Rental income is one of the most reliable ways to profit from real estate in Kenya. In 2025, demand for quality rental housing remains strong across Nairobi, Mombasa, Ruiru, and university towns, driven by urbanization, remote work, and a growing middle class.
Whether you’re a landlord, investor, or tenant, understanding Kenya real estate rent trends helps you make smarter decisions—whether you’re buying to let, leasing a home, or managing property.
📊 Average Monthly Rent in Kenya (2025)
| Nairobi (Westlands) | KSh 45,000 | KSh 75,000 | KSh 120,000 | KSh 30,000 |
| Nairobi (Kilimani) | KSh 40,000 | KSh 65,000 | KSh 100,000 | KSh 28,000 |
| Ruiru | KSh 30,000 | KSh 50,000 | KSh 75,000 | KSh 20,000 |
| Ruaka | KSh 35,000 | KSh 55,000 | KSh 85,000 | KSh 22,000 |
| Mombasa (Nyali) | KSh 60,000 | KSh 90,000 | KSh 150,000 | KSh 35,000 |
| Diani | KSh 80,000–200,000 (seasonal) | — | — | — |
| Kisumu | KSh 25,000 | KSh 45,000 | KSh 70,000 | KSh 18,000 |
| Nakuru | KSh 30,000 | KSh 50,000 | KSh 80,000 | KSh 20,000 |
💰 Rental Yields in Kenya (Annual Return on Investment)
Rental yield is calculated as:
Yield=(Property ValueAnnual Rent)×100
| Ruiru (2-Bed Apartment) | KSh 18M | KSh 600,000 | 3.3% |
| Ruaka (2-Bed Apartment) | KSh 25M | KSh 660,000 | 2.6% |
| Ngong Road (2-Bed) | KSh 20M | KSh 660,000 | 3.3% |
| Syokimau (2-Bed) | KSh 15M | KSh 600,000 | 4.0% |
| Diani (Villa) | KSh 80M | KSh 1.8M (peak season) | 2.25% (6–8% when fully booked) |
✅ Best for High Yields: Syokimau, Ruiru, Athi River (4–6% effective yield with appreciation)
🏘️ Top Areas for Rental Investment
1. Ruiru & Ruaka
- Why Invest:
- Proximity to Nairobi Expressway
- High demand from young professionals and families
- Gated estates with security and utilities
- Avg. Rent: KSh 50,000–75,000/month for 2–3 bedroom homes
- Occupancy: 90–95%
2. Ngong Road & Syokimau
- Tenant Profile: Civil servants, JKIA staff, students
- Demand Drivers: Transport access, schools, hospitals
- Rental Yields: Among the highest in Nairobi
3. Mombasa (Nyali & Bamburi)
- Luxury Rentals: 3–4 bedroom homes rent for KSh 90,000–180,000/month
- Short-Term Lets: Beachfront apartments earn KSh 100,000–300,000/month in peak season (Dec–Mar)
4. Kisumu & Nakuru
- Student & Family Rentals: High occupancy near universities
- Affordable Entry: Lower property prices = higher ROI
5. Diani & Malindi
- Tourism-Driven Rentals:
- Villas and apartments booked via Airbnb, Booking.com
- Owners earn KSh 80,000–200,000/month during peak season
- Management Tip: Hire a local firm for guest coordination
💵 How Rent is Paid in Kenya
✅ M-Pesa – Most common method (Lipa Na M-Pesa or Buy Goods)
✅ Bank Transfer – Used for corporate tenants and long-term leases
✅ Cash – Still used, but declining due to traceability issues
✅ Rent Collection Apps – Platforms like RentNow, Nest Living, Fuzu offer digital tracking
📈 Total Return on Rental Investment
The true return includes rental yield + appreciation:
| Ruiru | 3.3% | 10% | 13.3% |
| Ruaka | 2.6% | 11% | 13.6% |
| Syokimau | 4.0% | 9% | 13.0% |
| Diani | 6–8% (seasonal) | 8–10% | 14–18% |
👉 These areas offer double-digit returns when held long-term.
🛠️ Property Management in Kenya
For absentee landlords or busy professionals, hiring a property manager is essential.
- Fees: 7–12% of monthly rent
- Services:
- Tenant sourcing
- Rent collection
- Maintenance coordination
- Legal compliance
- Top Firms:
- HassConsult Property Management
- RentNow Kenya
- Nest Living
📝 Tenant & Landlord Rights
Governed by the Landlord and Tenant Act:
- Lease Agreement: Must be in writing
- Security Deposit: Usually 1–2 months’ rent
- Rent Increases: Only at renewal, with 30–90 days’ notice
- Eviction: Must go through Rent Tribunal, not self-help
FAQs
Q: What is the average rent for a 2-bedroom apartment in Kenya?
A: KSh 50,000–85,000/month, depending on location. Ruiru: KSh 50K, Westlands: KSh 75K, Nyali: KSh 90K.
Q: How much do landlords earn from real estate rent in Kenya?
A: Monthly returns range from KSh 30,000 to KSh 200,000+, with total annual returns (rent + appreciation) of 10–18% in high-growth areas.
Q: Can I collect rent via M-Pesa?
A: Yes—most tenants pay via Lipa Na M-Pesa. Always issue a receipt and keep records.
Q: Is renting out property in Kenya profitable?
A: Yes—especially in Ruiru, Syokimau, and coastal towns. With high occupancy and appreciation, rental real estate is a strong long-term investment.
