Housing is one of the most basic human needs besides food, clothing, and education. Ideally, the recommended budgetary allocation for rent is 30% of a household’s income as per the United Nations.
In spite of this, Kenyans spend up to 40% of their household income on rent, according to a research by a local daily. This is attributable to a number of factors such as:
- Lack of knowledge on the entire market
- Search for a posh address and
- A blatant lack of healthy financial skills
To spare ourselves of future financial doom, we should all aim to live within our budgets.
Herein, we look at the average rents and average prices for various areas in Nairobi and its periphery and matching this against the various levels of income groups we have locally.
According to the Economic survey 2017 by the Kenya National Bureau of Statistics, the lower income group comprises households with a monthly income of Kshs 23,670 and below; while middle-income group comprises households with incomes ranging between Kshs 23,671 and Kshs 119,999 and finally the Upper-income group enjoys remunerations of above Kshs 120,000.
The table below shows the modal rents and prices for the high end, middle end and lower middle areas.