Nairobi residents are facing growing pressure as rent prices climb to record levels, deepening the cost-of-living crisis in the city.
The latest HassConsult Property Index for the first quarter of 2026 indicates that rents in both Nairobi suburbs and satellite towns continued to rise, with average rents hitting new highs.
The data shows that while property prices are rising slowly, rental costs are increasing faster, stretching household budgets already strained by high food, fuel, and transport costs.
Rents in Nairobi suburbs, according to the report, rose by 1.3 percent in the first three months of the year, pushing the average monthly rent beyond Ksh200,000 for the first time.
In satellite towns, rents increased by 1.4 percent to an average of about Ksh64,700 per month.
While the pace of rent growth has slowed slightly compared to previous quarters, the prices remain historically high, making housing increasingly unaffordable for many city residents.
Nairobi Rents Increase
The pressure on tenants is being driven mainly by tight housing supply in key areas and sustained demand for well-located homes.
In several upmarket suburbs, landlords continue to push rents higher, helped by strong demand for standalone houses and limited availability of new units.
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HassConsult data shows that rental yields remained strong during the quarter despite rising tenant costs.
Yields stood at 7.4 percent in Nairobi suburbs and 5.3 percent in satellite towns, levels that continued to outperform short‑term government securities.
The report shows this has supported landlords’ pricing power, with little incentive to reduce rents.
The index also shows that rental price growth continued even as property sale prices rose more slowly.
Overall property sale prices in Nairobi suburbs increased by 1.1 percent in the first quarter of 2026, compared to weaker growth in rental costs, which rose by more than one percent in both suburbs and satellite towns.
Property Prices Mixed
Property sale prices in Nairobi suburbs were supported mainly by demand for standalone houses.
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Lavington recorded the highest quarterly increase in house prices at 4.2 percent, followed by Spring Valley at 4.0 percent and Kilimani at 3.9 percent.
Apartment prices showed weaker performance.
Westlands recorded a 2.8 percent decline in apartment sale prices during the quarter, while Upper Hill posted a 2.5 percent drop, reflecting continued oversupply in the apartment segment.
In Nairobi’s satellite towns, property sale prices contracted by 0.9 percent during the quarter.
Only Kiserian, where asking rents fell by 2.0 percent, and Ruiru, down 1.6 percent, recorded a decline in house rents, while Juja and Ngong led price growth at 4.0 percent and 3.9 percent, respectively.
Lang’ata posted the biggest increase in both house and apartment rents in the suburbs, rising by 3.2 percent and 2.9 percent, respectively.
In the Westlands area, Gigiri recorded house rent growth of 4.3 percent, followed by Westlands at 4.2 percent, as Riverside and Muthangari led the apartment segment with increases of 3.6 percent and 3.2 percent in asking rents.
HassConsult data show price declines across both houses and apartments in several towns, including Athi River, Ngong, and Syokimau.
Despite the contraction in sale prices, rents in satellite towns continued to rise.
Average rents in these areas increased by 1.4 percent during the quarter, indicating that rental markets have remained firm even as buying activity slowed.
Towns with access to major transport corridors also continued to attract renters despite the slowdown in buying activity.
The HassConsult index shows that while the pace of rent growth has moderated compared to previous quarters, rent levels remain at their highest point on record.
This has left residents facing higher housing costs at a time when property prices are rising more slowly, and purchasing activity is softening.
The index shows that unless new housing supply increases meaningfully, rents are likely to remain under pressure in the near term.
With rent levels already at record highs, affordability remains a dominant concern for residents across both Nairobi suburbs and satellite towns.
