1. Introduction
As urban congestion and high property costs drive more developers and tenants out of Nairobi, satellite towns like Ngong have become hotbeds for real estate investment. Located in Kajiado County, Ngong offers a unique blend of affordable land, strong rental demand, and proximity to the capital, making it increasingly attractive to real estate developers and investors.
One of the most common questions from investors is: “If I have Ksh 60 million, what kind of apartment can I build in Ngong?” In this article, we provide a comprehensive breakdown of what Ksh 60M can achieve in terms of apartment construction, how many rental units it can yield, what kind of rental income in Ngong you can expect, and the likely ROI on rental apartments in Ngong.
Whether you’re looking to build bedsitters, one-bedroom units, or a mixed development, this guide offers detailed insights for any investor looking at apartment construction in Ngong.
2. Why Invest in Ngong?
A Growing Satellite Town with Massive Potential
Ngong’s transformation from a semi-rural outpost into a thriving commuter town has been swift and impressive. Fueled by affordable land and improved infrastructure, Ngong is experiencing population growth and an upsurge in rental demand.
Proximity and Infrastructure
Only about 25 kilometers from Nairobi’s CBD, Ngong is accessible via Ngong Road, Southern Bypass, and Magadi Road. The ongoing construction of tarmacked feeder roads, and connectivity to the Standard Gauge Railway (SGR) in nearby areas, has further boosted its appeal.
Related post: What Apartment Can You Build with Ksh 40 Million in Ruiru? Unit Count, Rental Income & ROI Breakdown
Tenant Demographics and Demand
Ngong hosts a diverse population including:
- Nairobi-based professionals seeking affordable living
- Civil servants
- Teachers and healthcare workers
- University students (due to proximity to institutions like Africa Nazarene University and Multimedia University)
These tenant demographics have led to strong demand for affordable rental housing, particularly for bedsitters and 1-bedroom apartments.
Property Appreciation
In the past five years, land in Ngong has appreciated by over 50% in some zones. Locations like Matasia, Ngong Town, Kibiko, and Ole Kasasi have seen property values soar. This trend makes real estate investment in Ngong a smart choice for long-term capital growth and consistent monthly returns.
3. Cost Breakdown: What Can Ksh 60M Build in Ngong?
1. Land Acquisition Estimate
If you don’t already own land, budgeting Ksh 5M to Ksh 7M can secure you a 50×100 (1/8-acre) plot in strategic zones like Ngong Town, Matasia, or Kahara. However, prices may rise based on access roads and proximity to town.
This would leave you with Ksh 53M–55M for actual construction.
2. Construction Cost per Square Metre
Construction prices in Ngong vary by design and finish quality:
- Basic finish: Ksh 30,000/sqm
- Standard finish: Ksh 35,000–40,000/sqm
- High-end finish: Ksh 45,000/sqm+
With Ksh 60M (assuming Ksh 40,000/sqm), you can construct around 1,400–1,500 sqm of floor space.
Related post: What Type of Apartment Can You Build with Ksh 60 Million in Ngong? Unit Breakdown, Monthly Returns, and ROI Explained
3. Development Configuration
Example: 3 Floors × 12 Units per Floor = 36 Units
Options include:
- Bedsitters (30 sqm each) → ~1,080 sqm → 36 units
- 1-Bedroom Units (45–50 sqm) → ~1,620 sqm → 30 units
- Mixed Setup (20 bedsitters + 16 1-bedrooms) → ~1,500 sqm
4. Additional Costs
| Item | Estimated Cost |
| Architect + Structural Engineer + QS | Ksh 2M–3M |
| NCA, NEMA & County Approvals | Ksh 1M |
| Borehole or Water Connection | Ksh 800K |
| Septic Tank/Bio-digester | Ksh 500K |
| Access Roads/Fencing | Ksh 700K |
| Contingency (5–10%) | Ksh 3M–5M |
Factoring in these soft costs, you should allocate around Ksh 55M for construction and keep Ksh 5M for professional and utility-related costs.
