Kenya’s construction industry is projected to grow by 5.5% in real terms this year, spurred by both public and private investments in energy, infrastructure, and industrial sectors. A survey by ResearchAndMarkets.com indicates that this growth is further supported by a rebound in export activities.
The Central Bank of Kenya reported a 5.5% growth in domestic credit to the construction industry in 2023, following a 9% increase in 2022. The 2023-24 national budget, which allocates Ksh 3.7 trillion, is expected to further boost the sector. Key allocations include Ksh 244.9 billion for road infrastructure, Ksh 141.2 billion for healthcare, Ksh 62.3 billion for energy, and Ksh 42.6 billion for railway infrastructure.
Between 2025 and 2028, the construction industry is forecast to grow at an average annual rate of 6%, fueled by ongoing investments in transport infrastructure, energy, housing, and industrial projects. In a major development, Kenya signed seven green projects worth Ksh 682.5 billion during the December 2023 COP28 summit. These include a Ksh 230.4 billion green fertilizer plant, a Ksh 153.6 billion geothermal project, and a Ksh 92.2 billion geothermal-powered data center.
Additionally, the government approved the construction of a Ksh 37.5 billion transmission line from Bomet to Narok. The Kenya Electricity Transmission Company Limited (Ketraco) also plans to build 4,600 kilometers of high-voltage transmission lines and 36 high-voltage substations by 2027, positioning the country for further industrial growth and energy resilience.
