(KILIMANI) – Nairobi’s luxury real estate market has witnessed a steady shift towards quoting house prices in US dollars, with developers in prime areas such as Kilimani, Westlands and Karen now openly advertising homes from $120,000 (approximately SSP 558 million) onwards. The change which reflects broader economic trends has drawn both interest and concern, particularly among Kenyans and regional investors in countries like South Sudan.
While everyday transactions in Kenya are still done in shillings, the rise in dollar-based property pricing has gained ground over the past three years. Developers say quoting in dollars protects them from currency fluctuations and aligns better with their construction costs, many of which are imported and priced in foreign currency.
Victor Ndegwa of VAAL Real Estate explains that pricing homes in dollars helps shield both buyers and developers from currency volatility.
“It helps manage cost and revenue risks, especially when loans, materials and some services are dolla -linked,” he said. VAAL markets properties to clients abroad and wealthy diaspora Kenyans, many of whom are used to dealing in dollars.
Developers also believe the move gives properties a global appeal.
“It positions the Nairobi property market on par with cities like Kigali or Johannesburg,” says Martin Mukoma of Domina Homes.
According to the Central Bank of Kenya, diaspora remittances hit a record $4.5 billion (SSP 20.9 trillion) in 2024, signalling a strong buyer base for high end homes.
But for local buyers earning in shillings, the shift introduces risks. A buyer quoted $40,000 in late 2023 when the exchange rate was KSh 157 paid KSh 6.28 million (approx. SSP 2.92 billion). But by May 2025, at KSh 129.32 to the dollar, the same house would cost KSh 5.17 million (approx. SSP 2.41 billion), marking a major price swing driven by currency changes.
Legal experts such as Muthoni Kamau of K&K Advocates say dollar pricing is legal if both parties agree, but caution that buyers need clear contract terms to avoid disputes over conversions.
“Forex fluctuations can change the final payable amount significantly,” she said.
While developers benefit from matching income and dollar denominated costs, local buyers bear the brunt of depreciation. Some have walked away from deals after losing large amounts to unfavourable rates.
“I lost nearly KSh 1.8 million (approx. SSP 837 million) due to exchange rate shifts during negotiations,” said Mary Wanjiku, a marketing executive based in Nairobi.
The trend has prompted financial advisors and lawyers to recommend careful review of contracts, especially for buyers using shilling based mortgages. Most banks only offer dollar loans to those earning in dollars.
Not all developers have adopted this model. In areas such as Syokimau, Ngong and Ruiru, prices are still quoted in shillings to remain accessible to middle income earners. Still, price volatility affects all tiers. Some developers build in large contingencies instead of switching currencies.
Analysts argue that dollar pricing will likely remain in the high end segment.
“This is unlikely to spread to mass housing,” says economist Ken Gichuru. “But in top tier neighbourhoods, it’s now an established practice.”
For South Sudanese investors and diaspora communities looking to invest in the region’s growing property markets, the trend may offer familiar ground but also calls for careful financial planning.
Currency Conversion Table (at July 2025 rates)
| Item Description | USD Price | Equivalent in SSP |
|---|---|---|
| Base Property Listing (Kilimani) | $120,000 | SSP 558,000,000 |
| Diaspora Remittances (2024) | $4.5B | SSP 20,925,000,000,000 |
| Example House Price Change | $40,000 | SSP 186,000,000 (May 2025) |