Home ECONOMY Why Living in Nairobi is Expensive for Many Kenyans

Why Living in Nairobi is Expensive for Many Kenyans

by biasharadigest

If you want to make it in
Nairobi, you have to choose a struggle and make sure you win at it.

For instance, there are many
people who believe that ‘Nairobi si ya
mama ya mtu’
and while it make sense for those who say it, the truth is
that Kenya’s capital is the land of milk and honey if you find your niche.

To make life work out for you
in Nairobi, the reality is that there are many demands and they have to be met.
Whichever way one makes this happen, the end justifies the means, right?

With such sentiments, you find
cons and those who fake it till they make while a few make it honestly.  But the biggest battle usually is finding a
house that one can comfortably pay for and avoiding the drama with landlords
every end month.

And to make this a reality, hardworking Kenyans make do with what they have and with sky-high rents, Nairobi becomes hostile to those without deep pockets.

Rising Rental Trends

A report released in October
last year by Ritz Housing and Properties Limited seemed to confirm many
released by other housing companies showing that those working in Nairobi were
preferring to live outside the capital due to financial constraints.

The report indicated that major
towns in the outskirts of Nairobi City were continually experiencing a rising
rental trend, recording an average rental increase of 2.1% on the lower side
and up to 26.5% on higher side, between quarter three of 2018 and same quarter
in 2019.

One bedroom to three bedroomed
units in Thika, Ruiru, Ongata Rongai, Ruaka and Kitengela were the focus of the
report.

According to Samuel Mathenge, the
company’s Managing Director, the factors making the satellite towns attractive include
high walkability score, good access to public transport and the high number of
open businesses.

In Kitengela, the monthly median rental price for a one-bedroomed house stood at Ksh15,000 an increase of 8.45%  between the third quarter of 2018 and 2019. The monthly cost of the two-bedroom house stood at approximately Ksh25,000 an increase of 10%  while three-bedroom house cost went up by approximately 5.40%  to an average monthly median rental price of Ksh39,000.

“The level of income of Kitengela residents does not support mortgaging thus making them opt to rent. Also, due to the rise of living standards, the number of rentals is on the rise thus making the market trend of Kitengela favourable,” Mathenge said.

“The rise in population requires an increase in housing thus growth of the rental market in Kitengela,” he added.

In
Ongata Rongai, the monthly mean price of a one-bedroom rental stood at
Ksh9,500. This was an increase of 2.15% between quarter three of 2018 quarter
and same quarter 2019.

For a Two-bedroom house, the
mean monthly rental price was approximately Ksh22,000 a 4.56%  increase, while a three-bedroom house rent
stood at Ksh35,000, a 2.941%  increase
compared to the same quarter previous year.

In Thika Town, the monthly mean rental price for a one-bedroom house stood at Ksh15,000 which was a 25%  increase between the third quarter of 2018 and 2019. In the two-bedroomed rentals, the monthly mean rental price was approximately Ksh21,000 ($202.95), an increase of 5%  compared to the previous quarter of 2017.

Three-bedroom rental prices
stood at approximately Ksh35,000, a 2.94%  increase.

“Thika
Town experienced a relatively steady rental price growth between July 2018 and
July 2019, a rate slightly below other satellite towns within the Nairobi
Metropolitan area,” Mathenge noted.

In
Ruiru, the monthly mean rental price for a one-bedroom house stood at Ksh12,000.
This was a 9.09% increase between the July quarter of 2018 and 2019.

For two-bedroom units, prices
stood at approximately Ksh18,000 which was an increase of 5.88%  compared to the previous quarter of 2018.

On the other hand, the
three-bedroom rent stood at approximately Ksh30,000, an increase of 15.38%
 compared to the previous quarter.

In
Ruaka, where the monthly mean price of a one-bedroom rental stood at Ksh24,000 which
was an increase of 10.0%  between the
third quarter of 2018 and 2019. In two-bedroom rentals in Ruaka, the mean
monthly rental price stood at approximately Ksh34,000. This was an increase in
5% compared to the previous quarter.

The three-bedroom houses rentals, on the other hand, stood at Ksh48,000 which was an increase of 2.13%  compared to the previous quarter.

Informal Settlements

With these rents, only a few
Kenyans can afford to pay meaning that many more are forced into informal
settlements if they have to continue making a living in the city.

Kariuki Waweru, one of the
about 650 registered valuers in Kenya opines
that Kenya’s
real estate sector is highly segmented
. On the sector’s collapse, he says
it is still far off from experiencing a burst since many people are yet to be
comfortably housed.

“Some places like Kilimani and Kileleshwa have already experienced a bubble. There is a time when if you built apartments the rents were good and it was easy to sell them off-plan. People were making very good returns,” says Kariuki.

He adds, “The bubble bursts in
different places but the general picture is that in Kenya the bubble is not
going burst. However, some sub-markets have already experienced the bubble
burst and they are struggling.”

Kariuki states that a bubble bursts when one buys an overpriced property which they cannot later sell unless they have to dispose of it at a lower price.

“The Kenyan market is interesting in
that some sub-markets are thriving more than others making the real estate a
lucrative sector to invest in-still,” he adds.

