Research by OG Analysis is backing Kenya’s construction industry to grow massively over the next seven years in line with forecasted global trends. A global construction and infrastructure industry growth of 6% CAGR is forecast globally between 2019 and 2026.
‘Increasing government expenditure towards sustainable infrastructure development with continued investment in energy-efficient and environmentally sustainable assets is promoting the market demand for Kenya’s Construction and Infrastructure companies’, says the analysis.
The government is also encouraging companies that emphasize on technological advancements and standardizing modern methods of construction.
Globally, industrialization and urbanization trends are propelling the demand for client-driven Construction and Infrastructure activities and augmenting demand for investment in railways, roads, ports, power transmission, and water utilities. Growing demand for building information modelling, modular construction, and building materials industry is observable across the country’s construction industry.
Investment in large-scale infrastructure projects is one of the key strategies of Kenya to fuel economic growth. The report estimates that the government’s effort to improve the country’s infrastructure, sustain growth in the manufacturing sector and expand municipal utilities will contribute to growth in construction spending.
Rising personal income levels, household growth, and population migration from rural to urban areas will augment the need for better construction facilities and road infrastructure developments in the country.
Increasing public investments into Kenya’s commercial construction sectors will be a key market opportunity for the companies operating in the construction and infrastructure industry.
The ongoing trend towards modernization of Construction and Infrastructure through renovation projects, new building construction, and other civil projects are supporting Kenya to strengthen its Construction and Infrastructure Market size according to the analysis.