Introduction

As urbanization continues to spread across Kenya, satellite towns like Maguga in Kiambu County are becoming prime locations for real estate investment. With proximity to Nairobi, improved infrastructure, and a growing population of young professionals and families, Maguga offers a unique opportunity for apartment design and development. This article explores a Ksh 200 million apartment project designed to maximize rental yield and long-term value through a mix of studio, one-bedroom, two-bedroom, and three-bedroom units. We break down the financials, unit distribution, design features, and return on investment to help potential developers or investors understand the scope and viability of this project.

Location Overview: Why Maguga, Kiambu?

Maguga is strategically located in Kiambu County, less than 30km from Nairobi’s CBD. Its accessibility via Thika Road and the expanding Northern Bypass has increased interest from developers and home seekers. Maguga boasts a mix of serene residential setups, emerging commercial hubs, and affordable land prices. The area is surrounded by educational institutions, hospitals, and retail centers, making it a desirable location for both investors and tenants. With Kiambu County’s continued infrastructural investments and growing demand for affordable yet quality housing, Maguga is positioned as a high-potential area for real estate projects like the Ksh 200M apartment design.

Project Summary & Configuration

The apartment is designed as a five-floor residential complex (Ground + 4 floors) on a 0.5-acre parcel. The project incorporates 56 residential units, balancing affordability and comfort. The mixed-unit configuration ensures diversified rental income and caters to a broad market spectrum:

Unit Type        Number of Units        Unit Size (m²)  Estimated Cost per Unit

Amenities include a perimeter wall, CCTV surveillance, ample parking (28 bays), a borehole, solar lighting for common areas, and an on-site caretaker unit. This balance of unit sizes supports both short-term and long-term rental strategies, ensuring sustained occupancy.

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Architectural Design Features

The architectural layout emphasizes modern living with efficient space utilization. Studio and one-bedroom units are compact yet functional, featuring open-plan kitchens, modern bathrooms, and integrated storage. The two- and three-bedroom units are designed for families, with en-suite master bedrooms, spacious living rooms, and balconies.

Natural lighting and ventilation are prioritized through well-placed windows and open-air corridors. High-quality finishes, such as ceramic tiling, granite countertops, and gypsum ceilings, enhance the visual appeal and durability of the units.

Security and convenience are embedded in the design. Residents benefit from controlled access, a manned gate, and intercom connectivity. Solar panels for lighting communal areas and water harvesting systems reduce utility costs and promote sustainability.

A lift and dual staircases ensure accessibility and safety. Each floor has a designated waste collection point, and the rooftop can be adapted for laundry lines or solar water heating systems.

Overall, the design is tailored to match modern urban tenant expectations while maximizing build efficiency and minimizing long-term maintenance costs.

Construction Cost Breakdown

The estimated Ksh 200 million budget is structured to ensure a comprehensive development plan that includes construction, approvals, design, and utility provisioning. Below is a breakdown of the key cost components:

Land Acquisition: Ksh 25 million (0.5-acre parcel in Maguga)

Construction (Main Building Works): Ksh 140 million

Substructure and superstructure

Finishes (flooring, painting, lighting)

Roofing, windows, doors

Professional Fees: Ksh 12 million

Architect, Structural Engineer, MEP Engineer, Quantity Surveyor, Clerk of Works

Approval and Permits: Ksh 4 million

NEMA, Kiambu County physical planning, fire, public health approvals

Utilities and Infrastructure: Ksh 6 million

Borehole drilling, water tanks, KPLC connection, sewer line/septic system

Contingency Reserve: Ksh 13 million

Covers unforeseen expenses, material cost variations, and inflation buffer

This structure ensures that both the physical building and operational compliance are fully catered for, reducing the risk of project delays or quality compromises.

Approval and Compliance in Kiambu County

Kiambu County has a well-defined regulatory framework for real estate development. This apartment project requires multiple approvals before and during construction. The primary approvals include:

Change of User and Planning Permission: If the land is not already designated for residential apartments, change of user is necessary.

Architectural and Structural Drawings Approval: Submitted through a registered architect and structural engineer for vetting by the county.

NEMA (Environmental Impact Assessment): A mandatory requirement for multi-dwelling units. Approval can take 30–60 days and costs approx. Ksh 250,000–400,000.

Public Health and Fire Safety: Layout must comply with sanitary and fire access requirements.

Construction Permits and Inspection: Continuous engagement with county officers during construction to meet code standards.

Working with experienced consultants and contractors helps streamline the approval process and ensures full legal compliance.

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Return on Investment (ROI) Analysis

A well-balanced unit mix allows for excellent rental potential across various demographics. Based on current rental rates in Maguga:

Studio @ Ksh 12,000 × 20 = Ksh 240,000/month

1-Bedroom @ Ksh 18,000 × 16 = Ksh 288,000/month

2-Bedroom @ Ksh 25,000 × 12 = Ksh 300,000/month

3-Bedroom @ Ksh 35,000 × 8 = Ksh 280,000/month

Total Monthly Income: Ksh 1.108 million Annual Gross Income: Ksh 13.3 million

From this, assume an 8% vacancy rate and 10% operating expenses (security, maintenance, caretaker, water). Net income calculation:

Effective Income = Ksh 13.3M × 0.92 = Ksh 12.24M

Operating Expenses = Ksh 12.24M × 0.10 = Ksh 1.224M

Net Annual Income: Ksh 11.02M

ROI = (11.02M / 200M) × 100 = 5.51% annually

Considering capital appreciation at 8% per year in Maguga, the blended ROI (rental + appreciation) could reach 13–15% annually. Payback period: 15–18 years.

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Target Market and Rental Strategy

The apartment design supports a diverse tenant base. Studios and one-bedrooms are ideal for students, interns, and young professionals working in Nairobi or Kiambu. These units are also attractive for Airbnb investors seeking short-term rental income.

Two-bedroom units suit small families, newlyweds, or roommates sharing costs. Three-bedroom units attract larger families or long-term tenants.

Marketing strategies include:

Listing on real estate platforms (BuyRentKenya, Property24, Jiji)

Partnerships with local employers and universities

Signage and local agent networks in Githurai, Kahawa, and Ruiru

Offering flexible payment options or first-month incentives

With competitive pricing and essential amenities, the apartment is poised for steady demand and minimal vacancy.

Risk Factors and Mitigation

1. Construction Delays: Can affect budget and ROI.

Mitigation: Use experienced contractors with project timelines and penalties.

2. Cost Overruns:

Mitigation: 10% contingency fund and QS oversight.

3. Vacancy Risks:

Mitigation: Mixed-unit model and strategic marketing

4. Regulatory Bottlenecks:

Mitigation: Early engagement with Kiambu authorities and consultants

5. Market Saturation:

Mitigation: High-quality finishes and competitive pricing

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Conclusion

The Ksh 200 million apartment project in Maguga, Kiambu County, offers a well-balanced investment opportunity. By blending studios, one-bedroom, two-bedroom, and three-bedroom units, the design caters to a wide tenant base, diversifies risk, and ensures strong income flow. The thoughtful design, compliance with regulatory standards, and strategic location near Nairobi make it a highly viable real estate venture.

With an estimated annual ROI of over 13% (inclusive of appreciation), this project presents a solid long-term investment. For developers and investors looking to tap into Kenya’s growing demand for urban housing, Maguga stands out as a promising location.

Proper planning, professional execution, and market understanding will be key to the success of this mixed-unit apartment development.

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