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Kenya's fourth city is experiencing a surge in real estate investment, driven by infrastructure upgrades and a growing population. For Kenyans, especially those in the diaspora, this presents new opportunities but also significant risks of fraud.
NAKURU, KENYA – Four years after its elevation to city status, Nakuru is cementing its position as one of Kenya's most dynamic real estate markets, attracting significant investment from local buyers, developers, and the diaspora. Suburbs like Kiamunyi, Ngata, Lanet, and Naka are witnessing rapidly rising land values, fueled by a combination of major infrastructure projects, a burgeoning middle class, and the city's strategic location in the Rift Valley.
According to a July 2025 market analysis by real estate firm BuyRentKenya, Nakuru has recorded an impressive 20% growth in land value in less than two years, underscoring its increasing popularity. This boom is directly linked to its formal designation as Kenya's fourth city in December 2021, a move that unlocked substantial national and county government funding for development. Key projects initiated to support city status include the ongoing dualling of the Rironi-Nakuru-Mau Summit highway, the construction of a Sh600 million ultra-modern market, and a Sh2 billion affordable housing project in Bondeni.
The Nakuru County government's Annual Development Plan for 2025/2026 further prioritizes expanding and maintaining road networks, improving water access, and upgrading health infrastructure, all of which enhance the attractiveness of residential and commercial property investment.
Several factors are converging to create a fertile ground for Nakuru's property boom:
Kiamunyi, located just off the Nakuru-Kabarak road, has emerged as a highly sought-after residential zone. As of late 2025, residential plots in the area are priced between KSh 1.5 million and KSh 1.9 million for a 50x100 plot, with high appreciation rates attracting speculative buyers. Other prime areas experiencing sharp price increases include Milimani, Section 58, and Naka. A 2018 analysis by Cytonn Investments noted that Kiamunyi recorded an annualized capital appreciation of 11.6% over the preceding three years, a trend that has accelerated since the city charter was granted.
The cost of construction in Nakuru remains competitive, estimated to be 10-20% cheaper than in Nairobi, with average costs in 2025 ranging from KES 45,000 to KES 70,000 per square metre for basic to mid-range homes. This relative affordability, combined with strong rental demand, makes the city attractive for both homebuyers and build-to-rent investors.
The rapid appreciation of land values has also created a fertile environment for fraud. Prospective buyers are warned to exercise extreme caution, as cases of fraudsters using fake title deeds, forged documents, and colluding with corrupt officials are prevalent. In October 2023, the Ethics and Anti-Corruption Commission (EACC) announced the recovery of grabbed land in Nakuru valued at KSh 345 million, highlighting the scale of the problem. Residents in areas like Salgaa have also raised alarms over the illegal acquisition of public and private parcels through forged documents.
Experts advise buyers to conduct thorough due diligence to avoid falling victim to scams. Key verification steps include:
As Nakuru continues its upward trajectory, the opportunities for wealth creation are immense. However, for investors, particularly those in the diaspora, navigating the complexities of the market with diligence and professional guidance is crucial to securing a safe and profitable investment in Kenya's newest city.
