Green Homes in Kenya: A Surging Trend

 

With the climate crisis inching closer to us every day, everyone is becoming more environmentally conscious, including homeowners. This gives birth to the term ‘green homes’, for those who are looking to reduce their exposure to pollutants, decrease their environmental footprint and switch to sustainable and eco-friendly housing. 

Sustainable or green homes can also increase the durability of your house by protecting it from water and air intrusion. They offer an energy-efficient and non-toxic way of construction and living, by using reclaimed materials, solar panels, airtight insulation to reduce any leakage of energy, and more. All in all, they make for a good and sustainable investment opportunity. 

Why are Green Homes trending in Kenya?

The move towards Green Homes in Kenya is mainly driven by the decline in natural resources such as water and fossil fuels, which were once considered inexhaustible. With the adoption of Green Homes, Kenya is looking to achieve their Sustainable Development Goals and joining the Paris Climate Agreement that recognizes the importance of the construction sector and its role in the current climate change crisis. 

Kenyan Government’s Role in Green Homes

The Kenyan government has issued a decree that all housing development projects under the ‘Big 4’ agenda should meet the EDGE green building standards. They have promised to provide developers with free land to construct affordable houses that adhere to the government’s green housing initiative. The bill was enacted by Kenya’s State Department of Housing and Urban Development. 

The Kenya Green Building Society (KGBS) connects the developers to certifiers so that they can utilize the benefits of EDGE certification for marketing purposes.

The Kenyan State Department of Housing is also working with county governments for affordable housing projects. They have created a Memoranda of Understanding wherein the developers who win the bid get free land to build affordable housing projects on it, as per the EDGE standards.

Mi Vida Green Homes

Mi Vida, a joint venture between Actis and Shapoorji Pallonji Real Estate (SPRE), is one of the best choices for a green home in Nairobi, Kenya. Officially launched in 2019 to address the shortage of affordable housing, Mi Vida comes with an innovative design, modern engineering, and trusted construction. 

Mi Vida houses hold an EDGE certification in green building standards. Their projects adhere to the EDGE standard of 20%less energy usage, 20% less water usage, and 20% less embodied energy in materials, making it an ideal green home to live in. 

Pros and Cons of Investing in Real Estate in Nairobi, Kenya

 

All investment opportunities come with their own set of challenges and advantages and investing in properties or real estate is no different. It comes with the advantage of securing a financial future but at the same time can also put you in a lot of debt. This is why it is of primary importance that one should first understand before they take up an investment. In this article, we detail out both the pros and cons of investing in real estate in Nairobi, Kenya.

Let’s first take a look at the pros of investing in real estate.

Advantages of Investing in Real Estate in Nairobi

Creates a cash flow: You can lease your real estate to third parties and generate current cash flow or you can wait for its value to appreciate and achieve substantial returns on your investment. Cash flow also refers to the profit you make after you have paid off your mortgage and all operating expenses. You can use the returns on your investment in various ways, from supporting your family to building a business or reinvesting in other properties. 

Acts as leverage: You can use your real estate to get a loan to buy more real estate. The bank will create a mortgage with your property undertaken as security to back up the loan. This can help you generate more income with your lying funds instead of having to block them in a property, which eventually means more cash flow for you

Lower risks: When you invest in securities and stocks, there are usually dramatic and short term gains and losses, which is quite the opposite of real estate investments. With real estate, the markets do not fluctuate as often as with other types of investments, making them more secure and safe. These real estate investments, also at the same time add diversity to your investment portfolio without completely exposing you to the threats of market volatility. 

Less complicated: It is fairly easy to understand real estate compared to any other type of investment. To invest in real estate, all you need to know is about inflation and market prices, while for securities and stocks, there is a whole lot of literature that you need to get your hands on before you can start investing for good returns. 

Cons of Investing in Real Estate in Nairobi

Having discussed the benefits or advantages of investing in real estate, now let’s take a look at the disadvantages that you may face while investing in real estate.

