What Type of Apartment Can You Build with Ksh 70M in Mavoko?

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2 weeks ago

Introduction

In recent years, satellite towns around Nairobi have emerged as key players in Kenya’s real estate investment space. Mavoko, located in Machakos County, is one such area gaining immense popularity for its affordability, accessibility, and growing demand for housing. With rising land costs in Nairobi, developers and investors are turning to emerging urban centers like Mavoko to build apartments that cater to Kenya’s growing middle class.

If you’re considering a real estate investment in Mavoko, a Ksh 70 million budget offers you a strong entry point. This capital is sufficient for apartment development in Mavoko, targeting tenants such as young professionals, civil servants, and small families.

In this article, we’ll break down what kind of apartment project you can launch with Ksh 70 million in Mavoko. We’ll cover the potential number of units, construction costs, expected rental income, and estimated return on investment (ROI) — helping you decide whether Mavoko is the right location for your next property investment.

Why Choose Mavoko for Apartment Construction?

Mavoko’s real estate appeal lies in its strategic location just 30–40 minutes from Nairobi CBD via Mombasa Road or the Nairobi Expressway. With key infrastructure such as the Standard Gauge Railway (SGR), Athi River interchange, and a proposed BRT line, Mavoko is increasingly seen as a commuter town with city-level conveniences.

Additionally, the area has witnessed rapid urbanization with growing numbers of private developments, schools, shopping centers like Crystal Rivers Mall, and hospitals. These improvements have spurred an influx of tenants seeking affordable rental options outside the city.

What’s driving demand?

Middle-income earners and young professionals working in Nairobi or Athi River-based factories.
University students attending nearby institutions like Daystar University and East African University.
Families looking for gated communities or affordable apartments.

With these tenant demographics and supportive infrastructure, real estate investment in Mavoko offers a sustainable rental market and long-term growth potential.

What Type of Apartment Can You Build with Kshs.70M in Mavoko?

To build apartments in Kenya efficiently, especially with a Ksh 70M budget, you must carefully allocate funds across land, approvals, and construction. Here’s how your apartment construction budget in Kenya might look in Mavoko:

Budget Breakdown (Estimated):

Expense Item	Estimated Cost (Ksh)
Land (1/8 acre – 1/4 acre)	10M – 15M
Architectural & Structural Design	1M – 1.5M
Government Approvals & Permits	0.8M – 1.2M
Main Construction (36–40 units)	48M – 52M
Utilities (Water, Electricity, Sewerage)	1.5M – 2M
Project Management & Contingencies	1.5M – 2M
Total	~Ksh 70 Million

With this budget, you can develop a walk-up apartment block of 3 or 4 storeys with between 30 and 40 units depending on your configuration.

Construction costs per unit in Kenya for low-rise apartments in satellite towns like Mavoko average between Ksh 2.5M and Ksh 3M, inclusive of finishes and service connections. Depending on design efficiency and land shape, you can opt for:

Bedsitters: Low-cost, high-demand rental units ideal for students and single professionals.
One-bedroom apartments: A balance between affordability and comfort.
Two-bedroom units: Higher value units targeting small families.

You can also include provisions for parking, security gates, waste management, and a borehole to increase tenant satisfaction and reduce long-term costs.

Estimated Number and Type of Units

Let’s break down three realistic apartment development scenarios using Ksh 70M in Mavoko:

Scenario 1: High-Density (Ideal for Student/Single Tenants)

Unit Type	Number of Units	Cost per Unit (Ksh)	Total Cost (Ksh)
Bedsitters	24	2.2M	52.8M
1-Bedroom	12	2.8M	33.6M
Total Units	36		~70M (with soft costs)

Scenario 2: Mid-Density Family Focus

Unit Type	Number of Units	Cost per Unit (Ksh)	Total Cost (Ksh)
2-Bedroom	18	3.2M	57.6M
1-Bedroom	12	2.7M	32.4M
Total Units	30		~70M (with soft costs)

Scenario 3: Mixed-Use Design

Unit Type	Number of Units	Monthly Rent (Avg)	Monthly Income (Ksh)
Bedsitters	16	6,000	96,000
1-Bedroom	10	10,000	100,000
2-Bedroom	10	15,000	150,000
Total	36		346,000 – 370,000

Each configuration targets different tenant segments. Scenario 3 provides the best diversification for maximizing both occupancy and return on investment in real estate Kenya.

