Kenya’s construction industry is expected to record a compound annual growth rate (CAGR) of 10.4% to reach KES 1,023.4 billion by 2024 according to a new report by Research and Markets
Based on the research, construction of residential properties increased at a CAGR of 9.0% in value terms between 2015 and 2019.
The commercial building construction market in value terms is estimated to record a CAGR of 10.9% over the forecast period while infrastructure construction was estimated to be KES 339.3 billion in 2019, posting a CAGR of 10.2% during the review period.
Similar to other parts of the globe, the construction industry in Kenya has been severely impacted by the COVID-19 outbreak.
Latest data from KNBS Leading Economic Indicators covering the period to May 2020, shows that that in the month of May the value of approved residential buildings in Nairobi dropped by more than four-fold compared to a similar period in the previous year as the influence of the pandemic grew in the country.
The pandemic is expected to impact the growth across key sectors over the short to medium term and recovery is expected to be slow.
Residential and commercial construction sectors are expected to be worst affected though infrastructure construction sector is expected to maintain growth momentum, supported by public spending.
KNBS data also shows that the quantity of cement produced increased from 510,919 metric tones in June 2020 to 514,233 metric tones in July 2020. Consumption of cement dropped from 508,298 metric tones in June 2020 to 447,902 metric tones in July 2020
The report covers top 10 cities in Kenya including Nairobi, Mombasa, Nakuru, Kisumu, Eldoret, Ruiru, Kikuyu, Thika, Mavoko, Garissa.