Feature: Rising rent chokes the poor in Kenya

Kenyans living in smaller houses are grappling with higher rents, which have been rising due to increased demand.

Rent for small houses that include one bedroom, single rooms and bedsitters have increased significantly in Kenya. On the other hand, rent for bigger houses like three and four bedrooms has stagnated.

In several low income estates in Nairobi, a single room is now being rented out at an average of 50 U.S. dollars, up from 30 dollars less than two years ago.

On the other hand, a bedsitter in the same estates is going for at least 70, up from less than 60 dollars not very long ago, according to a survey.

In middle income estates, single room houses, though rare, are going for 70 dollars while bedsitters as high as double the price, depending on the residential areas.

Two and three bedroom houses in middle-income estates in Nairobi are going from 200 dollars to 500 dollars, depending on the sizes.

On the contrary, rent for the bigger houses, especially in suburbs on the outskirts of Nairobi, has stagnated due to excess supply following intense construction of apartments.

"In my case, I live in a one-bedroom house and pay 110 dollars. Single-roomed houses are going for 60 dollars. Rent is becoming unaffordable for the small earner," said vehicle mechanic Simon Mageto, adding even in slums, single-room stone houses are going for 50 dollars.

The rising rent at the bottom segment of the market was one of the main contributors to higher inflation last month, according to the Kenya National Bureau of Statistics.

Inflation increased from 6.34 percent in September to 6.47 percent in October, with rent for single rooms rising 5 percent in the last one year from 38 dollars to slightly above 40 dollars.

Analysts noted that rents at the bottom segment of the market are rising faster due to increased demand, amid low construction of the units.

"Most developers in the last few years have focused on the two and three bedroom houses, especially apartments, because they fetched higher rents. This led to an oversupply of the houses occasioning glut that has pushed down rents," said Antony Kuyo, a real estate consultant with Avent Properties.

The situation is different at the bottom segment of the market, where developers initially shunned. "If you go to very many low income estates in Nairobi, finding a vacant single room is a big problem but the same is not the case with bigger houses."

According to Kuyo, with the rising rent, developers have started to shift to the smaller houses as they realize that is where money is.

"Property developers are now building four or five storey buildings hosting only single-room houses. Now instead of a four storey block hosting, say, 16 two bedroom houses, they are hosting up four times the number single-room houses, which is turning out a lucrative business," he said. Endit