House Hunting in Nairobi: The Real Cost of Deposits & Broker Fees

Many Kenyan Renters Face Upfront Fees and High Commissions from Property Agents. Renters searching for houses in Nairobi and other major towns report being asked to pay upfront viewing fees and high commissions to property agents before securing a rental unit.

“Dealing with an agent is hectic. What do you mean I have to pay you KSh 2,500 for house viewing, on top of that nikipata nyumba napenda nakulipa 30% of the rent,” said Lisah Gitau, a tenant currently house-hunting in the city,

Viewing Fees Before Inspection

Prospective tenants report that some agents request non-refundable payments before showing available properties. According to several renters interviewed, the fees range between:

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KSh 500 and KSh 3,000 per viewing
Higher amounts in certain estates or for multiple house visits

There is no statutory requirement under Kenyan law that obliges tenants to pay a viewing fee before inspecting a property. The practice is commonly associated with informal brokers operating without written contracts.

Commission Rates and Legal Provisions

Kenya’s Estate Agents (Remuneration) Rules, Legal Notice No. 36 of 1987, set out recognised commission scales for letting and leasing services. For residential leases:

7.5% of the annual gross rent is chargeable for leases not exceeding one year
A fee equivalent to one month’s rent applies to leases exceeding one year.

These rates apply to agents acting in accordance with regulatory requirements.

Despite these provisions, some tenants report being quoted commission rates of between 20% and 30% of the monthly rent. In many cases, the commission is requested immediately after a tenant agrees to take the house.

Upfront Rental Costs

Beyond agent fees, tenants are typically required to pay:

One month’s rent as a security deposit
The first month’s rent in advance

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This means that a tenant securing a house may need to pay at least two months’ rent, in addition to any agent's charges.

Verification and Oversight

The Estate Agents Registration Board regulates estate agents in Kenya and maintains a register of licensed practitioners. Legal practitioners advise tenants to confirm registration status and request written breakdowns of all fees before making payments.

Consumer groups continue to receive complaints from renters describing similar experiences across urban centers. Authorities encourage individuals to report suspected misconduct involving unregistered agents or irregular commission charges.