Rent to Own Houses in Kenya
Dream of owning a house in Kenya but can’t qualify for a mortgage?
You’re not alone. With rising property prices and strict bank requirements, many Kenyans are turning to rent to own houses in Kenya—a flexible, low-barrier path to homeownership.
With rent-to-own, you rent a house now and buy it later, with part of your monthly payment going toward the final purchase price.
No huge deposit. No credit score stress. No waiting years to save.
Here’s your complete 2024 guide to rent-to-own houses in Kenya—how it works, where to find them, and how to avoid scams.
What Is Rent to Own in Kenya?
Rent to own (also called lease-to-own or rent with option to buy) is a housing model where:
- You rent a property under a long-term lease (1–5 years)
- A portion of your monthly rent is credited toward the future purchase
- At the end of the term, you buy the house at a pre-agreed price
It’s ideal if you:
- Can’t get a mortgage yet
- Need time to save
- Want to “test” a home before buying
📌 Think of it as renting with equity building.
How Rent to Own Houses Work in Kenya
- Choose a Property
Available in fast-growing areas like Syokimau, Runda, Athi River, Ruai, and Kitengela.
- Pay an Option Fee (5–10%)
A one-time, non-refundable fee to secure the purchase option. - Sign a Legal Agreement
The contract outlines rent, buyout price, duration, and terms. - Rent Monthly (With Equity Credit)
Example: Ksh 40,000/month rent, with Ksh 10,000 going toward the final purchase. - Exercise Your Option to Buy
At the end of the lease, use savings or secure a SACCO loan to complete the purchase.
💡 Note: If you don’t buy, you lose the equity portion—so commitment is key.
Top Providers of Rent-to-Own Houses in Kenya
1. Acorn Holdings
- Offers rent-to-own on 2–4 bedroom homes in Syokimau, Ruai, and Athi River
- Lease terms: 2–5 years
- Option fee: 10%
- Monthly rent partially offsets purchase price
2. Sankari Homes
- Focuses on affordable rent-to-own schemes in Kajiado and Kiambu
- Flexible payment plans
- Helps tenants transition to ownership
3. Makao Bora Trust
- Partners with developers for low-income rent-to-own housing
- Targets formal & informal sector workers
4. Private Developers & Landlords
Many individual landlords in Rongai, Kitengela, and Ruai offer informal rent-to-own deals—great for those with steady income.
Rent to Own vs. Mortgage: Which Is Better?
| Deposit | 5–10% option fee | 10–20% down payment |
| Credit Check | Not always required | Required |
| Approval | Fast & flexible | Strict (payslips, NHIF, etc.) |
| Ownership | After lease term | After full repayment |
| Risk | Lose equity if you don’t buy | Foreclosure if you default |
✅ Rent-to-own is better if:
- You’re self-employed or have irregular income
- You’re building credit
- You want to avoid bank rejection
✅ Mortgage is better if:
- You qualify for low-interest loans
- You want faster ownership
- You prefer bank-backed security
Key Benefits of Rent to Own Houses
- ✅ No Bank Loan Needed – Ideal for those denied financing
- ✅ Builds Commitment – Live in the home before buying
- ✅ Fixed Purchase Price – Protects you from future price hikes
- ✅ Equity Accumulation – Part of rent counts toward ownership
- ✅ Faster Move-In – No long loan processing
Risks & Red Flags to Avoid
🚫 No Written Agreement – Always sign a legal contract
🚫 Unclear Buyout Price – Must be agreed upfront
🚫 No Title Deed Access – Verify the landlord owns the property
🚫 Hidden Fees – Ask about maintenance, service charges
🚫 No Equity Credit – If rent doesn’t contribute to purchase, it’s just regular renting
💡 Pro Tip: Register the agreement at the Land Registry for legal protection.
Real-Life Example: Wanjiku’s Story
Wanjiku, 31, earned Ksh 78,000/month but was denied a mortgage due to a short employment history.
She found a 3-bedroom maisonette in Rongai through Sankari Homes:
- Option fee: Ksh 320,000 (10%)
- Rent: Ksh 38,000/month (Ksh 12,000 credited toward purchase)
- Lease: 3 years
After 3 years, she used her savings and a Stima SACCO loan to buy the home outright—and kept all her rent credits.
Final Thoughts
Rent to own houses in Kenya are no longer a niche option—they’re a realistic path to homeownership for thousands.
If you’re stuck in the rent trap, this model lets you turn rent into equity and build wealth instead of someone else’s portfolio.
Just do your due diligence: verify ownership, sign a contract, and treat it like the investment it is.
Frequently Asked Questions (FAQ)
Q: Can I get a mortgage at the end of a rent-to-own lease?
A: Yes. Many tenants use SACCOs (like Mwalimu, Stima) or banks to finance the final purchase. Some providers assist with loan applications.
Q: Is the purchase price fixed in rent to own?
A: Yes. It’s agreed upon at the start, protecting you from market increases.
Q: What happens if I can’t buy at the end of the term?
A: You can extend the lease or walk away—but you’ll lose the equity portion of your rent. The home remains the owner’s.
