Owning a home has long been viewed as one of society's greatest achievements.
When James Mwangi bought an eighth of an acre in Kamulu in 2020 for Sh650,000, he believed he was making one of the smartest financial decisions of his life.
At the time, the father of two was paying Sh28,000 every month to rent a two-bedroom apartment in Nairobi's South B estate. Friends constantly reminded him that "Rent is wasted money," while social media was full of success stories of young professionals escaping the city to become homeowners.
Determined to join their ranks, he took a bank loan of Sh4.5 million and built a modest three-bedroom maisonette.
Moving into his own home felt like a dream come true, but within months, reality set in. Every weekday, James woke up at 4.30am to beat traffic into the city, where he works as an accountant. Some evenings, he arrived home after 9pm. Fuel costs rose to nearly Sh30,000 every month, while servicing the loan consumed another Sh48,000. Maintenance expenses, security, electricity and water bills pushed his monthly housing costs even higher.
"I realised I was spending more money owning my house than I did when I was renting," he says.
Two years later, James rented a small apartment near his workplace and now only visits his own house during weekends. The house he sacrificed so much to build has effectively become a weekend home.
Mary Atieno’s story is similar. Encouraged by relatives, she bought land in Kiserian, Kajiado County, for Sh900,000 before the Covid-19 pandemic happened. She later borrowed Sh6 million to construct her dream family home. Initially, she believed the longer commute would be worthwhile because she would finally stop paying rent, enjoy her free space and breathe 'clean air'.
Instead, she discovered she was spending nearly four hours on the road daily travelling to her office in Nairobi's Upper Hill.
The exhaustion affected her productivity, family life and health. Eventually, she moved back into a rented apartment near her workplace. Today, her beautiful four-bedroom house remains largely unoccupied except during holidays.
"I achieved the dream of owning a house but I forgot to ask myself whether I could actually afford to live in it every day."
Such experiences are increasingly becoming common as more Kenyans chase affordable land in satellite towns and distant suburbs, only to discover that the true cost of homeownership extends far beyond construction.
According to the Kenya National Bureau of Statistics (KNBS), the real estate sector remains one of Kenya's largest contributors to economic growth, while rapid urban expansion continues pushing development into towns such as Kamulu, Joska, Isinya, Kiserian, Ngong, Kangundo Road, Malaa and Juja.
Land prices in these areas are often significantly lower than within Nairobi, making them attractive to first-time buyers.
Yet financial experts warn that affordability of land should never be determined by the purchase price alone.
Financial adviser Carol Koome says one of the biggest mistakes aspiring homeowners make is focusing entirely on how much they save when buying cheaper land without calculating the long-term cost of living there.
Carol Koome is a financial adviser.
"The biggest mistake is failing to calculate the running costs of living far away from town compared to living closer to your workplace," she says.
A house located many kilometres away from your place of work or children’s school may seem affordable during construction, but the daily expenses associated with commuting can quietly erase those savings. For motorists, fuel expenses continue to increase alongside vehicle maintenance costs, while those using public transport face rising fares and unpredictable travel times.
Beyond money, there is also the hidden cost of time.
Long commutes reduce family time, increase fatigue and often affect productivity at work.
Ms Koome advises prospective homeowners to carry out a detailed cost-benefit analysis before buying land or beginning construction.
Such an analysis should compare current rent with projected transport costs, fuel, loan repayments, maintenance expenses and all other recurring costs associated with living in the new location.
"What are you paying in rent today? What will you spend on transport or fuel? Are there loan instalments? When you put everything together, you get the real cost of that decision," she explains.
Many people, however, never carry out these calculations. Instead, they are influenced by social pressure. Owning a home has long been viewed as one of society's greatest achievements, and many buyers fear being perceived as unsuccessful if they continue renting.
Ms Koome says this emotional pressure often clouds financial judgement.
"People make decisions because of pressure and the belief that owning a home is the ultimate achievement in life, but beyond building that house, there are many other costs people rarely think about," she says.
Abandoned home
For homeowners living in isolated locations, these additional expenses may include hiring security guards, paying gardeners, maintaining compounds, repairing infrastructure and meeting utility bills even when the property is rarely occupied.
In some cases, homeowners discover they are paying rent near their place of work while simultaneously maintaining a house they hardly use.
Financially, this creates what experts describe as a "double housing burden."
The abandoned home also becomes what Ms Koome describes as a "dead asset." While property value may appreciate over time, the money locked in an unused house is not generating immediate financial returns.
"The house may be appreciating, but at that particular moment, the money you invested could have been working elsewhere and earning more than simply sitting in an idle property," she says.
Worth noting is that finding tenants for such homes is often easier said than done. Most workers naturally prefer living close to employment centres, schools and transport networks, as a result, houses located in areas with limited economic activity may remain vacant for months.
"You may end up with what people call a white elephant," Ms Koome warns.
The challenge has become increasingly visible in several emerging satellite towns around Nairobi, where completed homes remain closed for long periods while their owners continue renting within the city.
Property analyst Joseph Njoroge say location remains one of the strongest determinants of a home's long-term value, not merely for resale but also for daily usability.
Many Kenyans buy urban land believing they will eventually retire in their rural homes.
"Affordable land can become expensive if it creates recurring transport costs that exceed rental savings. Rather than focusing solely on the price of land, buyers should evaluate employment patterns, road infrastructure, access to schools, healthcare facilities, public transport and future development plans," says Mr Njoroge.
These factors, he notes, ultimately determine whether a property remains practical over many years.
For those who already own underutilised houses, all is not lost.
Ms Koome says homeowners should consider practical ways of recovering value instead of allowing properties to remain idle. The first option is renting out the house if demand exists.
Where occupancy is unlikely, selling the property and redirecting the proceeds into better-performing investments may make more financial sense.
Others may convert such homes into weekend retreats or holiday homes while choosing to rent closer to work during weekdays.
"The important thing is accepting the situation and finding the most economical way forward instead of holding onto an expensive mistake," she says.
The experience also challenges one of Kenya's deeply rooted financial beliefs that renting is always inferior to homeownership.
Ms Koome argues that renting can, in many situations, provide greater financial flexibility.
"Brick and mortar is not the only measure of success. Many wealthy people live in rented homes because renting gives them flexibility. Today they can live in one neighbourhood and tomorrow they can relocate depending on work or changing priorities," she notes.
This flexibility has become increasingly valuable in an economy where career opportunities often require people to change jobs, offices or even cities. A permanent home located far from employment can quickly become a financial constraint rather than a symbol of achievement.
Retirement planning presents another important consideration. Many Kenyans buy urban land believing they will eventually retire in their rural homes.
According to Ms Koome, buying and building can still make financial sense if there is a clear exit strategy.
"If the house served you well during your working years, it can later become an income-generating asset," she says.
Owners can rent it out after relocating or sell it and invest the proceeds into income-producing ventures that support retirement.
Without such planning, however, homeowners risk locking millions of shillings into properties that neither generate income nor meet their changing lifestyle needs.
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