Investments which are better and more profitable than building Apartments in Kenya


Majority of Kenyans opt to build apartments because they want to earn passive income, very few of them think outside the box. There are many investments which are better than apartments.

One reason investing in apartments is that it takes over a decade to get back your capital. For instance, a 6 storey building in Nairobi will cost Ksh 60 million to construct. It will fetch Ksh 400,000 to Ksh 700,000 per month after tax. How many years will it take to return Ksh 60 million? If monthly income is Ksh 500,000, it will generate Ksh 6 million per year. It will take 10 to 12 years to return Ksh 60 million. If you’ll be paying tax, then it will take 15 years to return the capital. We have not factored in the cost of land. In a place where monthly income is Ksh 500,000,50 by 100 plot will cost Ksh 10 million and above. It means your capital will return after 17 years.

Assuming that you build the house while at 40, you will wait until you’re 57 to start enjoying the fruits. At 57 you have lifestyle diseases, you are not allowed to eat some specific foods, you are not as active as you used to be at 40. This means that you won’t enjoy your money at that age. Which is why we advocate for other ways of investing money in Kenya.


Money Market Fund gives you the opportunity to earn interest daily through your investment. The interest in Kenya range between 8% and 19% per year. If you invest Ksh 1 million in the fund, you will make over Ksh 100,000 annually.

Assuming that you invested Ksh 60 million in the fund, the money will yield over Ksh 8 million per year. This is more than what you could earn from rentals.

Money Market Fund is safe and ideal for huge investments. Banks and insurance companies offer this type of investment.

With Money Market Fund, you won’t wait for 17 years to start earning profits, you will start earning the first day of investment.


Join a Sacco and invest the money there. To diversify your investment, join 2 Saccos.Identify a stable Sacco like Safaricom Sacco, Harambee Sacco and Stima Sacco, where you are sure your money won’t be stolen.

If you buy shares in a Sacco, the dividends will yield 14 to 18% of your investment per year. Investment of Ksh 1 million will generate over Ksh 140,000 annually.


Instead of investing in apartments, start a profitable business with low chances of failing. One of the best businesses to start is hardware shop. It will cost you Ksh 10 million and below. Hardware shop will generate over Ksh 200,000 every month.


Start a real estate company of buying and selling of land. This is better than building apartments.

The real estate company can also build low cost houses and sell to customers.

The returns from buying and selling of land will be higher than from apartment income.


Fixed Deposit account will also yield more income than apartments. The interest for Ksh 60 million investment will be Ksh 5 million to Ksh 10 million per year. NCBA, Standard Chartered Bank and Stanbic Bank offer the highest interest on Fixed Deposit investment.


Another investment to think of is bonds. Bonds take 5 to 20 years to mature but they come with high returns. Within 5 years, your Ksh 60 million will generate over Ksh 20 million.


Please enter your comment!
Please enter your name here