When buying or selling property in Kenya, one of the most important considerations is the real estate agent commission . Whether you’re a homeowner listing your house for sale or a buyer looking to invest, understanding how commissions are structured can help you make better financial decisions.
In this guide, we’ll explain everything you need to know about real estate agent commission in Kenya , including standard rates, who pays it, and how it varies by location and property type.
How Real Estate Agent Commission Works in Kenya
1. Who Pays the Commission?
In most cases, the seller pays the real estate agent commission when a property is sold. However, in some rental agreements, the tenant may also be required to pay a fee — typically equivalent to one month’s rent.
💡 Note: This can vary depending on the agreement between the parties and the specific agency involved.
2. Standard Commission Rates
The typical real estate agent commission in Kenya ranges between:
- 🏠 2% to 5% of the property sale price for residential properties
- 🏢 3% to 7% for commercial properties
These percentages can vary based on several factors, including:
- Location of the property
- Type of property (apartment, townhouse, land, etc.)
- Agency policies
- Complexity of the transaction
Factors That Influence Commission Rates
Here are the main factors that determine how much an agent earns from a real estate transaction:
| Factor | Explanation |
|---|---|
| Property Value | Higher-value properties often result in higher total commissions |
| Market Demand | In high-demand areas like Nairobi or Mombasa, agents may charge more |
| Property Type | Commercial and luxury properties usually command higher commission rates |
| Agency Policies | Some agencies have fixed rates, while others negotiate per transaction |
| Negotiation Skills | Sellers and buyers can sometimes negotiate lower fees depending on urgency |
Example of Real Estate Agent Commission Calculation
Let’s say you’re selling a house in Nairobi valued at KES 10 million .
If the agent charges a 4% commission , here’s how the calculation would look:
Property Price: KES 10,000,000
Commission Rate: 4%
Agent Commission: KES 400,000
This amount is typically split between the listing agent (representing the seller) and the buying agent (representing the buyer), unless otherwise agreed.
Rental Commission in Kenya
For rental properties, agents usually charge:
- 🔹 One month’s rent as a commission fee
- 🔹 Sometimes split between landlord and tenant, depending on the agreement
For example:
- Monthly rent: KES 30,000
- Agent fee: KES 30,000
Some agencies offer discounted rates if they manage the property long-term or if the client is returning.
Top Real Estate Agencies and Their Commission Structures
Here are some of the major real estate agencies in Kenya and their typical commission structures:
| Agency Name | Residential Sale (%) | Commercial Sale (%) | Rental Fee |
|---|---|---|---|
| ReMax Kenya | 3 – 5% | 4 – 7% | One month’s rent |
| Madison Properties | 2 – 4% | 3 – 6% | One month’s rent |
| Jackson-Homes | 2 – 5% | 5 – 7% | One month’s rent |
| BuyRentKenya | Varies by agent | Varies by agent | Varies by agent |
| Pam Golding Properties | 3 – 5% | 4 – 6% | One month’s rent |
Tips for Negotiating Real Estate Agent Commission
While commission rates are generally standardized, there is room for negotiation in certain situations.
Here are a few tips:
- 📉 Offer a longer listing period – Agents may accept lower fees for exclusive rights over time.
- 🏡 Sell multiple properties – If you’re a developer or investor, bulk deals can lead to discounted rates.
- 🤝 Build a relationship – Returning clients often get preferential treatment.
- 🧮 Compare quotes – Get commission estimates from multiple agents before committing.
Conclusion: Understanding Real Estate Agent Commission Helps You Save Money
Knowing how real estate agent commission in Kenya works gives both buyers and sellers an edge during property transactions. While the standard rate falls between 2% to 5% for sales and one month’s rent for leases, these figures aren’t set in stone — and smart negotiators can often secure better terms.
Whether you’re listing your home or purchasing an investment property, always clarify commission details upfront to avoid surprises later.
Frequently Asked Questions (FAQs)
Q: What is the average commission for real estate agents in Kenya?
A: Between 2% and 5% of the property value for sales, and one month’s rent for leases.
Q: Who pays the agent commission when selling a house in Kenya?
A: Typically the seller , although it can be negotiated differently.
Q: Can I negotiate real estate agent fees?
A: Yes, especially if you’re a repeat client, selling multiple units, or offering long-term listings.
Q: Do agents charge commission for rentals?
A: Yes, usually equivalent to one month’s rent , paid by the tenant, landlord, or shared.
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