Nairobi up 13 slots on the world’s most expensive cities list

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The ranking could be a result of the high cost of transport and rent for secure residential places in a city that has been rocked by incidents of insecurity.
Using New York as the base city, Mercer compares the cost of a variety of factors relevant to expatriates’ living, including housing, transportation, food, imported goods, entertainment and clothing.
The ranking makes Nairobi the second most expensive city in East Africa after Kigali and 18th among Africa’s capitals.

Nairobi has edged up 13 places in an annual global ranking of the world’s most expensive cities for expatriates as insecurity drives up the cost of secure housing units.

A ranking released by consultancy Mercer places Nairobi at position 104 on the list, up from 117 last year.

The ranking could be a result of the high cost of transport and rent for secure residential places in a city that has been rocked by incidents of insecurity.

Using New York as the base city, Mercer compares the cost of a variety of factors relevant to expatriates’ living, including housing, transportation, food, imported goods, entertainment and clothing.

Luanda, the capital of oil-rich Angola, tops the list of the most expensive cities for expatriates for the third year in a row in survey which ranked 207 cities. Chad’s capital N’Djamena was in the top 10 while Kinshasa was in position 13.

Nairobi’s ranking puts it above European cities such as Berlin, Madrid, Glasgow and Stockholm and above Seattle in the United States. The ranking makes Nairobi the second most expensive city in East Africa after Kigali and 18th among Africa’s capitals. Dar es Salaam is at position 179 and Kampala at 184.

A more expensive Nairobi could spark demand for wage increments among employees of various multinationals, United Nations agencies and diplomatic missions stationed in Kenya.

Nairobi’s ranking puts it above European cities such as Berlin, Madrid, Glasgow and Stockholm as well as Seattle in the United States. Mercer says that several cities in Africa continue to rank among the most expensive, reflecting high living costs and prices of goods.

Despite climbing five slots, Cape Town (200) continues to rank as the least expensive city in the region reflecting the weak South African rand against the US dollar.

“As the global economy has become increasingly interconnected, close to 75 per cent of multinational organisations are expecting long-term expatriate assignments to remain stable or increase over the next two years to address business needs,” said Ilya Bonic, senior partner and president of Mercer’s Talent Business.

“Sending employees abroad is necessary to compete in markets... and employers need a reliable and accurate reflection of the cost to their bottom line.”