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The Construction Industry in Kenya
The Kenyan construction industry contributed 5.6% to GDP in 2019 and provided employment to almost 222,000 people. With economic growth averaging over 5% per annum over the past ten years and oil production underway, the Kenyan government was on the cusp of rolling out an expansive infrastructure development programme comprising 80 public-private partnership projects. Since the outbreak of coronavirus, government’s infrastructure development plan hangs in the balance.
Kenya is largely reliant on external funding for public infrastructure projects and as at 1 June 2019, China accounted for 20.9% of East African project funding, with government funding at 13.7%, international finance institutions 13.2% and regional development finance institutions 12.6%. In the past decade, over 70% of Kenya’s large public sector infrastructure projects have been awarded to Chinese civil engineering and construction companies.
Construction activity has slowed since 2015, when the sector expanded by 13.6%, with the slowdown attributed to the winding down of construction work on the standard gauge railway. Projects underway include the second phase of Mombasa’s second container terminal and the Kipevu oil terminal. In 2019, the construction sector was largely supported by the construction of private residential and non-residential buildings.
This report focuses on the construction industry in Kenya and includes comprehensive information on the state and size of the sector, country information, notable developments and corporate actions and various influencing factors. There are profiles of 20 companies including Chinese companies that dominate the civil construction market such as China Wu Yi, Fubeco (China Fushun) and China Jiangxi Corporation. Local companies profiled include Hayer Bishan Singh & Sons, which is part of the Hayer Group, Intex Construction, Laxmanbhai Construction, Parbat Siyani Construction, Landmark Holdings and Cementers.