Slow liquidity: A major drawback of investing in real estate is that you cannot quickly sell it if you are in urgent need of liquid funds. This depends on various factors such as the demand for real estate in that area, market prices and the state of the economy. This can cause you a delay in accessing money in case of an emergency. 

Overhead costs: When you buy a property, you should also consider the overhead costs that you will bear in the future for its maintenance and upkeep. Apart from the maintenance costs, you will also have to bear the mortgage, taxes, insurance and other such charges. 

Issues with the property: While it may be fairly easy to buy a property, it can often be a bad buy if you don’t have the right team by your side. An already constructed house or apartment can be prone to mould which may not be apparent when you buy it, or it can have other issues like termites in the walls or poor quality materials used in construction. This is why it is very important to do a thorough home inspection with knowledgeable people by your side to identify any issues that may come up later.

Cash flow restriction: When you buy a house, you block a chunk of money in that investment, which can restrict your cash flow. If you are taking a home loan, then you will have to also adjust your cash flow as per the changes in the interest rates. 

Mi Vida at Garden City Nairobi, Kenya

In other words, a real estate investment can be both good and bad for you, depending upon the kind of things you consider before you make the purchase. Thorough research and understanding of real estate is key to making a good investment. An ideal real estate investment in Nairobi, Kenya would be Mi-Vida Homes that is a perfect combination of design, modern engineering, trusted construction, on-time delivery and an impeccable record.

Why invest in a Garden City apartment on Thika Road, Nairobi?

 

As the first integrated residential, retail, and office development in Kenya, Garden City brings the well-rounded lifestyle of ‘live, work, play’ all in one thoughtfully designed location. It offers the popular Garden City Mall with world-class retail, a Business Park with Grade-A office spaces, plenty of leisure options, and upcoming facilities including a hospital and a hotel.

These are all situated at the doorstep of cutting-edge Garden City residences that include 150 modern apartments and duplexes along with 56 elegant townhouses. The mixed-use offering of this project combined with its strategic location along Thika Road in the capital city of Nairobi makes it an excellent opportunity for real estate investments.

Garden City Mall

Garden City is located just 15 minutes away from the Central Business District and is quickly being established as the focal point of the rapidly growing Thika Road, Nairobi. Location and connectivity are crucial factors to consider when it comes to investments and Garden City scores high on both of those counts.

The Thika Super Highway, completed in 2012, attracted the development of a number of residential and commercial projects in the area. Meanwhile, Garden City is also conveniently located amongst up-and-coming industrial and commercial areas including Baba Ndogo, Thika, Ruiru and the Eastern Bypass. The Outer Ring Road facilitates a reduced travel time of around 20-40 minutes to and from JKIA International Airport.

The Garden City Business Park will drive further demand and occupancies for these apartments, attracting housing for medium to senior staff of the big corporates that occupy the offices. This demand is also boosted with the availability of great infrastructure in terms of water, electricity, and sewage as well as road connections.

The availability of great infrastructure, in turn, drives growth for all sectors at Garden City, including investment opportunities in real estate.

The main benefits that investors must consider are:

a. Higher demand resulting in increased property values.

b. Improved accessibility to previously inaccessible areas.

c. Lower cost of development and construction costs.

d. Greater odds of achieving high returns due to constant growth.

A Look at the Stamp Duty Rates in Nairobi, Kenya in 2021

 

There are various transactions carried out in any particular country or state – however, out of all of those transactions, fees and rent on land contributes the most to revenue generated by the government. Other charges or taxes include railway development levy, excise duty, import duty, and catering levy, among other things.

In this article, we take a closer look at one of such charges, which is stamp duty, particularly the stamp duty rates in Nairobi, Kenya, as of 2021.

