According to the latest HassConsult Property Price Index released on August 4, 2026, Kitengela experienced the largest quarterly decline in rental prices among Nairobi's estates during the second quarter of the year.
The report highlights that Kitengela's rents fell by 1.9%, marking the most significant drop compared to other areas. Other estates with reduced rents include Nyari Estate, Parklands, and Mlolongo, each registering a 0.8% decrease. Riverside Estate saw a 0.7% decline, while Muthaiga and Kilimani recorded decreases of 0.4% and 0.3%, respectively.
Rents Rise in Other Nairobi Suburbs and Satellite Towns
Despite these declines, the overall rental market in Nairobi's suburbs and satellite towns remained robust. Rental prices in suburbs increased by 1.4%, while satellite towns experienced a 1.1% rise during the same period.
Among Nairobi's suburbs, Runda led with a 3.4% rent increase, followed closely by Ridgeways (3.2%), Spring Valley (2.9%), and Karen (2.7%). Additional areas with rising rents included Loresho (2.6%), Gigiri and Langata (2.0% each), Westlands (1.8%), Kileleshwa (1.1%), Kitisuru (0.8%), and Lavington (0.5%).
In satellite towns, Thika recorded the highest rent growth at 2.9%, with Ruaka (2.2%), Ongata Rongai (2.0%), Kiambu (1.6%), Athi River and Juja (1.5% each), and Ruiru (1.4%) also seeing increases. Smaller rises were noted in Ngong (1.8%), Tigoni (2.6%), and Kiserian (1.0%), while Limuru experienced a marginal 0.1% increase. Kitengela and Mlolongo were the only satellite towns with declining rents.
Market Dynamics and Economic Context
HassConsult Creative Director Sakina Hassanali commented on the trends, noting that satellite towns are more sensitive to economic pressures due to their buyer base's vulnerability to rising living costs. Inflation spiked from 4.4% in March to 6.7% in May before easing slightly to 6.4% in June, further constraining household budgets.
Nonetheless, Kenya's long-term housing demand remains strong, driven by rapid urbanisation, population growth, and low mortgage uptake. These factors underpin sustained rental demand across Nairobi.
"The continued rise in rental prices alongside stable yields signals healthy housing demand despite economic challenges," Hassanali added.