It literally translates to:
* Kami: We
* ay: is/are
* nakatira: living
* sa: in
You can use this phrase to indicate where you and other people reside. For example:
* Kami ay nakatira sa Maynila. (We live in Manila.)
* Kami ay nakatira sa isang maliit na bahay. (We live in a small house.)