Comments on: The Finances of An Expat Wife in Kenya

By: leonard kamau

leonard kamau — Wed, 23 Sep 2009 21:29:26 +0000

Now one question i always seem to wonder….why do young kenyans on good jobs try to buy/rent expensive apartments on costly mortgages in leavy suburbs while they can get cheaper better properties in athi river and other outskirts of nairobi—-is it just a threal or are they too urban to live elsewhere?

By: leonard kamau

leonard kamau — Wed, 23 Sep 2009 21:25:40 +0000

very interesting stuff on real estate.

We can only hope that the investments made are not feeding the bubble in nairobi and that property investement will not go up in tatters just like our stock market.

Any predictions? let us wait and see

By: Africa Expat Wife

Africa Expat Wife — Tue, 19 May 2009 07:55:19 +0000

Wow – I feel I am catching up a bit here because I only just found this. Of course I am delighted that kenyanentrepreneur quoted an entire post from my blog – and interested to read the subsequent debate it sparked on this website.

Re Coldtusker’s comment re: why are there so many expats in Kenya? Don’t forget that it is a two way street. Don’t we now live in a global village? How many Kenyans do you think are currently working in the Diaspora? I get loads of nice comments from Kenyans working overseas – all of whom who are fairly tolerant of my expat view on life in Kenya. (thank goodness!)

Kenyanentrepreneur – I see that you are running adverts on your blog. How is that working for you? I have just put them on mine.

By: Sijui

Sijui — Mon, 06 Apr 2009 19:49:55 +0000

To KE:

Buying a house is always, always an asset. Historically this has always been the case and it will continue to be so. The problems people face now are entirely of their own doing:
1) you buy a house that YOU CAN AFFORD.
2) you buy a house as an investment, not an ATM machine. This applies to whether you live in the U.S. or in Africa.

Owning a home affords you credit and equity that would otherwise be inaccessible to you, plus if you buy a home that you can financially afford it is BOTH CHEAPER IN THE SHORT TERM AND LONG TERM THAN RENTING.

I cannot stress enough, the importance of OWNING YOUR OWN HOME!

I am a classic case of someone who would never have been able to start their business had it not been for their home. It would probably have taken us five to ten years longer. Secondly owning for me was not only cheaper than renting, it served as an asset that continued to reap dividends and not just a sunken living cost. In Africa this is even moreso of the case, owning property or a home was the only way to access real credit in the economy, thankfully those times are changing, but for our parents, initial investments in their homes 40-50 years ago are now reaping them 3000% profits e.g. a plot of land and cost of building a house in Kyuna was Ksh.500,000 in 1975……..those homes now go for Ksh. 15-20 Million, in Nairobi West the going rate was probably Ksh. 100,000-150,000…..now Ksh. 3-9 million and so on and so forth. In the rural areas owning your house and plot of land is the difference between seed money for self fulfillment or abject poverty. Hence the reason why land is such an important and contentious issue.

By: kenyanentrepreneur

kenyanentrepreneur — Sun, 05 Apr 2009 14:12:10 +0000

Sijui & Coldtusker:

This is an interesting discussion on real estate you have going. Maybe some one can explain the high real estate prices in Kenya. Is that a classic bubble?

I used to work with a lot of older people and they told me that when they first starting their careers, buying a house was actually a financially astute move for them, for the following reasons:

1) There was job security: They knew that once their husbands got jobs, they were pretty much set for the rest of their careers because layoff’s were rare.

2) They did not move like people do today because they didn’t have to. With job security, you are more likely to stay in your neighborhood for the duration of your career, so buying a house would be a good investment.

3)They didn’t have debt. Credit cards were rare and they lived within their means.

Now, many of these people became millionaires by selling houses that they had bought and completely paid off during their 40 year careers. So, you by a house when you’re say 25 for $40K, by the time you are 55, the house is completely paid off and you sell it for$3 million dollars.

But today, with no job security, people are constantly moving to wherever the opportunities are and buying a house may actually be a detriment.

By: Sijui

Sijui — Sun, 05 Apr 2009 12:43:54 +0000

CT: You’re right if we’re talking about infrastructure ammenities, clearly there is nothing to compare there and likely never will, and yes in the 2 and 3 tier cities you might find something comparably priced but again you’d have to sacrifice on what I call ‘cultural and social’ amenities because many of those cities while changing are still culturally homogenous but having just sold a house in the U.S from the east coast, I know what a lousy deal you get for quality and quantity of house in comparison to Africa.

Even the McMansions which are supposed to be relatively top shelf for the middle class, you can buy or build better on the continent and that also includes the square footage of space in land that comes with it. And certainly I accept that the type of housing in the West is a factor of their affluence and development because 65% of the population owns their own consequently space is limited as compared to maybe what 40% in Kenya if you include self built in the rural areas? But quality is lost at the behest of pure profit.

By: coldtusker

coldtusker — Sun, 05 Apr 2009 09:11:10 +0000

Sijui: I think you are mistaken on housing esp in the 2nd tier US cities. Note that even 3rd tier US cities have far better amenities than Nairobi e.g. roads, shopping, etc. The East Coast + West Coast is expensive. Places like Omaha are very affordable (P.S. I have no idea what one would do in Omaha unless you work for Warren Buffet).

By: Sijui

Sijui — Sat, 04 Apr 2009 19:30:04 +0000

Hmmmm, let me look at this from a different perspective. The ex pat life she describes seems open to just about anyone who plans well for a life back home especially Kenyans in the diaspora. Heck I moved home precisely because I wanted to live the expat life in comparison to life in the West, let’s see let me count the ways:
1) domestic help especially if you have kids. I’d rather scarifice many of my utility bills in the U.S. like Comcast Cable, DIRECT TV in exchange for solid, reliable domestic help plus day care in the States costs 4 times what would be a very competitive salary in Kenya with very few benefits.
2) Housing, it all depends, if you want to live in Karen or Gigiri then yes housing is as expensive as in the West, and yes housing prices in Nairobi are now astronomical for no legitimate reason but again if you look hard and are patient there are great deals to be had far better than in the West. A 4-5 bedroom townhouse in Nairobi with quality finishes CANNOT be found at a comparable price in the U.S. and definitely not in Europe.
3) Schooling…ah yes….a subject close to my heart, again if you want to send your kids to expat prep schools then you’ll pay through the nose, but there are many reasonable private options like Makini, St. Christophers, Riara where you’ll never have to worry about gun violence and suicidal tots and teenagers.
4) Utilities…….even satellite T.V. and high speed internet are now readily affordable and accessible for the middle class family i.e. $ 20-40 per month range

My point, granted these options are available if you’re getting paid a comparable US salary or even an upper-middle average Kenyan salary, and definitely MAJORITY of Kenyans do not fall in either bracket but many do aside from the usual expat crowd so IMHO if you plan well you can have the same high quality of life that is likely impossible in the West for the same amount of money.

By: Lord

Lord — Thu, 02 Apr 2009 08:12:21 +0000

KeiO

You said
“Can I get a Kenyan ex-pat wife living in Britain to post her own?”

I presume you are married and stay in Eu/Britain