What ongoing annual costs should I budget for once the home is mine?

Annual costs in Diani Beach for a privately-owned holiday home typically include land rent (small annual ground rent under leasehold law, usually nominal), Kwale County rates (modest), insurance (building and contents), caretaker or housekeeping if absent, pool and garden maintenance, and utilities. For a typical 2- or 3-bedroom DIA home held purely as a private residence, total annual running costs sit in the region of EUR 4,000–8,000 depending on caretaker arrangements.

II — Practice III — Work IV — Place V — Process VI — People VII — Inquire +254 112 417 855

Vol. I Diani Beach · Kenya MMXXVI

A small studio of holiday homes, built where the Indian Ocean meets the coral.

Q: What is the difference between freehold and leasehold property in Kenya?

Freehold means outright ownership of the land in perpetuity, with no time limit, and is reserved for Kenyan citizens under Kenyan law. Leasehold means the right to use and occupy the land for a defined long-term period — typically 99 years in Kenya — and is the route through which foreign nationals and foreign-owned companies hold property. A 99-year leasehold is renewable and functions almost identically to ownership for the lifetime of the lease: you can build, mortgage, sell, inherit and let the property. All three DIA Development projects are structured as 99-year leasehold and fully foreign-owner ready.

Q: How is capital gains tax handled if I later sell the property in Kenya?

Kenya levies Capital Gains Tax (CGT) on the disposal of property at 15% of the net gain (sale price less acquisition cost and qualifying improvements), payable by the seller. The tax is settled at the point of transfer through the buyer's advocate. Improvements documented during the build phase — which DIA records in detail and supplies on handover — can be deducted.

Architect-led design and build, hand-crafted in coral stone and hardwood, delivered to international standard. Each home is shaped for an owner — not a portfolio.

Inquire about ownership↗

Vol. I — Scroll

IIThe Practice

A boutique developer designing for owners, not yields.

DIA Development is a small design-and-build practice based in Diani Beach, Kenya. We design, engineer, build and hand over a limited number of holiday homes each year — for owners who want a residence on the South Coast, not a rental yield.

Three directors with backgrounds in real estate, finance and project delivery — supported by a permanent in-country team of architects, engineers and craftsmen who live and work in Diani.

2,500sqm

Residential deliveredAcross completed and handed-over villas in Diani

Homes in pipelineAcross two active developments in Galu Kinondo

100%

In-country teamArchitecture, engineering and build under one roof in Diani

99yr

Leasehold structureForeign-owner ready under Kenyan property law

IIIThe Work

Three projects. One coast.

One completed flagship villa, already in the hands of its owners. Two active developments in Galu Kinondo — a small group of holiday bungalows and a family-scale getaway nearing completion. We work to a deliberately small annual cadence.

No. 01 / 04

Coral-stone TV feature wall — hand-built arched niches, Swahili pendant lantern.

No. 02 / 04

Open lounge — built-in L-shape seating, hardwood sliding doors to garden.

No. 03 / 04

Private pool framed by hardwood doors and palms.

No. 04 / 04

Thatched-roof carport on natural wood poles, paving-stone path.

i/iv

III.aFeatured Project

Villa Mawaka

Diani Beach · Completed & handed over · Privately owned

Our flagship coastal villa — designed, built and handed over to its owners. A Swahili-inflected residence that pairs hand-built coral-stone walls with the clean lines of contemporary tropical architecture. Used as a private holiday home, not a rental property.

StatusCompleted · Handed over 2025

TypologySingle-family villa

Bedrooms4

Built area~340 sqm

Plot0.4 acre

MaterialsCoral stone · hardwood · terrazzo

LocationDiani Beach Road, Kwale County

View Location↗ Commission a Villa→

Available now · 5 of 5 View project ↗

III.bGalu Kinondo, Diani Beach

The Galu Bungalows

Five private two-bedroom holiday bungalows set within a quiet Galu garden compound, minutes from the beach. Designed primarily for second-home owners; a small number may be offered on Airbnb.

Construction progress Approval stage

Units5 × 2-Bed Bungalows

AvailableAll 5 units

Lease structureLeasehold

Estimated handoverQ4 2026

Price fromEUR 179,000 per unit

Inquire about Galu→ View Location↗

Available now · 2 of 4 View project ↗

III.cGalu Kinondo, Diani Beach

Surfside Getaway

Four three-bedroom holiday homes designed for second-home owners and families. Generous glazing, indoor-outdoor living and a family-sized pool. 60% built — two units still remaining.

Construction progress 60%

Units4 × 3-Bed Homes

Available2 of 4 units remaining

Lease structureLeasehold

Estimated handoverQ3 2026

Price fromEUR 250,000 per unit

Inquire about Surfside→ View Location↗

IVThe Place

Diani Beach. Where international design belongs.

Kenya's South Coast is one of the few places in East Africa with international airport access, year-round tropical climate, and a growing community of architects, hoteliers and second-home owners. Our sites sit within fifteen minutes of beach, airstrip and amenity.

1hr From Mombasa Int'l Airport By road via the Likoni ferry & new South Coast highway i.

5min To Ukunda Airstrip Daily Safarilink & AirKenya direct from Wilson, Nairobi ii.

4min Walk to reef beach Galu Kinondo — quietest stretch of Diani's white-sand reef coast iii.

17km Of uninterrupted reef-protected white-sand beach

28 — 32°C Daytime air temperature, all year. Sea rarely below 26°C.

Marine reserve Galu Kinondo & Kisite-Mpunguti coral gardens — snorkel, sail, dive.

