Owning in the Village, Renting in the City: The Dual Living Reality of Kenyan Homeowners

• Did you know that about 61% of Kenyans own homes?
• The growing divide between where Kenyans own and where they live is subtly reshaping the country’s real estate landscape.
• For many Kenyans, the dream of homeownership begins with what is familiar, affordable, and emotionally significant—rural land handed down through generations.

Did you know that about 61% of Kenyans own homes? Surprisingly, a good number of them do not live in the homes they own. Why? Because their owned homes are in rural areas, while they rent in urban centres like Nairobi, Mombasa, or Kisumu.

This may seem paradoxical at first, but it’s a lived reality for many Kenyans, and there are good reasons behind it.

According to a Housing Survey by the Kenya National Bureau of Statistics, 52.2% of respondents said they preferred to rent because their owned homes were too far from work, while 41.3% cited owning homes in rural areas as their reason for renting in the city.

So, what drives this dual-living setup and what does it mean for Kenya’s housing future?

1. Economic Realities

Kenya’s economic shifts continue to have a profound ripple effect on the real estate market. Over the years, the industry has undergone significant change, particularly when it comes to the cost of land. What land sold for a decade ago is vastly different from today’s prices, with some areas seeing values more than double.

Despite this inflation, a clear contrast remains: land in rural areas is still far more affordable than in urban centres. For many Kenyans, this makes buying upcountry land a more realistic and attainable goal. The relatively lower costs make it easier to invest in rural property, while urban plots, especially in and around major cities, remain financially out of reach for the average buyer.

As a result, many people choose to build in the village, not because they don’t want to live in the city, but because the economics simply make more sense.

2. Financing & Land Ownership Trends

Access to financing is another key factor shaping where and how Kenyans buy property. While urban property prices continue to rise, mortgage access remains limited for the average Kenyan. According to the Central Bank of Kenya, there are fewer than 30,000 active mortgage accounts nationwide, a strikingly low figure given the population size. High interest rates, strict lending requirements, and the cost of urban plots make it difficult for many to afford city property. 

On the other hand, rural land is often more affordable and typically purchased in cash, through savings, chamas, or family contributions. In some areas, inherited land reduces the need for formal financing altogether. These realities make rural investment not only more attainable but more culturally and financially practical for most. Until urban land prices and financing options become more accessible, the village will remain the more realistic starting point for many aspiring homeowners.

3. Cultural Roots

Most often than not, land in the rural areas is ancestral land passed down from one generation to the next. This gives it deep sentimental value, making it the natural choice for building retirement or holiday homes. For many, it’s not just about owning land; it’s about maintaining a connection to their roots.

Often, nuclear and extended families live close together on these inherited parcels, creating strong communal ties. Building a home on ancestral land means staying close to family, tradition, and a familiar way of life. It offers a sense of belonging that city life, with its fast pace and individualism, can’t always provide.

Shifting Trends in Kenya’s Real Estate Market

The growing divide between where Kenyans own and where they live is subtly reshaping the country’s real estate landscape.

In urban areas, the high demand for rental housing continues to fuel the growth of apartments and multi-unit dwellings, especially in satellite towns like Syokimau, Ruaka, and Kikuyu. Developers are leaning into this demand by offering more affordable units that cater to working-class and middle-income tenants who may not be ready—or willing—to buy.

At the same time, rural and peri-urban areas are seeing a boom in construction. With land more accessible and cheaper upcountry, many Kenyans are building permanent homes as a long-term investment or retirement plan. This has created pockets of modern housing in traditionally rural areas, sometimes outpacing the infrastructure and services available there.

Interestingly, the dual-living model has also given rise to hybrid lifestyles. Some homeowners commute from their village homes daily or weekly, especially with improved roads and remote working options. Others build in emerging townships close enough to urban centers, trying to strike a balance between affordability and convenience.

This dynamic presents both a challenge and an opportunity for urban planners, developers, and policymakers: How do we create cities people can afford to live and invest in, without disconnecting them from their rural roots?

Conclusion: A Tale of Two Homes

The dual-living lifestyle, owning in the village while renting in the city, isn’t just a quirk of circumstance. It’s a reflection of Kenya’s unique blend of cultural heritage, economic reality, and evolving urbanization. For many Kenyans, the dream of homeownership begins with what is familiar, affordable, and emotionally significant—rural land handed down through generations.

At the same time, the pull of urban opportunity remains strong. Cities offer jobs, education, and lifestyle perks, but they come with steep housing costs that keep ownership out of reach for many. Until financing becomes more accessible and urban housing more affordable, this two-home reality will likely persist.

For developers, investors, and policymakers, the message is clear: Kenya’s housing future must reflect the lived realities of its people. That means creating pathways to affordable urban homeownership while respecting the deep cultural and economic value of rural land. After all, for most Kenyans, owning in the village and renting in the city isn’t a contradiction, it’s a strategy, a tradition, and for now, a way of life.