Is Renting Actually Cheaper Than Buying Right Now in Nairobi?

For many Nairobians, the numbers are speaking for themselves: it’s currently cheaper to rent than buy in most of the city’s popular neighbourhoods. The average monthly rent for a two-bedroom apartment in Kileleshwa stands at approximately KES 90,000, while the same property would sell for close to KES 14.5 million. When you add in higher mortgage rates and hefty deposit requirements, the math tilts even further.

Property affordability has once again become a top concern as fresh data from HassConsult and Cytonn Investments shows home prices have kept rising—even as the overall economy slows. Inflation pressures and jitters over job security are pushing would-be buyers to rethink plans, with more Nairobi residents opting to stay in rental properties instead of signing onto long-term mortgages.

Mortgage Math and Monthly Budgets

In Westlands, a mid-range two-bedroom apartment rents at around KES 110,000 per month. If you tried to purchase a similar apartment in the same area, you’d likely face a KES 16 million price tag. With Kenya Commercial Bank currently offering mortgage rates averaging 13.5% per annum, a 15% deposit (KES 2.4 million) is required upfront, and the monthly mortgage payment easily breaches KES 170,000 for a twenty-year term. These figures don’t include maintenance levies, insurance, or unexpected repairs.

"Most of my clients realise that buying ties up their cash and burdens them with extra costs," says a property manager based at Yaya Centre. "Even those who’ve saved for years are holding back and staying renters for now."

In rapidly developing growth corridors like Ruaka and Syokimau, rent is still relatively affordable. A new two-bedroom apartment in Ruaka, for example, averages KES 45,000 monthly, while similar units are selling between KES 7.5 million and 8 million. Calculations by the Kenya Mortgage Refinance Company show that, assuming a 10% deposit and a modest interest rate, buyers would still be paying at least KES 70,000 per month—well above rent for the same unit.

Looking Ahead: Should You Hold Off?

The Kenya Bankers Association’s latest Q2 Residential Property Index warns that while developers continue to build along Mombasa Road and in Kilimani, asking prices have not softened. At the same time, rental listings on Jiji and BuyRentKenya have doubled compared to last year, putting some downward pressure on rents—especially in new high-rise blocks between Ngong Road and Lavington.

For now, real estate analysts advise caution. With the government still debating new affordable housing incentives, the best move for most urban professionals may be to rent while saving aggressively. Buyers hoping to get better terms should monitor interest rate reviews in September and keep an eye on upcoming projects, such as the Greenpark Estate expansion in Athi River. Ultimately, unless property prices flatten or mortgage rates drop, renting remains the more budget-friendly option—at least through to the end of 2026.