The Future of construction in Kenya.

The Kenyan construction industry is expected to see exponential growth as the government and private developers increase their annual investments in infrastructure and housing sectors.

According to a report by the Kenya National Bureau of Statistics, the construction industry grew by 6.8% in 20192The construction industry in Kenya is expected to record a CAGR of 10.4% to reach KES 1,023.4 billion by 20243The Kenya construction market size was valued at $16.6 billion in 2021 and is expected to achieve an AAGR of more than 5% during 2023-20264

The construction industry in Kenya is driven primarily by two key infrastructure sectors: transportation and building/housing1The Ministry of Transport and Infrastructure is responsible for policy initiatives and actions with respect to roads, aviation, maritime, rail, housing and urban development1The average cost of construction in Kenya ranges from Kshs 33,450 per square metre to about Kshs 72,400 per square metre2.

Some of the mega construction projects in Kenya include:

  • Lapsset – The Sh2 trillion Lamu Port-South Sudan-Ethiopia-Transport Corridor project is hoped to boost economic activities and double the country’s GDP3. It also includes construction of three resort cities at Lamu, Isiolo and Lokichoggio, construction of airports in the resort cities and development of a 1,100MW power line and a 185km water supply line.
  • Konza Technopolis – A smart city project that aims to create a technology hub in Kenya3.
  • Kenol-Isiolo Road – Plans for the dual carriageway received a major boost in July 2020 following the start of the Sh16 billion Kenol-Marua segment of the road project

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