MWAKILISHI
REAL ESTATE NEWS

Full List of Nairobi Estates Recording Lower House Rents

Martin Olage Aug 04, 2026

House rental prices fell in seven Nairobi estates during the second quarter of 2026, although average rents across the city’s suburbs and satellite towns continued to rise, according to the latest HassConsult Property Price Index released on 4 August.

The report shows that rental prices declined between April and June in several locations. Kitengela recorded the largest drop at 1.9 percent. Nyari, Parklands and Mlolongo each posted a decline of 0.8 percent, while Riverside fell by 0.7 percent. Muthaiga and Kilimani also registered lower rents, with declines of 0.4 percent and 0.3 per cent respectively.

Despite these declines, the wider rental market continued to grow. Rents in Nairobi’s suburbs increased by 1.4 percent during the quarter, while satellite towns recorded a 1.1 percent rise. Runda led the suburban market with a 3.4 percent increase, followed by Ridgeways at 3.2 percent and Spring Valley at 2.9 percent.

Karen, Loresho, Gigiri and Langata also recorded notable gains. Among the satellite towns, Thika posted the strongest growth at 2.9 percent, while Ruaka, Ongata Rongai and Tigoni also reported steady increases. The differences in rental performance reflect the uneven impact of Kenya’s economic conditions. Inflation rose during the quarter, reaching 6.7 percent in May before easing to 6.4 percent in June. 

Higher living costs reduced household purchasing power, particularly in satellite towns where tenants are more affected by changes in everyday expenses. HassConsult Creative Director Sakina Hassanali said that, despite steady demand for rental housing, satellite towns continued to face greater pressure on prices than Nairobi’s suburbs because households in those areas were more affected by rising living costs and tighter economic conditions.

The report says the long-term drivers of the rental market remain strong. Continued urbanisation, population growth and low mortgage uptake are supporting demand for rental housing. It also notes that rental yields have remained stable despite inflation, indicating that investors continue to view Nairobi’s property market as an attractive investment.

Hassanali said sustained rental growth and stable yields show that demand for housing remains strong despite the difficult economic environment. The latest figures indicate that while some estates are experiencing short-term declines in rents, the wider rental market continues to expand, supported by long-term demand for housing.

Share this article
View Full Article