In the second quarter of 2026, eight out of ten Nairobi satellite towns experienced a decline in house prices, according to the latest HassConsult Property Price Indices.

The average value of properties in satellite towns fell by 0.6% quarter-on-quarter to KSh 14.52 million, marking a slight improvement from the 0.9% drop recorded in the first quarter. In contrast, Nairobi’s suburbs continued to show positive growth, with average prices rising by 0.9% to KSh 33.1 million.

Satellite Towns Face Price Reductions

  • Ongata Rongai recorded the steepest decrease at 2.7%, with average house prices dropping to KSh 15.6 million.
  • Ngong followed closely with a 2.5% decline to KSh 19.4 million.
  • Other towns such as Kiambu, Kitengela, and Kiserian also saw price falls ranging between 1.3% and 1.9%.
  • Ruiru was the only satellite town to experience growth, posting a 0.9% increase.

The apartment market in satellite towns mirrored this trend, with six out of nine areas reporting price drops. Kiambu apartments had the sharpest decline, while Athi River, Ngong, and Ongata Rongai also saw decreases.

Suburbs Show Broad-Based Price Growth

  • All 14 surveyed suburbs posted quarterly price gains.
  • Ridgeways led with a 3.4% increase, reaching KSh 85.2 million on average.
  • Karen and Lavington followed with rises of 3.2% and 3.1%, respectively.
  • Other suburbs including Runda, Spring Valley, and Westlands also reported meaningful price appreciation.

Rental Market Remains Resilient

Despite the downward pressure on sale prices in satellite towns, rental demand held steady across both satellite and suburban markets. Rents in suburbs rose by 1.4%, with Runda and Ridgeways seeing the highest increases at 3.4% and 3.2%. Satellite town rents grew by 1.1%, led by a 3.5% rise in Ongata Rongai apartments.

Overall property yields were stable at 7.4% in suburbs, while satellite towns saw a slight increase to 5.4% from 5.3% in the previous quarter.

Market Outlook

HassConsult Co-CEO Sakina Hassanali attributed the decline in satellite town prices to the sensitivity of buyers to tightening economic conditions, including rising inflation that peaked at 6.7% in May 2026. However, she emphasized that these price corrections are part of the property cycle rather than a sign of weakening housing demand.

Kenya’s rapid population growth, urbanisation trends, and low mortgage uptake are expected to sustain long-term demand for housing despite short-term price fluctuations.