Rental prices in Nairobi’s suburban areas and satellite towns experienced growth during the final quarter of 2025 (October to December), primarily fueled by heightened housing demand.
According to Hass Consult’s Q4 2025 House Price Index report, issued on January 27, rental values in Nairobi’s suburban regions surged significantly, surpassing the increases observed in satellite towns.
Runda led with a 3.1 percent rental increase, followed closely by Spring Valley at 2.8 percent.
The upward trend in these two estates came after a period of rental stability earlier in the year, as developers expanded housing developments across various city locations.
Additional estates showing substantial rent increases included Ridgeways and Muthaiga, both rising by 2.8 percent, with Lavington and Lang’ata following at 2.6 percent each.
Kilimani, Karen, and Westlands also saw rent hikes of 2.6 percent, 2.5 percent, 2.3 percent, and 2.2 percent respectively.
Nyari, Karen, and Westlands experienced more modest rental growth, with increases of 1.4 percent, 1.1 percent, and 0.6 percent respectively.
“Nairobi’s rental yields have shown consistent growth over the past two years, rising above 7 percent after remaining between 5 and 6 percent for many years,” stated HassConsult CEO Sakina Hassanali.
“This trend is widespread throughout the market, despite varied performance across different city locations,” she noted.
During the same period, satellite towns also recorded notable rental increases, with Juja leading at 2.9 percent, followed by Ongata Rongai at 2.8 percent and Athi River at 2.5 percent.
The rental price surge in Nairobi can be primarily attributed to rapid urbanization, combined with escalating construction material costs and elevated inflation rates.
Additional factors contributing to rental increases include enhanced infrastructure in Nairobi’s suburban areas and strong demand for luxury apartments in satellite towns.