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The Construction Industry in Kenya
BY Carole Veitch
Kenya
15 September 2020
R 14 400.00 (ZAR)  
estimated $ 866.15 (USD) *
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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.


Foreign Players


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.


Industry Performance


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.


Report Coverage


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.


Page
1. INTRODUCTION 1
2. COUNTRY PROFILE 1
2.1. Geographic Position 2
3. DESCRIPTION OF THE INDUSTRY 4
3.1. Industry Value Chain 5
4. SIZE OF THE INDUSTRY 6
5. STATE OF THE INDUSTRY 7
5.1. Local 7
5.1.1. Corporate Actions 12
5.1.2. Regulations 12
5.2. Continental 14
5.3. International 18
6. INFLUENCING FACTORS 21
6.1. Economic Environment 21
6.2. Socio-Political and Socio-Economic Environment 22
6.3. Infrastructure Development 23
6.4. Urbanisation 24
6.5. Local Content 25
6.6. Corruption 25
6.7. Construction Equipment and Materials: Capacity, Quality and Security of Supply 26
6.8. Input Costs 27
6.9. Cyclicality 28
6.10. Health and Safety Concerns 28
6.11. Technology, Research and Development (R&D) and Innovation 29
6.12. Labour 31
6.13. Environmental Concerns 33
7. COMPETITION 34
7.1. Barriers to Entry 35
8. SWOT ANALYSIS 36
9. OUTLOOK 37
10. INDUSTRY ASSOCIATIONS 38
11. REFERENCES 38
11.1. Publications 38
11.2. Websites 39
APPENDIX 1 41
Summary of Notable Indigenous and Foreign Players 41
APPENDIX 2 50
The 2019 Global Competitiveness Index: Kenya 50
COMPANY PROFILES 53
CEMENTERS LTD 53
CHINA JIANGXI INTERNATIONAL KENYA LTD 55
CHINA OVERSEAS ENGINEERING GROUP COMPANY LTD 57
CHINA WU YI COMPANY LTD 59
CHINA ZHONGXING CONSTRUCTION COMPANY LTD 61
ECO-HOMES LTD 62
EPCO BUILDERS LTD 63
FUBECO (CHINA FUSHUN) LTD 65
HAYER BISHAN SINGH & SONS LTD 67
INTEX CONSTRUCTION LTD 69
KENYA RAILWAYS CORPORATION 71
KOTO HOUSING KENYA LTD 74
LANDMARK HOLDINGS LTD 76
LAXMANBHAI CONSTRUCTION LTD 78
LEE CONSTRUCTION LTD 80
MEINHARDT (SINGAPORE) PTE LTD 82
MOHA KENYA LTD 84
MULJI DEVRAJ & BROTHERS LTD 86
NATIONAL HOUSING CORPOATION 88
NJUCA CONSOLIDATED COMPANY LTD 91
ORIENTAL CONSTRUCTION KENYA LTD 93
PARBAT SIYANI CONSTRUCTION LTD 95
PRISM CONSTRUCTION COMPANY LTD 97
STAMFORD LTD 99
TRANSCENTURY PLC 100
VICTORY CONSTRUCTION COMPANY LTD 104