Kenyan investors have shifted capital into passive, liquid assets such as unit trusts and government securities rather than buying land.

According to the HassConsult Property Price Index for the first quarter of 2026, this trend reflects a growing wait-and-see stance among investors, including prospective land buyers.

“There has also been a steady increase in capital invested in passive but liquid assets such as unit trusts and government securities, suggesting a wait-and-see stance among investors, including would-be land buyers,” read part of the report.

On the other hand, property growth persisted along key Nairobi metropolitan corridors, with Ruiru along Thika Highway posting a 2.8 percent increase, followed by Juja at 1.2 percent.

In other satellite towns, Ongata Rongai recorded a 0.9 percent increase, while Kitengela registered a 0.8 percent rise.

Report Reveals Why Land Prices in Nairobi Satellite Towns Eased as Investors Shifts

Land prices in Nairobi’s satellite towns have cooled after a long period of strong gains, with average prices per acre rising by 50 percent over five years from Ksh22 million and nearly doubling over 10 years from Ksh16 million.

The slowdown is linked to infrastructure-driven gains in earlier years now being fully reflected in current land values, while tighter economic conditions have reduced affordability for self-build buyers, shrinking the pool of active demand.

The Hass report shows softer performance across several locations, with seven of the 14 surveyed satellite towns recording price declines in the quarter. These included Athi River (-2.5 percent), Ngong (-1.7 percent), and Syokimau (-0.7 percent).

Karen Leads Nairobi Land Market Share

The report also showed, in percentage terms, how the Nairobi land market is split among 18 suburbs.

Karen holds the biggest share of the market at 19.8 percent, followed by Runda at 13.6 percent and Lavington at 12.5 percent. Kilimani accounts for 7.1 percent, while Kitisuru has 6.4 percent.

Mid-range shares include Lang’ata at 4.6 percent, Westlands at 4.3 percent, Parklands at 4.05 percent, and Muthaiga at 4.0 percent. Kileleshwa stands at 3.7 percent.

Smaller shares are recorded in Nyari and Spring Valley at 3.3 percent each, Loresho at 3.2 percent, Riverside at 2.4 percent, Ridgeways at 2.3 percent, and Muthangari at 2.2 percent.

At the lower end, Upperhill accounts for 1.8 percent, while Gigiri has the smallest share at 1.0 percent.

Hass Report Shows Slower Property Development

Kenyan Investors Hold Back on Land Buying as Property Growth Persists Along Thika Road
An aerial view of Nairobi City. PHOTO/ World Bank Kenya