What Apartment Can You Build in Joska with Kshs.60M?

1. Introduction: Why Joska is Attracting Investors

Joska, a fast-rising satellite town located along Kangundo Road, has emerged as one of the top choices for affordable real estate investment in Kenya. With its close proximity to Nairobi CBD—only about 35 kilometers away—and improving road infrastructure, Joska has seen increased demand for rental housing over the past few years.

Previously viewed as a rural outpost, Joska is now gaining momentum thanks to the rapid expansion of the Kangundo Road corridor, better access to water and electricity, and affordable land prices. More Kenyans seeking to escape the high cost of living in Nairobi are settling here, creating a strong rental market.

This article explores what kind of apartment construction in Joska is possible with a Kshs.60 million budget. We’ll look at the unit breakdown, projected rental income in Joska, ROI, and other critical factors that matter when making a real estate investment in Kenya.

2. Understanding Apartment Construction Costs in Kenya

Before deciding what type of apartment to build, it’s essential to understand the cost of building apartments in Joska and other similar satellite towns.

The average apartment construction cost in Kenya typically ranges between Kshs. 35,000 to Kshs. 55,000 per square meter for mid-range developments. This range is influenced by several factors, including:

Location and accessibility
Choice of finishes (standard vs. high-end)
Labor and materials availability
Architectural design and structural complexity
County permits and approval processes

In towns like Joska, the cost tends to be on the lower side of this spectrum due to lower labor and material costs compared to Nairobi. However, extra logistics may slightly raise costs if materials must be transported from further away.

Assuming a conservative average of Kshs. 40,000 per square meter, a Kshs.60M budget can comfortably support the construction of an apartment block with a total built-up area of approximately 1,500 square meters.

This gives a solid foundation to plan a mix of bedsitters, 1-bedroom, and possibly 2-bedroom units, ensuring a balance between affordability for tenants and high rental yields in Joska.

3. Site Considerations in Joska

Land is significantly more affordable in Joska than in Nairobi, making it ideal for investors looking to build apartment blocks. As of 2025, a 50×100 plot (1/8 acre) in Joska goes for approximately Kshs. 1.5M to Kshs. 2.5M, depending on proximity to the main road and availability of utilities.

For apartment construction in Joska, most investors go for at least two 50×100 plots (¼ acre) to allow space for adequate parking, septic systems, and access pathways.

Utility access is improving steadily:

Electricity: Kenya Power has expanded the grid into most residential zones.
Water: Borehole drilling is common; some areas also benefit from piped water.
Sewer: Most developers use septic tanks due to lack of a centralized sewer system.

Investors must also obtain zoning approvals and architectural permits from the Machakos County Government. These include:

Change of user (if land is residential and apartment development is planned)
NEMA environmental approvals
Building plan approvals

4. What Type of Apartment Can You Build with Kshs.60M in Joska?

Given a Kshs.60 million budget and assuming around Kshs. 50 million goes directly into construction, you can build a solid mid-range apartment block without a lift, using a G+3 or G+4 design (ground + 3 or 4 floors).

Here’s a sample breakdown for a G+3 apartment design on a ¼ acre plot:

Each floor:
- 5 units per floor
- Layout: 2 bedsitters, 2 one-bedroom units, 1 two-bedroom unit
- Approximate build-up per floor: ~350–400 sqm
Total units over 4 floors:
- Bedsitters: 8 units
- One-bedrooms: 8 units
- Two-bedrooms: 4 units
- Total: 20 units

Alternatively, you could drop the two-bedrooms and increase the number of smaller units to target lower-income renters, potentially pushing unit count to 24–28.

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The rooftop can be used for utilities, caretaker space, water tanks, or even solar panels.

With good architectural planning and project management, this unit mix balances high rental yields in Joska with market demand, while maintaining build costs within budget.

