Understanding the tenants of Fusion Capital’s rental properties in Nairobi, Kenya

With home ownership at only 21.3%, the Nairobi housing market is predominantly rental[1], with an estimated 75% of the employed population earning below Kshs 50,000 (US$ 440) per month[2]. In many cases, households must seek other income sources additional to the main income earner’s monthly income, to support their daily expenditure which includes education and medical expenses.

In 2021, FSD Kenya, Reall, and the Centre for Affordable Housing Finance in Africa (CAHF), partnered with Fusion Capital and Kwangu Kwako Limited, who have residential rental projects in Nairobi, with the aim of understanding their tenants and the larger Kenyan rental market.

This article focuses on tenants in homes delivered by Fusion Capital, summarizing results from 72 survey respondents (55 baseline and 18 follow-up). This limited number of responses does not effectively profile low-income households; the sample is entirely inadequate for this. However, it does give a useful indication of the types of clients that Fusion Capital is reaching. Each question will also specifically mention how many of the 72 respondents answered that specific question.

[1] Centre for Affordable Housing Finance in Africa (CAHF). Housing Finance in Kenya. https://housingfinanceafrica.org/countries/kenya/

[2] Global Partnership for Sustainable Development Data (2022). Beyond the top 1% of Kenyans and the employed, there are Kenyans who don’t exist (2021). https://www.data4sdgs.org/news/beyond-top-1-kenyans-and-employed-there-are-kenyans-who-dont-exist