February 4th, 2026

Nakuru, one of Kenya’s fastest‑urbanising counties, is experiencing a housing transition shaped by rapid population growth, expanding urban centres, and uneven access to essential services.

This baseline housing assessment, undertaken for the county by the Kenya Institute for Public Policy Research and Analysis (KIPPRA) with support from FSD Kenya, provides the county’s most comprehensive evidence to date on housing conditions, affordability trends, and structural constraints affecting both demand and supply.

KIPPRA adopted a mixed methods approach that combined household surveys across 23 urban centres, key informant interviews, and spatial analysis.  The study reveals a housing market dominated by rentals: over 70 per cent of urban households rent their homes, while only 23 per cent own their homes. Akiba Mashinani Trust provided spatial analysis to support the work, which is shared in the annex of the report.

The average household size of 4.5 persons (above the national average), and household income estimates indicating that approximately 80 percent of households earn under KShs 20,000 per month, point to an acute affordability gap. Single room units are the norm, with overcrowding prevalent, particularly in low-income and peri-urban neighbourhoods.

The Multidimensional Housing Deprivation Index (MHDI) paints an even sharper picture. Nearly 40 per cent of households face simultaneous deprivations, most severely in Subukia, Gilgil and Bahati. Deficits in sanitation, waste management, clean cooking energy and digital connectivity drive much of this deprivation, even as most households now have access to durable roofing, walls and floors. Infrastructure access remains deeply uneven, underscoring the need for granular, location-specific interventions.

Cost remains a major barrier with construction costs averaging KShs. 20,000 per square metre, with volatile material costs constraining supply delivery. Compounded with high land prices, long approval times and costs, limited infrastructure and high interest rates, formal housing continues to be pushed out of reach for low and middle income households. Most residents build incrementally using cash, reflecting limited access to long term finance, despite the expansion of initiatives such as the Kenya Mortgage Refinance Company and the affordable housing programme.

The Nakuru county housing status report proposes a multifaceted response: streamlined approvals through one stop shops; investment in trunk infrastructure; broader incentives for developers; and accelerated adoption of alternative building technologies where feasible. It also highlights the importance of resolving land tenure disputes, strengthening maintenance frameworks for social housing, and embedding digital connectivity as a core housing service.

For Nakuru county, and the rest of urban Kenya, affordable housing should not be seen only as a social good, but also as an economic engine. With the right policy environment, targeted investment and market facilitation, the county can unlock a more inclusive, climate resilient and productive housing ecosystem. The county has well located land which, if redeveloped thoughtfully, can lead to long lasting  economic, social and environmental returns.

This baseline also offers a data rich foundation to guide that journey and provides insights of value to counties across Kenya facing similar pressures of urbanisation and demographic change.

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

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