According to ConsTrack360's Q2 2021 Global Construction Survey, Construction Industry in Kenya Recording a CAGR of 7.8% During 2021-2025 | Trend Analyses | Market Size & Forecast | Emerging Trends, Market Opportunities, and Investment Risks

The construction industry is primarily driven by infrastructure projects in Kenya. The country recorded a strong growth in 2019 on account of both domestic and foreign investment in key infrastructure projects across the country. However, owing to the effects of the global pandemic, the industry recorded a slower than expected growth in 2020.

The coronavirus outbreak has dampened the growth of the construction industry in 2020. However, increased spending from the government on various infrastructure projects such as rail, road, and port will support the recovery of the market in 2021. Moreover, investment from the private sector in the hospitality sector will also support the industry in 2021.

The slowdown in economic activities is also reflected in the Gross Domestic Product (GDP) of the country. The real GDP growth of the Kenyan economy is expected to contract from 5.4% in 2019 to 1.1% in 2020. Over the coming quarters, the real GDP of the country is expected to rebound and pick up to 5-6% in 2021. The growing consumer class and improved economic conditions in the second half of 2020 will provide support for the recovery of the construction industry in 2021. However, demand for new developments in Kenya is limited owing to high cost of building materials and bank credit.

The economic impact created due to the spread of the coronavirus outbreak is also felt in the residential construction sector. With reduced personal incomes, the demand for residential construction has dipped considerably in the country. Having said that, the Government of Kenya announced its plans for affordable housing in 2018. The plan included building 50,000 affordable houses in the country over five years to address the housing deficit in Kenya. For the realization of the project, the Government of Kenya is also looking for private partnerships.

International brands such as Best Western, Pullman, Hilton, Starwood Hotels, Carlson Rezidor, and Resorts Worldwide are either already present in the market or are looking for market entry. These brands are keen on expanding the capacity as well as providing conference facilities to meet growing business needs.

The ongoing expansion projects in port, rail, and road networks are driving the growth of the infrastructure sector in Kenya. The country will require an additional investment over the next decade to gap down on the infrastructure deficit.

Several regional initiatives including the Lamu Port-South Sudan-Ethiopia Transport Corridor (LAPSSET), the US$23 billion transport corridor, will also support infrastructure construction growth in the country. Under the LAPSSET project, highway construction from Lamu to Garsen will also support the construction industry in 2021.

The country is also expected to re-introduce toll-roads in Kenya with participation from the private sector. One of the toll-roads that are currently undergoing construction includes the 27 kilometers JKIA to Westland four-lane expressway. It involves a total investment of US$650 million. Under the PPP plans, additional construction of five major roads has been planned.

With passenger traffic growing in Kenya, several airports in the country are planning to expand their capacity to handle more passengers. For instance, the country is planning to build a second runway at the JKIA airport and has also received funding of US$160 million from the African Development Bank. Other ongoing airport construction projects include the expansion of the Malindi Airport with a total investment of US$54 million. Moreover, development of side pavements and improvement of water supply and power at the Moi International Airport has received investment of US$66 million. Ongoing improvements at the Lamu, Isiolo, and Manda Island Airport are also likely to support the recovery of the construction sector in 2021.

Kenya is planning to build a light commuter rail network linking the Nairobi suburbs with the central business districts. The project will be implemented as a PPP and will involve a total investment of US$300 million. Thus, the outlook for infrastructure construction remains positive for the next year.

According to ConsTrack360's Q2 2021 Global Construction Survey, construction industry in Kenya is expected to grow by 10.0% to reach US$ 7706.9 million in 2021. Despite near-term challenges in certain construction sectors, medium to long term growth story in Kenya remains intact. The construction industry in Kenya is expected to grow steadily over the next four quarters. The growth momentum is expected to continue over the forecast period, recording a CAGR of 7.8% during 2021-2025. The construction output in the country is expected to reach US$ 10393.5 million by 2025.

This report from ConsTrack360 provides data and trend analyses on construction industry in Kenya, with over 100 KPIs. This is a data-centric report and it provides trend analyses with over 140+ charts and 110+ tables. It details market size & forecast, emerging trends, market opportunities, and investment risks in over 40 segments in residential, commercial, industrial, institutional, and infrastructure construction sectors.

It provides a comprehensive understanding of construction industry sectors in both value and volume (both by activity and units) terms. The report focuses on combining industry dynamics with macro-economic scenario and changing consumer behavior to offer a 360-degree view of the opportunities and risks.

Scope
• Market Data and Insights: This report provides market size and forecast across 40+ construction segments for a period of 10 years from 2016-2025 in Kenya. KPIs covered include the following:
• Market size by value
• Market size by volume of construction
• Number of units

• Kenya Residential Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
• Housing type (multi family, single family)
• Key cities (Tier – 1, Tier – 2, Tier – 3 segmentation)
• Price point / income level (luxury, mid-tier, affordable)
• Construction stage (new construction, re-development & maintenance)

• Kenya Residential Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
• Green building by Housing type (multi family, single family)
• Green building by Key cities (Tier – 1, Tier – 2, Tier – 3 segmentation)
• Green building by Price point / income level (luxury, mid-tier, affordable)

• Kenya Commercial Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
• Office (further broken down by Grade A, Grade B, and Grade C)
• Retail (further broken down by Grade A, Grade B, and Grade C)
• Hospitality (further broken down by Grade A, Grade B, and Grade C)
• Restaurant (further broken down by Grade A, Grade B, and Grade C)
• Entertainment
• Sports facility
• Construction stage (new construction, re-development & maintenance)

• Kenya Commercial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
• Office green building construction
• Retail green building construction
• Hospitality green building construction
• Restaurant green building construction
• Entertainment green building construction
• Sports facility green building construction
• Other commercial green building construction

• Kenya Industrial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units)

• Kenya Institutional Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
• Healthcare construction
• Educational construction
• Public sector
• construction stage (new construction, re-development & maintenance)

• Kenya Institutional Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
• Healthcare green building construction
• Educational green building construction

• Kenya Infrastructure Construction Sectors: 10- year market size & forecast in value terms by
• Marine and inland water infrastructure
• Utility system construction (oil and gas infrastructure, communication infrastructure, power infrastructure, water and sewer infrastructure)
• Transportation infrastructure (highway, street and bridge construction, railway construction, airport construction, and tunnel construction)
• Construction stage (new construction, re-development & maintenance)

• Kenya Green Infrastructure Construction: 10- year market size & forecast in value terms

To get detailed insights and FREE sample report please click here @ https://www.constrack360.com/reportstore/view/Kenya-Construction-Industry-Databook-Series-4037

Reasons to Purchase
• In-depth Understanding of Construction Market Dynamics: Understand market opportunity, industry dynamics, key trends and drivers across 40+ market segments and sub-segments of building and infrastructure construction industry in Kenya.

• Volume and Value Data: Get detailed understanding of the market both from value and volume (both by activity and units) perspective for historical as well as forecast period

• Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate your strategy; assess market specific key trends, drivers and risks in construction industry.

• City Level Insights: Get city level trend analyses by tier-1, tier-2, and tier-3 cities.

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With over 100,000 data points and 300+ reports, we help clients gain actionable insights across 50 countries, which directly impact revenues. For more information, please visit our website www.constrack360.com or email us at info@constrack360.com

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