Developers are returning to Nairobi after the implementation of the newly approved building approval rules eased planning uncertainties that had slowed investment, according to the latest Hass Land Index report.
The report released on August 4 showed that land prices across Nairobi and its satellite towns rose by 1.4 percent during the second quarter of 2026, signaling renewed confidence in the property market following the rollout of the Nairobi City County Development Control Policy 2026.
According to Hass, the policy addressed long-standing uncertainties surrounding planning approvals, encouraging developers who had previously adopted a wait-and-see approach to resume projects.
“Demand for land picked up as recently published Nairobi City County Development Control Policy 2026 addressed some of the uncertainties that faced developers over planning approvals,” the report said.
The Nairobi City County Development Control Policy 2026 sets out clear rules for new developments, including building standards, height limits, environmental requirements and the approval process. Nairobi Property Market Records Recovery.
Why Nairobi Developers Are Shifting
Developers are increasingly shifting their focus to relatively affordable suburbs where they can achieve better returns on residential projects.
According to the report, Karen and Langata have emerged as the preferred locations, with developers seeking land for detached and semi-detached housing, which continues to attract strong buyer demand.
The increased interest helped the two suburbs record their strongest quarterly land price growth in a decade, with Langata posting a 4.1 percent increase and Karen recording 3.2 percent.
Where Are Developers Building?
In Nairobi’s satellite towns, developers are also becoming more selective, favouring areas supported by major infrastructure projects and economic activity rather than expanding into new locations indiscriminately.
The report notes that Ruiru continues to attract developers because of its proximity to large mixed-use developments such as Tatu City and Northlands, which generate demand from workers and businesses in nearby industrial and commercial zones.
Meanwhile, Ruaka has become increasingly attractive following the completion of the Nairobi Western Bypass.
Its location next to the high-demand UN Blue Zone has further strengthened its appeal for residential and commercial developments.
Nairobi City County Development Control Policy
The new policy overhauls Nairobi’s building approval system by introducing mandatory electronic permits, new development fees and stricter compliance measures aimed at improving safety and accountability in the construction sector.
Under the policy, all applications for building approvals must be submitted and processed through the Nairobi Planning and Development Management System (NPDMS), an end-to-end electronic permitting platform.
Developers will also be required to pay the Development Impact Fee (DIF) before they can obtain a building permit.
In addition, the county will only issue an Occupation Certificate after a developer has repaired any public infrastructure damaged during construction and compliance with the Development Impact Fee has been verified through the digital system.
The policy also establishes the Urban Planning Technical Committee (UPTC) as the main body responsible for reviewing building proposals to ensure they comply with zoning regulations and safety standards.
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