Liko

Estate consultants helping people find their dream home

  • Home
  • Join the LIKO Team
    • Build a Thriving and Profitable Business
    • Invest in a Franchise Business
  • Find Your Home
    • For Sale
    • For Rent
  • Relocations
  • Our Agents
  • Blog
    • Testimonials
    • Liko Cares
  • Support
    • About Us
    • Contact us
    • Jobs
+254773027474
Submit
Liko

Estate consultants helping people find their dream home

  • Home
  • Join the LIKO Team
    • Build a Thriving and Profitable Business
    • Invest in a Franchise Business
  • Find Your Home
    • For Sale
    • For Rent
  • Relocations
  • Our Agents
  • Blog
    • Testimonials
    • Liko Cares
  • Support
    • About Us
    • Contact us
    • Jobs
+254773027474
Submit

News

Looking for certain features

Which neighborhood has better Rental Yield in Nairobi?

By

David Kariuki

Posted in Uncategorized On 31/01/2024

Using the 30% rent thumb rule, an average citizen can afford to rent a Kshs 18,000 unit in the Nairobi Metropolitan Area (NMA). Notably, 80% of residents in Nairobi are tenants. We therefore sought to highlight the top middle-income areas to rent an affordable unit in the NMA under Kshs 20,000 per month, with a…


Introduction

 Its Notable that the majority of Nairobi residents are middle-income citizens and below, earning a monthly wage of Kshs 60,000 and below. Using the 30% rent thumb rule, then the average citizen can afford to rent a Kshs 18,000 unit in the Nairobi Metropolitan Area (NMA) per month, without being burdened.

Notably, 80% of residents in Nairobi are tenants. We therefore sought to highlight the top middle-income areas to rent an affordable unit in the Nairobi Metropolitan Area (NMA) under Kshs 20,000 per month, with a reference of one-bedroom units. According to the interesting data shared by our partners, BuyRentKenya, below are some of the residential areas falling under the Kshs 20,000 rent threshold in the NMA:

Key to also note is that affordability is not only limited to the above areas. This is because there are more neighborhoods that fall within the aforementioned threshold such as Utawala, Imara Daima, Umoja, and Kitengela among others.

  • Affordability Typically Lies Towards The Outskirts Of Nairobi

In comparison, the locations closely neighboring the city center are typically unaffordable to the average citizens despite being the most preferred. These include areas such as Westlands, Upperhill, Kilimani and Parklands, among others, with their rental rates for a sample one bedroom apartment ranging from Kshs 50,000 per month. As such, the areas farther from the CBD are highly preferred by the majority of residents, due to their affordability.

  • Syokimau, Ruiru, And Rongai Are Among The Most Affordable Middle-Income Areas In The NMA

While the aforementioned areas in the map feature within the Kshs 20,000 monthly rent threshold, some areas are more affordable than the others. These include Syokimau, Ruiru and Rongai, among others, with rental rates of sample one bedroom apartments ranging from as low as Kshs 10,000 per month. Below is the description of sample affordable areas to rent in the NMA:

  • Syokimau & Mlolongo

Syokimau and Mlolongo are both located in Machakos county. Both neighborhoods are easily accessible from Nairobi’s city center via the Mombasa Road and Nairobi Expressway which interestingly commences from Mlolongo. One bedroom rents in the areas are capped from Kshs 10,000 to Kshs 20,000 per month, with major amenities within the neighborhood being Gateway Mall, Grand Pacific Mall, Kings Premier Inn among others.

  • Ruiru

Nestled in Kiambu County along Thika Superhighway, Ruiru estate offers one bedroom apartments ranging from Kshs 10,000 to Kshs 18,000 per month. Major amenities within or neighboring the estate include the Ruiru Sports Club, Kenyatta University Ruiru Campus, and Spur Mall among others. Notably, Ruiru also hosts the country’s first Special Economic Zone, Tatu City, and the Northlands City.

  • Ongata Rongai

Ongata Rongai is located in Kajiado County. It is easily accessible from Nairobi via Magadi Road. Monthly rents in this area range from Kshs 10,000 to Kshs 17,000, with key amenities within and surrounding it being the Maasai Mall, and Masai Lodge among others. As a diverse neighborhood, Rongai also hosts tertiary students besides young adults and families, from the Multimedia University and Africa Nazarene institution among others.

  • Waiyaki Way i.e Kinoo & Uthiru

Kinoo and Uthiru are both located along Waiyaki Way, in Kiambu County. Monthly rents in these neighborhoods range from Kshs 10,000 to Kshs 17,000. Amenities within and surrounding the area include: Kinoo Primary School, Helfen Hospital, and Uthiru Arcade among others.

  • Kasarani

Kasarani estate is located in Nairobi County, off Thika Superhighway. One bedroom rents in the neighborhood range from Kshs 14,000 per month. Major amenities within or neighboring it include Thika Road Mall, Kasarani Police Station, and Kasarani Primary School. Additionally, the estate hosts the country’s renowned national stadium, Kasarani Stadium. 