Established A small, settled community of architects, hoteliers and second-home owners.

VThe Process

From site walk to handover, in five chapters.

A small annual cadence lets us shape every project at the level of detail second-home owners actually care about — corners, fittings, timber grain, sight-lines. The process is deliberately linear, and each stage closes with the owner's signature before the next begins.

Site walk

Week 0 — 1 wk

We visit the plot, advise on suitability, and support due diligence on title, access and zoning.

ii.

Design

6 — 10 weeks

Architect-led concept through to construction drawings, with owner sign-off at each stage.

iii.

Approvals

8 — 14 weeks

County approvals, NEMA clearances and building permits, handled in-house.

iv.

Build

9 — 14 months

In-house construction team, weekly progress reports, owner walk-throughs every four weeks.

Handover

2 weeks + 6 mo defects

Final QC, defects period, snag list, and full operational handover with documentation.

VIThe People

A small senior team. A larger team in Diani.

DIA is led by three directors with backgrounds in real estate, finance and project delivery. Day-to-day, every project is held by an in-country team — architecture, structural engineering, quantity surveying, project coordination, interior design — based in Diani and Galu.

Benjamin G.

Director · Real Estate

“Every home is a residence first. The investment case follows from that.”

Philipp K.

Director · Project Delivery

“We deliver to international standards because the coast deserves them.”

Harun K.

Director · Finance

“Discipline in costing is what makes hand-built work possible.”

In-country team — Diani & Galu

Bernice S. Lead Architect

Wilfred Structural Engineer

Andy K. Quantity Surveyor

Clifford K. Project Coordinator

Rachel Interior Designer

Mutua Clerk of Works

VIIInquire

Begin a conversation about ownership.

We work with a small number of owners each year. Tell us a little about what you're looking for — every inquiry is read by a director.

Phone & WhatsApp +254 112 417 855 Email info@dia-development.com Office Diani Beach Road, Kwale County, Kenya Press & updates LinkedIn · Instagram

First name

Last name

Project of interest

Indicative budget

Intended use

Own residence Own + occasional rental Investment-led

Message

Vol. VII — Inquire MMXXVI · Diani Beach

No newsletter. No automated marketing. A thoughtful reply, written by a director.

Thank you. Your inquiry is on its way to a director — we will reply within two business days.

F.A.Q.Common questions

Buying, building and owning on the Diani coast.

i. What are the fees, taxes and additional costs when buying a holiday home in Kenya?

Beyond the purchase price, a buyer in Diani Beach typically pays: Stamp duty at 4 % of the property value (urban-classified land); Legal fees of approximately 1.5 % plus VAT, paid to the buyer's advocate; Land Registry & registration fees of roughly 0.1 %, and minor disbursements (search, valuation, title transfer). All figures are indicative and current as of 2026 — exact amounts depend on the property and are confirmed by your advocate at conveyancing. DIA Development can introduce trusted local advocates to international buyers.

ii. What is the difference between freehold and leasehold property in Kenya?

Freehold means outright ownership of the land in perpetuity, with no time limit. Under Kenyan law, freehold ownership is reserved for Kenyan citizens. Leasehold means the right to use and occupy the land for a defined long-term period — typically 99 years in Kenya — and is the route through which foreign nationals and foreign-owned companies can hold property. A 99-year leasehold is renewable and, in practical terms, functions almost identically to ownership for the lifetime of the lease: you can build, mortgage, sell, inherit and let the property. All three of our developments — Villa Mawaka, The Galu Bungalows and Surfside Getaway — are structured as 99-year leasehold, fully foreign-owner ready.

iii. How is capital gains tax handled if I later sell the property?

Kenya levies Capital Gains Tax (CGT) on the disposal of property at 15 % of the net gain (sale price less acquisition cost and qualifying improvements), payable by the seller. The tax is settled at the point of transfer through the buyer's advocate. Improvements documented during the build phase — which we record in detail and supply on handover — can be deducted, so keeping our handover dossier is materially worth doing.

iv. What ongoing costs should I budget for once the home is mine?

Annual costs in Diani Beach for a privately-owned holiday home typically include: Land rent (a small annual ground rent under Kenyan leasehold law, usually nominal); County rates (Kwale County, modest); Insurance (building & contents); Caretaker / housekeeping if you are absent; Pool & garden maintenance; and Utilities (electricity, water, internet). For a typical 2- or 3-bedroom DIA home held purely as a private residence, total annual running costs sit in the region of EUR 4,000–8,000 depending on caretaker arrangements. We provide a worked budget per project on request.

v. What is the typical payment schedule during construction?

Payments are tied to construction milestones, not calendar dates — so you only pay as the work is delivered. A typical DIA schedule: 20 % on signing (reservation and design lock); 20 % on slab and foundations complete; 20 % on walls and roof structure; 20 % on first fix (electrical, plumbing, plastering); 15 % on second fix and finishes; 5 % on handover and snag list close. Each stage triggers an owner walk-through and a written sign-off before the next invoice is issued.

vi. Can a foreign buyer transfer funds into Kenya, and how is the purchase typically structured?

Yes. Kenya allows free movement of foreign currency for property purchase. Funds are wired from the buyer's country directly to the buyer's advocate's regulated client account in Kenya, in EUR, USD or KES. From there the advocate releases payment to DIA against milestone certificates. The property title is registered either in your personal name (held as 99-year leasehold) or in a Kenyan limited company you incorporate for the purpose — both are routine and we can introduce advisors who structure either approach efficiently for your jurisdiction.