Potential Rental Income per Month and Year

The rental income in Mavoko remains relatively stable and attractive due to sustained demand from the working population and students. Let’s break down potential monthly and annual earnings from your apartment project:

Average Rents in Mavoko (2025 Estimates):

Bedsitter: Ksh 6,000
1-Bedroom: Ksh 10,000
2-Bedroom: Ksh 15,000

Example Rental Income (Scenario 3):

Unit Type	Quantity	Monthly Rent	Total Monthly Income
Bedsitter	16	Ksh 6,000	Ksh 96,000
1-Bedroom	10	Ksh 10,000	Ksh 100,000
2-Bedroom	10	Ksh 15,000	Ksh 150,000
Total	36		Ksh 346,000

Annual Income:

Gross Annual Rental Income = Ksh 346,000 x 12 = Ksh 4.15M
Occupancy Rate (Assuming 90%) = Ksh 3.73M

This level of rental income supports a steady cash flow, which is crucial for long-term property investment in Mavoko.

Return on Investment (ROI) Analysis

Return on investment is a key metric in determining the success of apartment development in Mavoko.

Estimated ROI Breakdown:

Total Investment: Ksh 70M
Gross Annual Rental Income: Ksh 4.15M
Operational Expenses (20%): Ksh 830,000
Net Annual Income: Ksh 3.32M

ROI Calculation:

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

ROI = (3.32M / 70M) x 100 = 4.7%

Payback Period:

70M / 3.32M = ~21 years

While this might seem like a long period, it’s important to factor in value appreciation, rental growth, and inflation adjustment — all of which can significantly improve your long-term ROI.

Compared to towns like Athi River or Ruai, Mavoko’s ROI is competitive and often less risky due to its more developed infrastructure and accessible market.

Factors That Can Improve or Hurt Your ROI

Boost ROI by:

Buying land early in emerging zones near major roads.
Efficient design to maximize rentable space.
Marketing strategy targeting working-class tenants.
Reliable property management to maintain occupancy.

Risks That Can Hurt ROI:

Construction delays and budget overruns.
High vacancy rates due to poor location or design.
Poor maintenance, leading to faster depreciation.
Policy changes, such as zoning adjustments.

Mitigation Tips:

Conduct a thorough market feasibility study.
Work with registered contractors and consultants.
Use long-lasting, low-maintenance materials.
Allocate a buffer for inflation and contingency planning.

Long-Term Gains: Appreciation and Exit Strategy

Beyond monthly income, apartment development in Mavoko offers solid long-term benefits:

Land Appreciation: Mavoko plots have historically appreciated 10–15% annually.
Rental Increment Potential: Increase rents by 5–10% annually depending on inflation.
Exit Options:
- Sell the entire block at a profit after 5–10 years.
- Refinance through asset-backed lending.
- Convert to serviced apartments or Airbnb to tap into short-stay demand.

Conclusion and Final Advice

Investing Ksh 70 million in an apartment project in Mavoko presents a solid opportunity for consistent income, long-term value appreciation, and capital preservation. Whether you build bedsitters for high turnover or a mixed-unit block for balanced returns, real estate investment in Mavoko makes financial sense.

Ensure due diligence in land acquisition, design approvals, and project management. Hiring experienced professionals — an architect, quantity surveyor, contractor, and a property manager — is key to achieving success.

If you’re considering property investment in Mavoko, this is the right time to act.

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