Rental Market Is Ripe For A Landlord-Centered Digital Revolution In Kenya

For decades, property management in Kenya, particularly in the rental segment, has operated in a low-tech, informal environment. Rent has, for the longest time, been collected manually, records are paper-based (where they exist at all), and many landlords function more as passive recipients of income than active participants in a modern financial ecosystem.

However, that model is fast becoming untenable, with today’s market expectations being driven by speed, transparency, and digital convenience. Tenants now expect online receipts, mobile-based rent payments, maintenance responsiveness, and financial accountability.  Meanwhile, local property tech has advanced, bringing to the market tools that allow landlords to automate payments, communicate with tenants, track maintenance, and in some cases, link to micro-financing or insurance.

However, uptake remains low, with a 2023-2024 Real Estate survey by the Kenya National Bureau of Statistics revealing that just about 47.2% of real estate agents in Kenya use rent collection software. This disconnect highlights information gaps that require bridging for landlords and their agents to learn that digitizing rent payments has the potential to reduce arrears and streamline operations, while providing them with verifiable transaction records. Indeed, the history generated by such tools can provide credible and alternative credit histories, enabling property owners to access loans for renovations, bridge financing during tenant turnover, or mortgages for property expansion.

At Faulu, we have been working to bridge this information gap through landlord-focused MSME forums in counties where Faulu has presence in Kenya. These sessions serve as interactive platforms where landlords and agents can articulate their challenges, learn about financing options, and explore digital rent collection tools. By listening first and offering relevant solutions, these forums are helping catalyze sector-wide innovation. We believe that this is a model others would do well to replicate because on the macro front, empowering landlords with the tools and financing to expand and improve housing stock, the country can accelerate progress toward closing its housing deficit, currently standing at 2 million units, with only about 50,000 new units delivered each year against an annual demand of 250,000.

While large-scale developers have captured attention in Nairobi and a few other cities, the real growth is occurring in satellite towns like Machakos, Limuru, and Ruiru, where small-scale landlords are building and managing properties that fill the gap between informal settlements and unaffordable high-rises.

Globally, investors are watching Africa’s urbanization story closely, often with a focus on large-scale infrastructure and gated communities. However, the more interesting opportunity may lie in the overlooked middle, which comprises the informal yet resilient ecosystem of local landlords who, with the right tools, could scale their contributions dramatically. The market is ready, the technology exists, a what’s missing is a coordinated push to ensure that landlords, no matter how small, are treated as legitimate and investable actors in Africa’s urban future.

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Stephen Ngugi is the Head of Finance & Strategy, Faulu Microfinance Bank.