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%..
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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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Kenyan Economic Reports Reveal Mixed Performance and Widespread Hardship - September 2025
A recent TIFA survey reveals widespread economic hardship in Kenya, with most families experiencing falling incomes and surviving on KSh 20,000 or less. The construction sector has seen a sharp slowdown, with the value of building approvals in Nairobi plummeting by over 50% in June 2025 compared to a year earlier due to elevated material costs. In corporate results, Rubis Kenya's first-half sales for 2025 dropped by 7% to KSh 69.1 billion, though the company freed up liquidity by redeeming KSh 5.3 billion in fuel subsidy papers. In contrast, there was strong investor demand for government securities, as the 364-day Treasury Bill was heavily oversubscribed for a second consecutive week.
