Nairobi’s short-term rental market in 2026 continues to thrive on two distinct yet overlapping demand drivers: corporate and business travel in the city’s financial core, and lifestyle/convenience demand in its most vibrant residential neighbourhoods. Upper Hill and Kilimani represent the clearest head-to-head comparison for studio apartments — one is the epicenter of Nairobi’s corporate and diplomatic ecosystem, the other is the lifestyle heart of young professionals and expatriates.
Both suburbs attract short-term renters, but the guest profiles, booking patterns, average daily rates (ADR), occupancy seasonality, operating realities, and long-term capital dynamics differ significantly. This educative 2026 analysis goes beyond raw numbers to explain the why behind the performance: who rents these studios, how long they stay, what they value, how the surrounding ecosystem influences pricing power, and what that means for real-world ROI and risk when investing in studio apartments in Upper Hill vs Kilimani.
1. Location & Guest Profile – Who Actually Rents These Studios?
- Studio apartments in Upper Hill Primary guests: corporate short-term assignees (1–6 months), consultants on project rotations, visiting executives from multinationals, diplomats/UN staff on temporary postings, medical tourists near Nairobi Hospital, lawyers/bankers during court or deal season. Typical stay length: 14–90 nights (longer average than most short-lets). Booking lead time: 2–6 weeks (more planned, less impulse). Decision drivers: proximity to offices (Upper Hill towers, banks, law firms), 24/7 security, quiet environment, reliable backup power, fast Wi-Fi.
- Studio apartments in Kilimani Primary guests: young professionals relocating for new jobs, single expats/digital nomads, couples on short assignments, postgraduate students, weekend leisure visitors, business travelers who prefer lifestyle over pure CBD proximity. Typical stay length: 3–30 nights (higher mix of short stays). Booking lead time: 1–3 weeks (more last-minute bookings). Decision drivers: walkability to Yaya Centre, restaurants, bars, gyms, co-working spaces, nightlife, and a more “liveable” neighbourhood feel.
Core difference: Upper Hill studios attract longer-stay, higher-budget corporate guests who prioritize location and quiet reliability. Kilimani studios attract a broader, more lifestyle-driven mix — shorter stays but more volume and pricing flexibility during weekends/events.
2. Nightly Rates & Revenue Patterns
- Studio apartments in Upper Hill Nightly rate (furnished, good reviews): KES 9,500–16,000 Average ADR: KES 11,800–13,500 Monthly gross revenue (70–80% occupancy): KES 248,000–324,000 Peak season uplift: Moderate (corporate travel consistent year-round)
- Studio apartments in Kilimani Nightly rate (furnished, good reviews): KES 8,000–14,500 Average ADR: KES 10,500–12,200 Monthly gross revenue (75–85% occupancy): KES 236,000–312,000 Peak season uplift: Higher (weekends, holidays, events in Westlands/Kilimani)
Reality: Upper Hill commands 10–20% higher ADR due to corporate budgets, but Kilimani often achieves higher occupancy — making total monthly revenue surprisingly close despite the rate difference.
3. Occupancy & Turnover Dynamics
- Upper Hill: 70–82% average occupancy (longer stays reduce churn) Letting speed: 2–6 weeks (more planned bookings) Seasonality: Very low (corporate travel is steady)
- Kilimani: 75–88% average occupancy (shorter stays increase turnover) Letting speed: 1–4 weeks (more impulse/last-minute) Seasonality: Moderate (higher weekends/holidays, dip in rainy season)
Takeaway: Upper Hill offers more predictable occupancy (corporate stability), while Kilimani offers higher volume and faster turnover — both support strong cash flow but in different ways.
4. Operating Costs & Net Cash Flow
- Studio apartments in Upper Hill Service charge: KES 8,000–14,000/month Cleaning/laundry (short-let): KES 12,000–25,000/month Platform fees + utilities: KES 15,000–30,000/month Total expenses: KES 35,000–69,000/month Net monthly cash flow: KES 179,000–255,000 (at 75% occupancy)
- Studio apartments in Kilimani Service charge: KES 8,500–15,000/month Cleaning/laundry: KES 15,000–30,000/month Platform fees + utilities: KES 15,000–28,000/month Total expenses: KES 38,500–73,000/month Net monthly cash flow: KES 162,500–239,000 (at 80% occupancy)
Edge: Upper Hill often nets 10–20% more monthly cash flow due to higher ADR and longer stays — even though expenses are similar.
5. Capital Appreciation & Exit Liquidity
- Upper Hill: Appreciation 6–10% YoY (corporate demand stable, but less “lifestyle” premium) Liquidity: Moderate to high (corporate/investor buyers)
- Kilimani: Appreciation 8–12% YoY (lifestyle + expat demand stronger) Liquidity: Very high (broader pool: professionals, expats, investors)
Winner: Kilimani edges out on appreciation and resale speed — important for exit strategy.
6. Risk & Stability Factors
- Upper Hill: Lower seasonality risk (corporate travel steady), but narrower tenant pool.
- Kilimani: Higher seasonality (weekend/event spikes), but much broader tenant base.
7. Final Verdict – Which Wins for Short-Term Rental ROI in 2026?
- Choose studio apartments in Upper Hill if you want higher average nightly rates, longer stays, more predictable occupancy, and higher absolute monthly cash flow — ideal for hands-off investors who prioritize stability and net income.
- Choose studio apartments in Kilimani if you want higher occupancy volume, faster turnover, stronger appreciation, and broader tenant diversity — ideal for active operators who can manage seasonality and maximize bookings.
Both remain excellent short-term rental plays — but Upper Hill usually wins on pure cash flow, while Kilimani wins on velocity and growth.
Call to Action: Ready to explore studio apartments in Upper Hill or Kilimani for high-ROI short-term rentals? Visit Realty Boris offices today for a private, in-depth discussion with our expert team. We’ll show you current high-demand listings and help you choose the best location and unit for your cash flow goals. Contact us to schedule your visit and take the next step toward building your elite portfolio.
