Short-term rentals (STR) in Nairobi have solidified as a high-velocity, high-ROI strategy in 2026, especially for compact furnished apartments in the city’s prime live-work-play hubs. Westlands and Kilimani remain the two dominant locations for short term rentals — Westlands as the high-energy commercial and lifestyle epicenter, Kilimani as the leafy, professional-friendly alternative with excellent school and hospital access.
For investors focused on cash flow velocity, 1-bedroom and studio units consistently outperform larger 2-, 3-, or 4-bedroom apartments in these suburbs. They attract the largest tenant pool (young professionals, single expats, short-term corporate assignees, digital nomads), deliver the highest percentage yields, achieve the fastest turnover, maintain the lowest vacancy risk, and scale easiest with limited capital. This practical 2026 guide provides 9 essential tips for succeeding with 1-bedroom & studio units in Westlands & Kilimani — covering location choice, pricing power, occupancy patterns, tenant profiles, operating costs, yield math, risk management, and decision criteria to maximize your short-term rental returns.
1. Choose the Right Suburb for Your STR Strategy
- Westlands — Best for maximum ADR & short-stay volume – Nightlife, restaurants, malls (Sarit, Village Market), co-working, multinational offices – Tenant mix: young expats, digital nomads, corporate short-term (1–6 months), weekend leisure – Seasonality: Higher weekends/events, moderate corporate dips – Pricing power: Highest nightly rates in Nairobi
- Kilimani — Best for occupancy stability & longer stays – Yaya Centre, schools, hospitals, quieter residential feel – Tenant mix: young professionals, small families, mid-level expats (longer 6–24 months) – Seasonality: Very low — more consistent year-round – Pricing power: Slightly lower rates but higher occupancy reliability
Tip 1: Go Westlands if you actively manage listings and chase peak revenue; go Kilimani if you prefer passive, hands-off stability with fewer voids.
2. Focus on 1-Bedroom for Absolute Cash Flow, Studio for % Yield
- Studio units (35–65 sqm) Westlands ADR: KES 10,000–18,000 Kilimani ADR: KES 8,500–15,000 Gross yield (short-term): 8.5–11% Monthly net cash flow (80% occupancy): KES 140,000–280,000
- 1-bedroom units (55–85 sqm) Westlands ADR: KES 12,000–22,000 Kilimani ADR: KES 9,500–18,000 Gross yield (short-term): 8.0–10.5% Monthly net cash flow (80% occupancy): KES 220,000–380,000+
Tip 2: Choose 1-bedroom for maximum monthly income; choose studio for maximum percentage ROI on invested capital.
3. Target High-Occupancy Buildings & Amenities
Expats and professionals prioritize reliability over luxury extras.
Must-have building features:
- 24/7 security (guards, CCTV, biometric access)
- Backup generator & high-speed fibre internet
- Concierge or property management on-site
- Gym, pool, or rooftop terrace (guest magnet)
- Secure parking (critical for corporate renters)
Tip 3: Buildings with these amenities achieve 5–10% higher occupancy and 10–20% higher nightly rates — directly boosting ROI.
4. Optimize Pricing & Seasonality Strategy
- Westlands: Dynamic pricing — raise rates 20–40% during weekends, events, holidays; drop 10–15% during rainy season dips.
- Kilimani: Stable pricing — maintain consistent rates year-round; longer stays mean less need for aggressive adjustments.
- Peak seasons: Jan–Mar (new expat arrivals), Jul–Sep (corporate relocations), Dec (holiday visitors)
- Low seasons: Apr–Jun & Oct–Nov (rainy periods) — offer weekly/monthly discounts to secure longer bookings.
Tip 4: Use dynamic pricing tools on Airbnb/Booking.com — 1-bedroom units in Westlands can gain 15–25% extra revenue during peaks.
5. Minimize Operating Costs for Maximum Net ROI
- Service charge: KES 9,000–22,000/month
- Cleaning/laundry (short-let): KES 15,000–40,000/month
- Platform fees + utilities: KES 15,000–35,000/month
- Total average monthly cost: KES 39,000–97,000
Tip 5: Outsource cleaning to professional services (KES 1,500–3,000 per turnover) and negotiate bulk linen/laundry — can save 20–30% vs in-house.
6. Capital Appreciation & Exit Liquidity
- Appreciation: 7.5–11.5% YoY (Westlands slightly higher from commercial growth)
- Resale liquidity: Very high — young professionals, expats, investors upgrading
- Exit speed: 4–10 weeks typical
Tip 6: Choose newer towers (post-2020) for stronger appreciation; older well-maintained blocks for better current cash flow.
7. Risk Management Essentials for STR Success
- Vacancy mitigation: Keep listings 4.8+ stars, professional photos, instant book enabled
- Seasonal dips: Offer monthly discounts during rainy periods to secure longer corporate bookings
- Regulatory note: Comply with county short-term rental permits and tax obligations
- Insurance: Add STR-specific coverage for guest damage/liability
Tip 7: Start with 1–2 units to test management before scaling — most investors achieve profitability within 3–6 months.
8. Quick Decision Guide – Which Combination Wins in 2026?
| Your Goal | Best Combination | Why |
|---|---|---|
| Maximum monthly cash flow | 1-bedroom in Westlands | Highest ADR + volume |
| Highest % yield on capital | Studio in Westlands | Highest gross yield |
| Lowest vacancy & longest stays | 1-bedroom in Kilimani | More stable tenants |
| Lowest monthly operating cost | Studio in Kilimani | Cheapest to run |
| Portfolio building (scale) | Studio in Kilimani | Lowest entry |
| Strongest appreciation | 1-bedroom in Westlands | Commercial premium |
| Hands-off / passive STR | 1-bedroom in Kilimani | Higher occupancy stability |
Bottom line for 2026:
- Westlands wins for maximum short-term cash flow and peak pricing power.
- Kilimani wins for higher occupancy stability and lower volatility.
- 1-bedroom wins absolute income; studio wins highest % yield.
Call to Action: Ready to start or scale short-term rentals with 1-bedroom or studio units in Westlands or Kilimani? 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 build a profitable STR strategy. Contact us to schedule your visit and take the next step toward building your elite portfolio.
