Local firms eye Sh3.4 trillion construction pipeline as sector grows 6.8 per cent

Visitors engage with an exhibitor showcasing construction-related products and technology during a trade exhibition, as industry players explore solutions for Kenya’s growing construction sector. [Courtesy]

Kenya’s construction sector grew by 6.8 per cent in 2025 after contracting by 0.7 per cent in 2024, with a reported Sh3.4 trillion pipeline of projects pointing to potential opportunities for local businesses.

The growth, reported in the Kenya National Bureau of Statistics (KNBS) Economic Survey 2026, came as the country’s economy expanded by 4.6 per cent in 2025, down from 4.7 per cent in 2024.

Kenya accounts for 64.4 per cent of East Africa’s identified construction project value, according to Construct Africa, placing the country at the centre of the region’s planned construction activity.

The reported $26 billion pipeline could create demand for construction materials, machinery, building technologies and specialist services.

Local contractors, manufacturers and suppliers stand to benefit if the proposed developments secure financing and advance to implementation.

However, the pipeline value does not establish how much investment has secured funding or moved into construction. Proposed projects do not automatically translate into contracts, completed developments or business for local suppliers.

The sector’s ability to sustain growth will also depend on project financing, construction costs, timely implementation and the capacity of local firms to meet technical requirements.

These opportunities will be among the issues explored at the ninth edition of Big 5 Construct Kenya, scheduled for October 21 to 23, 2026, at the Sarit Expo Centre in Nairobi.

The event is expected to attract more than 150 exhibitors from over 25 countries, including construction equipment manufacturer Liebherr, building chemicals company MC-Bauchemie, construction software provider RIB Software, Henkel Kenya, King Tiles and Kohler East Africa.

The exhibition will connect contractors, developers, architects, engineers and suppliers with manufacturers and service providers showcasing products and technologies for the construction industry.

“Kenya’s substantial project pipeline is creating demand for a broad range of products, expertise and specialist services, opening opportunities for companies looking to expand their presence in East Africa,” said Josine Heijmans, senior vice president at dmg events, the exhibition organiser.

The programme will include the Big 5 Impact Trail and more than 25 sessions covering architecture and design, project management, construction technology, sustainability and contracting.

Representatives from the Ministry of Roads and Transport, the National Construction Authority (NCA) and the Architectural Association of Kenya (AAK) are expected to participate in the sessions.

The discussions will examine developments in the built environment and the expertise required to deliver construction projects.

Kenya’s Vision 2030 development programme identifies infrastructure and housing as important areas of investment, creating a policy framework for continued construction activity.

The scale of the reported project pipeline, however, will translate into sustained business opportunities only as projects progress towards implementation.