Best Apartments in Nairobi for Rental Income

1. Nairobi's rental yields hit 7.4% in Q4 2025 — the highest recorded level since 2007.

2. Upper mid-end suburbs (Kilimani, Westlands, Kileleshwa) delivered average total returns of 7.1% in FY 2024/25.

3. Apartment occupancy across prime Nairobi suburbs rose to 91.6% in FY 2024 — up 4 percentage points year-on-year.

Nairobi's apartment market in 2026 presents strong opportunities despite price corrections in some premium suburbs caused by oversupply in 2024 and early 2025. The city's real estate fundamentals remain robust, making it one of Africa's most attractive investment destinations.

According to the Kenya National Bureau of Statistics (KNBS), the real estate sector grew by 5.3% in 2024 and contributed over KSh 364 billion to GDP in Q2 2025. The 2023/24 Kenya Housing Survey also found that 73% of Kenya's urban population lives in rental housing. Combined with an annual housing deficit of 200,000 units and urbanisation growth of 4.4% per year, demand for quality rental apartments continues to rise.

This guide highlights four top Nairobi suburbs where apartment investments offer the most reliable returns in 2026, supported by current rental yield data, market trends, and key investment selection criteria.

Ready to explore verified listings? Browse apartments for sale in Kilimani — Nairobi's highest-turnover apartment investment market, curated by Vivara Realty.

Why Apartments Outperform Other Property Types for Rental Income in Nairobi

Nairobi's rental market is an apartment market. The combination of urban density, infrastructure constraints, and tenant demographics — primarily young professionals, corporate transferees, and expatriates — creates sustained demand for well-managed, amenity-rich apartments in locations close to business nodes. Apartments outperform standalone homes on rental income for several consistent reasons:

•   Higher gross yields — urban apartments in prime suburbs deliver 6–7.5% vs 4–5% for equivalent standalone homes

• Lower vacancy risk — apartments in high-demand suburbs achieve 91.6% occupancy on average — standalone homes are harder to tenant

•   Tenant diversity — a single apartment block accommodates professionals, corporates, and Airbnb guests — spreading your occupancy risk

• Lower maintenance costs — shared infrastructure means individual owners bear less maintenance burden than detached property owners

• Diaspora-friendly — apartments are easier to manage remotely than standalone homes, making them the default choice for overseas investors

• Flexible exit strategy — apartments are more liquid assets — a larger buyer pool exists for a KSh 15m apartment than a KSh 40m townhouse

Against this backdrop, four Nairobi suburbs consistently stand out for apartment rental performance: Kilimani, Westlands, Kileleshwa, and Lavington. Each serves a distinct investor and tenant profile — and each has a different yield and risk characteristics in 2026.

1. Kilimani  — Best for High Rental Turnover and Airbnb Yield

Kilimani remains Nairobi's most active apartment investment market. Located 5 kilometres southwest of the CBD, its walkable urban character, dense amenity coverage, and proximity to Upper Hill and Westlands make it the first choice for young professionals, short-stay guests, and smaller expatriate households.

What the Numbers Say

Kilimani house sales grew 9.3 per cent annually in 2025 — one of the strongest performance metrics in Nairobi despite the wider apartment price correction. The suburb sits within Nairobi's upper mid-end segment, which recorded average total returns of 7.1 per cent in FY 2024/25, driven by an average rental yield of 6.0 per cent and average occupancy of 91.6 per cent. For well-located, amenity-rich units, gross yields of 6 to 7.5 per cent are achievable.

Best Unit Types for Kilimani Investors

• Studio apartments — highest gross yield per square metre; strong Airbnb and young professional demand

• One-bedroom apartments — the sweet spot for Kilimani — widest tenant pool, fastest turnaround, best occupancy consistency

• Two-bedroom apartments — ideal for couples, small families, and corporate leasing; strong long-term tenant retention

Kilimani's road network has also improved materially. The Nairobi City County Government confirmed Kilimani ward was among the 13 wards covered by completed road rehabilitation projects in 2023/2024, and the Kenya Urban Roads Authority (KURA) has deployed an Intelligent Transport System along the Ring Road Kilimani corridor, reducing peak-hour congestion.

Key Risks to Manage

• Apartment oversupply in lower-quality segments — stick to well-managed buildings with strong amenities

• Street selection is critical — high-traffic sections near Argwings Kodhek perform differently from quieter residential pockets

• Noise and density in some sections — impacts long-term tenant retention

2. Westlands  — Best for Premium Corporate and Diplomatic Tenants

Westlands is Nairobi's most commercially dense suburb — home to Grade-A office towers, international hotels, embassies, NGO offices, and the western terminus of the 27-kilometre Nairobi Expressway. It attracts the city's highest-earning tenant segment: corporate executives, multinational employees, diplomats, and senior expatriates.

