Why Thousands of Kenyan Homeowners Still Pay Rent in Cities

Thousands of Kenyans are paying rent in cities despite owning homes elsewhere, as work, transport challenges and family needs keep them away from their properties.

Michael Ogillo, who has worked in Nairobi for nearly 20 years, pays Sh40,000 a month for an apartment in the capital even though he owns a Sh5 million house in Kisumu. His wife and children remain in Kisumu, while he lives in Nairobi and visits his family during holidays.

Ogillo says commuting from Kisumu is not practical, and moving his family whenever his job changes location would disrupt his children’s education. “Owning a house does not automatically mean you stop renting,” he says.

The 2023/24 Kenya Housing Survey shows that 52.2 percent of renters live in leased homes because their own houses are too far from their workplaces. Another 41.3 percent own homes in rural areas but rent in urban centres for employment. In Nairobi, 91 per cent of households are tenants.

Property experts say the trend is being driven by rising living costs, weak transport systems and the concentration of jobs in major urban areas. Rose Kananu of the Kenya Property Developers Association says housing, transport, school fees and food account for most household spending, while salaries have not kept pace with inflation.

For many workers, renting near their workplaces is cheaper and more practical than travelling long distances from satellite towns or rural counties. Nairobi’s traffic congestion has increased the pressure, with some commuters spending up to five hours a day on the road while also facing high fuel prices, changing matatu fares and vehicle maintenance costs.

Developers have responded by improving housing in areas such as Roysambu, Zimmerman and Kahawa West, which are attracting middle-income earners looking for affordable rental housing close to employment centres.

David Wanjala of Merit Properties Ltd describes the situation as a “double-cost lifestyle”, where people maintain homes in rural or peri-urban areas while also paying rent in cities. Many households treat their owned homes as long-term investments, retirement residences or family homes rather than primary living spaces.

Analysts say the trend reflects wider weaknesses in urban planning. Housing projects have expanded faster than transport infrastructure, while most employment opportunities remain concentrated in Nairobi’s central areas.

They argue that affordable housing policies should be linked to transport planning and the decentralisation of jobs. Proposals include investment in commuter rail services, bus rapid transit systems and business districts outside the city centre to reduce congestion and long commuting times.

For Ogillo, the arrangement carries both financial and emotional pressure. He pays rent in Nairobi, maintains his home in Kisumu, covers school fees and still tries to save for the future. However, he says owning a home gives him security in retirement. “At least I know I have somewhere to retire,” he says.