Kenya Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

Kenya Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

Summary

Following annual growth of 6.8% in 2022, the construction industry in Kenya is expected to expand by 5.5% in real terms this year, supported by the government’s focus on implementing public-private partnership (PPP) projects and attracting private investment. Kenya Railway Corporation (KRC) is also undertaking the development of the Nairobi Commuter Rail Project that involves rehabilitation of 60km of the existing rail system, and construction of 5-7km of new track to the Jomo Kenyatta International Airport (JKIA), stations and other facilities. China Communications Construction Company is the main contractor in this KES43.2 billion ($335 million) project with construction works expected to be completed by the end of 2024. The sector will also be supported by the government’s total development spending for the current financial year (FY) 2022/2023 of KES2.1 trillion ($16.3 billion) as part of its first supplementary budget (FY2022/2023). However, in the short term, the industry might be affected by the economic headwinds caused by rising interest rates and inflationary pressure. In March 2023, the Central Bank of Kenya raised its policy interest rate by 75 basis points, increasing from 8.75% in January 2023 to 9.5%.

Over the remainder of the forecast period, the construction industry’s output is expected to register an average annual growth of 5.9% from 2024 to 2027, supported by investments to develop the transport infrastructure along with an improvement in providing electricity, housing and industrial facilities. In order to finance the housing deficit, as part of the Civil Servants Housing Scheme, in March 2023, Kakamega County Investment and Development Agency (KCIDA) announced that 5,000 housing units will be constructed at the Mumias Triangle and 1,000 units at Mudiri estate in Kakamega town by the end of 2026. In March 2023, President Ruto along with the investment company, GulfCap Africa Limited launched a housing project in Ziwani. The total value of the project is KES20 billion ($155 million) and involves the construction of 6,704 units comprising of one, two or three-bedrooms. The project is expected to be completed by the end of 2026. Moreover, for the renovation and maintenance of roads, in February 2023, Kenya Roads Board (KRB) disbursed KES32.9 billion ($254.9 million) to local road agencies under the Annual Public Roads Program (APRP).

The report provides detailed market analysis, information and insights into Kenya’s construction industry, including -

• Kenya’s construction industry's growth prospects by market, project type and construction activity
• Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Kenya’s construction industry
• Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

This report provides a comprehensive analysis of the construction industry in Kenya. It provides -

• Historical (2018-2022) and forecast (2023-2027) valuations of the construction industry in Kenya, featuring details of key growth drivers.
• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
• Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
• Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

• Identify and evaluate market opportunities using GlobalData's standardized valuation and forecasting methodologies.
• Assess market growth potential at a micro-level with over 600 time-series data forecasts.
• Understand the latest industry and market trends.
• Formulate and validate strategy using GlobalData's critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.