Stamp Duty Act of Kenya

Stamp duty refers to the charge or tax levied on certain transactions such as stocks, shares, and transfer of properties. Stamp duty is one of the primary sources of revenue for the Kenyan government and these rates are determined by Kenya’s Ministry of Land. It includes a physical revenue stamp that is impressed upon the relevant document in order to prove the legality of the transaction. However, in recent times, many places do not require an actual stamp for the stamp duty and other means are used for the same. 

As per the Stamp Duty Act of Kenya, whenever you purchase a property, it is mandatory to pay a fee or revenue to the government. It may help to have a lawyer during the process as that would ensure smoothness of the transaction and also uphold its integrity. 

The stamp duty needs to be paid and the document needs to be signed within 30 days of the acquisition of your purchase. Failing to pay the required amount is considered a criminal offence under Kenyan law. 

Stamp Duty Rates in Nairobi, Kenya – 2021

Stamp duty rates are based on the value of the transaction or are nominal rates on financial exchanges or instruments, as discussed below.

• Stamp duty of four per cent is levied on the transfer of land in towns.
• Stamp duty of two per cent is levied on the transfer of land in the rural areas. 
• A stamp duty of one per cent is charged when increasing the share capital of a company. 
• Stamp duty of 0.05 per cent is charged when registering debentures or mortgages for collateral securities. 
• Properties on lease are charged with a stamp duty of one per cent for the annual rents for three years. After three years, the stamp duty comes to two per cent on the yearly rent. 

There are also times when stamp duty charge is not levied, such as:

• When a company is being registered for very nominal share capital.
• When transferring shares in companies registered under the Nairobi Securities Exchange.
• During Sukuk arrangements or transactions.
• Transfer of houses under the affordable housing scheme.

Kenya Stamp Duty Forms

13 years ago, The Kenya Revenue Authority took over the collection of stamp duty within the country, they have certain guidelines on the handling of stamp duty forms. Some of these guidelines include:

• All forms are completed via the Ministry of Housing and Lands. 
• The quadruplicate is received after the relevant documents are presented. This is what gets the stamp duty. 
• The quadruplicate is handled by an agent, advocate, or duty payer. It is either taken to a National Bank or Kenya Commercial Bank for payment.

After the above-mentioned steps have been completed, this follows:

• The original copy of the payment form is retained by the individual who is carrying out the presentation.
• The quadruplicate is yellow in colour and remains in the bank. The triplicate is green in colour and is forwarded to the registrar of titles and lands. 
• The duplicate is blue in colour and is forwarded to the Commissioner of Domestic Taxes by the bank. 
• The original white copy remains with the duty payer. 

Each valuation of stamp duty is done before a collector starts endorsing a property. 

Following a proper stamp duty process, you can also call Mi Vida your new residential address. Created through a joint venture between Actis, and Shapoorji Pallonji Real Estate (SPRE), one of the largest conglomerates in India – Mi Vida was officially launched in July 2019. It offers a minimum of 3000 middle-income housing units over the course of the next five years. 

Mi Vida homes are a beautiful combination of affordable houses, modern engineering, innovative design, trusted construction, and impeccable record. For more information on Mi Vida homes, head on to their website. 

Absa Bank’s 25-year mortgage comes with special offer for Mi Vida Homes

 

Located in the Kenyan capital Nairobi, Garden City is a massive mixed-use development that brings together work, leisure and living. Within this first-of-its-kind integrated location is the Mi Vida residential project that offers 1, 2, and 3 bedroom apartments in Nairobi, Kenya for homebuyers. Now, these aspirational homes come with an exciting mortgage offer from Absa Bank. 

Absa Bank Kenya has introduced a 25-year mortgage facility where Mi Vida Homes customers will enjoy a discounted rate of 12.5% p.a with up to 90% financing. This is the result of a recently signed financial partnership between Absa Bank and Mi Vida Homes that creates the exciting mortgage proposition of a longer payment period with low-interest rates.

The offer targets middle-income families seeking affordable homes within Nairobi, seeking to increase mortgage uptake amongst prospective homeowners. The Absa – Mi Vida at Garden City Mall Apartment mortgage facility, therefore, offers sustainable financing models to employed and self-employed customers for a chance to own ready-to-move-in homes. 

