventures, and industrial parks such as Tatu City and Tilisi. The growing student and working population has led to a sharp rise in demand for affordable apartment development. From single professionals to young families, there’s a wide range of potential tenants.

Land Affordability and Accessibility

Unlike more saturated areas like Westlands or Kilimani, land in Limuru remains relatively affordable. This makes real estate investment in Limuru appealing to mid-level investors looking to maximize unit count while keeping costs reasonable.

3. Factors Influencing Apartment Development

Land Cost Estimates in Limuru (2025)

As of 2025, land in Limuru ranges between Kshs. 3.5M to 7M per 1/8 acre, depending on proximity to tarmac roads and services. A 1/4-acre plot in well-connected areas may cost around Kshs. 10M to 14M, which is ideal for building walk-up apartments.

Approvals and Permits

You’ll need to budget for:

Architectural & structural design: Kshs. 300K–500K
County permits & NEMA: Kshs. 200K–300K
NCA registration: Kshs. 50K–100K

Allocate Kshs. 800K–1M for approvals and professional fees.

Construction Costs

The cost of building apartments in Limuru averages Kshs. 30,000–35,000 per m². For basic to mid-range finishes, this translates to around:

Bedsitter (20m²): Kshs. 600K–700K
1-bedroom (35–40m²): Kshs. 1M–1.2M
2-bedroom (60–70m²): Kshs. 1.7M–2M

4. Apartment Types You Can Build with Kshs.60M in Limuru

Given your Kshs.60 million budget, here’s what you can potentially construct depending on your unit mix:

Option 1: Bedsitter Block – 48–60 Units

Design: 4-storey walk-up (Ground + 3 floors)
Unit Size: 20m²
Construction Cost per Unit: Kshs. 650K
Total Cost (50 units): Kshs. 32.5M
Land + Design + Utilities: Kshs. 12M
Contingency & Finishes: Kshs. 10M–15M

This setup can yield high rental density, perfect for student or low-income housing.

Option 2: Mixed Units – 16 Bedsitters + 20 One-Bedroom Units

Unit Sizes: Bedsitter (20m²), 1BR (35m²)
Estimated Cost:
- Bedsitters: 16 x Kshs. 650K = Kshs. 10.4M
- 1BR: 20 x Kshs. 1.1M = Kshs. 22M
Other costs (land, approvals, infrastructure): Kshs. 12M–14M
Total Development Cost: ~Kshs. 55M–58M

This hybrid strategy caters to a broader tenant pool.

Option 3: 2-Bedroom Apartments – 20–24 Units

Unit Size: 60–70m²
Construction Cost: Kshs. 1.8M–2M per unit
Total Cost (24 units): ~Kshs. 48M
Remaining budget: Land, contingencies, finishes

Ideal for targeting families and middle-income earners.

5. Potential Rental Income per Unit Type

Based on 2025 market rates for apartment rental income in Limuru:

Bedsitter: Kshs. 9,000–10,000/month
1-Bedroom: Kshs. 13,000–15,000/month
2-Bedroom: Kshs. 18,000–22,000/month

Option A: 50 Bedsitters

Monthly income: 50 x 10,000 = Kshs. 500,000
Annual income: Kshs. 6,000,000

Option B: 16 Bedsitters + 20 One-Bedrooms

16 x 10,000 = Kshs. 160,000
20 x 14,000 = Kshs. 280,000
Monthly Total: Kshs. 440,000
Annual Total: Kshs. 5.28M

Option C: 24 Two-Bedroom Units

24 x 20,000 = Kshs. 480,000/month
Annual income: Kshs. 5.76M

6. Annual Income and Operating Expenses

While gross rental income sounds promising, you must consider expenses such as:

Vacancy & collection losses: 5–10%
Maintenance & repairs: Kshs. 100K–200K annually
Caretaker/security: Kshs. 15K–25K/month
Water & waste services: Kshs. 10K–20K/month

Example – Option A (50 Bedsitters)

Gross income: Kshs. 6M
Vacancy (5%): Kshs. 300K
Operating costs: Kshs. 500K
Net Operating Income (NOI): Kshs. 5.2M

7. Calculating Return on Investment (ROI)

Formula:
ROI = (Net Annual Income ÷ Total Investment) × 100

Example:

Net income: Kshs. 5.2M
Total Investment: Kshs. 60M
ROI = (5.2 ÷ 60) × 100 = 8.66%

This ROI outperforms traditional savings (3–5%) and is competitive against SACCOs and land flipping. Return on investment in real estate Kenya remains among the most stable and inflation-hedged options.

8. Investment Risks and How to Minimize Them

Common Risks

Rental oversupply or poor tenant mix
Construction cost escalation
Inadequate water/drainage
Poor finishes affecting occupancy

Mitigation Measures

Do a feasibility study before committing to a unit mix
Engage professionals—architect, QS, project manager
Build in phases if unsure of market uptake
Choose strategic locations near tarmac roads and schools

9. Expert Tips for Maximizing Returns

Use a professional contractor with experience in walk-up apartments.
Design for space efficiency—no wasted corridors or oversized rooms.
Use durable finishes to reduce long-term maintenance costs.
Offer value-adds like CCTV, water storage, and high-speed internet.
Hire a property manager to maintain occupancy and handle tenant issues.
Choose plots in high-demand areas, such as Limuru Town, Ngecha, or near universities.

10. Conclusion and Call to Action

With Kshs.60 million, you can comfortably build:

50+ bedsitters, or
36–40 mixed units, or
20–24 2-bedroom apartments

These units can generate Kshs. 400K to 600K monthly, translating to an annual income of Kshs. 5M to 7.2M, depending on the mix and occupancy. The ROI in Limuru ranges from 7% to 10%, outperforming many traditional investment vehicles.

If you’re looking for affordable apartments in Limuru that offer reliable cash flow and asset growth, this is one of the best places to build apartments in Kenya right now.

Interested in building apartments in Limuru?
Talk to our real estate and construction experts today for a free feasibility consultation and maximize your investment in Kenya’s growing satellite towns.

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