Kitengela tops satellite towns’ house rent rise

Kitengela town

A view of a section of Kitengela town.

Photo credit: File | Nation Media Group

What you need to know:

  • Land prices in satellite towns also rose by 2.17 per cent in the quarter as compared to Nairobi’s suburbs.
  • Satellite towns also recorded the strongest quarterly growth in apartment rents with Ngong and Kitengela at 5.5 per cent and 5.2 per cent respectively.

Kitengela has recorded the highest increase in apartment rental prices among Nairobi’s satellite towns in the past year, driven by increased demand as more Kenyans moved farther from the capital city in search of cheaper accommodation. 

The Hass Consult property index for the first quarter of 2022 shows that apartment rents in Kitengeal have climbed by 16.9 per cent over the past year owing to growing demand beating other satellite towns such as Ngong, Ruaka, and Athi River which recorded growths of 8.3 per cent, 7.5 per cent, and 7.9 per cent respectively. 

Land prices in satellite towns also rose by 2.17 per cent in the quarter as compared to Nairobi’s suburbs which recorded a modest 0.11 per cent growth with investors betting on the growth of the towns driven by better accessibility through improved roads and demand buoyed by the sprouting up of universities in the towns. 

The index shows Muthaiga was the best performing suburb in land prices growth at 3.11 per cent while Thika town emerged top in the satellite towns recording a 6.35 per cent growth.

Satellite towns also recorded the strongest quarterly growth in apartment rents with Ngong and Kitengela at 5.5 per cent and 5.2 per cent respectively while Ruaka grew 2.9 per cent.

“Ruaka enjoys easy access to the city's more affluent suburbs, rendering high land values that can only be absorbed on high-density apartment developments.  Ruaka has, therefore, become the largest stockholder of apartments within the satellite as it presents the ability for the working population to enjoy both housing affordability and reduced transportation costs,” said Sakina Hassanali, Head of Development Consulting and Research at HassConsult. 

This came as apartment sales prices fell modestly by 0.6 per cent in the quarter and a 3.4 per cent drop over the past year even as overall property sales prices increased by 2.8 per cent over the quarter. 

Ms Hassanali warned that lenders could reduce lending to property should the Landlord and Tenant Bill, 2021 become  law. The Bill, which has been passed by the National Assembly, will give the government power to cap rent rises on commercial and residential premises.

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