What Renters Can Do When Leases End Amid Tight Supply

Nairobi's rental market is bracing for a surge in lease terminations, with over 5,000 units expected to come up for renewal in the next quarter alone, according to data from the Kenya National Bureau of Statistics.

This trend matters now because the city's tight supply of housing units has created a perfect storm of high demand and limited options, making it challenging for renters to find affordable alternatives. The situation is further complicated by the ongoing construction delays and skyrocketing construction costs, which have slowed down the delivery of new units. As a result, renters are facing significant uncertainty and anxiety as they approach the end of their leases.

In areas like Kilimani and Kileleshwa, popular with young professionals and families, renters are scrambling to secure new leases or explore alternative options. The Kilimani ring road, known for its vibrant nightlife and restaurants, is also home to a number of apartment complexes, including the popular Kilimani Estate and the upmarket Kileleshwa Heights. Organisations like the Kenya Property Developers Association and the Nairobi City County Government are working to address the housing shortage, but their efforts are being hindered by bureaucratic delays and funding constraints.

According to a recent report by Knight Frank, the average rent for a two-bedroom apartment in Nairobi's premium areas like Westlands and Lavington is now over KES 120,000 per month, a 15% increase from last year. In contrast, the average salary in Nairobi is around KES 50,000 per month, making it difficult for many renters to afford even the most basic units. As of June 2026, the rental yield in Nairobi stood at 4.5%, down from 5.2% in the same period last year, indicating a decline in the attractiveness of the rental market for investors.

Practical Advice for Renters

So, what can renters do when their leases end amid this tight supply? One option is to explore alternative areas like Ruaka and Syokimau, which are experiencing rapid growth and offer more affordable options. Renters can also consider sharing apartments or houses with friends or family members to split the costs. Additionally, organisations like the Nairobi City County Government's Housing Department and the Kenya Housing Corporation offer affordable housing options and subsidies for low-income earners. By being proactive and flexible, renters can navigate the challenging Nairobi rental market and find affordable and suitable housing solutions.