Kenya’s construction sector is surging again. According to the latest Kenya National Bureau of Statistics (KNBS) report, the industry expanded by 5.7% in Q2 2025, rebounding strongly from a 3.7% contraction in the same period in 2024.
This turnaround signals renewed investor confidence, rising property demand, and a stronger credit environment supporting both large-scale and private developments.
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A Surge in Building Materials and Imports
The rebound is most visible in the usage and importation of core construction materials:
| Material Type | Q2 2024 | Q2 2025 | % Change |
|---|---|---|---|
| Cement Consumption (000 MT) | 1,957.1 | 2,424.4 | +23.9% |
| Bitumen Imports (MT) | 15,566.2 | 22,659.3 | +45.6% |
| Iron & Steel Imports (MT) | 222,112.3 | 526,606.4 | +137% |
(Source: KNBS Quarterly Economic Report, 2025)
This rise reflects both private housing projects and government-driven infrastructure expansion — from the Nairobi Expressway extension to the ongoing Affordable Housing Programme (AHP).
Read Also: Contractor or Fundi? Why Your Choice Can Make or Break Your Construction Project in Kenya
Financing the Boom: Credit Expansion to Developers
Credit to the construction sector grew by 21.7%, reaching KSh 159.6 billion in June 2025, up from KSh 131.1 billion a year earlier.
Commercial banks are increasingly lending to developers, suppliers, and homebuyers — a key catalyst for the sector’s renewed energy.
According to the Central Bank of Kenya (CBK), this growth in construction loans parallels the uptick in mortgage lending, signaling broader confidence across Kenya’s property finance landscape.
The Real Estate Connection: Where the Building Boom Is Happening
Parallel to the construction surge, BuyRentKenya’s Property Price Index (2025) reports accelerated property price growth in emerging areas.
Satellite towns around Nairobi are leading the charge due to affordability and infrastructure upgrades:
| Area | Price Growth | Key Drivers |
|---|---|---|
| Tigoni | +80% (2 years) | Scenic environment, gated community demand |
| Ruiru | +30% (18 months) | Thika Superhighway access |
| Kikuyu | +25% (2 years) | Proximity to Westlands |
| Nakuru | +20% (under 2 years) | County urbanization & new roads |
| Runda | +20% (18 months) | Redevelopment and investment inflows |
(Source: BuyRentKenya Property Price Index, 2025)
These patterns align with ongoing transport corridor development — including the Eastern Bypass upgrade, Ngong Road dualling, and new urban water systems that continue to expand real estate frontiers.
Broader Economic Impact and Employment
The construction sector employs more than 1.2 million Kenyans, directly and indirectly, across manufacturing, transport, and real estate.
According to KNBS, construction’s contribution to GDP reached 6.9% in Q2 2025, up from 5.8% the previous year — cementing its role as one of Kenya’s key growth pillars.
With cement producers such as Bamburi, Savannah, and Mombasa Cement scaling production, the sector’s multiplier effect is expected to strengthen, supporting both upstream and downstream industries.
Outlook: Sustained Growth, Urban Expansion, and Investor Opportunity
The convergence of credit expansion, infrastructure rollout, and private sector activity suggests the boom is far from over.
Developers are betting on mixed-use and gated community projects, while diaspora investors are increasingly active in land purchases around Nairobi’s satellite towns.
The Affordable Housing Programme — which targets 250,000 units annually — continues to anchor demand for affordable construction inputs and design innovations such as prefabricated blocks and green cement.
Read Also: Willstone Homes: The Bedrock of Transformative Homeownership in Kenya
Real Estate Confidence on the Rise
Kenya’s building boom reflects more than a recovery — it marks the evolution of a maturing real estate ecosystem.
With construction costs stabilizing, mortgage access widening, and urban migration sustaining demand, Kenya’s property market stands at the threshold of a new growth cycle.
In case you change your mind and decide to own a home or buy land in a secure, master-planned gated community, reach out to us at Willstone Homes.
We specialize in modern gated projects, affordable plots, and tailored homeownership solutions across Kenya’s fastest-growing investment zones.
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