On a quiet stretch of Nairobi’s Kilimani, a glossy billboard shouts out a tempting proposition: “Modern Apartments from USD 120,000.” Drive further into Karen or Westlands, and the pattern repeats. New housing developments — from sleek apartments to gated villas — are no longer priced in shillings but in dollars.
It is a curious shift in a country where salaries, mortgages, and daily transactions remain firmly anchored in Kenyan shillings. Yet over the past three years, quoting real estate in US dollars (USD) has quietly crept from being an exception to a visible trend, especially in Nairobi’s prime suburbs.
Why are developers talking in dollars, and what does it mean for the average Kenyan buyer?
VAAL Real Estate, a developer, openly lists its units in USD — from Kilimani’s high-rise apartments to Westlands’ modern complexes. The firm says the move is not arbitrary.
Victor Ndegwa, a Customer Relations officer at VAAL Real Estate, says quoting property prices in US dollars is a calculated move that reflects both market realities and global positioning.
Victor Ndegwa, Customer Relations at Vaal Real Estate.
Photo credit: Pool
“For us, pricing in dollars helps preserve the value of money in a volatile currency environment,” says victor. “It safeguards both the developer and the buyer, particularly those who earn or invest in foreign currency.”
He explains that a significant portion of real estate development costs — from construction materials to design elements — are imported and priced in USD. “Loans, raw materials, and some specialist services are dollar-linked. Receiving payment in dollars allows us to match costs and revenue more seamlessly, reducing exposure to currency mismatches.”
He adds that quoting in USD also appeals to Kenya’s growing diaspora and international investor base. “The US dollar is a globally recognised standard. For many foreign buyers, especially those comparing markets across Africa, it brings familiarity and simplifies investment returns.”
But what about Kenyan buyers who earn in shillings?
“There’s definitely some need for clarification, and not everyone is initially comfortable with dollar quoting,” Victor admits. “However, the market we largely serve is quite informed. Most of our clients understand that the dollar tag isn’t about exclusion — it’s about long-term value preservation and risk management.”
He says pricing in USD hasn’t significantly changed buying patterns. “We haven’t registered a spike or drop simply because of the dollar quotation. Our clientele tend to be strategic and forward-looking. They factor in much more than just the currency.”
Still, he concedes that better communication is necessary. “The conversation shouldn’t just be about pricing — it should be about planning, transparency, and value. The more we educate buyers, the more comfortable they become with the logic behind the dollar tag.”
Indeed, over the past four years, the Kenyan shilling lost significant ground against the US dollar, dipping from around 100 in 2020 to nearly 160 by late 2023. However, 2025 has seen a surprising rebound, with the local currency strengthening to about 129 by May.
For developers engaged in multi-year construction projects, these swings have made long-term pricing and costing a complex and risky undertaking. Yet imported tiles alone do not tell the full story. Some developers admit that quoting in dollars is also a deliberate signal to a certain class of buyer.
“Developers in areas like Kilimani, Karen, Runda and Westlands are increasingly targeting diaspora Kenyans, expatriates, and high-net-worth investors who hold or earn in dollars,” says Martin Mukoma, a Director and real estate consultant at Domina Homes and Properties. “By quoting in USD, you position the property as an investment-grade asset, comparable to Dubai, Kigali, or Johannesburg. It’s a play for both prestige and practical ease for dollar holders.”
Martin Mukoma, Director and Real Estate Consultant at Domina Homes and Properties.
Photo credit: Pool
According to Central Bank data, diaspora remittances to Kenya hit a record $4.5 billion in 2024, making diaspora buyers a serious force in the property market. Many of them prefer transacting in dollars to avoid conversion losses when sending money back home.
Legal question
With the trend picking up, the fundamental question is; Can developers legally quote house prices in US dollars in Kenya?
According to Muthoni Kamau, a real estate lawyer at K&K Advocates LLP, the answer is yes — but with caveats. “There are no laws prohibiting pricing or transacting in USD or any foreign currency in Kenya,” she says. “It’s a matter of contractual freedom — as long as both parties agree, such contracts are enforceable.”
