Every year dozens of Nairobi families decide to downsize from a Ksh 350M–Ksh 850M 5–8 bedroom mansion in Karen, Runda, Muthaiga, Kitisuru or Lavington to a Ksh 120M–Ksh 250M 3–4 bedroom townhouse or apartment in Westlands, Kileleshwa or Riverside — expecting huge cost savings.
Some save millions. Many others end up spending the same (or more) than before.
Here are the 9 truths about cost savings that most upmarket downsizers only learn after they’ve signed.
1. The Biggest Cost Savings Are Almost Never the Mortgage
You drop from Ksh 3.8M/month mortgage → Ksh 1.4M/month and think you just saved Ksh 2.4M. Reality: Most downsizers pay cash from the sale, so the real monthly cost savings are usually just lower rates, security and maintenance — often only Ksh 180K–Ksh 420K per month.
2. New-Build “Smaller” Homes Have Higher Rates & Levies
A brand-new 4-bed townhouse in Kileleshwa or Lavington Green costs Ksh 120K–Ksh 280K/month in service charge + sinking fund. Your old Karen 1-acre standalone? Ksh 45K–Ksh 85K total. Many downsizers see monthly outgoings rise by Ksh 100K+ despite the smaller footprint.
3. Capital Gains Tax Eats 10–18% of Your Equity
Sell a Ksh 580M home bought 12 years ago → CGT at 15% final tax on the gain can easily hit Ksh 48M–Ksh 92M. That “cost savings” pot just lost a huge chunk before you even buy the next place.
4. Moving Costs Are Brutal at This Level
Professional packers, insurance, cranes for grand piano, storage for 3 months, new curtains/blinds, minor renovations — average Ksh 4.5M–Ksh 12M. One Muthaiga family spent Ksh 18M just to move 2.8 km to a smaller house.
5. Lifestyle Costs Don’t Always Drop
- Same international school fees
- Same country-club membership
- Same 3–4 domestic staff (because the new house still needs 24/7 security)
- Same fleet of cars Actual cost savings on lifestyle? Often under Ksh 80K/month.
6. Hidden Upsizing Within Downsizing
You buy a “smaller” 4-bedroom townhouse… but add a Ksh 45M basement cinema, gym and wine cellar. Net result: You spent more on the “downsized” home than the original house cost to build.
7. Land Rates & Taxes Can Be Higher Per Square Metre
Nairobi County charges higher rates in high-density zones (Westlands, Kileleshwa) than low-density Karen or Runda. A Ksh 220M 4-bed townhouse can cost Ksh 480K/year in rates vs Ksh 380K for a Ksh 680M Karen standalone.
8. Renovation Fever After Moving In
“Since we’re here, let’s just…” New kitchen Ksh 22M, new pool Ksh 18M, full smart-home upgrade Ksh 14M. Average downsizer spends Ksh 28M–Ksh 85M “settling in”.
9. The Real Cost Savings Come From Only 3 Things
After helping 60+ families downsize in 2023–2025, we see genuine cost savings only when clients nail these three:
- Selling before major maintenance cycles (new roof, borehole, septic)
- Moving to an older (10–20 year) townhouse with low service charge
- Paying cash (no new mortgage) and investing the balance at 12–16%
Do all three → Ksh 350K–Ksh 850K genuine monthly savings. Miss any → you might break even or lose money.
Real 2025 Downsizing Numbers examples:
| From → To | Sale Price | Purchase Price | Total Fees/Tax/Move | Actual Monthly Cost Savings |
|---|---|---|---|---|
| Karen 8-bed → Kileleshwa 4-bed | Ksh 685M | Ksh 265M | Ksh 118M | Ksh 620K |
| Runda 7-bed → Westlands 3-bed | Ksh 520M | Ksh 185M | Ksh 96M | Ksh 180K (new levy high) |
| Muthaiga 6-bed → Lavington 4-bed | Ksh 810M | Ksh 420M | Ksh 168M | Ksh 1.1M (cash purchase) |
The Bottom Line
Downsizing can deliver life-changing cost savings — but only when you understand the real numbers instead of the fantasy version. Most families who plan properly save Ksh 4M–Ksh 12M per year. Those who don’t often spend the same (or more) in a “smaller” house.
Ready to downsize from your Karen, Runda, Muthaiga, Kitisuru, Lavington or Westlands home and actually pocket serious cost savings every month? Contact Realty Boris today for your free, no-obligation downsizing profit analysis. We’ll show you exactly how much you’ll really save (or lose) before you make any move.