Absa customers will also benefit from established partnerships for homeownership facilities such as property developers, furnishing partners, and home appliance partners.

“We have a team of dedicated experts that will walk the journey with customers using our financial and non-financial expertise to provide credible information, services, and solutions throughout every step of acquiring their dream home,” says Peter Mutua, Absa Bank Customer Network Director.

Mi Vida doesn’t just offer affordable houses in Nairobi, Kenya but also provides residents with exciting amenities including one acre of outdoor green space, adult and children swimming pools, a gym and fitness studio, kids’ play area, clubhouse with roof terrace, BBQ areas, a multi-purpose sports court, and 300m walking and jogging track. The residential project, launched in 2019 is currently under construction and on course to be complete by March of 2022.

Why should you invest in Mi Vida at Garden City Mall Apartments in Nairobi?

 

A house, as we all know, is an important investment. We want to invest our money into something sustainable, gives us good returns, and turns out to be an amazing value for our money. What’s even better, is that residential properties can always become your own home, after a few years on the market as rent-earning investments.

At Mi Vida Homes, we understand the importance of residential homes as an investment option. Mi Vida is nestled within Garden City Mall. What is so special about Garden City, you may ask? The answer is simple. Garden City is Kenya’s first such development that offers residence, retail, and office spaces, all in one location – bringing to you the perfect work-life balance that you aim for.

Garden City Mall Apartment: The Perfect Place to Live, Work, & Play

It is not just one thing that separates Garden City from the rest of its counterparts – it’s a wholesome package full of different kinds of pleasures one can imagine.

Garden City offers you the following:

It is located only 15 minutes from the CBD and houses a mall, a business park, and various leisure facilities. 

• It offers residential projects developed to LEED Silver status.
• It offers access to a range of corporations within the vicinity – these include EABL, PZ Cussons East Africa Ltd, Chandaria Industries and ICIPE, and more.
• It also offers hospital services, with a 200+ bed capacity, a unique plus-point this side of Nairobi.
• It offers a complete zone for leisure activities with a swimming pool, fully equipped gym, and clubhouse among other things. 

Not just this, but Garden City is an all-around good investment opportunity as it comes with the surprising package of Mi Vida Homes – that come with quality and convenience – designed by international architects for you to slip into a home that offers comfortable and easy living.

Mi Vida Homes, Where Comfort Meets Luxury

Mi Vida Homes is spread within 45 acres along the Thika Highway, at Garden City. It offers a place where you can work, relax, and live without having to move around a lot, bringing an effortless balance to your life. It houses open green spaces, large flower gardens, and at the same time brings you into proximity to the Garden City Mall, a hospital, restaurants, and a hotel. 

You can find 1, 2 and 3 bedroom apartments in Nairobi inside Mi Vida, with access to an indoor gym, yoga studio, jogging track, and other fitness facilities. Mi Vida is also easily accessible from Nairobi’s Outer Ring Road, bringing you closer to Braeburn school, USIU, Gertrude’s Children’s Hospital, Muthaiga Golf Club, and more. 

Mi Vida at Garden City Mall Apartment Floor Plan:

1 Bedroom Unit in 4 variants: 603 sq. ft., 624 sq. ft., 667 sq. ft., and 678 sq. ft.

2 Bedroom Unit without Domestic Servant Quarter (DSQ): 926 sq. ft.

2 Bedroom Unit with DSQ in 2 variants: 1012 sq. ft. and 1066 sq. ft.

3 Bedroom Unit with DSQ: 1324 sq. ft.

In other words, “Mi Vida”, which translates to “My Life” in Spanish, fits the bill when it comes to standing by its name. For more details, explore Mi Vida and start your investment journey right away!

