The analyst expects the construction industry in Kenya to expand by 5.1% in real terms in 2026, supported by investments in renewable energy and an ease in inflation rates. According to the Kenya National Bureau of Statistics (KNBS), the inflation rate fell to 4.3% in February 2026, compared to 4.4% in January 2026 and 4.5% in December 2025. The industry will also be boosted by the sharp increase in construction loans in 2025. According to the Central Bank of Kenya, the average domestic credit to the construction industry grew by 27.1% in 2025, rising from KES131.9 billion ($970 million) in 2024 to KES167.7 billion ($1.2 billion). Moreover, total remittances in US dollar terms grew by 1.8% YoY in the first two months of 2026, following an increase of 1.9% in 2025. To strengthen infrastructure delivery, the government, in March 2026, announced a Nairobi city development plan valued at KES80 billion ($588.6 million), with the allocation intended to accelerate the pace of infrastructure construction across the region. The funding is expected to support priority works and enable faster implementation of key projects, thereby improving overall delivery timelines and capacity.
Over the remainder of the forecast period, the construction industry is expected to register an average annual growth of 5.5% between 2027 and 2030, supported by government investments in road and transport infrastructure. Growth will also be boosted by continued investments in the energy sector, which align with the country’s target of achieving 100% renewable energy by 2030. The government is also prioritizing the expansion of national grid capacity from 2.9GW in 2024 to 100GW by 2040. In support of these objectives, in March 2026 the government announced a new energy initiative valued at KES394.2 billion ($2.9 billion), which sets out a phased approach to capacity growth and associated infrastructure delivery.
Over the remainder of the forecast period, the construction industry is expected to register an average annual growth of 5.5% between 2027 and 2030, supported by government investments in road and transport infrastructure. Growth will also be boosted by continued investments in the energy sector, which align with the country’s target of achieving 100% renewable energy by 2030. The government is also prioritizing the expansion of national grid capacity from 2.9GW in 2024 to 100GW by 2040. In support of these objectives, in March 2026 the government announced a new energy initiative valued at KES394.2 billion ($2.9 billion), which sets out a phased approach to capacity growth and associated infrastructure delivery.
The Construction in Kenya - Country Briefing (H1 2026) 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.
Scope
This report provides a comprehensive analysis of the construction industry in Kenya. It provides:
- Historical (2021-2025) and forecast (2026-2030) 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
