Kenya Construction Industry Report 2022 - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "Kenya Construction Market Size, Trends and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2022-2026" report has been added to ResearchAndMarkets.com's offering.

The publisher expects Kenya's construction industry to expand by 6.8% in 2022, following growth of 7% in 2021.

Kenya's economy remains resilient due to its diversification and low dependency on natural resources for export, and the positive outlook for construction is supported by the expectation that the government will aggressively push for public-private partnerships (PPPs) and attract private investment.

The revised PPP Bill of 2021, passed in December 2021, is expected to accelerate investments through this mode. Several advanced PPPs in transport and energy will go ahead, which will boost the infrastructure and energy construction sectors in the medium term, albeit at a slower pace. At the same time, government capital spending will be under pressure as part of fiscal consolidation efforts, as well as the impending presidential elections in mid-2022.

Expanding Kenya's manufacturing sector by creating special economic zones (SEZs) is another policy objective, together with food security, healthcare and housing, according to the president's Big Four agenda. In July 2021, the UK government announced planned investment of KES20 billion ($179.5 million) into Kenya's Big Four sector.

This includes KES5.2 billion ($46.7 million) in government aid, supported by KES3.5 billion ($31.4 million) from the private sector to provide 10,000 affordable and energy saving houses. According to Africa Housing Finance Yearbook 2020, the housing sector in Kenya is suffering from a shortfall of 200,000 units each year, with an annual supply of 50,000 units failing to meet an annual demand of 250,000 units.

As part of the government's plans to build 500,000 affordable houses by 2022, under the president's Big Four agenda, the government allocated KES6.9 billion ($63 million) in the FY2020/2021 Budget towards the provision of affordable and decent housing for all Kenyans.

Over the remainder of the forecast period, the construction industry is expected to register an annual average growth of 5.7% between 2023 and 2026, supported by government's effort to promote infrastructure development and provide electric access to all citizens, as well as better health and education facilities.

In an order to help accelerate Kenya's recovery from the Coronavirus (COVID-19) crisis, the World Bank approved a KES85.1 billion ($750 million) Development Policy Operation (DPO) in March 2022. The reforms under DPO include fiscal and debt reforms to make spending more transparent and efficient, and electricity sector and PPP reforms to place Kenya on an efficient, green energy path and boost private infrastructure investment, as well as to reform the governance framework of Kenya's natural and human capital, which includes the environment, land, water and healthcare.

Moreover, through its FY2021/2022 draft Budget, the government will focus on bolstering the economic recovery and progressing post-pandemic reforms. The FY2021/2022 Budget will also prioritize public healthcare, digital infrastructure, economic resilience, and socioeconomic reforms.

Scope

• Historical (2017-2021) and forecast (2022-2026) valuations of the construction industry in Kenya, featuring details of key growth drivers.
• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
• Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
• Listings of major projects, in addition to details of leading contractors and consultants

Key Topics Covered:

1. Construction Outlook

2. Construction Industry: At-a-Glance

3. Latest News and Developments

4. Project Analytics

5. Construction Market Data

6. Risk Profile

For more information about this report visit https://www.researchandmarkets.com/r/lyrkpx