How to Get Mortgage in Nairobi, Kenya

Looking to buy a house in Kenya? Homeownership is probably the biggest decision of your life. There are many consideration factors involved and the most important being the method of payment. You can opt to pay for the house outright if you have the funds. But in most situations, homes are bought via a mortgage.

Understanding mortgages

The way mortgage works are very simple. You select a house of your choice. A financial institution buys the home on your behalf. And you pay the price of the house to the institution in regular installments. In exchange for allowing you to start living in the house without you having paid the full price for it, the institution charges you interest on the price of the house.

Types of mortgages

There are two kinds of mortgages. Fixed-rate mortgages have a fixed interest rate from the first day to the last but are usually more expensive to acquire. A cheaper but slightly riskier alternative is an adjustable-rate mortgage, where the interest rate depends on market conditions and changes from time to time.

Other charges

Apart from the interest rate, there are some other charges associated with mortgages. To name a few, there is usually a negotiation fee, a monthly ledge fee, legal fees, valuation fees, commitment fees, and a stamp duty.

Do you qualify?

The process of getting a mortgage in Nairobi is simple. The first step is to find out if you qualify for a mortgage. Factors like your income, personal expenses, the type of property you want, your age, your credit score determine if you do.

What property do you desire?

Once that is out of the way, the next step is to select a property of your choice. Once a property is selected, you will be assigned an agent who will help you get in touch with the right financial institution.

Time to make a deal

Your application is then processed based on certain documents you submit. After this, the financial institution can make an offer to you. The property is then formally acquired by the institution that you will be availing the mortgage from. Once the property is officially in their name, they can assign a monthly, quarterly, or yearly charge to you, which acts as an installment.

Now that you have an idea of what it takes to be eligible for a mortgage and how to go about opting for one, you’re one step closer to having a home in Nairobi. If you’re on the lookout for an ideal residential project, look no further than Garden City’s latest and most offering. 

Mi Vida Garden City Apartment Nairobi is one of the latest residential projects in Nairobi and addresses the shortage of affordable, middle-income housing for families. Over the next five years, it will add upwards of 3,000 homes within a 47-acre spread that is ideal for living, working, and relaxation. This mixed-use development along Thika Superhighway is just a short drive from Nairobi’s central business district. It offers easy access to Jomo Kenyatta International Airport. Know more about Mi Vida here.

Celebrate Nairobi Burger Week 2021 at the Garden City Mall and Thika Road

Garden City Thika Road - Living in the Heart of Culture.

Nairobi, Kenya

When we think of urban living, we want it all. Connectivity, culture, celebrations, and collective experiences. Life in a city is meant to be full of surprises with each week bringing in a different experience. Often, the first question people ask about any city is, "what is the most exciting part of town?". Citylife is an adventure and everybody wants in on the action, no matter what city you are in. And Nairobi is no different!

Want to be close to the action? How about settling down in Nairobi's hub of cultural experiences? Garden City is a bustling urban neighborhood in Nairobi that has plenty to offer. It is an integrated residential, retail, and office (mixed-use) development, offering apartments, duplexes & family villas, international schools, medical centers, and parks. Itching to know more? 

Have a look at Mi Vida Homes. A new residential development created to address the shortage of affordable houses for sale in Nairobi for middle-income families, in a neighborhood that offers all of life's goodness.

And as we speak, many restaurants in Garden City and specifically within the renowned Garden City Mall are celebrating the Nairobi Burger Week!

Image Source - https://businesstoday.co.ke/150-restaurants-participate-in-2021-nairobi-burger-week/

The fifth edition of Nairobi Burger Week is currently on and there's plenty of reasons to put your apron aside and opt to dig into delicious towers of goodness from your favorite restaurants. Started on February 26, 2021, Burger Week promises the best burgers in town with irresistible 2-for-1 deals, 'burger+drink' meal combos, and other discounts. And this year, NBW will also be celebrated on deliveries. So it doesn't matter if you're outside or tucked inside your cozy home, you can be a part of this much-awaited event on the city's culinary calendar. Burger Weekends on March 7th.

