Why majority of Kenyan homeowners still prefer to rent

Owning a home is a lifelong dream for many Kenyans. 

Surprisingly, more than 52% of homeowners in Kenya choose to rent instead of living in their own houses, according to the Kenya Housing Survey (2023/24). The key reason? Proximity to work.

With urban centres offering better job opportunities, many homeowners find themselves renting closer to work while their homes remain in rural areas. 

The survey reveals that 52.2% of homeowners rent because their houses are too far from work, while 41.3% say their homes are in rural areas, making it impractical to live in them full-time.

Other factors, such as being too far from schools and social amenities, security concerns, and space limitations, influence the decision to rent.

What Matters Most for Kenyans When Choosing Where to Live?

Kenyans are highly cost-conscious when selecting neighbourhoods. According to the survey, affordable rent is the biggest factor influencing tenants’ choice of residence (52%).

Beyond affordability, proximity to work ranks second at 17.8%, while access to basic amenities such as schools, hospitals, and shopping centres influences 8.9% of tenants.

Security also plays a role, with 7.2% of tenants citing it as a deciding factor, while 6.5% look for attractive or well-built houses. 

Only a small percentage consider climate, cleanliness, or social factors when choosing where to live.

The Homes Kenyans Want vs. The Homes They Rent

There is a significant contrast between what Kenyans aspire to own and what they actually rent.

What Kenyans Want to Own

When it comes to homeownership, most Kenyans dream of owning bungalows (63.1%), followed by maisonettes (23%). Only 9.5% of Kenyans prefer to own flats or apartments.

Very few aspire to own Swahili/compound houses (1.7%), townhouses (0.7%), or traditional manyattas (0.2%).

What Kenyans Actually Rent

The rental market tells a different story. Over 56% of tenants rent flats or apartments, even though only a small percentage wish to own them. Bungalows, which most people prefer to buy, make up just 20.8% of rental units.

Meanwhile, 11.5% of tenants rent compound houses without shared facilities, while 5.8% live in Swahili-styled houses.

This contrast suggests that affordability and availability drive rental choices, while homeownership aspirations reflect long-term goals.

READ: Step-by-step guide on how to register and secure affordable housing

Are Kenyans Planning for Homeownership?

Despite the desire to own homes, a staggering 62.6% of tenants have no concrete plans for homeownership.

For those making plans, 11.2% are saving to construct their homes, while 10.7% are saving to buy land. Only 5.9% have already purchased land, and 4.3% are saving to buy a house.

A stark reality for developers is that more than half of the tenants (55.5%) prefer to build, 12.5% prefer to buy, and 32 % neither want to build nor buy.

A small percentage (2.5%) have construction projects underway, while just 2.8% plan to take loans to either build or buy a home.

The housing trends in Kenya reveal a stark reality; homeownership remains a distant dream for many, even for those who own homes in rural areas. 

Proximity to work and affordable rent dictate where people live, while their dream homes remain far from their daily lives.

With the rising cost of urban housing and a lack of structured savings for homeownership, renting will likely remain the norm for many Kenyans in the foreseeable future.