The Budget to Adopt When Rent Eats Most of Your Salary

For many Kenyans living in cities or satellite towns, rent is no longer just another line item in the budget; it is the budget. 

Whether you live in Nairobi, Kiambu, Thika, Athi River, Nakuru, or Mombasa, housing costs are quietly consuming a larger share of monthly income, leaving little room for savings, emergencies, or even basic lifestyle spending.

It is not unusual today to find renters spending 35–50% of their income on rent alone, making traditional budgeting rules fall apart. 

This is where a new budgeting approach, the 60/30/10 budget rule, starts to make more sense for households under pressure.

Also Read: How the Bare Minimum Budget Can Help You Thrive This January

The 60/30/10 Budget

The 60/30/10 budgeting method adjusts expectations to reflect modern realities such as inflation. Instead of forcing essentials into an unrealistic box, it gives them more breathing room. 

In this budget, you allocate 

1. 60% for essentials 

Under the 60% essentials category, you would include rent and service charges, food, transport, electricity, water, and school-related costs.

For someone earning a net pay of Ksh60,000 a month, this means allowing up to Ksh36,000 for essential expenses, a figure that more realistically reflects life in high-rent towns.

• 30% for wants 

If you choose this budget formula, 30% will go into wants, such as family outings, subscriptions for streaming services, or the gym, among others.

For someone earning a net pay of Ksh60,000 a month, the wants will take up Ksh18,000.

• 10% for savings or debt repayment

10% of your salary will be dedicated to savings or repayment of high-interest loans. For a Ksh60,000 net earner, they will put a side Ksh6,000 for savings or debt repayment.

Also Read: 7 Ways to Budget and Thrive With an Irregular Income

Why This Budget Works Better When Rent Is High

The biggest strength of the 60/30/10 model is psychological as much as financial. Instead of feeling like you are “failing” at budgeting every month, it aligns your plan with reality. When people try to force rent and food into an unrealistic percentage, they often end up dipping into savings, taking mobile loans, or giving up on budgeting altogether.

By accepting that essentials take up more space, you reduce guilt-driven spending and create a clearer picture of what is actually left to work with.

Criticism of the 60/30/10 budget?

One criticism of the 60/30/10 model is that the amount going to savings is quite lower compared to other budget models, such as the 50/30/20 model.

However, it is important to note that saving something consistently is better than planning to save 20% and saving nothing at all.

For many Kenyans under rent pressure, 10% is achievable, and once income improves or expenses stabilise, savings can be increased.

Also Read: 8 Amazing Benefits of Tracking Your Spending

Making the 60/30/10 Budget Work for You

This budgeting rule is not a fixed law — it is a framework. You can adjust it based on your stage of life:

• Younger earners may prioritise flexibility and focus on stabilising cash flow.
• Parents or older workers may choose to trim discretionary spending and push savings above 10%.
• High-debt households may channel the 10% towards clearing expensive loans first.

What matters is reviewing the budget regularly. Rent may go up, school fees may change, or income may fluctuate. A good budget evolves with your life.