Finance
Mastering Property Rental Yield Calculations
By Paul Kamau2025-11-308 min read
Gross vs. Net Yield
In the Nairobi market, many investors confuse Gross Yield with actual profit. Here is the breakdown:
Gross Yield: (Annual Rental Income / Property Purchase Price) x 100.
Net Yield: This accounts for expenses like property management fees (typically 10%), KRA taxes, maintenance, and insurance.
The 2025 Standard
Currently, residential yields in Kilimani/Kileleshwa hover around 5-7%, while commercial properties in Westlands can reach 9-11%.
Tags
Rental YieldROIInvestment MathNairobi Real Estate
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.