  • Kikuyu

Kikuyu is a residential neighborhood located in Kiambu County. It is easily accessible via Waiyaki Way from Nairobi’s city center. The monthly rents for one bedroom units in this area range from Kshs 17,000 to Kshs 20,000. 

  • Ruaka

This is a middle income residential area located in Kiambu County, and easily accessible via the Limuru Road from the Nairobi city center. While it features in the Kshs 20,000 threshold, it is relatively higher compared to other middle-income areas, with monthly rents ranging from Kshs 17,000 to Kshs 25,000. This is mostly influenced by its strategic position around affluent areas in Nairobi such as Runda, and the presence of key amenities such as the Two Rivers Mall. 

  • Improved Infrastructure And Amenities Enhancing The Preference Of Satellite Estates, Besides Pricing

While pricing is a key point determining the affordability and preference of an area, we note that improved infrastructure and amenities have also enhanced the preference of the aforementioned satellite areas over time. The completion of key roads such as Thika Superhighway, the Expressway and its lower deck, Bypass, and Namanga road among others have enhanced seamless transportation systems as well as opening up the surrounding areas for establishments. These have consequently given rise to shopping malls, master planned projects, schools and hospitals among other amenities that drive the demand for estates in the satellite areas.

  • There Has Been An Overall Increase In The Rental Rates Overtime

Given the improved infrastructure and amenities, most areas have witnessed an increase in their rental rates over time. This is in addition to the rising cost of land and construction materials. Example, areas such as Ruaka, Syokimau, and Kitengela have witnessed an 11% average growth in their rates over the last seven years, though still deemed affordable. 

Overall, as most people work in Nairobi’s city center and its neighboring commercial zones like Westlands, Kilimani and Upperhill, majority live far or in its outskirts due to affordability. Notably, pricing is not only the key driving factor given the improved infrastructure networks and amenities

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts

  • Small Goals vs. Big Dreams: Are You Setting Yourself Up for Success?  
  • Kilimani Housing Q&A: Prices, Developments and More
  • The Self-fulfilling prophecy of Kilimani
  • A Heart of Gratitude: Saying “Asante” with Warmth
  • Don’t Sweat: It Simple Strategies for a Lighter Life.

Recent Comments

  • Tuber Macrosporum on 4 Last-Minute Gift Ideas for New Homeowners
  • buy frozen truffles on 4 Last-Minute Gift Ideas for New Homeowners
  • Bradly on 4 Last-Minute Gift Ideas for New Homeowners
  • vivoslot on 4 Last-Minute Gift Ideas for New Homeowners
  • ฝาก20รับ100 on 4 Last-Minute Gift Ideas for New Homeowners

Archives

  • August 2024
  • July 2024
  • June 2024
  • May 2024
  • April 2024
  • January 2024
  • August 2023
  • July 2023
  • May 2023
  • March 2023
  • January 2023
  • November 2022
  • September 2022
  • July 2022
  • May 2022
  • March 2022
  • January 2022
  • December 2021
  • November 2021
  • February 2021
  • May 2020
  • March 2020
  • October 2019
  • May 2019
  • November 2018
  • December 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017

Categories

  • Agents
  • Business Systems
  • Buyers
  • Comfort
  • Home Tips
  • just for fun
  • Market Updates
  • Raising your game
  • Sales
  • Uncategorized

Meta

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org

Categories

  • Agents
  • Business Systems
  • Buyers
  • Comfort
  • Home Tips
  • just for fun
  • Market Updates
  • Raising your game
  • Sales
  • Uncategorized

Search

Tags

advice advice home buyers agent agent development agents that care agents who know how to handle Corona virus business skills business systems buying a home dream home due diligence for buyers home buyers home search tips land fraud multiple offers neighborhood Professional agents real estate real estate home search tips status of property market success
Liko

/Simply #1 Real Estate Theme

What to Expect

We are all guided by ethics and professionalism. All Affiliates to of our office have pledged and are bound by the spirit of  professional ethics. These Ethics covers the conduct of Liko Affiliates in connection with transactions in general and it assures you the highest level of service, integrity and honesty

Recent Posts

  • Small Goals vs. Big Dreams: Are You Setting Yourself Up for Success?  
  • Kilimani Housing Q&A: Prices, Developments and More
  • The Self-fulfilling prophecy of Kilimani
  • A Heart of Gratitude: Saying “Asante” with Warmth
  • Don’t Sweat: It Simple Strategies for a Lighter Life.

Categories

  • Agents
  • Business Systems
  • Buyers
  • Comfort
  • Home Tips
  • just for fun
  • Market Updates
  • Raising your game
  • Sales
  • Uncategorized

© 2025. All rights reserved.

|

Designed by Eric Gitonga

Navigating International Real Estate with a Global Perspective Don’t Sweat: It Simple Strategies for a Lighter Life. Don’t Sweat: It Simple Strategies for a Lighter Life.