Nairobi’s property market has delivered a milestone moment for investors, with rental yields in the capital climbing to their highest level in two decades, according to the latest HassConsult Property Index for Q4 2025. Subdued price growth combined with sustained rent increases has pushed yields in Nairobi’s suburbs to a record 7.4 per cent, the strongest performance since records began in 2007.
Nationally, property prices rose modestly by 0.3 per cent in the fourth quarter and 7.7 per cent over the full year, reflecting a market still adjusting to economic pressures. Rents, however, softened in most regions outside Nairobi, falling by 0.9 per cent in Q4 and 2.5 per cent in 2025, largely due to weaker demand at the Coast and in other major towns.
The picture is markedly different in and around the capital. In Nairobi’s suburbs, property prices edged up by 0.8 per cent in Q4, while rents rose by 1.5 per cent, delivering the highest yields the city has ever recorded. Across the city’s 14 monitored satellite towns, the momentum was even stronger, with prices climbing 4.5 per cent and rents surging 8.7 per cent, lifting average yields to 5.2 per cent, their best level since 2019.
“Nairobi’s rental yields have been on a clear upward path for the last two years, breaking above the 7 per cent mark after spending years between 5 and 6 per cent,” said Sakina Hassanali, Co-CEO of HassConsult. “It’s a broad-based shift, even though performance varies sharply by location and property type.”
Within the city, rent growth was strongest in affluent neighbourhoods. Ridgeways recorded a 9.6 per cent annual rise, followed closely by Lavington at 9 per cent, while Runda led quarter-on-quarter growth at 3.1 per cent. However, rental growth in satellite towns outpaced even these prime suburbs, driven by affordability and population spillover. Ruiru topped the list with rents jumping 15.6 per cent, followed by Kiambu at 14.4 per cent.
Apartment rents increased in nearly all suburbs and satellite towns, although sales prices showed mixed results due to new supply in areas such as Westlands, Kileleshwa and Upper Hill. Detached houses, particularly in Runda, Lavington and Ridgeways, remained standout performers on the sales side.
Overall, the data underscores a structural shift in Nairobi’s real estate market: slower price appreciation, resilient rental demand and steadily rising yields. For landlords and investors, Nairobi is once again asserting itself as one of East Africa’s most attractive rental markets.
