This archive report was first published on 12 May 2020.
Published on May 12, 2020, a study by Deloitte warned of major disruptions in Kenya's construction and real estate sector, which combined contribute about Sh1.2 trillion, or 12.4 percent of the country's GDP.
The study, dubbed 'Economic impact of the COVID-19 pandemic on East African economies,' expects the public housing project to be impacted as the government pulls together funds to deal with the scourge and respond to emergency interventions.
According to the study, further ramifications on the construction and real estate sectors include a decline in project financing due to lenders' uncertainty surrounding the completion of projects.
Government infrastructural projects are also expected to stall due to a shortfall in revenue collections of USD 658m as the government expands spending on the health sector to combat the virus.
The study also expects the virus to dampen uptake of houses due to financial uncertainty.
As the government channels more resources towards curtailing the spread of the coronavirus, the Big 4 Agenda is expected to be sacrificed, with the government having to slash its budget to Sh127.3 billion in the year starting July 1, from Sh450.9 billion in the current period.