Diners have the chance to enjoy delicious burgers at over 150 restaurants in Nairobi. Customers will have burger options including veg, non-veg and out-the-box. Nairobi Burger Week will also offer deliveries through UberEats to satisfy demand.

Here is the full list of participating restaurants eatout.co.ke/nairobi-burger-week.

Mi Vida at Garden City Apartment Nairobi

Visit Garden City Mall Restaurant and enjoy the Nairobi Burger Week and while enjoying the delicious meal you can also visit Mi Vida at Garden City Mall Apartment and book 1, 2 and 3 bedroom apartments, starting at KES 8.8M. Hurry! 50% of homes sold.

Tips for First-Time Home Buyers in Kenya

 Buying your first home in Kenya

So you're finally ready for that home you've always dreamed of having. You have your finances in order, you did your searching and after what felt like an eternity, you have finally zeroed in on a house that finally feels like home. But are you fully prepared to take the plunge and make that downpayment? Read on.

Buying a home is probably going to be the biggest purchase of your life. Our advice is to take your time. Double up on all your research and let that decision sink in naturally, after careful considerations on all fronts.

Here are some tips for first-time homebuyers in Kenya:

Trusting sellers in a hurry.

It is easy to put your trust in a seller who claims to have bills to settle and wants to sell off in a hurry. But this is often the biggest red flag to look out for. Sellers in a hurry could just as easily be trying to scam you into buying a house that doesn't have all of its paperwork in order. The result? You may be in for a long wait, while legal proceedings drag on. Or worse.

Relying on a home loan that defaults last minute.

Home loans are a very big deal. Just because you have a pre-approved home loan, doesn't guarantee a sanction. Imagine having everything in order and you're about to start paying for a home for which you already laid down a hefty deposit. And the next thing you know, you don't have a home loan to follow through and your deposit is now gone! Make sure you meet all your lender's requirements to be fully sure of having a home loan to rely on.

Not inspecting enough before buying.

Homes are living, breathing things. Some age well, most don't. If the house you just bought presents unexpected horrors, you could be in for a costly repair. Look for critical problems like leaking water lines, crumbling driveways, cracks in the walls and roofs, termites, rotting wood and sunken flooring. Trust your instincts when you find anything off with a house and don't be hesitant to inspect further if required. Remember - this is the biggest purchase of your life. Take your time and consult experts wherever required.

Not agreeing on what you're actually paying for.

When you buy a pre-used home, don't be shy to discuss what exactly do you get to keep. Some sellers leave most furnishings behind while others may take everything with them, even light bulbs! Little things like curtain rods, toilet seats, fans, taps, pipes, hoses etc are just as important as the bigger picture and can easily add up to an unseen expense if the previous home-owner decides to take everything with them. When agreeing on a price you are about to pay, list down exactly what you are paying for, including these overlooked items. You don't want to move into a home with missing water taps on the first day!

Neglecting the monthly cost of maintaining a pre-used home.

Buying a house may be a very big deal, but it is only the beginning. Homes require upkeep and monthly maintenance expenses. Before hurrying into a house that seems like a very good deal, take some time to find out what it would take to maintain it on a month-on-month basis. Having to service a home loan along with heavy monthly expenses can be a very difficult situation.

There's a saying in the home-buying business. If someone else doesn't want it anymore, make sure it has everything you need before you start wanting it. Buying a new affordable home is often a wiser choice than buying a used home that looks like a great deal. If you're on the market for a house that you can afford in Kenya, look no further than MiVida Garden City Apartment on Thika Road in Nairobi. These homes are designed to address the shortage of middle-income housing that families can afford.

MiVida promises innovative design, modern engineering, trusted construction, on-time delivery and an impeccable record, and is created through a joint venture between Actis, a leading growth markets investor who has been active in the region for over 70 years and Shapoorji Pallonji Real Estate (SPRE), the real estate arm of one of India’s largest conglomerates.