However, statutory payments such as stamp duty and registration fees must still be paid in Kenyan shillings.
While developers often cite rising import costs — especially for materials priced in dollars — as a reason for dollar-pegged pricing, this creates real risks for local buyers earning in shillings.
“Forex fluctuations can significantly impact the final amount payable in local currency,” Muthoni explains. “Without carefully drafted contracts, disputes may arise over how conversions are handled.”
For instance, a $40,000 payment in December 2023 at Sh157 per dollar would cost Sh6.28 million. By May 2025, with the rate at Sh129, the same dollar amount is worth Sh5.16 million — a difference of over Sh1 million.
She says buyers should therefore pay close attention to contract clauses governing exchange rates. Muthoni recommends including terms that specify the applicable rate (such as the Central Bank rate), who bears any conversion-related losses, and how installment payments are affected over time. Contracts should also outline dispute resolution mechanisms in cases involving currency issues.
While withdrawals from deals due to dollar pricing are rare, Muthoni has seen friction. “One buyer paid in shillings into a vendor’s dollar account and ended up losing about Sh100,000 because of the bank’s unfavourable exchange rate,” she says.
Muthoni Kamau, a real estate lawyer at K&K Advocates LLP.
Photo credit: Pool
Her advice to buyers using a shilling-based mortgage? “Negotiate for pricing in local currency where possible and consult a financial expert to understand the long-term impact of forex volatility on your home loan.”
For developers, the benefits include better alignment with dollar-denominated loans and construction costs. “If developers or investors use dollar-based financing, having dollar-denominated income offers a natural hedge,” Charles Macharia, Senior Research Analyst at Knight Frank Kenya, notes.
However, the downside is clear for local buyers. “For those transacting in Kenyan shillings, currency depreciation can make homes significantly more expensive and shrink the pool of eligible purchasers,” he adds.
Mary Wanjiku, a marketing executive based in Nairobi found out the hard way. “When I enquired about a USD-quoted apartment last year, the developer told me they would convert the final price on the day of signing,” says Mary. “Between the time I started negotiations and signing, the shilling had dropped, and I had to pay nearly Sh1.8 million more. I walked away from the deal.”
Forex risk management
This underscores the need for robust forex risk management in Kenya’s luxury property market.
Banks, too, are wary. According to the Kenya Bankers Association, while USD-denominated mortgages exist, they are mostly available to dollar earners. For ordinary Kenyans, mortgage products remain shilling-based — making it harder to service a loan for a USD-priced house without incurring forex risks.
Not all developers are embracing the dollar rush, though. In middle-income areas such as Syokimau, Ruiru, and Ngong, shilling pricing still dominates.
“This is primarily a high-end market phenomenon which I personally use when quoting for a certain class of clientelle,” says Martin Mukoma, director at real estate firm, Domina Homes and Properties. “If you are building affordable housing or middle-class homes, pricing in dollars makes little commercial sense — it alienates your core buyer.”
Still, Martin acknowledges that material cost volatility remains a headache even for mid-tier projects. Some developers manage the risk by adding hefty contingency margins rather than switching currencies.
Is Kenya on its way to a fully dollarised property sector? Experts say it’s unlikely — but in Nairobi’s prime zones, dollar pricing is here to stay.
“It’s a symptom of macroeconomic realities,” says economist Ken Gichuru. “As long as the shilling remains under pressure and Kenya is a net importer of construction materials, developers will seek ways to shield their margins. Quoting in dollars is one such tool — but it won’t trickle down to mass-market housing any time soon.”
Ken adds that this trend mirrors behaviours seen in other emerging markets like Nigeria and Ghana, where luxury property is often USD-priced to attract diaspora investors and manage forex risk.
For Kenyan buyers eyeing dollar-quoted properties, lawyers advise extra vigilance. For buyers, it demands sharper financial literacy.
Back on the streets of Kilimani and Karen, the billboards remain unmoved: prices still gleam in USD. And for now, at least in Nairobi’s upscale housing scene, the dollar has found a new home.
