Estate agent commission in Kenya: what is normal and what is not in 2026

Estate agent commission in Kenya is one of the least transparent line items in property transactions. Different agents quote different rates, the same property gets listed by multiple agents at different commission terms, and disputes about who introduced the buyer derail deals every week. Here is the honest 2026 guide.

Standard rates

• Sales (residential): 1.25 to 3 percent of the sale price (negotiable; the EAR Act provides guidance but actual practice varies)
• Sales (commercial and land): 1 to 3 percent
• Lettings (residential): the scale turns on the length of the lease. Up to one year it is 7.5 percent of the annual gross rent; longer than a year it is one month rent. In practice most Nairobi agents ask for one month whichever it is
• Lettings (commercial): 7.5 percent of annual gross rent on a sole agency, 10 percent on a general agency
• Letting plus management: by negotiation, but the rules set a floor of half the letting scale. The clause exists because an agent who also collects the rent earns twice from the same tenancy, and it is the one almost no quote mentions
• Sole agency: lower rate (typically 1.25 to 2 percent)
• Multiple agency: higher rate (typically 2 to 3 percent)
• Off-plan referral: paid by developer, ranges 3 to 6 percent

Who actually pays

• Sales: typically the seller pays the agent commission. The buyer should never pay both sides unless an explicit buyer-side representation agreement is in place
• Buyer-side representation: retainer paid by the buyer (typically 0.5 to 2 percent of the eventual purchase price); the buyer pays their own representative. Goldstay works on this model
• Lettings: typically the landlord pays. Tenant-paid finder fees do exist but should be negotiated explicitly

Regulatory framework

• Estate Agents Registration Board (EARB) regulates licensed agents under the EAR Act
• The scale itself is the Estate Agents (Remuneration) Rules, 1987, amended by Legal Notice 198 of 2002. It is a published schedule, not a trade custom, so a quote can be checked against it
• The scale is a reference rather than a ceiling or a floor in ordinary practice: parties vary it by agreement, and most do
• Many practitioners in the market are unregistered; this is illegal but common
• Buyers and sellers should verify EARB registration before paying commission

Common commission disputes

• Multiple agents claiming the same buyer introduction. The seller pays only the actual introducer. Document the introduction in writing
• Agent demanding payment from both sides. Decline politely and pay only the side that is contractually owed
• Off-plan agents claiming commission on deals the developer’s direct sales team closed. Confirm with the developer before paying
• Lettings commissions on lease renewals. Check the listing agreement; renewals are not always commissionable
• Verbal commission agreements that turn out to differ from each side’s recollection. Always paper the deal

Practical advice

• Negotiate the commission rate before listing or viewing
• Document the agency relationship (sole, multiple, exclusive) in writing
• Confirm EARB registration of the agent
• Pay through the lawyer’s completion statement, not separately
• Insist on receipts and proper invoices
• Ensure VAT treatment is correct (16 percent applies to VAT-registered agents on services rendered)

Commission is not a hidden cost. It is a documented professional fee for a properly structured service. The transactions that go wrong on commission are the ones where nobody documented the relationship at the start.

How Goldstay handles it

For sourcing and management clients we run a buyer-side representation model with documented retainer and clear deliverables. Read also our pieces on property transfer process and why a lawyer should read your sale agreement.

Landlords who manage their own property still come to us for tenant finding and vetting.