Construction sector rebounds as cement demand hits record high
Production kept pace with demand, rising to 920,442 tonnes, up from 906,979 tonnes in July, ensuring adequate supply to meet the growing market.
Kenya’s construction sector is showing clear signs of revival as cement use and production reached unprecedented levels in August, highlighting renewed building activity after a slowdown last year.
The sector had struggled due to steep loan rates, cuts in government infrastructure spending, and a backlog of unpaid bills that halted many projects.
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Data from the Kenya National Bureau of Statistics (KNBS) shows that cement consumption climbed to 907,154 tonnes in August, marking the highest level ever recorded.
This surge reflects increased activity across public works and private construction, benefiting manufacturers and suppliers in the industry.
Production kept pace with demand, rising to 920,442 tonnes, up from 906,979 tonnes in July, ensuring adequate supply to meet the growing market.
“Cement production increased from 907.0 thousand tonnes in July 2025 to 920.4 thousand tonnes in August 2025. Similarly, cement consumption rose from 888.0 thousand tonnes to 907.2 thousand tonnes over the same period,” the KNBS reported.
The construction industry had faced its first contraction in nearly 11 years, with output falling by 2.9 per cent in the quarter ending June 2024.
Budget restrictions, soaring building material costs, and a sharp reduction in private sector lending contributed to the slump, which in turn limited cement use and slowed project implementation.
The rebound comes after the government started clearing outstanding bills to contractors, unlocking stalled projects that had dragged on due to unpaid dues.
Earlier this year, the Treasury released Sh63 billion, allowing hundreds of road and infrastructure projects to resume, which directly boosted demand for cement and other construction materials.
KNBS notes that over 580 projects had stalled due to pending payments, and the injection of funds has reactivated many of these sites.
The renewed activity is not only benefiting cement manufacturers but also firms involved in steel, transport, and other construction-related sectors.
Industry observers say the growth in cement consumption is an early indicator of a broader recovery in Kenya’s building and construction sector.
With public projects restarting and private developers continuing their initiatives, the sector is likely to maintain momentum, supporting employment and local businesses linked to construction.
The record consumption and production highlight how government interventions and rising private sector confidence can quickly reverse a downturn, underscoring cement’s role as a key barometer of construction activity in the country.
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