Construction value jumps to Sh310bn as demand for housing rises
By Maureen Kinyanjui |
This marks a 44 per cent increase, signalling a robust recovery in the construction sector amid a surge in development projects.
The value of buildings approved for construction in seven key counties has surged to Sh309.5 billion between January and October 2024, a significant jump from Sh214.9 billion during the same period last year.
This marks a 44 per cent increase, signalling a robust recovery in the construction sector amid a surge in development projects.
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The number of buildings approved for construction also saw a rise, with 5,317 approvals recorded in 2024, compared to 4,700 during the same period in 2023.
This represents an 11.5 per cent increase, underscoring a growing demand for new buildings in counties such as Nairobi, Kisumu, Uasin Gishu, Murang'a, Kiambu, Mombasa, and Kisii.
According to the latest "Status of the Built Environment" report by the Architectural Association of Kenya (AAK), most construction applications were for residential projects, particularly apartments and housing complexes.
This contrasts with the previous trend where commercial spaces like malls dominated the sector.
"In 2024, the sector saw a surge in activity, with the National Construction Authority (NCA) receiving 5,317 applications between January and October, an 11.5 per cent increase from 2023," said AAK in the report.
"Of these, 77.5 per cent were approved, representing a total value of Sh309 billion. Residential developments accounted for most of these applications, reflecting a growing demand for housing due to an increasing population."
Residential developments played a dominant role in this growth, with 2,853 approvals accounting for 69.2 per cent of the total 4,124 buildings approved in 2024.
This is an increase from 54 per cent in 2023.
The total value of these residential approvals stood at Sh181.05 billion, up from Sh97.5 billion in 2023.
"This highlights the sustained demand for housing, driven by urbanization, population growth, and government policies," the report added.
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