A five-acre parcel in the Maasai Mara is on sale for $5.5 million (about Sh728 million), while a property in Lamu is priced at €3.5 million (Sh519.5 million). In a property market where most transactions are conducted in Kenyan shillings, such foreign currency price tags are becoming increasingly common.
A review of property listings on realtor Knight Frank’s website reveals a growing number of land parcels quoted in dollars and euros, signalling a shift in how sellers are positioning their properties to attract international buyers.
Previously, foreign currency pricing was largely associated with upmarket apartments, luxury villas and gated developments. The trend is now extending to land parcels in destinations such as Nanyuki, Narok and Lamu, which have become attractive to overseas investors.
“The target market for these properties is international, so we need to quote in a currency that buyers understand and can easily use to compare opportunities in other jurisdictions they are interested in,” said Johnson Denge, a real estate consultant.
“This explains why many of the properties are located in places such as Naivasha, Nanyuki and Diani, which attract international buyers,” he added.
In previous years, dollar-denominated property prices were also driven by investors seeking to hedge against fluctuations in the local currency. However, the shilling has remained relatively stable against the dollar over the past two years, weakening the argument that foreign currency pricing is primarily a hedge against exchange rate volatility.
“The stability of the Kenyan shilling against major currencies means that pricing properties in foreign currencies is largely a matter of vendor or organisational preference rather than a reflection of prevailing market conditions,” Knight Frank said in response to the Business Daily.
Besides the US dollar, some properties are also quoted in euros, reflecting the diversity of the international market that sellers are targeting.
Mr Denge said some property owners have financial commitments denominated in foreign currencies and would therefore prefer to receive proceeds in the same currency. The arrangement also appeals to overseas buyers who may access financing in their countries of residence.
The diaspora is another potential source of demand. Central Bank of Kenya data shows that diaspora remittances totalled $1.37 billion in the nine months to September, representing a 5.7 percent increase from a similar period a year earlier.
The sizeable flow of remittances has made Kenyans living abroad an important potential market for property sellers. Many diaspora buyers also prefer dollar-denominated transactions to minimise conversion costs when transferring money to Kenya.
Kenya has no general prohibition against pricing or conducting private transactions in foreign currencies, leaving buyers and sellers to agree on the currency of payment. However, statutory obligations, including stamp duty and property registration fees, must be settled in Kenyan shillings.
Foreign currency pricing can nevertheless introduce complications, particularly where transactions take several months to complete.
Mr Denge noted that exchange rate movements during the negotiation and completion period could significantly alter the final amount payable, especially where the currency used in the agreement is volatile.
Without clearly drafted contracts specifying the applicable exchange rate, conversion date and payment terms, buyers and sellers risk disputes over the amount ultimately due.
The foreign currency listings also reveal the wide range of land investments being marketed to overseas buyers, from wildlife-rich conservation destinations to coastal properties.
According to the Financial Times , the property was put up for sale by a London-based media mogul who developed a treehouse lodge known as Tumbili within the Naretoi project. The Maasai Mara is internationally renowned for its wildlife and the annual wildebeest migration, making it a prime destination for tourism and hospitality investments.
In Nanyuki, several listings are concentrated around the Lolldaiga Valley, an area known for its wildlife, scenic landscapes and proximity to established tourism and conservation developments.
A 15.2-acre parcel in Forest Lugga East is priced at $395,000 (Sh52.2 million), while a much larger 49-acre property in Lolldaiga is listed at $360,000 (Sh47.6 million).
Among the euro-denominated listings is Red Pepper House in Lamu, which is priced at €3.5 million (Sh519.5 million).
Another property is listed on Manda Island, pointing to the appeal of Kenya’s coastal region among European buyers.
Foreign currency pricing is not, however, limited to tourism destinations. Listings in some of Nairobi’s affluent neighbourhoods, including Karen, Ololua Ridge and Runda, also carry prices in foreign currencies.
