Land prices fell in five Nairobi satellite towns in the third quarter of 2026, with Mlolongo, Kiserian, Kiambu, Ongata Rongai and Tigoni recording price declines amid slowing growth in the property market, according to the latest HassConsult Land Price Index.
The Hass Land Index Q3 2026 shows that land prices across Nairobi’s 14 satellite towns rose by an average of 0.65 per cent in the three months to September, down from 1.4 per cent in the second quarter.
The slowdown points to weakening demand and reduced price appreciation in the surrounding property markets.
Mlolongo leads land price declines
Mlolongo recorded the largest quarterly drop, with the average price of an acre falling by 2.2 per cent to Sh46.6 million.
Kiserian followed with a 2 per cent decline, lowering the average cost of an acre to Sh13.3 million.
In Kiambu, land prices dropped by 1 per cent to Sh48.1 million per acre, while Ongata Rongai registered a 0.9 per cent decrease to Sh29.6 million.
Tigoni recorded the smallest decline among the five areas, with prices slipping by 0.1 per cent to an average of Sh34.7 million per acre.
Land investment returns face competition
The declining prices come against a backdrop of changing investment returns, with HassConsult noting that land appreciation in most satellite towns has increasingly struggled to compete with alternative investment options.
According to the consultancy, cumulative land price gains in 12 of the 14 satellite towns over the past two years were below the modelled returns from investing in rolling 91-day Treasury bills. Only Ruiru and Juja delivered stronger performance than the government securities benchmark.
HassConsult Creative Director Sakina Hassanali said the changing returns could influence purchasing decisions, particularly among investors traditionally drawn to land for long-term capital gains.
“Satellite towns have historically attracted buyers investing in land for future capital appreciation. However, as returns from passive landholding become less competitive with alternative investments, the economic justification for purchasing land may increasingly depend on its intended use,” she explained.
“This could signal a gradual shift towards more use-driven investment in some of Nairobi’s satellite towns, particularly as these markets mature.”
Ngong, Thika lead land price growth
Despite the declines recorded in five locations, nine satellite towns posted positive price movements during the quarter, with Ngong registering the strongest growth.
Land prices in Ngong rose by 2.2 per cent, bringing the average cost of an acre to Sh35.5 million. Thika followed with a 2 per cent increase to Sh33 million per acre.
Ruaka recorded a 1.9 per cent appreciation, with prices averaging Sh117.9 million per acre, retaining its position as the most expensive satellite town in the index.
Syokimau registered a 1.5 per cent increase to Sh40 million per acre, while Limuru recorded a 1.2 per cent rise to Sh27.5 million.
Athi River posted a 0.7 per cent increase, bringing the average price of an acre to Sh20.9 million.
Ruiru recorded a 0.8 per cent appreciation to Sh42.5 million per acre, while Juja’s prices increased by 0.3 per cent to Sh26.8 million.
Kitengela registered the smallest positive movement, with land prices rising by 0.1 per cent to Sh18.8 million per acre.
Also Read: Land investment in Kenya: 10 key things every buyer must know in 2026
