Nairobi’s 2026 Zoning Policy could change the city’s rental market, with landlords and developers facing new construction rules that may affect the supply and cost of housing.

The policy introduces stricter controls on building heights, density, infrastructure capacity and environmental standards. While Nairobi City County says the changes will promote orderly urban growth, property owners and tenants are asking whether higher development costs will eventually translate into higher rents.

The big question facing Nairobi’s housing market is whether the new rules will make it more expensive to build, and whether landlords will pass those costs to tenants.

Nairobi Governor Johnson Sakaja said the policy is designed to guide development while ensuring that new projects are supported by available infrastructure.

“Under the new policy, development approvals will be guided by clearly defined zoning regulations, building height limits, density controls, environmental safeguards and infrastructure capacity,” Sakaja said.

“New developments will also be aligned with the availability of essential services such as water, sewerage systems and road networks to prevent undue strain on existing infrastructure.”

Will developers pass higher costs to renters?

For developers, the new zoning framework could affect how quickly and cheaply new apartments are constructed. Projects will now have to meet requirements on building heights, infrastructure capacity and environmental compliance before receiving approval.

In areas where land is expensive and demand for housing remains high, developers may seek to recover additional costs through higher property prices or rental charges.

High-demand neighbourhoods such as Kilimani, Westlands, Kileleshwa and Upper Hill are likely to be closely watched because they have experienced rapid apartment development and attract professionals, businesses and investors.

If fewer rental units are delivered because of higher compliance costs or longer approval processes, competition among tenants could increase, creating pressure on rents.

How zoning limits could affect housing supply

The policy introduces specific building height limits based on location, plot size and infrastructure capacity.

Developments in Nairobi’s Central Business District and Upper Hill can reach up to 75 floors on qualifying plots, while areas such as Westlands, Kilimani and Kileleshwa will generally allow buildings of up to 30 floors, subject to meeting requirements.

High-density residential areas, including Roysambu and Zimmerman, will also face controlled development limits.

For landlords, restrictions on how much additional housing can be built in certain areas could affect future rental supply. If demand continues growing faster than new housing, rents could rise.

However, the policy could also create new opportunities by encouraging development in areas with better transport connections. The county is promoting Transit-Oriented Development, encouraging higher-density and mixed-use projects within 800 metres of Bus Rapid Transit corridors and commuter rail stations.

By allowing more homes to be built closer to transport networks, the policy could increase housing options and reduce pressure on expensive areas over time.

The county says the new framework will help coordinate growth and prevent developments from overwhelming existing services.

Landowners could benefit from new rights

The policy introduces Air Rights, also known as Transferable Development Rights, allowing property owners who do not use their full development potential to transfer or sell unused development rights to developers in approved areas.

This could create a new source of income for landowners while giving developers more flexibility to increase building capacity where permitted.

For property owners, the value of land could rise if development rights become a more important part of real estate investment decisions. The effect of the zoning policy on rent will depend on whether it increases construction costs more than it increases housing supply.

Landlords may face pressure to adjust rents if operating and development costs rise. At the same time, more efficient planning and higher-density development could create more housing options and help stabilise prices in the long term.

As Nairobi begins implementing the new zoning rules, tenants, landlords and developers will be watching one key measure: whether the policy creates a better-planned city without making housing less affordable.