The Nairobi Couple Who Founded Tsavo Apartments and Retired at 40

Tsavo, a real estate firm founded by Leonard and Emily Mcharo, has risen to prominence in Kenya's property market by addressing the burgeoning demand for affordable housing among the middle class.

The company's residential developments, strategically located across Nairobi's key suburbs, Athi River, Embakasi, Thindigua, Rongai, Dagoretti, and Roysambu, underscore its significant impact on the city's real estate landscape.
Tsavo's success is rooted in the Mcharos' ambitious 15-year plan, launched in 2004, to attain economic independence and generate KSh500,000 in monthly passive income.

At that time, Leonard, an architect, and Emily, a finance professional, aimed to build a future secured by passive income streams, a strategy that set the foundation for their entrepreneurial journey. Their initial venture involved acquiring an acre of land near Daystar University in Athi River for KSh1 million. Unable to pay upfront, they negotiated an installment plan of KSh27,000 per month. This agreement allowed them to secure the property while adhering to a disciplined financial approach.

Over two years, they meticulously paid off the land loan, complementing their financial obligations with savings in a Sacco, reinforcing their commitment to fiscal responsibility. Once the land was secured, the Mcharos focused on construction. Leveraging Leonard's salary increment, they accessed loans to finance their first project: a 23-room apartment complex.

This marked their entry into real estate development, a path they pursued with unwavering dedication. Rather than diversifying, the couple concentrated on real estate, reinvesting all profits into expanding their portfolio. Over the next 12 years, they grew their holdings from 23 rooms to 100, a significant milestone in their pursuit of financial freedom.

"We were intentional about our lifestyle choices," Emily notes, emphasizing their commitment to fiscal discipline. "Regardless of how much we earned, we did not change where we lived, what car we drove, or how much we spent. Every extra coin went into investment."

This strategy enabled Tsavo to transition from rental properties to property sales. Their pilot project in Embakasi, featuring studio and one-bedroom apartments, was met with high demand. Market research confirmed the popularity of these unit types, leading them to concentrate on similar developments throughout Nairobi.

Tsavo's pricing strategy is tailored to its target demographic. Studio apartments are priced around KSh1.4 million, while one-bedroom units range from KSh2.1 million to KSh2.6 million. This pricing model ensures affordability without compromising quality, appealing to middle-income earners aspiring to homeownership. By 2016, Leonard and Emily retired from their professional careers at the ages of 42 and 37, respectively, having successfully established a thriving real estate empire.

Their union began during their college years at the University of Nairobi in 1998, where Leonard studied architecture and Emily pursued a Certified Public Accountant (CPA) course. Drawing from their families' experiences with financial hardship, they recognized the importance of financial planning. Their shared vision of financial independence drove them to make strategic decisions, ensuring a reliable passive income stream.