Kiserian,Ngong Rongai record slowest growth in two years

By Obegi Malack
Property prices in Nairobi’s satellite towns have recorded their slowest growth in two years, with
Kiserian, Ngong, and Ongata Rongai leading the slump in the second quarter of 2025, a new report by
HassConsult shows.
The slowdown comes as tougher economic conditions, rising construction costs, and waning demand
dampen expansion in areas that once attracted private home developers.
According to the Hass Land price indices, Kiserian posted a 2.8 percent price gain in quarter two, down
from 5 percent in quarter one. Other towns including Kitengela, Juja, and Thika also showed weaker
growth, reversing the strong performance seen over the past six quarters.
In a major shift, Nairobi’s suburbs outpaced satellite towns in land price growth for the first time in five
years. Prices in suburbs rose by 1.6 percent compared to 1.25 percent in the satellite towns. Spring Valley
(2.3 percent) and Parklands (2.2 percent) were the top-performing suburbs, reflecting the consistency of
city estates. Strong demand for standalone house units in low-density areas is also supporting land prices,
complementing Nairobi’s vibrant apartment development hotspots.
HassConsult Co-CEO and Creative Director Sakina Hassanali said the middle and upper-middle classes,
who once drove demand in satellite towns, are now squeezed by inflation and taxes.
“Developers are also keeping an eye on potential oversupply of apartments in these satellite areas, which
has started to manifest in stagnant rental prices and falling sales prices for units in majority of the towns,”
she noted.
Annual price growth in the satellite towns had reached a seven-year high of 12.5 percent last year, but the
cooling is now being felt.
Ongata Rongai property dealer Bony Njagua added that the rising cost of building materials has further
stalled new developments, slowing investor activity.