Nairobi building approvals rise Sh18bn to Sh84bn in five months

Nairobi's building approvals surged by Sh18.24 billion in the first five months of 2026, reaching a total of Sh84.14 billion, according to data from the Kenya National Bureau of Statistics (KNBS). This marks a significant increase from Sh65.9 billion during the same period in 2025. The rise in approvals primarily stems from the growing demand for residential projects, which saw a Sh9.7 billion rise to Sh61 billion, compared to Sh51.3 billion in 2025. Non-residential building approvals also increased by Sh8.6 billion to Sh23.1 billion.

The surge in approvals is attributed to the heightened demand for land and housing in prime suburbs of Nairobi, as evidenced by the HassConsult Land Price Index for Q1 2026. Land prices in several high-end neighborhoods saw an increase, with an acre in Nyari rising 3.1 percent to Sh125 million, while Lang'ata recorded a 2.4 percent increase to Sh90.9 million.

Kileleshwa and Karen witnessed 1.6 percent and 1.3 percent growth, respectively, while Lavington experienced the highest growth at 4.2 percent. House prices in upscale neighborhoods such as Lavington, Spring Valley, and Kilimani also saw a notable increase, with Lavington leading at 4.2 percent.

However, the apartment market experienced mixed performance, with prices falling by 2.8 percent in Westlands and 2.5 percent in Upper Hill. This suggests a recovery in building approvals in Nairobi after a decline in 2025, attributed to factors such as high interest rates and rising construction costs. Residential approvals dropped from 122,823 to 90,142, while non-residential approvals decreased from 25,456 to 24,188 during the period.