House prices and rents rise in Kenya's prime areas as Limuru emerges as hotspot
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Knight Frank's H1 2026 update shows prime residential sale prices in Kenya rose 6.2% and monthly rents 0.73%, with Limuru emerging as a sought-after location.
House prices and rents in Kenya's prime residential areas rose in the first half of 2026, between January and June, with Limuru emerging as one of the most sought-after towns by home seekers.
According to the Knight Frank Kenya Market Update H1 2026, monthly rents in prime residential areas increased by 0.73 percent in the first half of 2026 compared to December 2025, while sale prices rose by 6.2 percent.
In Nairobi, prime locations include Westlands, Muthaiga, Runda, Karen, Gigiri, Kitisuru, Riverside, Lavington, Kilimani, and Kileleshwa.
In its report published on Thursday, August 27, Knight Frank attributed the increase to the limited supply of quality residential properties, particularly bungalows, villas, townhouses and maisonettes.
"The increase reflects a continued shortage of quality prime housing stock - particularly bungalows, villas, townhouses, and maisonettes - amid sustained demand from owner-occupiers and renters," the report revealed.
Knight Frank identified Limuru, particularly the Tilisu area, as a prime location where most Kenyans now prefer to buy or rent, citing its benefit from earlier developments within the master-planned Tilisi Special Economic Zone. Its strategic location, proximity to Nairobi, planned infrastructure, and tranquil natural environment continue to attract developers and homebuyers seeking alternatives to the congested traditional suburban market, with upcoming developments including gated communities and a residential project by 17 Group.