Kenyans Employed In Construction Sector Increase As Gov't Spends KSh 92.5b On Housing

• The construction sector in Kenya experienced a growth of 3.0% in 2023, a slight decrease from the 4.1% growth observed in 2022
• The growth in the construction sector was largely driven by increased government spending, particularly on the Affordable Housing Program
• Employment in the construction sector increased by 1.9%, rising from 231.7 thousand individuals in 2022 to 236.0 thousand in 2023

Elijah Ntongai, a journalist at TUKO.co.ke, has more than three years of financial, business, and technology research expertise, providing insights into Kenyan and global trends.

The Kenya National Bureau of Statistics released the 2024 Economic Survey, revealing the state of the construction industry in Kenya.

According to the report, cement production decreased from 9,791.4 thousand tonnes in 2022 to 9,616.0 thousand tonnes in 2023.

Growth in construction sector

On the other hand, the construction sector registered a growth of 3.0% in 2023 compared to a growth of 4.1% in 2022.

The growth in the construction industry was mainly driven by government expenditures on the Affordable Housing Program (AHP) across the country, road maintenance by the Kenya Roads Board, and loans advanced by commercial banks to the construction sector.

"Growth in the construction sector was supported in part by increase in government expenditure on roads and the number of residential buildings completed by the State Department for Housing and Urban Development (SDHUD)" read the report by KNBS.

Employment levels in construction

Due to increased construction projects, particularly by the government, the employment level in the construction sector increased by 1.9%, from 231.7 thousand in 2022 to 236.0 thousand persons in 2023.

The government increased spending on roads, increasing the total length of bitumen (paved) roads in Kenya to 23.0 thousand kilometres from 22.4 thousand kilometres recorded in 2022.

Under the affordable housing projects, the State Department for Housing completed 3,357 housing units in 2023, compared to 1,390 housing units completed in 2022.

Government expenditure on housing reached KSh 92.5 billion in 2023/24 FY, an increase from KSh 9.1 billion in 2022/23.

Jobs in affordable housing programme

As previously reported by TUKO.co.ke, President William Ruto noted that the programme has been significant, creating more than 120,000 jobs for Kenyans in the past eight months.

He was speaking during the International Trade Union Congress (ITUC) Africa Conference on Tuesday, November 28.

Proofreading by Nyambura Guthua, journalist and copy editor at TUKO.co.ke

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Construction workers working on state houses in Kenya.

Kenyans Employed in Construction Sector Increase as Gov't Spends KSh 92

Cost of Construction in Kenya Drops as Cement, Steel Prices Retreat on