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The need for a rational land utilisation in the inner city areas of Nairobi is becoming increasingly recognised in the urban development. In particular, it is made more urgent by the rapidly increasing levels of urbanisation that has resulted into acute shortage of residential land for low-income households. Using the neighbourhood of Bahati Estate in Nairobi as a case study, this paper analyses the land utilisation in the inner city residential areas in Nairobi that were built before 1963. The analysis reveals that land in these neighbourhoods is currently under-utilised. This calls for a realistic strategy of intensifying the use of existing land. It is, therefore, recommended that a policy framework should be worked out within which the land rationalisation strategy would be operationalised
