The Kenya construction industry is set for significant growth, with a projected average annual growth rate (AAGR) of 6% during the 2025-2028 period, driven by substantial investments in transport, energy, housing, and industrial facilities. This growth trajectory reflects the nation’s commitment to infrastructure development and economic revitalization.

In 2024, the construction sector is expected to expand by 5.5% in real terms. This growth is fueled by public and private investments in energy, infrastructure, and industrial sectors, as well as an uptick in export activities. According to the Central Bank of Kenya, domestic credit to the construction industry grew by 5.5% in 2023, following a 9% increase in 2022.

The Kenyan government has outlined a KES3.7 trillion ($24.1 billion) budget for FY 2023-24, earmarking KES244.9 billion ($1.6 billion) for road infrastructure, KES141.2 billion ($919.4 million) for healthcare, KES62.3 billion ($405.7 million) for energy, and KES42.6 billion ($277.4 million) for railway development.

Noteworthy projects include a KES230.4 billion ($1.5 billion) green fertilizer plant, a KES153.6 billion ($1 billion) geothermal project, and a KES92.2 billion ($600 million) geothermal-powered data center, all signed during the COP28 summit in December 2023. Additionally, the Kenya Electricity Transmission Company Limited (KETRACO) plans to construct 4,600 km of high-voltage transmission lines and 36 substations by 2027.

With this strong foundation, Kenya's construction industry is set to play a pivotal role in the nation’s sustainable economic growth

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