What the Numbers Say

Westlands experienced a significant apartment price correction in 2024 and early 2025 — prices fell approximately 7 to 11.5 per cent as a wave of supply from the post-2013 construction boom continued hitting the market. However, the stabilisation is underway: Westlands' quarterly price decline narrowed to just 0.5 per cent in Q4 2025, and rents stabilised at around KSh 134,000 per month for premium two-bedroom units from mid-2025 onwards.

Crucially, rental yields in Westlands remain competitive because tenant rents are at the highest absolute levels in the city. For investors willing to hold through the current correction, Westlands offers the potential for both yield recovery and capital appreciation as oversupply is absorbed by growing demand.

Best Unit Types for Westlands Investors

• Executive one-bedroom apartments — the most liquid unit type in Westlands — strong corporate leasing and short-stay demand

• Luxury two-bedroom apartments — highest absolute rent — ideal for long-term corporate or diplomatic tenants seeking furnished units

• Furnished apartments — premium over unfurnished for corporate tenants; serviced model generates 15–25% yield uplift

 Key Risks to Manage

Current oversupply in the mid-market segment — focus on buildings with strong management, amenities, and location premium

Higher entry pricing than Kilimani — requires larger capital commitment

Recovery timeline uncertain — investors should model a 12–24 month stabilisation period before peak returns 

Compare premium apartment options across two of Nairobi's strongest rental markets: apartments for sale in Westlands curated investment options from Vivara Realty.

 3. Kileleshwa  — Best for Stable Long-Term Rental Income

Kileleshwa occupies a distinct position in Nairobi's apartment market: quieter and more residential than Kilimani, more affordable than Westlands, and increasingly attractive to the family and long-stay professional segment that values environment and space over urban density. It sits immediately adjacent to Kilimani and benefits from the same infrastructure improvements — Kileleshwa roads were also among the Nairobi County completed rehabilitation projects in 2023/2024.

What the Numbers Say

After a 10.3 per cent annual rental decline through most of 2025, Kileleshwa staged a notable recovery — posting 1.3 per cent rental growth in Q4 2025. This recovery signals that the market has absorbed the oversupply correction and that demand is re-establishing itself. For investors with a medium-to-long-term horizon, this inflection point represents a potential strategic entry window.

Best Unit Types for Kileleshwa Investors

• Two-bedroom apartments — primary demand driver — family households and professional couples seeking space and quiet

• Three-bedroom apartments — attracts the longest-staying tenants; lower turnover costs; strong retention from families with school-age children

 Key Risks to Manage

• Lower short-stay demand than Kilimani or Westlands — less suitable for Airbnb or serviced apartment strategies

• Longer re-letting timelines in some segments — quality of building and management is a key differentiator

  Explore long-stay and premium investment options across Nairobi's most established suburbs: apartments for sale in Kileleshwa

 4. Lavington  — Best for Premium Long-Stay and Diaspora Demand

Lavington is Nairobi's premier low-density residential suburb — offering space, greenery, and upmarket residential character that the denser inner suburbs cannot match. It is the suburb of choice for senior diplomats, returning diaspora buyers, and high-income families who prioritise environment and exclusivity over urban convenience.

What the Numbers Say

Lavington recorded strong rental growth in the premium segment in Q4 2025 — one of the strongest performers in the Nairobi Metropolitan Area despite the wider market correction. Its upper-income residential positioning places it within the segment that the KNBS 2023/24 Kenya Housing Survey identifies as characterised by high-income occupiers with strong payment capacity and low vacancy risk.

For investors targeting diaspora buyers and diplomatic tenants specifically, Lavington's combination of large plot sizes, established neighbourhood character, and proximity to international schools makes it one of the most defensible long-term investments in the Nairobi residential market.

Best Unit Types for Lavington Investors

• Three-bedroom apartments and townhouses — highest demand from families and diplomatic households; lowest vacancy risk

• Two-bedroom premium units — strong demand from senior professionals and returning diaspora; commands significant rent premium over comparable Kilimani units

 Key Risks to Manage

• Lower liquidity than Kilimani — fewer comparable transactions and a more selective buyer pool

• Higher entry price point — not suitable for investors with limited initial capital

• Longer tenant search timelines — quality tenants take time to identify; professional management is essential

Explore long-stay and premium investment options across Nairobi's most established suburbs: apartments for sale in Lavington — Vivara Realty's curated selection of verified properties.

 What Makes a Nairobi Apartment Investment Work in 2026: The Investor's Checklist

The difference between a Nairobi apartment that consistently delivers strong rental income and one that underperforms almost always comes down to the same set of factors. Before committing capital, every investor should assess the following: 

• Location within the suburb — street-level selection matters as much as suburb-level selection — a poorly positioned unit in a good suburb can underperform a well-positioned unit in a secondary suburb

• Amenity package — buildings with a pool, gym, backup power, borehole, high-speed lifts, and secure parking achieve 15–25% rental premiums and significantly lower vacancy rates

• Developer track record — verify completed projects, handover timelines, and post-completion management before committing

• Building management quality — professionally managed buildings achieve 4–8% higher occupancy rates and lower maintenance costs — critical for diaspora investors managing remotely

• Title and legal documentation — conduct a full land search via the Ministry of Lands' Ardhisasa platform before completing any purchase

• Tenant mix suitability — align the unit type and finishes to the tenant profile most prevalent in that specific location

• Tax obligations — factor in the 7.5% Monthly Rental Income Tax (KRA, effective January 2024) and 15% Capital Gains Tax on any future resale into your yield projections.

