Why Kilifi has risen to retirees safe haven

Kilifi County, once seen mainly as a holiday escape, is now becoming a magnet for real estate investors, developers and middle-class Kenyans seeking affordable coastal property.

This growth, fueled by new infrastructure, a changing investment mindset and a rising demand for housing, is positioning Kilifi as one of Kenya’s most promising property frontiers.

The county is witnessing a surge in construction, with gated communities, resorts and commercial complexes springing up across its landscape. Improved infrastructure, such as the expansion of the Mombasa–Kilifi–Malindi highway, the Kilifi–Mariakani road, and increased electricity connectivity, has opened the region to both local and international investors.

Its proximity to the Indian Ocean and tranquil environment are driving demand for both residential and holiday homes.

Data from the Kenya National Bureau of Statistics (KNBS) Economic Survey 2024 shows that the Coastal region now accounts for about 4.5 per cent of Kenya’s total GDP, with Kilifi contributing nearly half of that at around 2.1 per cent. The county has also seen a steady growth in building approvals and land transactions, reflecting the increasing appetite for real estate investment.

According to the KNBS Real Estate Survey Report 2023/2024, land and property development in coastal counties, particularly Kilifi, has outpaced several inland counties in annual building approvals, buoyed by tourism, infrastructure, and diaspora investment.

This transformation is just beginning, with developers moving fast to tap into Kilifi’s growing potential. One of them is Rax Company Ltd, which has acquired an 18-acre parcel of land earmarked for subdivision and residential development.

“We have an 18-acre piece of land that is ideal for subdivisions. The project will provide numerous job opportunities, from surveyors, marketers, architects and engineers to contractors, quantity surveyors, masons, carpenters, and hardware suppliers,” said the firm’s chief executive Morris Kariuki.

Kariuki noted that beyond creating jobs, the project will open new opportunities for locals to own property and for investors to build holiday homes and resorts.

“Kilifi’s environment is perfect for holiday homes and tourism-oriented developments. We expect this project to spur growth not just for investors but also for artisans and service providers in the area,” he said.

For years, Vipingo Ridge has remained a distinctive real estate property in the county due to the client base it has attracted. Aside from Mtwapa area, which has been vibrant and populous on investment, other areas that look green for investment in Kilifi include Kikambala, Mariakani, Kilifi town and Bofa among others.

Aside from residential homes, Kilifi is also becoming a preferred area for businesses and factories.

At the moment, various business parks such as Mtwapa Business Park, which consists of 42 warehouses sitting on a 10.5-acre parcel of land, are under construction. The county’s real estate boom mirrors a broader national trend where counties, aside from Nairobi, are increasingly emerging as alternative investment zones.

The pandemic accelerated this shift, with more Kenyans seeking open, serene and affordable environments away from congested cities.

Counties like Nakuru, Machakos, Laikipia, and Kilifi have become prime beneficiaries of this decentralisation of investment.

Small business

But the growth of Kilifi impacts everyone, including local traders like Lydia Thuva, a food vendor in Kilifi town, who says the construction wave has breathed new life into her small business. Every morning, she prepares tea, chapati, and githeri for dozens of construction workers at nearby sites.

“A few years ago, I could go a whole day without selling more than Sh500. Now, there are so many construction sites around that I sell out before lunchtime. I’ve even hired two assistants to help me cook and serve customers,” she said.

She says real estate growth has become a silent engine for small businesses. “When buildings go up, our businesses rise too. We used to depend only on market days or tourists, but now the workers keep us going every day. The construction boom has brought life to this town,” she said.

For Hillary Muriithi, a construction foreman overseeing one of the housing projects on the outskirts of Kilifi town and Vipingo, Kilifi’s skyline tells a story of rapid transformation. Having worked along the Coast for over a decade, he says the recent surge in construction has created consistent employment for hundreds of workers.

“There’s work everywhere, every few months, a new site opens up — people are buying land, subdividing, and putting up houses. It means steady jobs for masons, electricians, plumbers, and young apprentices who are learning the trade,” he said.

Hillary believes the sector’s ripple effects go beyond employment.

“When construction picks up, it doesn’t just build houses — it builds futures. Hardware shops, food vendors, transporters — everyone benefits. You can feel the change in the air — Kilifi is coming alive,” he said. Market analysts attribute Kilifi’s momentum to a blend of factors: affordability, scenic appeal and strategic infrastructure.

Land in Kilifi is significantly cheaper than comparable parcels in Mombasa, according to market data from the Kenya Bankers Association–Hass Property Index and Knight Frank’s Coastal Market Update 2024.

This cost advantage has made the county particularly attractive to investors who were previously priced out of the Mombasa or Nairobi markets.

Additionally, the government’s ongoing infrastructure push under Vision 2030 has seen major investments in roads, energy, and housing, with the coastal region singled out for economic expansion through the Blue Economy. Kilifi’s location—within reach of key tourist circuits and the Lamu Port–South Sudan–Ethiopia Transport (LAPSSET) corridor—further enhances its appeal.

The county’s demographic structure also supports this growth. According to KNBS data, Kilifi’s population increased from 1.1 million in 2009 to over 1.45 million in 2019, with projections placing it between 1.7 and 1.9 million by 2030.

This rise, coupled with urbanisation in towns like Kilifi, Watamu, and Malindi, has driven demand for housing and commercial spaces. Developers are responding with mixed-use developments that combine residential units, retail outlets, and leisure amenities.

Investors are flocking to Kilifi not only for its affordable land but also for its potential as a tourism and retirement hub. The increase in short-stay properties and serviced apartments indicates a growing shift toward tourism-related real estate.

“Many investors are purchasing plots to build Airbnbs and boutique resorts targeting both domestic and international visitors. The trend we are seeing is that people no longer view the coast as a place you visit once a year; they see it as a viable place to live, work, and invest. The new generation of investors wants lifestyle-driven developments that combine comfort, affordability, and value appreciation,” Kariuki said.

Local entrepreneurs and small-scale traders are also benefiting. New construction projects have increased demand for materials, machinery, and professional services, creating ripple effects across the economy. Hardware stores, transporters, and small contractors are seeing steady business.