06/06/2026
If you had Ksh 35 Million today, would you park it in an MMF or invest in a rental apartment block that pays you every month?
📍 This Project's Details
Plot Size: 50ft × 50ft
12 Bedsitters
6 One-Bedroom Units
5 Two-Bedroom Units
Estimated Development Cost: Ksh 35 Million
💵 Projected Monthly Income
🔲 12 Bedsitters × Ksh 10,000 = Ksh 120,000
🔲 6 One-Bedroom Units × Ksh 20,000 = Ksh 120,000
🔲 5 Two-Bedroom Units × Ksh 25,000 = Ksh 125,000
✅ Total Monthly Rent: Ksh 365,000
✅ Annual Rental Income: Ksh 4,380,000
📈 Estimated Payback Period (ROI): Ksh 35,000,000 ÷ Ksh 4,380,000 = 7.99 years (approximately 8 years)
⚠️ Important Note: This is a gross calculation for illustration purposes. I have not factored in occupancy, maintenance costs, management expenses, land acquisition costs, financing costs, taxes, or inflation. The rental assumptions are based on a typical middle-class suburban.
Even with these considerations, the question remains:
🤔 What would you choose?
A. MMF earning interest
B. A rental apartment that could generate income for decades and potentially be passed down to future generations
After roughly 8 years, the development could recover its construction cost through rental income while the asset continues appreciating in value and generating cash flow.
📞 Planning a rental apartment project? Reach me on +254 712151900 for design, approvals, costing, and project planning.
