Kenya Construction Industry Report 2025: Output to Expand by 2.9% this Year Following a 1.3% Contraction in 2024 - Forecast to 2029 - 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 to 2029 (H1 2025)" report has been added to ResearchAndMarkets.com's offering.

Following an estimated contraction of 1.3% in 2024, the construction industry in Kenya to expand by 2.9% in real terms in 2025, supported by investments in transport, renewable energy and housing sector.

Growth in 2025 will also be supported by the government allocation under the fiscal year (FY) 2025-26 Budget (July 2025 - June 2026) approved by the cabinet in February 2025. The Kenyan cabinet approved an expenditure of KES4.3 trillion ($27.3 billion) for FY2025-26, an increase of 9.8% compared to FY2024-25 Budget. The FY2025-26 Budget includes an allocation of KES723.9 billion ($4.6 billion) to the educational sector, KES204.5 billion ($1.3 billion) to the healthcare sector and, another KES504.6 billion ($3.2 billion) was also allocated to the energy, infrastructure and communications sector.

Over the remainder of the forecast period, the construction industry is expected to register an average annual growth of 5.5% between 2026 and 2029, supported by government investments in road and transport infrastructure, along with the rising energy sector investments in line with the country's target of achieving 100% renewable energy by 2030 and expand the country's energy grid capacity to 100GW by 2040.

Among recent developments, in October 2024, a groundbreaking ceremony was held to start construction of the 35MW OrPower 22 Power Plant in Menengai, which is being developed by OrPower 22, a subsidiary of an American renewable energy company Ormat Technologies. The project includes an investment of KES14.2 billion ($90 million) and is scheduled to be completed in the first half of 2026. In another major development, construction work on the 440km Nairobi-Mombasa Usahihi Expressway is expected to start in early 2026.

With an estimated cost of KES452 billion ($2.9 billion), the Expressway is expected to be completed in 2028. In the residential sector, growth over the forecast period will be supported by the government's target of constructing one million housing units in the country by 2027, with a target of constructing 200,000 houses each year during 2023-2027, although the progress on this initiative has remained underwhelming, with only about 1, 200 houses being completed till the end of 2024.

Scope

• Historical (2020-2024) and forecast (2025-2029) 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

Reasons to Buy

• Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
• Assess market growth potential at a micro-level with over 600 time-series data forecasts
• Understand the latest industry and market trends
• Formulate and validate business strategies using the analyst's critical and actionable insight
• Assess business risks, including cost, regulatory and competitive pressures
• Evaluate competitive risk and success factors

Key Topics Covered:

1. Executive Summary

2. Construction Industry: At-a-Glance

3. Latest news and developments

4. Project analytics

5. Construction Market Data

6. Risk Profile

7. Appendix

For more information about this report visit https://www.researchandmarkets.com/r/7r0pc1

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