Lease vs Purchase: When It Makes Sense to Buy a Godown in Kenya (And When to Just Lease!)

Let’s be honest — every Kenyan business owner has asked this question at least once: “Should I buy a godown or just lease one and save myself the headache?”
Well, like choosing between ugali ya sukuma and ugali ya nyama, the answer depends on your appetite… and your budget.

If You’re Still Finding Your Feet — Lease.

Leasing is like dating before marriage — you get flexibility without full commitment.
If your business is still growing, or you’re testing a new location (say you’re moving from Industrial Area to Ruiru or Syokimau), leasing keeps you agile.
You can expand, downsize, or move closer to the expressway when traffic starts misbehaving — no hard feelings, no heartbreaks.

Plus, landlords handle the big maintenance drama. You just move in, set up, and focus on your hustle.

If You’re Established — Consider Buying.

Now, if your business is like that loyal customer who’s been buying your products since 2010 — stable, steady, and solid — maybe it’s time to own a godown.
Buying means long-term savings and building equity. No more rent reminders or annual rent increases that hit you like a cold soda after chapati.

It also gives you control — you can modify the space, add offices, solar panels, even paint the gate orange if that’s your vibe.
And let’s not forget: property in Kenya hardly goes down in value. You’re parking your money in an asset that appreciates while you sleep.

But Wait — The Hidden Math

Leasing looks cheaper until you calculate how much you’ve paid after five years. Buying looks expensive until you realise you’d have spent almost the same in rent.
The trick? Compare the total cost over time — and consider your cash flow. If you’d rather keep your capital free for inventory, marketing, or a new delivery truck, lease.
If you’ve got savings or access to financing and a stable business, buy.

In short:

Start-ups, expanding businesses, or short-term projects? Lease.
Established, stable, and growth-minded companies? Buy.

And if you’re not sure which route suits your situation, talk to Reenka Properties — we’ve seen both sides of the coin (and a few landlords who flip it mid-deal ).
We’ll help you find a space that makes financial and operational sense, whether it’s a short-term lease or a long-term home for your business.