Kenya Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast to 2027

Kenya Construction Market Report Overview

The Kenya construction market size was $17.3 billion in 2022. The market will achieve an AAGR of more than 5% during 2024-2027. Improvements in energy, housing, and industrial facilities, as well as investments in the development of tourism and transportation infrastructure, will all contribute to the industry’s output during the forecast period.

Kenya Construction Market Outlook, 2022-2027 ($ Billion)

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The Kenya construction market report provides an in-depth analysis of various project types and construction activities across various sectors along with their driving factors. It covers emerging trends in the market segments and analyses the top construction projects in Kenya from pre-planning to execution. The report also gives an overview of the latest developments in the Kenya construction market.

Kenya Construction Market Segmentation by Sectors

Residential construction was the leading sector in the Kenya construction market in 2022

The key sectors in the Kenya construction market are commercial construction, industrial construction, infrastructure construction, energy and utilities construction, institutional construction, and residential construction. In 2022, the residential construction sector accounted for the highest market share.
Residential construction: The project types in this sector include single-family housing and multi-family housing. The sector’s growth over the forecast period will be supported by the government’s efforts to address the housing deficit in the country.

Infrastructure construction: The project types in this sector include rail infrastructure, road infrastructure, and other infrastructure projects. The government’s plans to improve railway infrastructure will support the sector’s output.

Energy and utilities construction: The project types in this sector include electricity and power, oil and gas, telecommunications, sewage infrastructure, and water infrastructure. The sector’s growth over the forecast period will be supported by the government’s efforts to expand energy supply and promote renewable energy. The government aims to reduce carbon emissions by one-third by 2030, eventually reaching near-zero levels by 2050.

Commercial construction: The project types in this sector include leisure and hospitality buildings, office buildings, outdoor leisure facilities, retail buildings, and other commercial construction. The sector’s growth over the forecast period will be supported by growth in the retail trade sector and a rebound in tourism activities, which will attract investments in leisure and hospitality, and retail buildings.

Industrial construction: The project types in this sector include chemical and pharmaceutical plants, manufacturing plants, metal and material production and processing plants, and waste processing plants. Growth in manufacturing and export operations will fuel the sector’s expansion in accordance with the Kenya Manufacturing Vision 2030 plan, which was introduced in 2022.

Institutional construction: The project types in this sector include educational buildings, healthcare buildings, institutional buildings, research facilities, and religious buildings. The sector’s growth is expected to be supported primarily by the government’s focus on the health and education sectors.

Kenya Construction Market Analysis by Sectors, 2022 (%)

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Kenya Construction Market – Latest Developments

• In early November 2023, Kenya’s Tourism Board announced the five-year strategic 2023-28 tourism plan. Under this, the government is aiming to attract 5.5 million international tourists’ arrival by 2028, which will boost leisure and hospitality development.
• In August 2023, The Ministry of Lands launched a tender for the construction of 25,000 government personnel houses and 7,000 residential houses. Additionally, the housing sector will be supported by President William Ruto’s Affordable Housing Project, which aims to construct 70,000 affordable housing units across the country, out of which 14,000 units were nearing completion as of September 2023. This plan comes under the wing of the Kenya Kwanza Administration Plan which emphasizes constructing one million houses throughout the country by 2027.

Segments Covered in the Report

Kenya Construction Sectors Outlook (Value, $ Billion, 2018-2027)

• Commercial Construction
• Industrial Construction
• Infrastructure Construction
• Energy and Utilities Construction
• Institutional Construction
• Residential Construction

Scope

This report provides:

• A comprehensive analysis of the construction industry in Kenya.
• Historical and forecast valuations of the construction industry in Kenya, featuring details of key growth drivers.
• Segmentation by sector 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 GlobalData’s 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 strategy using GlobalData’s critical and actionable insight.
• Assess business risks, including cost, regulatory, and competitive pressures.
• Evaluate competitive risk and success factors.