4. Example Development Scenario
Case Study: Mixed Apartment Block – 36 Units
Configuration:
- Ground Floor: 6 Bedsitters + 4 1BRs
- 1st Floor: 6 Bedsitters + 4 1BRs
- 2nd Floor: 8 Bedsitters + 4 1BRs
- Total: 20 Bedsitters + 16 1BR Units
Floor Layout Assumptions
- Bedsitter Unit: 30 sqm
- 1-Bedroom Unit: 50 sqm
- Staircase & Common Areas: 10% of total area
Total Build-Up Area:
(20 × 30) + (16 × 50) = 600 + 800 = 1,400 sqm
Add 10% for common areas = 1,540 sqm
Parking and Amenities
- Space for 10–12 cars
- Security gate and caretaker’s house
- Water storage tanks (10,000L)
- Waste disposal area
Estimated Cost Breakdown
| Item | Estimated Cost (Ksh) |
| Construction (1,540 sqm @ 40K) | 61.6M |
| Professional & Approvals | 3.5M |
| Water, Sanitation, Utilities | 1.5M |
| Total | 66.6M (Over budget by 6.6M) |
To stay within budget, reduce built area slightly or opt for more bedsitters, which are smaller and cheaper per unit.
Timeline
- Design & Approval: 3 months
- Construction Phase: 10–12 months
- Total Project Duration: 12–15 months
5. Rental Income Projections
Average Market Rent in Ngong (2025)
- Bedsitter: Ksh 8,000–9,000/month
- 1-Bedroom: Ksh 12,000–15,000/month
Assuming a 90% occupancy rate:
| Unit Type | Units | Rent (Avg) | Gross Monthly | Occupancy (90%) | Net Monthly |
| Bedsitter | 20 | 8,500 | 170,000 | 153,000 | 153,000 |
| 1-Bedroom | 16 | 13,000 | 208,000 | 187,200 | 187,200 |
| Total | — | — | 378,000 | 340,200 | 340,200 |
Monthly Income After Expenses
- Maintenance, caretaker, management fees (10%): Ksh 34,020
- Net Monthly Income: Ksh 306,180
6. Annual Returns and ROI
Yearly Income Projection
- Gross Annual Income: Ksh 378,000 × 12 = Ksh 4,536,000
- Net Annual Income (after 10%): Ksh 4,082,400
ROI Formula:
ROI = (Net Annual Income ÷ Total Investment) × 100
Assuming a total investment of Ksh 60M:
ROI = (4,082,400 ÷ 60,000,000) × 100 = 6.8%
Payback Period
Payback = Total Investment ÷ Net Annual Income
= 60M ÷ 4.08M ≈ 14.7 years
ROI Comparison with Other Investments
| Investment Type | Avg. Annual ROI |
| Treasury Bills | 9% (taxable) |
| SACCO Shares | 6–10% |
| Land Banking (Ngong) | 12–20% (capital appreciation only) |
| Rental Apartments | 6–8% + capital gains |
Thus, apartment investment in Kenya, particularly in Ngong, offers reliable monthly income and long-term growth.
7. Risks and How to Mitigate Them
1. Construction Risks
- Delays and budget overruns
- Mitigation: Hire a competent project manager and set a 10% contingency buffer.
2. Legal and Approval Issues
- Title deed discrepancies, delays in approvals
- Mitigation: Engage a licensed advocate and an experienced architect familiar with county processes.
3. Tenant Turnover and Vacancies
- Mitigation: Offer quality finishes, provide Wi-Fi and water storage, and maintain security. Employ a local property manager for tenant vetting.
4. Market Saturation
- Mitigation: Conduct a feasibility study and opt for mixed units to serve multiple income brackets.
8. Conclusion and Call to Action
With Ksh 60 million, you can build a high-quality apartment block in Ngong featuring:
- 20 bedsitters + 16 one-bedroom units
- Monthly rental income of over Ksh 340K
- Net ROI of ~6.8% annually
- Payback period under 15 years
Ngong is a rapidly appreciating town with consistent rental demand and growing infrastructure—making it a top pick for real estate investment in Kenya.
To get the most value, work with professionals from planning to handover. Whether you’re targeting student housing or young families, a well-designed apartment in Ngong can be both lucrative and low-risk.
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✅ Custom apartment design packages
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✅ Full construction services in Ngong and Kajiado County
📞 Contact us today to turn your 60M into a profitable real estate investment in Ngong.
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