Kenyan Property Sellers Increasingly Quote Prices in Dollars and Euros

A growing number of land parcels in Kenya are being quoted in dollars and euros, signalling a shift in how sellers are positioning their properties to attract international buyers. A five-acre parcel in the Maasai Mara is on sale for $5.5 million, while a property in Lamu is priced at €3.5 million. This trend is not limited to upmarket apartments, luxury villas, and gated developments, but is now extending to land parcels in destinations such as Nanyuki, Narok, and Lamu.

According to Johnson Denge, a real estate consultant, the target market for these properties is international, so sellers need to quote in a currency that buyers understand and can easily use to compare opportunities in other jurisdictions. This explains why many of the properties are located in places such as Naivasha, Nanyuki, and Diani, which attract international buyers. The stability of the Kenyan shilling against major currencies means that pricing properties in foreign currencies is largely a matter of vendor or organisational preference.

The trend of dollar-denominated property prices was previously driven by investors seeking to hedge against fluctuations in the local currency. However, the shilling has remained relatively stable against the dollar over the past two years, weakening the argument that foreign currency pricing is primarily a hedge against exchange rate volatility. Some property owners have financial commitments denominated in foreign currencies and would therefore prefer to receive proceeds in the same currency.

The diaspora is another potential source of demand for Kenyan properties. Central Bank of Kenya data shows that diaspora remittances totalled $1.37 billion in the nine months to September, representing a 5.7 percent increase from a similar period a year earlier. Many diaspora buyers prefer dollar-denominated transactions to minimise conversion costs when transferring money to Kenya.

Kenya has no general prohibition against pricing or conducting private transactions in foreign currencies, leaving buyers and sellers to agree on the currency of payment. However, statutory obligations, including stamp duty and property registration fees, must be settled in Kenyan shillings. Foreign currency pricing can introduce complications, particularly where transactions take several months to complete.

The foreign currency listings reveal the wide range of land investments being marketed to overseas buyers, from wildlife-rich conservation destinations to coastal properties. One of the high-value listings is a five-acre parcel in the Maasai Mara, which was put up for sale by a London-based media mogul who developed a treehouse lodge known as Tumbili within the Naretoi project.

In Nanyuki, several listings are concentrated around the Lolldaiga Valley, an area known for its wildlife, scenic landscapes, and proximity to established tourism and conservation developments. A 15.2-acre parcel in Forest Lugga East is priced at $395,000, while a much larger 49-acre property in Lolldaiga is listed at $360,000. Foreign currency pricing is not limited to tourism destinations, with listings in some of Nairobi's affluent neighbourhoods also carrying prices in foreign currencies.

Key points

• Kenyan property sellers are quoting prices in dollars and euros to attract international buyers.
• The trend is not limited to upmarket apartments, luxury villas, and gated developments, but is now extending to land parcels in various destinations.
• The stability of the Kenyan shilling against major currencies means that pricing properties in foreign currencies is largely a matter of vendor or organisational preference.