What Type of Apartment Can You Build with Ksh 30 Million in Ruai? Unit Count, Rental Income & ROI Explained

1. Introduction: Investing Smart in Ruai

As the demand for affordable housing continues to rise in Nairobi’s satellite towns, Ruai has emerged as a go-to destination for real estate developers and investors. Strategically located along Kangundo Road and within reach of Nairobi CBD, Ruai offers a unique combination of affordability, accessibility, and long-term growth potential.

If you’re asking, “What apartment can I build with Ksh 30 million in Kenya?”—this article provides a deep dive into exactly that. With Ksh 30M, you can build a decent low-rise apartment block in Ruai and generate steady rental income in Ruai while enjoying substantial capital gains.

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In this guide, we’ll explore construction costs, apartment configurations, expected rental returns, and calculate the ROI on apartments in Kenya, specifically in the context of Ruai’s thriving property market.

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2. Why Ruai is an Emerging Real Estate Hub

Location & Infrastructure

Ruai sits approximately 25–30 kilometers east of Nairobi’s CBD, easily accessible via Kangundo Road. It is well connected to major highways and sees ongoing infrastructure upgrades, including tarmacked access roads, electricity expansion, sewer projects, and piped water availability.

Amenities and Urbanization

The area has essential services including schools, health facilities, shopping centers, and public transport. Areas such as Kamulu, Joska, and Ngundu are developing rapidly with new residential estates, rental flats, and commercial centers coming up.

Affordable Land and Growing Demand

With land prices still affordable (Ksh 2M–3.5M for a 50×100 plot), developers are rushing in. The cost of building a flat in Kenya has never made more financial sense than in Ruai, where a moderate budget like Ksh 30 million can create a high-demand residential asset targeting Nairobi’s working population and growing middle-class families.

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3. Understanding Construction Costs in Ruai

Construction Cost per Square Metre

In Ruai, the construction cost for a simple walk-up apartment (2–4 floors) averages:

• Basic finish: Ksh 30,000/sqm
• Standard finish: Ksh 35,000–40,000/sqm
• High-end finish: Ksh 45,000/sqm

For a Ksh 30 million project using a standard finish at Ksh 35,000/sqm, the total buildable area is:

30,000,000 ÷ 35,000 = ~857 sqm

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Land Acquisition Cost

If not already owned, land in Ruai will cost between Ksh 2M–3.5M for a standard 50×100 plot. This means:

• With land: Construction budget = ~Ksh 27M–28M
• Without land: Full Ksh 30M used for construction

For our analysis, we’ll assume land is already acquired, dedicating the full Ksh 30M to the construction and soft costs.

Other Cost Considerations

• Architectural, engineering, and QS fees: ~Ksh 1M–1.5M
• NEMA, NCA, County permits: ~Ksh 500K–1M
• Utilities and services (septic, water tank, electricity): ~Ksh 1M–1.5M
• Contingency (10%): ~Ksh 2.5M–3M

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4. Apartment Type You Can Build with Ksh 30M

Depending on the configuration and target tenants, here are sample development models.

Configuration Options

Option A: 2-Bedroom Units (Family-Focused)

• 3-storey walk-up
• 4 units per floor
• 12 total units
• Each unit: ~70 sqm

Option B: 1-Bedroom Units (Professionals & Couples)

• 3 floors
• 6 units per floor
• 18 units total
• Each unit: ~50 sqm

Option C: Bedsitters (Students & Singles)

• 3 floors
• 6 units per floor
• 18 units total
• Each unit: ~30–35 sqm

Option D: Mixed Use

• 3 floors
• 2 x 2BR, 4 x 1BR, 2 x bedsitters per floor
• 24 units total

Cost Estimate Table

Option	Unit Type	No. of Units	Avg. Size (sqm)	Total Build Area	Est. Build Cost
A	2BR	12	70	840 sqm	Ksh 29.4M
B	1BR	18	50	900 sqm	Ksh 31.5M
C	Bedsitters	18	35	630 sqm	Ksh 22.05M
D	Mixed (2BR,1BR,Bedsitter)	24	Avg 40 sqm	960 sqm	Ksh 33.6M

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Note: You can adjust sizes and finishes to fit your Ksh 30M budget. Mixed-use and bedsitter plans offer higher unit counts, but 2BR models attract longer-term family tenants.

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5. Rental Income Potential in Ruai

Market Rent (2025 Estimates)

• Bedsitter: Ksh 7,000–8,500/month
• 1 Bedroom: Ksh 10,000–12,000/month
• 2 Bedroom: Ksh 15,000–18,000/month

Rental Income Table

Option	Unit Type	Units	Avg. Rent (Ksh)	Monthly Income	Annual Income
A	2BR	12	16,000	192,000	2,304,000
B	1BR	18	11,000	198,000	2,376,000
C	Bedsitter	18	8,000	144,000	1,728,000
D	Mixed	24	Varies	~210,000	~2,520,000

Mixed calculation: 6 bedsitters @ 8K, 12 1BR @ 11K, 6 2BR @ 16K

Occupancy Consideration

• 95% occupancy rate common in Ruai
• Annual income at 95%:
  • Option A: ~Ksh 2.18M
  • Option D: ~Ksh 2.39M

6. ROI: What Return Will You Earn?

ROI Formula

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

Let’s estimate operational costs at 12%, including maintenance, vacancy buffer, and management.

Option	Gross Annual Income	Net Income (88%)	ROI (Net)	Payback Period
A	Ksh 2.30M	Ksh 2.02M	6.73%	14.8 years
B	Ksh 2.38M	Ksh 2.09M	6.96%	14.3 years
C	Ksh 1.73M	Ksh 1.52M	5.06%	19.7 years
D	Ksh 2.52M	Ksh 2.22M	7.4%	13.5 years

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Option D (Mixed) provides the highest yield and most diversified tenant base, making it ideal for balancing risk and maximizing cash flow.

7. Additional Costs to Consider

Investors should plan for the following:

• NEMA & County Approvals: Ksh 300K–500K
• Professional Fees (Architect, QS, Engineer): Ksh 1.2M–1.5M
• NHIF, NSSF, NCA compliance: ~Ksh 100K
• Utilities (septic tank, electricity meter, borehole/water connection): Ksh 1.5M–2M
• Contingency Buffer (10%): Ksh 2.5M–3M

Planning for these ensures timely completion and avoids budget shocks.

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8. Tips to Maximize ROI

• ✅ Smart Layouts: Open kitchens, combined toilet/shower, and minimized dead space optimize rentable area.
• ✅ Durable Finishes: Ceramic tiles, granite countertops, and PVC ceilings reduce repair frequency.
• ✅ Tenant Mix: Blend 1BR and 2BR units to appeal to a wider market.
• ✅ Solar Water Heating & Water Harvesting: Cuts utility bills, boosting net income.
• ✅ Professional Management: Helps maintain high occupancy and rent collection.

9. Conclusion & Recommendation

A Ksh 30 million apartment project in Kenya, particularly in Ruai, offers promising returns if planned and executed strategically. Whether you build 12 two-bedroom units, 18 one-bedrooms, or a mixed-use block of up to 24 units, you can expect net ROIs ranging from 5% to 7.5% annually, alongside capital gains from land appreciation.

Related post: What Apartment Can You Build with Ksh 40 Million in Kahawa West? Unit Count, Rental Income, and ROI Analysis

Mixed configurations are ideal for balancing demand, tenant diversity, and long-term value. With high occupancy, moderate build costs, and a solid rental market, apartment investment in Ruai stands out as one of the best real estate investment choices in Nairobi’s outskirts today.

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