5. Monthly Rental Income Projection

To assess the viability of the apartment construction in Joska, let’s consider the current rental income in Joska as of 2025:

Bedsitter: Kshs. 6,000–7,000/month
1-Bedroom: Kshs. 9,000–10,000/month
2-Bedroom: Kshs. 13,000–14,000/month

Using our earlier unit mix (8 bedsitters, 8 one-bedrooms, 4 two-bedrooms):

Unit Type	Count	Monthly Rent (Avg)	Monthly Total
Bedsitter	8	Kshs. 6,500	Kshs. 52,000
1-Bedroom	8	Kshs. 9,500	Kshs. 76,000
2-Bedroom	4	Kshs. 13,500	Kshs. 54,000
Total	—		Kshs. 182,000

Assuming a conservative occupancy rate of 90%, the expected gross monthly rental income is about Kshs. 164,000.

Accounting for vacancies, service charges, and minor maintenance, the net monthly rental income would be around Kshs. 150,000–160,000.

6. Annual Income and ROI Analysis

Let’s calculate the net annual rental income and ROI for apartments in Kenya, specifically for this Joska investment:

Net monthly income: Kshs. 155,000 (average)
Annual income: Kshs. 1,860,000

From this, subtract annual expenses (typically 10–15% of gross):

Property management: Kshs. 100,000
Repairs & maintenance: Kshs. 80,000
Council rates and waste: Kshs. 40,000
Miscellaneous: Kshs. 30,000
Total expenses: ~Kshs. 250,000

Net annual income = Kshs. 1,860,000 – Kshs. 250,000 = Kshs. 1,610,000

Now apply the basic ROI formula:

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

ROI = (1,610,000 ÷ 60,000,000) × 100 = 2.68%

This may seem low, but it’s cash ROI only. If you manage to cut land or build costs, optimize unit count, or raise rents slightly, the ROI could go to 8–12%. And if you finance part of the project, the return on your personal capital can be much higher.

In most Joska property investment scenarios, capital appreciation is also a major ROI component—land and rental prices are rising steadily, boosting overall returns.

7. Financing Options for Apartment Projects in Kenya

You don’t necessarily need Kshs.60M in cash to pursue apartment construction in Joska. Several financing options exist:

Bank construction loans: Up to 70% of project cost, with repayment terms of 5–10 years.
SACCO financing: Available for members with savings or collateral.
Joint ventures (JVs): Partnering with landowners or financiers in return for shared profits.
Staggered build (phasing): Building in stages using rental income from completed phases.

Each financing method affects the ROI and repayment risk. Bank loans increase interest burden but also allow you to scale faster.

8. Risks and Mitigation

While the returns look promising, real estate investment in Kenya—especially in developing towns like Joska—comes with risks:

Common Risks:

Low occupancy due to poor design or oversupply
Approval delays from county or NEMA
Cost overruns from poor planning or contractor disputes
Tenant default or damage

Mitigation Measures:

Conduct market research before design
Hire qualified architects and QS to avoid cost shocks
Use experienced local contractors
Build in phases to reduce financial exposure
Invest in tenant screening and property management

With due diligence, these risks can be managed effectively.

9. Why Joska Is Still a Smart Bet

Despite the risks, Joska remains one of the most promising towns for apartment development along the Nairobi-Machakos corridor.

Reasons to consider Joska property investment include:

Kangundo Road expansion: Enhances access and property value
Increased rural-urban migration: Driven by Nairobi’s high costs
Emerging institutions: Schools, shopping centers, and churches are setting up
Affordable land: Lower entry cost compared to nearby towns like Ruai or Kamulu
Growing rental demand: Driven by working-class tenants and young families

Joska offers strong long-term appreciation potential along with decent rental yields.

10. Conclusion: Is Building an Apartment in Joska with 60M Worth It?

For investors looking to build an apartment with 60 million in Kenya, Joska offers an attractive blend of affordability, demand, and growth potential. A well-designed G+3 or G+4 apartment block can generate over Kshs. 1.6M net annually, with potential for value appreciation.

While ROI for apartments in Kenya depends on many variables, Joska presents one of the most balanced opportunities in the affordable housing segment.

Ready to invest in apartments for rent in Joska? Start by consulting local architects, land agents, and financial experts to perform a detailed feasibility study. The earlier you invest, the better your long-term returns could be.

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