Would I Invest in Tsavo? (For Rental Income)

When I rented my Tsavo unit, D307 along Kiambu Road, my goal eventually shifted from simply renting it to wanting to own that specific unit.

I loved it. The sunlight, the big window pane, the design. It felt fancy without being ridiculously expensive.

I once had a conversation with former Kenya Airways manager Dan Charles about investing in real estate, and his stance was simple: owning a house in Nairobi is one of the best things you can have. Having somewhere to lie down when everything goes south has its own value.

That is subjective, of course.

But it got me thinking: if I had the capital, would I actually bet on Tsavo, specifically for rental income?

Disclaimer: These are my opinions based on my experience as an entrepreneur and investment enthusiast. This is not professional investment advice.

At a quick glance, no.

The rent is KES 14,500 per month. After a KES 2,500 management fee, that's KES 12,000 a month on a KES 2.1M investment, excluding purchase-related costs.

That's KES 144,000 a year, or roughly a 6.9% annual net rental yield.

Not bad.

But I'm not immediately convinced when I compare that with other options like fixed deposits, money-market funds or government securities, especially when some require much less involvement.

So purely for rental income, Tsavo doesn't win for me yet.

So why buy it?

Occupancy is one reason. From what I've observed, Tsavo properties are popular and demand for some units is high.

Then there's convenience. With property management in place, the owner doesn't have to deal with every tenant, collection, maintenance request or day-to-day headache. They build, you own, and much of the work happens without you.

There's also the asset itself. The apartment could appreciate. You could eventually live in it. And unlike money sitting in an account, you own a physical piece of Nairobi.

Those things have value.

But would I put KES 2.1M here purely to collect rent? At the moment, no.

Interested to hear your thoughts on this and explore important details l might have overlooked. Si baadae!