Nairobi's leafy suburb/SCREENGRABThe United Nations has stepped in to plug a housing gap in Nairobi’s high-end suburbs, offering relief to landlords who were hit hard by the departure of USAID staff under former U.S. President Donald Trump.
When the Trump administration cut funding and dismantled several U.S. Agency for International Development (USAID) operations, its ripple effects were felt across Nairobi’s leafy neighbourhoods of Runda, Muthaiga and Kitisuru.
These suburbs, often described as the “Beverly Hills of Nairobi,” had been home to dozens of expatriates working on U.S.-funded projects.
Their sudden exit left a trail of empty rental homes, struggling schools, and collapsing businesses.
Landlords who once enjoyed lucrative leases were left counting losses as properties sat vacant for months. Shops, hotels, car rentals, and salons that depended on the aid workers’ patronage also took a heavy hit. In some cases, even neighbourhood nail bars were forced to shut down for a lack of customers.
Schools catering to expatriate children saw enrollments plummet, while local businesses reported sharp revenue drops almost overnight.
Now, the UN’s decision to expand its operations in Nairobi is breathing fresh life into the property market. By 2026, agencies such as UNICEF, UN Women and the United Nations Population Fund are expected to relocate or expand their headquarters in the city, creating renewed demand for high-quality housing.
Knight Frank, a global real estate consultancy, said the Nairobi prime residential market had already been under pressure from the limited supply of quality stock even before the UN expansion announcement.
“The prime residential market was already experiencing pressures largely driven by a persistent supply gap in the quality stock and growing demand for existing units,” the firm noted.
The arrival of new high-paying tenants has given landlords renewed hope, easing the financial strain of prolonged vacancies.
Analysts say that while it may take time to fully recover the economic activity lost during USAID’s exit, the involvement of the UN is a positive signal for both investors and service providers in these affluent neighbourhoods.
The shift also underscores Nairobi’s growing appeal as a hub for international organisations. But it highlights a deeper reality too — how dependent certain parts of the city’s economy have become on the presence of foreign workers and international aid programs.
For now, though, the prospect of UN staff moving in has brought back a sense of optimism to Runda, Muthaiga and Kitisuru, where empty homes are once again finding tenants.
