Over the past few days, I've seen headlines and conversations suggesting that "sometimes renting is cheaper than owning." As someone who has spent more than 17 years in the real estate industry, my response is simple:
I agree... but only partly.
Yes, renting can be the smarter decision at certain stages of life.
If you've just started your career, you're building a business, your income is still growing, or you're not yet sure where you want to settle, renting offers flexibility. It frees up capital, reduces maintenance responsibilities, and allows you to adapt as life changes.
There is absolutely nothing wrong with that. But I believe the debate is asking the wrong question.
The real question isn't whether renting is cheaper. The real question is: What will your financial position look like 20 years from today?
The 20-Year Math of Renting
Let's use a simple example.
If you're paying KSh 70,000 in monthly rent, that's KSh 840,000 every year.
Over 20 years, that's KSh 16.8 million—and that's before factoring in the annual rent increases that many tenants experience. With modest rent escalations over that period, the total amount paid can be substantially higher.
What Do You Own After 20 Years?
Now ask yourself a difficult question: After spending those millions, what do you actually own?
- No equity.
- No title deed.
- No appreciating asset.
- No inheritance to pass on.
- No collateral that can help you access financing.
You may have enjoyed a comfortable home and that's valuable—but financially, you've financed someone else's investment. This is where I believe many people confuse housing with wealth creation.
"Consume" vs. "Accumulate"
A house is where you live. An asset is what continues working for you long after you've paid for it.
That's why I often encourage people not to think in terms of "rent versus own." Instead, think in terms of "consume versus accumulate."
There's nothing wrong with renting while simultaneously buying a plot, investing in property, or acquiring an asset that has the potential to appreciate over time. In fact, many financially disciplined people do exactly that. They rent where it makes sense for their lifestyle while steadily building an asset base elsewhere.
The danger isn't renting. It is allowing twenty years to pass without intentionally building ownership.
Examples of Accumulation
I've met clients who bought land while still living in rented apartments. Some later built homes. Others held the land as an investment. Some used it as security to access financing for business opportunities.
The common denominator wasn't that they stopped renting immediately. It was that they refused to let time pass without accumulating assets.
Core Principles
One principle has remained true throughout my career:
Income pays for your lifestyle. Assets build your net worth.
Of course, not every property appreciates at the same rate, and no investment is guaranteed. Success depends on factors such as location, infrastructure, demand, legal due diligence, and the quality of the investment decision. That's why buyers should always do proper research before investing.
Conclusion
So no, I don't believe renting is the enemy.
But I also don't believe renting should become a long-term financial strategy if it leaves you with nothing to show after decades of hard work.
Perhaps the debate shouldn't be: "Is renting cheaper than owning?"
Perhaps the better question is:
"Twenty years from now, will you have simply paid for a place to live or will you have built something that outlives you?"
I’m genuinely interested in hearing different perspectives.
If two people each earn the same income for the next 20 years—one spends it solely on rent, while the other rents but also builds a portfolio of assets—which one do you think will have greater financial security?
Article by Geoffrey Gichuki,
Branch and Marketing Manager
Mombasa Rd Team.