Urban Kenyans push for rent regulation as households spend heavily on housing

A new report by the Kenya National Bureau of Statistics (KNBS) shows that four out of 10 Kenyans living in urban areas want the government to regulate rent to curb arbitrary increases by landlords.

This comes amid revelations that more than a third of household spending in urban areas is allocated to rent.

The KNBS housing survey collected responses from both rural and urban households across Kenya’s 47 counties, extrapolating findings to provide a nationwide perspective.

According to the report, 41 per cent of the 9.6 million urban dwellers support rent regulation, while 59 per cent oppose it. Nationally, the survey estimates that 10.6 million Kenyans are in favour of rent controls, while 17.6 million are against.

Rent control programmes aim to cap rent increases, but opinions on their effectiveness vary.

“Proponents argue that rent control helps moderate-income earners and elderly residents maintain stable housing, especially in the face of rising rents linked to gentrification. They believe controlling rent prevents sudden, unaffordable hikes, enabling families to live without fear of displacement,” reads the report.

However, the survey also highlights opposition to rent regulation, particularly among landlords and other stakeholders.

“Opponents claim that rent control reduces the availability of quality housing and discourages investment in rental properties. They argue that landlords might convert properties to alternative uses to evade profit-limiting regulations and maintenance of existing buildings could suffer due to limited financial returns,” the report adds.

Comparisons

Urban areas recorded higher support for rent control (41 per cent) compared to rural areas, where only 35.8 per cent of residents back the move.

Counties with the highest support for rent regulation include Mandera (82.3 per cent), Makueni (77.4 per cent), and Laikipia (69.7 per cent). On the other hand, opposition was most pronounced in counties like Isiolo (96.4 per cent against), Wajir (91.9 per cent), and Busia (91.4 per cent).

In Nairobi, the capital city and home to the largest population, opinion is nearly split, with 46.2 per cent supporting rent regulation and 53.8 per cent opposing it.

The survey further reveals that in at least 12 counties, over 40 per cent of household expenditure is dedicated to rent.

Nationally, urban renters allocate an average of 38 per cent of their spending to rent, compared to 29.6 per cent in rural areas. Kajiado recorded the highest rate of rent expenditure, with urban households spending an average of 67.4 per cent of their income on rent.

Other counties with high rent-to-income ratios include Kisii (54.6 per cent), Kericho (53.2 per cent), and West Pokot (46.9 per cent).

The majority of tenants (76.5 per cent) pay rent directly to landlords, while 21 per cent use agents. Over the five years leading to 2023, tenants paying rent through agents were more likely to report increases.

“Of the tenants surveyed, 87.4 per cent did not experience rent increments over the period, but 13.4 per cent of those paying through agents reported increases, compared to 12 per cent who paid landlords directly,” KNBS notes.