Finance
Cash-on-Cash Return: The Real Metric for Kenyan Investors
By Paul Kamau2025-11-278 min read
Beyond the Yield
If you buy a property for Ksh 10M but only put down Ksh 3M (financing the rest), your return is calculated on the Ksh 3M "cash" you actually spent. This is your Cash-on-Cash (CoC) return.
The Formula: (Annual Pre-Tax Cash Flow / Total Cash Invested) x 100.
In a high-interest environment, CoC helps you decide if your debt is working for you or against you.
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FinanceInvestment MathLeverage
Paul Kamau
Senior Market Analyst at Murivest Realty Group with over 10 years of experience in commercial real estate investment and market research. Sarah specializes in identifying emerging market trends and investment opportunities in Nairobi's commercial property sector.