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Originally published by The Kenyan Wall Streetbusiness
September 12, 2025
2h ago
Building Approvals in Nairobi Down by More Than 50% as Material Costs Remain Elevated

Nairobi’s construction sector slowed in June 2025, with the value of building plans approved by the county government tumbling more than 50%..
✨ Key Highlights
The value of building approvals in Nairobi plummeted by over 50% in June 2025 compared to a year earlier, a sharp slowdown attributed primarily to elevated material costs. Data from the Kenya National Bureau of Statistics (KNBS) reveals a volatile period for the construction sector.
- Building approvals stood at KSh 13.7 billion in June 2025, down from KSh 29.3 billion in June 2024.
- The decline was most pronounced in the residential segment, with approvals shrinking by 56% in real terms year-on-year.
- The cost of building materials, particularly concrete, asphalt, cement, and steel, notably increased in the second quarter of 2025.
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