Kenya Home Prices Rise 4.8% as Demand for Standalone Houses Surges

Kenya's average residential property prices increased by 4.8 percent in the first quarter of 2026 compared with the same period last year, driven by continued growth in the market for standalone homes, according to the Kenya National Bureau of Statistics (KNBS).

The latest KNBS data shows the Residential Property Price Index (RPPI) rose to 118.4 from 113.0 a year earlier. While the overall market recorded annual growth, the performance of standalone houses and apartments differed significantly.

Prices for detached homes increased by 8.5 percent year on year, with the index rising from 123.2 to 133.6. Demand for maisonettes, bungalows and villas remained strong as buyers continued to favour larger properties that offer more space and privacy. Limited land availability has also supported the value of standalone homes. 

The segment recorded growth across all geographical categories. Apartment prices, however, fell by three per cent over the same period. The apartment price index declined from 91.5 to 88.7, reflecting continued pressure in parts of the market. The largest declines were recorded in Nairobi's Upper and Middle market segments, where the indices fell from 94.1 to 90.1 and from 88.2 to 85.3 respectively. 

The decline follows several years of high construction activity, which has increased supply and weighed on prices. Outside these areas, the apartment market performed more positively. Apartments in locations beyond Nairobi's Upper and Middle segments recorded modest price increases, with indices rising above 106, indicating continued demand in markets with lower levels of supply.

On a quarterly basis, average residential property prices increased by 0.6 percent compared with the final quarter of 2025. Apartment prices declined by 0.2 percent during the same period, while standalone homes continued to record price growth. Apartments continue to face pressure from higher supply in some urban areas, while standalone homes have maintained stronger demand because of buyer preferences and their limited availability.