This archive report was first published on 15 August 2019.
Kenya's economy reported a similar upward growth margin of 6.3% in 2018, yet the construction sector's growth rate slowed down to 6.3% from 8.5% the previous year.
Interestingly, the sector's funding from commercial banks increased by 1.8% from Sh112 billion in 2017 to Sh114 billion in 2018, with loan books recording a slight growth.
However, the slow rate of growth was especially witnessed in the value of building plans approved last year, which recorded a 12.7% decrease from Sh240 billion in 2017 to Sh210 billion in 2018, according to the Economic Survey 2019 report released on August 15, 2019.
Despite the downward trend, the use of materials, number of workers, and wages paid to those in the building sector recorded an upward trajectory, with wage employment growing by 2.2% from 167,000 persons in 2017 to 171,000 persons in 2018, and cement consumption increasing marginally by 1.6% to five million tonnes in 2018.
“Wage employment in the sector grew by 2.2 per cent from 167,000 persons in 2017 to 171,000 persons in 2018. Cement consumption increased marginally by 1.6 per cent to five million tonnes in 2018 … while labour cost increased by 5.3 per cent,” said the report.
