Kenya’s construction sector is set to record an upward growth momentum this year as the government is working to provide and implement investor-friendly reforms and large scale infrastructure projects that will boost regional and economic diversification.
In a recent report by Deloitte, the sector is expected to record a 6.3 per cent before the end of the year despite the covid19 pandemic hardships.
The construction industry is a major contributor to Gross Domestic Product (GDP) in the Kenyan economy and plays a leading role in determining economic growth. In the past five years, the sector has provided over 200 000 jobs annually in the private and public sectors and contributed about 6 percent to GDP.
According to the report, the sector recorded a 7.8 percent average year-on-year growth, but when the Covid19 pandemic struck, it declined to 1.3 percent in 2020 as investor withheld their finances for fear of the unknown.
During the pandemic period, the residential and commercial construction subsectors were hard hit, whereas the public infrastructure construction sub-sector struggled to maintain the growth momentum, supported by the public spending.
During these challenging times, developers are expected to explore more investment opportunities in healthcare, industrial, and data centre segments that have shown resilience in the Covid-19 environment.
Key impediments witnessed in 2020 included supply bottlenecks, reduction in labour and constraints on financing.
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