The Best Apartment Investment Strategy for 2026: What the Data Suggests

Based on current yield data, market trajectory, and structural demand drivers, the evidence points to three distinct investment strategies for Nairobi apartment buyers in 2026:

Strategy 1 — Maximum Yield Now: One-Bedrooms in Kilimani

One-bedroom apartments in well-located Kilimani buildings continue to outperform larger units on gross yield per square metre. They have the widest tenant pool, fastest turnaround, and the highest Airbnb conversion potential. For investors seeking the strongest current income, this remains the most reliable strategy in the city.

Strategy 2 — Recovery Play: Quality Apartments in Westlands

With Westlands showing clear signs of price stabilisation in Q4 2025 after its correction, well-priced units in quality buildings now offer a counter-cyclical entry opportunity. Investors willing to hold for 12 to 24 months while the market absorbs remaining oversupply are positioned to benefit from both yield normalisation and capital appreciation as demand catches up with supply.

Strategy 3 — Long-Term Wealth Creation: Premium Units in Kileleshwa and Lavington

For investors with a five-plus-year horizon, Kileleshwa's Q4 2025 rental recovery and Lavington's sustained premium growth signal that these suburbs are entering a period of strengthening returns. Larger units targeting family and diplomatic tenants offer lower turnover costs, more consistent cash flow, and stronger capital appreciation potential over time.

 Off-Plan Apartments: Still Worth Considering in 2026?

Off-plan apartment purchases in Nairobi's prime suburbs remain viable in 2026, but developer selection is now the defining variable. The government's Affordable Housing Act of 2024 is actively reshaping the lower-to-mid market — with the Architectural Association of Kenya (AAK) reporting 307 active housing projects comprising over 214,000 units as at 2025.

For the prime suburban market — Kilimani, Westlands, Kileleshwa, and Lavington — off-plan purchases from developers with a verified delivery track record remain an effective way to secure lower entry pricing and benefit from appreciation between launch and handover. The key safeguard is conducting full due diligence on the developer, verifying planning approvals, and engaging a licensed advocate to review all sale agreement terms before committing any capital.

Final Verdict: Where Should You Put Your Apartment Investment in 2026?

Nairobi's apartment market in 2026 is not a single story — it is four distinct markets with different yield profiles, risk characteristics, and tenant dynamics. The right choice depends on your investment objective, capital available, risk tolerance, and time horizon.

Kilimani leads for current yield and turnover. Westlands offers a strategic recovery opportunity for patient investors. Kileleshwa provides stable, long-term income from quality long-stay tenants. Lavington delivers premium positioning and the lowest vacancy risk for investors targeting the diplomatic and diaspora market.

What all four locations share is a set of fundamentals that the data consistently validates: strong and growing rental demand driven by Kenya's 200,000-unit annual housing deficit, a structural rental culture (73 per cent of urban Kenyans rent), improving infrastructure, and a tenant demographic — professionals, expatriates, and returning diaspora — that values quality and convenience above all else.

The investors who consistently outperform in this market are those who select location precisely, choose quality buildings and credible developers, understand their full tax obligations, and hold for a horizon long enough to realise both income and capital returns.

At Vivara Realty, we help investors identify the right apartment in the right location — whether you're after maximum current yield, long-term capital growth, or a balanced portfolio across Nairobi's prime suburbs. Our listings are verified, our market knowledge is current, and our guidance is independent.

References and Citations

1. Kenya National Bureau of Statistics (KNBS) — Economic Survey 2025; 2023/24 Kenya Housing Survey Basic Report (April 2025); Real Estate Survey Report 2023/2024; Quarterly GDP Report Q2 2025

2. Ministry of Lands, Physical Planning and Urban Development — Ardhisasa National Land Information Management System (NLIMS); Land Search Procedures.

3. Kenya Revenue Authority (KRA) — Monthly Rental Income Tax Regime (effective January 2024); Capital Gains Tax (Finance Act 2022).

4. Nairobi City County Government — Roads Rehabilitation and Repair Programme 2023/2024; County Integrated Development Plan 2023–2027.

5. Kenya Urban Roads Authority (KURA) — Intelligent Transport System Programme; Ring Road Kilimani ITS Deployment 2025.

6. Kenya National Highways Authority (KeNHA) — Nairobi Expressway Project.

7. World Bank — Kenya Housing Sector Assessment; Kenya Urban Housing Data.

8. Kenya Permanent Mission to UN-Habitat — Affordable Housing Programme Overview.