But if you buy ready built up, can you deduct maintenance and improvements as costs?

Maintenance is deductible if it is to retain the property in the same state, i.e. painting, fixing a leak. if it improves the earning power of the property, like adding another apartment on top, that doesn't qualify.
If you buy already built up, you are entitled to claim the unused capital deductions of the seller i.e. if the seller had claimed deductions for seven years, you can continue claiming for 32 years, the balance of the 40 year period.
Any improvement is also entitled to 40 years capital deductions.

I have used 40 years as the default used by KRA, I think with recent changes it could be 10 years. I believe that you can also set this period yourself depending on the accounting policy you adopt. However if you make this period too short, it has the effect of putting you in a tax loss position, and KRA allow such tax losses for only four years.

Great tax accounting insights Mr Gekko, most appreciated!

Mpobiz, this is investing for retirement, and leaving behind a legacy for my kids. Rental income when I retire and have no monthly payments to make would be most healthy.

#KulaRaha#

This property value doesn't add up. I did a valuation in Umoja, near the chiefs place in March this year, and the property was worth 40 million with a monthly income of 156,000. Based on the different approaches of valuation i.e Comparables Approach, Income Approach or Contractors Approach, it is not feasible to get such a property at that price in Umoja.

For a further breakdown, kindly avail the details of the block of flats and the size of the plot that it lies on.