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Kenya’s Cities Where Rent is Increasing

With the cost of living increasing day and night, rent is also rising. Apparently, rent is always increasing in cities which are growing fast. A growing economy creates demand for housing, both residential and commercial. There are towns in Kenya where rent is increasing fast. So, this blog explains the cities with high growth potential where rent is rising.

The Cities in Kenya where Rent is increasing

Nairobi city

Nairobi is the capital city of Kenya, with thousands of investments by local and international investors. The city has a population of 4.4 million as of the 2019 census

Hence the high demand for housing in the city.

The rent in Nairobi is so high compared to other towns and cities in Kenya. In addition, the cost of living in the capital city has been on the rise for some time now, which is reflected in the increasing cost of rent. 

In Nairobi, the average rent starts from Ksh3000 to above 50,000, depending on the house’s size and quality. Several factors, including the influx of people into the city and the limited housing supply, are driving this increase.

Mombasa 

This city is the second largest in Kenya. It’s located in the coastal region, making it a big tourist attraction site. Most property investors in Mombasa have ventured into the Airbnb business due to the high demand for vacation houses. 

Mombasa’s average rent for a one-bedroom apartment is now around Ksh10,000 to over Ksh30,000. The rent amount depends on the area in which you get your house.

Kisumu 

Kisumu, a city at the Kenya-Uganda border in Lake Victoria, is among the towns in Kenya with high house rents. The town is a known producer of Tilapia fish from lake Victoria. 

Therefore, the city has grown, and it has several private and public learning institutions. 

As a result, rent is increasing in Kisumu, with the lowest rent being Ksh2000 from Ksh1500 in past years. 

Nakuru 

Nakuru is a growing city due to the business-minded people who stay there. There are public and private institutions that lead to the fast growth of the city.

Most business investors consider Nakuru city over other cities, even Nairobi. In addition, real estate investment in Nakuru is on the rise due to the high demand for houses. 

The rent in Nakuru starts from Ksh5000.

Eldoret 

Eldoret is a town at the further end of the rift valley region. The town has grown incredibly due to the learning institutions in the area. In addition, it’s close to big livestock, flowers and maize farms hence a higher demand for housing.

The rent in Eldoret starts from Ksh2000 to above Ksh.20000, depending on the size and quality.

The rising cost of rent is a major concern for many Kenyans because it’s becoming increasingly difficult to find affordable housing. This is especially true in Nairobi, where the cost of living is already high. 

Reasons for the Increase in Rent

There are a number of reasons why rent might be increasing in certain Kenyan cities. 


Increase in the cost of living in that city 

This could be due to a number of factors, such as inflation or a decrease in the availability of affordable housing.

Cities with a high cost of living may have higher rental prices due to the overall expense of living in the area. This can be due to factors such as the cost of groceries, utilities, and other necessities. Everyone is feeling the cost of living, including the landlords. As a result, they raise the rent to help themselves with rental income.


An increase in demand for rental properties 

This could be due to population growth, an increase in the number of people moving to that city for work, or other reasons.  

Whatever the reason, rising rents can be a challenge for those who are trying to make ends meet.


Economic growth 

Cities experiencing economic growth may see an increase in rental prices due to an increase in demand for housing from people moving to the area for work.

Economic growth also increases the demand for raw land around the area. 


A limited supply of rental properties 

A limited supply of houses in an area can lead to an increase in rental prices for the available houses. 


Infrastructure improvements 

Suppose a city is undergoing infrastructure improvements, such as constructing new roads or expanding public transportation. In that case, it can lead to an increase in demand for housing, which can drive up rental prices.


Real estate market conditions

The market conditions in a particular city or region can also affect the rent that the landlord charges. For instance, if it’s a seller’s market, people buy property at higher prices, and they will charge high rent.

The Impact of the Increase in Rent

For instance, the cost of living in Kenya’s capital, Nairobi, is rising rapidly, and so is the cost of renting property. Rent increase is having a knock-on effect on other areas of life, such as food and transport costs.

The situation is made worse because wages are not keeping pace with inflation, causing hardship for many people struggling to make ends meet. The government should address this problem, or it risks creating a situation where only the rich can afford to live in Nairobi. 

What Can Be Done to Address the Increase in Rent

Another option is to build more affordable housing developments that are accessible to a broader range of people. This could involve working with private developers to create mixed-use developments that include both commercial and residential space.

Finally, it is also important to educate people on their rights as tenants and how to negotiate fair rental agreements. This could be done through public awareness campaigns or by providing resources and support to tenant rights organisations.

Frequently Asked Questions 

Why does rent increase in Kenya?

The biggest factors that cause rent to increase are the demand for housing and the cost of building materials. Areas with high demand for housing usually have high rent due to scarcity.


Can renting be better than buying a home?

If you are after flexibility, especially if you move a lot, renting can be a good option. However, it’s not the best choice if you are permanently in an area. It will be better to buy a home or build one

Which cities have the highest rent rates in Kenya?

Nairobi leads in rent, followed by Mombasa, Nakuru, Kisumu, and Eldoret. The rental price depends on the development of the city.



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