Kenyan land sellers turn to dollar and euro price tags to court overseas buyers
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Landowners in Kenya are increasingly quoting prices in US dollars and euros, from a $5.5 million Maasai Mara parcel to a €3.5 million Lamu property, as sellers target diaspora and international buyers.
A five-acre parcel in the Maasai Mara is on the market for $5.5 million (about Sh728 million), while a property in Lamu carries a €3.5 million (Sh519.5 million) price tag, Business Daily reported. In a market where most transactions are concluded in Kenyan shillings, such foreign-currency listings are becoming increasingly common.
A review of property listings on realtor Knight Frank's website found a growing number of land parcels quoted in dollars and euros. Foreign-currency pricing was previously associated mainly with upmarket apartments, luxury villas and gated developments, but the practice is now extending to land in destinations such as Nanyuki, Narok and Lamu that attract 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, explaining why many of the listings are located in Naivasha, Nanyuki and Diani.
Listings include a 15.2-acre parcel in Nanyuki's Forest Lugga East priced at $395,000 (Sh52.2 million) and a 49-acre property in Lolldaiga listed at $360,000 (Sh47.6 million). Among the euro-denominated listings is Red Pepper House in Lamu at €3.5 million, alongside a property on Manda Island. Land in Nairobi's affluent Karen, Ololua Ridge and Runda is also quoted in foreign currencies.
The shilling has been relatively stable against the dollar over the past two years, weakening the argument that dollar pricing is primarily a hedge against exchange-rate volatility. Knight Frank told Business Daily that the currency's stability meant pricing properties in foreign currencies was “largely a matter of vendor or organisational preference rather than a reflection of prevailing market conditions”.
Diaspora demand is another factor. Central Bank of Kenya data shows remittances totalled $1.37 billion in the nine months to September, 5.7 percent more than a year earlier, and many diaspora buyers prefer dollar-denominated transactions to reduce conversion costs when transferring money to Kenya.
Kenya has no general prohibition against pricing or conducting private transactions in foreign currencies, although statutory obligations such as stamp duty and property registration fees must be settled in shillings. Denge noted that exchange-rate movements between negotiation and completion can significantly alter the final amount payable, and that contracts without a specified exchange rate, conversion date and payment terms leave buyers and sellers exposed to disputes.