Introduction

Thika, once known mainly for its pineapples and industrial roots, has emerged as one of Kenya’s most promising satellite towns for real estate growth. Located just 45 minutes from Nairobi via the Thika Superhighway, this bustling town is becoming a hotspot for both commercial and residential development.

With population growth, urban sprawl, and increasing demand for rental housing, investors are now eyeing apartment investment in Thika as a strategic move. The question most frequently asked is: “With Ksh 60 million, what kind of apartment can I build in Thika, and what return should I expect?”

This comprehensive guide dives deep into construction possibilities, rental income, ROI projections, and key factors influencing your returns. Whether you’re an experienced developer or a first-time investor, this breakdown will help you make informed decisions.

Overview of the Real Estate Market in Thika

Urbanization and Population Growth

Thika’s population has expanded significantly over the past decade. With the increasing congestion in Nairobi, many Kenyans are choosing to relocate to more affordable satellite towns—Thika being one of the top choices due to its ease of access, infrastructure, and employment opportunities.

The town also benefits from numerous educational institutions like Mount Kenya University, Gretsa University, and several TVET colleges, creating a large student and young working-class tenant base.

Growing Demand for Affordable Housing

Thika has seen a spike in demand for affordable and middle-income housing, especially from:

• Students
• Young professionals
• Small families
• Blue-collar workers in nearby industries

The demand has outpaced supply in some estates, especially near the CBD and in areas with good infrastructure and proximity to transport.

Related post: Top 5 Bedroom House Designs and Plans in Kenya: Modern, Spacious, and Functional Options for Every Family

Average Rental Prices in Thika (2025)

• Bedsitter: Ksh 7,000 – 8,000
• 1-Bedroom: Ksh 12,000 – 15,000
• 2-Bedroom: Ksh 18,000 – 22,000

Best Locations for Apartment Development

• Thika Town CBD – high demand, higher land cost
• Section 9 – popular among middle-income tenants
• Landless – affordable land, great for bedsitter projects
• Makongeni & Ngoigwa – emerging estates with rental demand

Related post: What Apartment Can You Build with Ksh 40 Million in Ruiru? Unit Count, Rental Income & ROI Breakdown

Construction Cost Estimates in Thika

1. Construction Costs per Square Metre

The average cost of building apartments in Thika ranges from Ksh 35,000 to 50,000 per sqm, depending on finishes, structural design, and site conditions.

• Ksh 35,000/sqm – basic to mid-level finish
• Ksh 45,000–50,000/sqm – mid to high-quality finish

2. What You Can Build with Ksh 60 Million

Assuming you already own land, your entire budget can go toward construction:

• At Ksh 40,000/sqm, Ksh 60M gives you 1,500 sqm
• At Ksh 45,000/sqm, it covers 1,333 sqm

This is enough to build:

• A 4–5 storey building
• With 4–6 units per floor
• 20 to 32 units in total depending on unit size

3. Soft and Indirect Costs

Set aside about 10–15% of your budget for:

• Architectural and engineering designs
• NCA, NEMA, county approvals
• Site preparation, fencing, and contingency

Related post: What Type of Apartment Can You Build with Ksh 60 Million in Ngong? Unit Breakdown, Monthly Returns, and ROI Explained

Example: Apartment Options with Ksh 60M

Let’s break down some viable development options based on unit size, rental pricing, and tenant demand.

Option A: 32 Bedsitters

• Layout: 4 floors × 8 bedsitters per floor
• Average unit size: 30 sqm
• Total build area: 960 sqm
• Estimated build cost @ 40K/sqm: Ksh 38.4M
• Balance: Ksh 21.6M for finishes, approvals, and contingencies

Target tenants: Students, casual workers, low-income earners
Monthly rent per unit: Ksh 7,500
Advantages: High occupancy, easy to let
Disadvantage: Higher turnover, slightly more maintenance

Option B: 20 One-Bedroom Units

• Layout: 4 floors × 5 units per floor
• Average unit size: 60–65 sqm
• Total build area: ~1,300 sqm
• Estimated cost @ 45K/sqm: Ksh 58.5M

Target tenants: Young professionals, couples
Monthly rent per unit: Ksh 13,000
Advantages: Stable tenants, lower turnover
Disadvantage: Slightly higher unit cost, requires good design for comfort

Option C: Mixed-Use Setup (10 bedsitters, 10 1BRs, 4 2BRs)

• Layout: 24 total units
• Total build area: ~1,400 sqm
• Estimated cost @ avg 43K/sqm: Ksh 60.2M

Advantages: Spreads risk across income brackets
Tenants: Students, young workers, small families
Disadvantage: More complex plumbing and electrical layout

Related post: Affordable Apartment Designs in Kenya Under 50 Million: Best Plans for High ROI

Monthly and Annual Income Analysis

Let’s now look at income potential per configuration.

Option A: 32 Bedsitters

• Monthly income: 32 × 7,500 = Ksh 240,000
• Annual income: Ksh 2,880,000
• Estimated deductions (12%): Ksh 345,600
• Net income: Ksh 2,534,400

Option B: 20 One-Bedrooms

• Monthly income: 20 × 13,000 = Ksh 260,000
• Annual income: Ksh 3,120,000
• Deductions (12%): Ksh 374,400
• Net income: Ksh 2,745,600

Option C: Mixed (10 bedsitters @ 7.5K, 10 1BR @ 13K, 4 2BR @ 20K)

• Monthly income: (10×7.5K) + (10×13K) + (4×20K) = 75K + 130K + 80K = Ksh 285,000
• Annual income: Ksh 3,420,000
• Deductions (12%): Ksh 410,400
• Net income: Ksh 3,009,600

ROI and Payback Period Calculation

Net ROI Formula:

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

Option	Net Income	Total Investment	ROI (%)	Payback Period
A	Ksh 2.53M	Ksh 60M	4.22%	~23.7 years
B	Ksh 2.74M	Ksh 60M	4.57%	~21.9 years
C	Ksh 3.01M	Ksh 60M	5.01%	~19.9 years

Capital Appreciation

Apart from rental income, land and building values in Thika have appreciated 10–20% in the last 5 years. In another 5 years, your asset could grow by 30%–50%, increasing long-term ROI.

Key Factors That Influence Returns in Thika

1. Location
   • Closer to town or universities = higher demand
   • Proximity to transport links is a bonus
2. Design
   • Well-lit, secure, modern units attract better tenants
3. Professional Management
   • Reduces vacancies
   • Ensures timely rent collection
4. Tenant Targeting
   • Know your ideal tenants (students, families, couples)
   • Price units accordingly

Related post: Top 600 Sq Ft Apartment Plans for 2 Bedroom Rentals in Kenya

Risks and How to Mitigate Them

Risk	Solution
Cost Overruns	Work with a quantity surveyor, budget 10–15% buffer
Approval Delays	Start county/NEMA/NCA processes early
Rental Defaults	Tenant screening, security deposits, strict leases
Vacancy Rates	Offer discounts for long-term contracts, engage property agents
Market Saturation	Conduct a local market feasibility study before building

Final Verdict: Is Thika a Good Investment Spot for 60M?

Thika is a strategic and growing urban center, and real estate here offers both immediate cash flow and long-term capital growth.

With Ksh 60M, you can build:

• 32 bedsitters or
• 20 well-designed 1BRs or
• A mix of 24–26 units targeting diverse tenants

Rental income ranges from Ksh 240K–285K/month, and net ROI between 4%–5% annually, with potential for appreciation.

For best returns:

• Choose your location carefully
• Mix unit types if possible
• Focus on durable but modern design
• Hire a property manager

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