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The widespread informal settlements in Nairobi have interested many researchers and urban policymakers. Reasonable planning of urban density is the key to sustainable development. By using the spatial population data of 2000, 2010, and 2020, this study aims to explore the changes in population density and spatial patterns of informal settlements in Nairobi. The result of spatial correlation analysis shows that the informal settlements are the centers of population growth and agglomeration and are mostly distributed in the belts of 4 and 8 km from Nairobi's central business district (CBD). A series of population density models in Nairobi were examined; it showed that the correlation between population density and distance to CBD was positive within a 4 km area, while for areas outside 8 km, they were negatively related. The factors determining population density distribution are also discussed. We argue that where people choose to settle is a decision process between the expected benefits and the cost of living; the informal settlements around the 4-km belt in Nairobi has become the choice for most poor people. This paper ends with suggestions for urban planning and upgrading informal settlements. The findings will increase our understanding of urban population distribution in underdeveloped countries. [ABSTRACT FROM AUTHOR]