Service Charge in Nairobi: What It Means, What You’re Paying For, and Why It Matters
TL;DR – Service Charge in Kenya
- A service charge is a fee paid by property owners or tenants to cover the cost of maintaining and managing shared areas in a building.
- In Kenya, service charge typically pays for security, cleaning, lifts, water for common areas, electricity, maintenance, management fees, and repairs.
- Service charge is usually paid monthly, but some developments collect it quarterly or annually depending on the management structure. Typically accounts for 5–15% of rent depending on amenities.
- You generally cannot avoid paying service charge if you live in or own property within a managed development with shared facilities.
- How much you pay depends on the size of your unit, services provided, and efficiency of the property management.
- A well-managed service charge should be transparent, justified, and supported by clear financial reports.
- Poor service charge management often leads to disputes, deteriorating facilities, and reduced property value.
Service Charge in Nairobi
If you own or live in an apartment, office, or gated estate in Nairobi, service charge is part of your reality, whether you like it or not.
Yet most property owners only start asking serious questions after problems appear:
- Why are the lifts always breaking down?
- Why is security getting weaker?
- Why did the service charge suddenly increase?
As Nairobi-based property managers, we deal with these concerns daily. This guide explains service charge in Kenya in simple terms, using real local experience, not legal jargon or sales talk.
What Is a Service Charge in Kenya?
In Kenya, service charge is a fee paid by property owners or tenants to cover the cost of managing and maintaining shared spaces and services in a property.
Instead of every unit trying to fix problems on its own, service charge allows everyone to contribute to running the building or estate collectively.
This aspplies to:
- Apartment blocks
- Office buildings
- Gated residential estates
- Commercial and mixed-use developments
In short:
If you share it, you help pay for it.
Where Does the Service Charge Go?
This is one of the most common questions we hear from owners in Nairobi — and rightly so.
What service charge usually pays for
In most Nairobi properties, service charge covers:
Security and safety
- Security guards
- CCTV systems
- Access control and gates
- Fire safety systems
Cleaning and hygiene
- Cleaning of staircases, corridors, and lobbies
- Parking area cleaning
- Garbage collection and disposal
- Pest control in common areas
Utilities and infrastructure
- Electricity for common areas
- Water pumps, boreholes, and tanks
- Generators and backup power
- Lift servicing and inspections
Maintenance and repairs
- Plumbing and drainage in shared areas
- Electrical systems
- Minor building repairs
- Preventive maintenance
Management and administration
- Property management company fees
- Caretakers and technicians
- Accounting and reporting
- Insurance for common areas
When service charge is well managed, these systems work quietly in the background.
When it isn’t, everything starts to fall apart.
Is Service Charge Paid Every Month?
In most Nairobi developments, yes — service charge is paid monthly.
That said, the payment structure depends on the lease or ownership agreement.
Common service charge billing structures in Nairobi
- Monthly (most apartments and offices)
- Quarterly (some commercial properties)
- Annually (some gated estates)
Even when paid monthly, service charge is usually based on an annual operating budget, divided across all units.
This is why sudden increases often cause frustration, owners feel blindsided when costs were not explained upfront.
Can You Avoid Service Charges?
This question comes up a lot, especially from first-time buyers.
The honest answer is:
You can’t avoid service charge in shared developments.
If a property has:
- Shared security
- Shared lifts
- Shared water or power systems
- Shared roads or parking
- Shared common areas
…then service charge is unavoidable.
When service charge may not apply
The only situations where service charge is minimal or nonexistent are:
- Standalone houses on private plots
- Fully self-managed homes with no shared services
In apartments, offices, and estates, avoiding service charge usually means poor maintenance, conflicts, or declining property value.
How Much Is Service Charge in Nairobi?
There is no fixed rate for service charge in Kenya.
From what we see across Nairobi:
- Service charge is typically 5%–15% of rent
- Higher amenities = higher service charge
- More efficient management = better value for money
Factors that affect service charge
- Number of lifts and generators
- Size of the development
- Quality of amenities
- Number of units sharing costs
- Efficiency of the property manager
A building with reliable lifts, clean common areas, and strong security will naturally cost more to run — but it also holds value better.
Why Service Charge Management Matters More Than the Amount
Many disputes in Nairobi are not about how much service charge is paid, but how it’s managed.
Poor service charge management leads to:
- Constant breakdowns
- Arrears and conflicts
- Lack of transparency
- Falling rental and resale values
Good service charge management delivers:
- Predictable costs
- Clear budgets and reporting
- Preventive maintenance
- Better tenant retention
- Stronger long-term asset value
The Role of Sinking Funds and Long-Term Planning
One area many developments ignore is sinking funds.
A sinking fund sets aside money for:
- Lift replacement
- Generator overhaul
- Major plumbing or electrical works
- Roof repairs
- Road resurfacing in estates
Without it, owners are hit with sudden special levies, which often cause disputes and financial strain.
What Property Owners in Nairobi Should Always Ask
Before buying or renting, always ask:
- What exactly does the service charge cover?
- How often is it reviewed?
- Are accounts shared with owners?
- Is there a sinking or reserve fund?
- Who manages the property?
These questions protect you from surprises later.
Why Professional Service Charge Management Makes the Difference
In Nairobi’s growing real estate market, service charge is no longer optional, it’s foundational.
When managed professionally:
- Buildings last longer
- Disputes reduce
- Property values stay strong
- Owners and tenants enjoy peace of mind
When ignored or mishandled, service charge becomes a source of tension and decline.
Final Thoughts from a Nairobi Property Manager
Service charge is not just a fee.
It’s what keeps your property functional, safe, and valuable over time.
Understanding how it works, and ensuring it’s managed transparently, is one of the smartest decisions any property owner or investor in Nairobi can make.
If you treat service charge seriously, your property will reward you for it.
