Construction growth slows amid rising costs, labour shortages
Loans and advances from commercial banks to the sector declined from Sh602.7 billion in 2023 to Sh528.0 billion.
Kenya’s $20 billion (Sh2.6 trillion) construction sector may be booming, but experts warn that the industry still faces critical gaps in innovation, skilled labour and access to modern building technologies.
The latest data by the Kenya National Bureau of Statistics (KNBS) shows the sector contracted by 0.7 per cent in 2024 compared to 3.0 per cent growth registered in the previous year.
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Notably, the average annual inflation for construction materials and other inputs rose to 2.83 per cent in the review year, up from 2.30 per cent in 2023.
Loans and advances from commercial banks to the sector declined from Sh602.7 billion in 2023 to Sh528.0 billion.
Cement consumption decreased by 7.2 per cent to 8,537.0 thousand metric tonnes over the same period.
Nevertheless, private employment in the sector registered a downward trend, decreasing from 226.3 thousand in 2023 to 223.4 thousand employees in 2024.
On the other hand, however, public employment increased from 9.7 thousand employees in 2023 to 9.9 thousand.
As Kenya accelerates efforts to achieve its Vision 2030 housing and infrastructure targets, tackling the aforementioned bottlenecks remains the greatest challenge for policymakers and industry stakeholders.
Big 5 Construct Kenya exhibition
Leading the way in bridging these gaps is the Big 5 Construct Kenya exhibition and conference.
Organised by dmg events, the platform brings together local and international construction companies, suppliers, professionals, and decision-makers to boost the sector’s growth through knowledge exchange, technology transfer and strategic partnerships.
Now in its eighth edition, the summit will be held from November 5 to 7 in Nairobi, bringing together over 9,000 industry professionals and more than 150 exhibitors from 20 countries to showcase innovations in building materials, digital construction, modular housing and sustainability.
According to the organisers, the event seeks to mainly connect innovators, suppliers and decision-makers to tackle the inefficiencies that continue to hold back Kenya’s construction progress.
Kenya’s construction market, growing at an estimated 7.5 per cent annually, is under pressure to deliver on major national priorities, including the one million housing units target by 2027 and large-scale infrastructure projects such as the Nairobi–Mombasa Usahihi Expressway and the OrPower 22 Geothermal Plant.
“Kenya’s construction sector is gaining real momentum, fuelled by ambitious construction and infrastructure programs and nationwide housing initiatives under Vision 2030,” said Josine Heijmans, Senior Vice President at dmg events.
She emphasises that the next phase of growth will depend on innovation and collaboration.
“Big 5 Construct Kenya is at the heart of this growth, connecting decision-makers, innovators and suppliers, supporting the country’s construction sector.”
She added that the exhibition provides a meeting ground for industry leaders to discover practical solutions, explore emerging trends and drive projects that will contribute to the development of Kenya’s construction landscape.
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