A Quick Overview of Kenya’s Construction Industry

Kenya’s construction industry includes businesses focused on commercial and residential buildings, engineering structures, and trade services.

The construction industry is a major contributor to Gross Domestic Product (GDP) in the Kenyan economy and plays a leading role in determining economic growth.

Thanks to the rapidly expanding population, the industry is expected to expand further as investors rush to meet the increasing demand for affordable housing – including prefabricated low-cost homes.

Extensive opportunities also exist in the manufacture and supply of building materials, as well as the construction and rehabilitation of transport infrastructure around the country.

Non-residential construction is set to grow in the next decade as the demand for commercial complexes and shopping malls continues to escalate.

During this period many industrial plants will need replacing while many commercial buildings will need to be rehabilitated. This will translate into more sectoral growth.

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Power plants and energy-related infrastructure will also keep growing with time. Although Kenya wants to become more energy efficient, there is still a high power demand.

In keeping up with this demand, the Kenya government – in partnership with private sector players – is seeking to step up its electricity generation to 5,000MW by 2017.

Civil engineering construction should also grow enormously, thanks to the massive construction and rehabilitation of airports, ports, and bridges.

Some of the major projects currently underway or scheduled to kick off shortly include the Lapsset project, Konza ICT Park, standard gauge railway line, Greenfield Terminal at JKIA, Dongo Kundu free port, Lamu Port and construction of resort cities in Isiolo, Lamu, Diani, Kilifi and Lokichoggio towns.

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