The analyst expects the construction industry in Kenya to expand by 2.9% in real terms in 2025, supported by investments in transport, renewable energy and housing. According to the Kenya National Bureau of Statistics (KNBS), construction industry value-add grew by 5.7% year on year (YoY) in Q2 2025, preceded by YoY growth of 3% in Q1 2025 and 2.9% in Q4 2024. According to the Central Bank of Kenya, total domestic credit to the construction industry grew by 17.6% YoY in the first eight months of 2025. In October 2025, Kenyan President William Ruto started the construction of the China-Kenya International Commerce Center in Nairobi. With an expected investment of KES5 billion ($38.7 million), the project aims to enhance trade and investment between China and Kenya. The project involves the development of the mixed-use center on an area of 68,000m2, comprising an exhibition and trade center, a five-star hotel, and modern facilities.
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, coupled with investment in energy 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. In October 2025, Kenya’s President announced plans to construct 50 mega dams across the country to address food insecurity, reduce reliance on food imports and increase electricity generation, coupled with aims to create employment opportunities in the country. The total estimated costs for these dams are KES1.7 trillion ($11.6 billion). The government plans to fund this program through a new National Infrastructure Fund, involving the national budget, private sector contributions, and proceeds from privatization. In October 2025, Kenya's President Ruto announced plans to invest KES4.6 trillion ($31 billion) to develop the country’s infrastructure over the next decade. Accordingly, the funds will be pooled from the the government budget, state asset sales, and private sector to construct new railways, roads and power projects across the country.
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, coupled with investment in energy 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. In October 2025, Kenya’s President announced plans to construct 50 mega dams across the country to address food insecurity, reduce reliance on food imports and increase electricity generation, coupled with aims to create employment opportunities in the country. The total estimated costs for these dams are KES1.7 trillion ($11.6 billion). The government plans to fund this program through a new National Infrastructure Fund, involving the national budget, private sector contributions, and proceeds from privatization. In October 2025, Kenya's President Ruto announced plans to invest KES4.6 trillion ($31 billion) to develop the country’s infrastructure over the next decade. Accordingly, the funds will be pooled from the the government budget, state asset sales, and private sector to construct new railways, roads and power projects across the country.
The Construction in Kenya - Country Briefing (H2 2025) report provides detailed market analysis, information, and insights into Kenya's construction industry, including:
- Kenya's construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Kenya's construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Report Scope
This report provides a comprehensive analysis of the construction industry in Kenya. It provides:
- 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
Table of Contents
1. Executive Summary2. Construction Industry: At-a-Glance3. Latest news and developments4. Project analytics5. Construction Market Data6. Risk Profile
7. Appendix
List of Tables
List of Figures