He adds that Kenya is a bit stable
for certain segments mostly for properties priced below KSh10m.  He
reveals that the stability is even better where pricing is under KSh5 million.

“It is hard to achieve such pricing if
the government is not giving subsidies or if the properties are not located too
far from Nairobi. But the number of people able to access financing of less
than KSh5 million is higher than those who can access KShs10 million,” he
cautions.

Read >> Report reveals hot spots for real estate investors

You may also like

Slot Gacor

Slot Gacor Terbaru

Sbobet

Slot Gacor

Slot Gacor Terbaru

https://marketing-action.fr/wp-includes/slot-demo/

https://vibrantauction.com/wp-includes/slot-bonus/

https://zm.kg/wp-includes/slot-pulsa/

https://crackthespine.com/wp-includes/slot-gacor/

https://gita-society.com/wp-includes/sbobet/

https://medialeaflets.com/wp-includes/slot-gacor/

https://www.timothyegan.com/

Judi Slot Online Jackpot Terbesar

https://gralnia.org/wp-includes/slot-gacor/

https://www.nationalparkguru.com/wp-includes/slot-gacor/

https://denanimals.com/wp-includes/slot-gacor/

https://www.adn-mundo.com/wp-includes/slot-gacor/

https://loladictos.com/wp-includes/slot-gacor/

https://lapetitebergerie.ca/wp-includes/slot-gacor/

https://swiatsypialni.com.pl/wp-includes/slot-gacor/

https://clavierarab.net/i/-/slot-gacor.html

https://conversordeletras.pro/img/-/slot-gacor.html

https://myyouthcareer.com/wp-includes/slot-gacor/

https://www.dypconsultora.com.ar/

https://www.ietei.com.ar/wp-includes/slot-gacor/

https://zwierzeta.geographicforall.com/wp-includes/slot-gacor/

https://www.knowledgiate.com/wp-includes/slot-gacor/

https://hopemedglobal.com/slot-gacor/

https://jolliz.com/wp-includes/slot-gacor/

https://www.startupindiamagazine.com/wp-includes/slot-gacor/

https://www.khansiracademy.in/wp-includes/slot-gacor/

https://knowledgesagar.in/wp-includes/slot-gacor/

https://sachchibaate.com/wp-includes/slot-gacor/

https://www.eneagrama.me/wp-includes/slot-gacor/

https://ecop.pk/wp-includes/slot-gacor/

https://ecop.pk/wp-includes/slot-gacor/

Slot Online

Slot Online

Slot Online

Slot Online

Slot Online

Slot Online

Slot Online

Slot Online

agen sbobet

agen sbobet

agen sbobet

agen sbobet

agen sbobet

agen sbobet

agen sbobet

agen sbobet

agen sbobet

agen sbobet

agen sbobet

agen sbobet

agen sbobet

agen sbobet

agen sbobet

agen sbobet

agen sbobet

agen sbobet

agen sbobet

agen sbobet

agen sbobet

agen sbobet

agen sbobet

agen sbobet

agen sbobet

bonus new member 100

bonus new member 100

bonus new member 100

bonus new member 100

bonus new member 100

bonus new member 100

bonus new member 100

bonus new member 100

bonus new member 100

bonus new member 100

bonus new member 100

bonus new member 100

bonus new member 100

bonus new member 100

bonus new member 100

bonus new member 100

bonus new member 100

bonus new member 100

Slot Online

Sbobet88

Situs Slot777

RTP Live

Situs Slot Gacor

Slot777

Login Slot777

Demo Slot

sbobet resmi

Demo Slot Pragmatic

Slot Gaco

Slot Gaco

Slot Gacor

https://hrtradio.com/wp-includes/rtp-slot/

https://www.doccsaapucv.cl/wp-includes/slot-gacor/

https://https://maxwin-slot.org/

https://maxwinslot.org/

https://slot-maxwin.org/

https://slotmaxwin.org/

https://slotgacor.xn--tckwe/

https://slotonline.xn--tckwe/

https://www.judislot.gold/

https://www.judislotonline.gold/

https://www.judislotonline.info/

http://situs-slotonline.co/

https://daftarpragmatic.com/

https://www.freepragmatic.org/

https://www.jackpotpragmatic.com/

https://www.pragmaticgacor.net/

https://www.demoslot88.com/

https://www.jackpotslot88.net/

https://www.loginslot88.com/

https://www.slot88demo.com/

https://www.slot88jackpot.com/

https://www.slot-seringjackpot.com/

https://slotrtp.co/

https://daftar-joker123.co/

https://daftar-joker123.org/

https://mainjoker123.com/

https://gamejoker123.org/

https://gamesjoker123.co/

https://gamesjoker123.org/

https://www.joker123.promo/

https://registerjoker123.com/

https://sbobetonline.me/

slot bonus 100 to 3x

link slot gacor

https://adam-et-elles.fr/wp-includes/slot-dana/

https://masoncountypaws.org/wp-content/slot-bonus/

https://ebooksstate.com/wp-includes/slot-gacor/

https://www.vastrique.com/slot-demo/

https://www.corpsnews.co/