Nairobi Land or Treasury Bills? New Report Reveals Which Investment Is Paying Investors More

New figures from HassConsult show that buying a plot on the outskirts of Nairobi has created huge long-term gains. The calculation facing investors today is however becoming more complicated.

The company’s third-quarter 2026 Land Price Index shows that land prices in Nairobi’s 14 satellite towns have risen 13.8-fold since December 2007. In the 18 established suburbs the index has risen 7.72-fold.

An investment of Ksh1 million made at the end of 2007 would have grown to about Ksh13.8 million in satellite-town land. It would have reached Ksh7.72 million in suburban land and Ksh5.15 million in bonds. Savings would stand at Ksh1.76 million while equities would be at Ksh790,000.

The recent numbers tell a different story. Over the past two years land appreciation in 12 of the 14 satellite towns was lower than the modelled return from rolling 91-day Treasury bills. Only Ruiru and Juja beat that benchmark.

This does not mean land prices fell in those towns. It means the increase did not match the return from Treasury bills.

The report also notes that the figures are an index-based illustration. They are not a guaranteed return and do not reflect transaction costs or taxes.

HassConsult Co-CEO Sakina Hassanali said satellite towns have historically attracted buyers seeking future capital appreciation. She said the case for buying land may increasingly depend on its intended use as passive landholding becomes less competitive.

Investors may therefore need to consider whether a plot can support a home or a rental development. Commercial activity or farming are also options.

The average asking price of land in satellite towns stood at Ksh33.7 million per acre in September. In the 18 Nairobi suburbs it was Ksh233.5 million per acre.

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