February 4th, 2026

This study aimed at analysing the housing sector in Nakuru County, assessing the trends, status, demand, supply and other characteristics. As underscored in the county’s first Nakuru’s CIDP, rural-urban migration and poor sanitation and infrastructure services that include housing require urgent policy attention.

The county seeks to improve the housing sector to facilitate the supply of affordable and quality housing to its residents. Thus, this baseline study assesses the characters of the sectors with the aim of making policy contributions towards increasing the county’s affordable housing. This study employs a mixed-methods approach, combining both primary and secondary data to comprehensively assess the housing status in Nakuru County. Primary data was collected Household surveys, key informant interviews, and focus group discussions.

A stratified random sampling technique was employed to select households across 23 urban centers within Nakuru County. A total of 832 households responded to the survey across the 11 sub-counties. This was guided by Akiba Mashinani Trust (AMT) satellite imagery across the urban and peri-urban regions of the County. The findings are expected to promote evidence-based formulation of County housing policy and housing investment strategy.

On review of policy and legal framework, the Nakuru housing sector operates within a framework of national and county-specific legal and policy guidelines. For instance, the Constitution 2010 of Kenya underscores the right to life, dignity, and an adequate standard of living, which encompasses the right to proper housing. The Constitution affirms property ownership, including land, and advocates for social justice by ensuring access to affordable housing for all, including people with disabilities (PWDs). Kenya’s Vision 2030, a long-term development plan, is aimed at transforming the country into a middle-income nation by 2030. A critical component of this Vision is the Affordable Housing Program (AHP), which aims to construct affordable. Vision 2030’s affordability goals include providing housing for low- and middle-income groups through encouraging private sector participation and creating a Housing Fund for project financing. Despite having a policy and legal framework in place, housing affordability remains a challenge in Nakuru County. Low-income households struggle with financing, and private sector engagement in affordable housing is limited due to lower profit margins particularly with high prevailing interest rates on government bonds, which set the benchmark for risk reward rates. Infrastructure deficits and high taxes on construction materials increase development costs, and land tenure disputes hinder progress. Coordination among stakeholders is often inadequate and developers and households face challenges obtaining the various approvals required for delivering housing, which adds to the cost and time of delivering affordable housing. Notably, 63.6 per cent of homeowners did not seek government approvals when building, according to the KIPPRA Survey 2024.

Analysis of the housing status and patterns in Nakuru County indicates that the average household size is 4.5 persons, slightly above the national average, with many households consisting of 3-4 members. A youthful population primarily aged 15-64 years exists, and over 81 per cent of urban households earn less than KES 20,000 monthly, highlighting a demand for affordable housing. The KIPPRA 2024 survey notes that while most households live in durable structures (mainly made of iron sheets and cement), some still reside in low-quality housing. The market is dominated by rental flats and apartments, with low homeownership due to high costs and points to a need for enhancing the supply of social rental housing. Overcrowding is an issue, with many households in one or two-room units, prompting recommendations to enhance affordable housing initiatives. Infrastructure access varies across sub-counties, with Nakuru Town East and West showing better access to clean energy and sanitation, while areas like Bahati, Rongai, and Subukia face significant deprivation. The Multidimensional Housing Deprivation Index (MHDI) is 0.38, indicating that nearly 40 per cent of households are multidimensionally deprived, particularly in Subukia, Gilgil, and Bahati. Key improvement areas include sanitation, clean cooking energy and digital connectivity. To enhance living conditions and promote equitable development, targeted infrastructure investments and public-private partnerships are essential, particularly in underserved peri-urban and rural areas.

Analysis of housing construction costs across Nakuru County indicates cost dynamics are vital for assessing housing affordability in Nakuru County, with prices and land costs influenced by location, availability of social amenities (such as schools and hospitals), and basic infrastructure (sanitation, electricity, and water). Key factors affecting construction material costs include availability, distance from suppliers, quality, brand reputation, and regulatory expenses. A study by AFD and the State Department for Housing and Urban Development showed that the average cost to build a two-bedroom house (with wet core) is KShs. 20,000 per square metre, KShs. 20,000 including cost of land. Labour costs start at KShs. 600 per day for unskilled workers and KShs. 3,000 for skilled workers, excluding professional fees. This points to the need to revise the offtake price payable to developers under the AHP which was previously benchmarked at KShs. 50,000 per square meter, which was meant to compensate not only for the hard construction cost, but also the cost of land, professional fees, regulatory fees, infrastructure, marketing and finance.

House prices vary based on proximity to amenities, accessibility, area, finishes and additional features, with higher prices in wealthier areas. Developers typically transfer infrastructure costs to homebuyers. In the AHP, a one-bedroom house in Bondeni averages KShs. 1,550,000, while a two-bedroom unit costs KShs. 3,250,000, with prices increasing in areas like Milimani. In Nakuru County, the AHP is structured as a public-private partnership, where the government provides land, and private developers manage construction, distributing units 20 per cent to the government and 80 per cent to developers. Despite the rapid growth and development, Nakuru County faces significant constraints in the housing sector that include inadequate suitable land for housing development, high cost of infrastructure development is passed onto the prices of housing, financial constraints to build or rent, and complex regulations governing housing development. Key policy interventions include providing public land for the development of affordable housing units, embracing public-private partnerships, investing in infrastructure, increasing the coordination and ease of obtaining approvals and promoting standardized building plans and typologies, and providing tax incentives to increase affordability and offtake. Alternative Building Materials and Technologies (ABMT) have been purported to bring down the cost and time of construction however they cannot offer a panacea without other value chain enhancements A Kenya Green Building Society study showed the importance of technologies like soil stabilized blocks for rural housing from an environmental perspective, but limited savings in cost compared to stone. For high density urban housing, technologies like, compared to stone etc. Other technologies like expanded polystyrene panels (EPS), aluminium formwork poured concrete, 3D printing which are more suitable to high density housing in urban areas offer speed efficiencies but often require higher upfront investment and need economies of scale to justify their use. And speed efficiencies are only helpful if the demand for offtake is ready to purchase the units, but affordability remains a key challenge.

On assessing the housing value chain, the housing value chain in Nakuru County starts with land acquisition and progresses through construction and infrastructure development to meet housing demands. Key players include developers and contractors, both public and private sectors, and households who design, finance, and build homes, creating economic value in the process. The affordable housing program is vital for stimulating the local economy, contributing to various economic sectors. Financing and data analysis are essential for identifying challenges and solutions in the sector. Despite significant policy efforts, the housing sector faces challenges such as limited access to affordable land, high development costs, long approval processes, and a skills gap in construction. Issues like low-quality materials result in substandard housing. Furthermore, high raw material and labour costs affect affordability, which results in developers focusing on higher-income groups, leaving lower-income populations underserved, as a smartly designed subsidy program is required to serve the latter. Logistics and fluctuating material costs also disrupt the housing value chain. The study makes key recommendations that include promoting one stop shop and standardized plans, providing tax incentives on building raw materials and developer profits, enhancing investment in infrastructure, revising Acts relating to professionals (architects and surveyors Act), providing appropriate finance for construction, and establishing a sinking fund for priority maintenance which shall be adequate in the county.

Click here to read/download the Nakuru county housing status report

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