State housing contractors bag Sh86bn super profits
For every Sh100 levy deduction from Kenyans, Sh30 ends up in the pockets of contractors...
✨ Key Highlights
Contractors involved in Kenya's Affordable Housing Programme (AHP) are projected to earn Sh86.5 billion in profits, a figure significantly higher than international standards for taxpayer-funded projects.
- Contractors are set to make a 30% net profit on projects valued at Sh285.5 billion.
- This profit margin far exceeds the recommended 2% to 15% typical for government contracts globally.
- Developers benefit from avoiding land acquisition costs and receiving tax incentives, despite a report commissioned by the government highlighting these high profit margins.
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Kenya's Industrial Growth Slowed by Weak Infrastructure, Skills Gaps - May 2026
A new report by the Business Council for Africa reveals that Kenya's industrial growth is significantly hampered by inadequate infrastructure and a shortage of skilled labor. Despite strengths in digital finance, the nation lacks fundamental supports for manufacturing. Meanwhile, contractors involved in Kenya's Affordable Housing Programme are projected to earn Sh86.5 billion in profits, a figure significantly higher than international standards for taxpayer-funded projects. Additionally, Kenya is experiencing a fuel crisis, with the Ministry of Energy and Petroleum attributing supply disruptions to technical and administrative issues while defending the decision to reintroduce higher-sulphur fuel.
