This archive report was first published on 28 December 2019.
Kenya's construction sector, which had been showing signs of distress, has received a much-needed boost from the government's affordable housing initiative.
According to the Kenya National Bureau of Statistics' Leading Economic Indicators for December 2019, the value of buildings approved in the first half of 2019 reached Sh113.25 billion, a 12.4% increase from Sh100.76 billion during the same period in 2018.
While the value would have been higher if not for delays in approval procedures in Nairobi, the increase is a welcome trend after three years of decline.
Analysts at Cytonn Investments noted that the increase 'bucks the trend that has been witnessed over the past three years.'
As part of the affordable housing initiative, the government has started construction on several flagship projects, including Pangani Heights, which aims to deliver 500,000 residential units by 2022.
Additionally, the state department of housing unveiled a plan in October to construct 117,000 units in Nairobi's Eastlands, targeting estates such as Buru Buru, Makadara, Kimathi, Eastleigh, Mbotela, and Majengo.
