The construction sector contracted for the first time in eleven years, where its output fell by 2.9 percent in the quarter ended June 2024 is worrying, and calls for measures to incentivize it. Construction sector drives socio-economic growth globally, hence Kenya Vision 2030 development blueprint, which aims to transform Kenya into a newly industrializing, “middle-income country providing a high-quality life to all its citizens by 2030”, recognizes the role of the sector towards achieving an annual Gross Domestic Product of 10 percent by 2030. The sector has a high potential of employment creation; provides stimulus for growth of the agricultural sector and offers significant opportunities for export expansion. The enabling infrastructure as part of Kenya vision 2030 has supported rapid growth of the sector. The construction sector deals with building of new houses, apartments, factories, offices, schools, building of roads, bridges, ports, railroads, sewers and tunnels, among many others, including repairs and maintenance.
According to the 2024 Economic Survey by the Kenya National Bureau of Statics, the State Department for Housing developed 3,357 housing units in 2023 compared to 1,390 housing units completed in 2022, and the Government Expenditure on Housing was KSh 92.5 billion in 2023/24 FY, an increase from KSh 9.1 billion in 2022/23. The housing sector can do better through development of the housing infrastructure (access roads, foot paths, drainage, trunk sewer and water lines, waste management facilities, land banking, street and security lighting) by the public sector to create enabling environment for developers to do actual housing. Employment level in construction sector increased by 1.9 per cent, from 231.7 thousand in 2022 to 236.0 thousand persons in 2023. 23,000 kilometres of roads were constructed hence the total length of bitumen (paved) roads in 2023 increased from 22,400 kilometres recorded in 2022. Cement consumption decreased by 3.1 percent to 9.2 million tonnes in 2023.
Challenges facing the sector includes cost overruns, delays, slow adaptation of emerging technologies; inadequate communication; labour shortage especially skilled labour; poor planning, scheduling, organizational, documentation, forecasting and budgeting and cash flow problems. Solutions for these challenges could include: embracing new technology; develop talent pipeline; increase transparency; optimize the supply chain through working with multiple players, better inventory management and systems and investing in local sourcing; focusing on safety through investing in safety training programs, provide protective equipment, and develop safety protocols to prevent accidents and injuries on the job site; foster collaborations and partnerships share resources (including greater use of Public Private Partnerships -PPPs, joint ventures), expertise, and knowledge to develop more effective solutions to the challenges they face. Dr Giti is an urban management, public – private partnerships (PPP) and environment specialist. mutegigiti@gmail.com , @danielgiti
Dr. Daniel Mutegi Giti 