Kenya Launches 2024 Built Environment Report, Highlights Growth and Challenges in Construction Industry
Kenya’s Ministry of Infrastructure has released its annual Status of the Built Environment Report 2024, offering an in-depth look into the country’s construction sector.
Speaking on Thursday during the launch of the AAK report,AAK president, Florence Nyole noted that for the first time, the report includes data from county governments, the National Construction Authority (NCA), and public sentiment through a Citizens Report shedding light on the state of infrastructure and construction across Kenya.
She stated that the Key highlights of the report show a substantial increase in construction activity, with projects totaling 309 billion Kenyan shillings approved in 2024, reflecting an 11.5 percent increase from the previous year.
“Nairobi, the capital, accounted for 297 billion shillings in approved projects, generating approximately 1.6 billion shillings in approval fees,” she said,noting that the challenges are persisting, particularly in Kiambu, where manual approval systems have slowed down progress and Kisumu which has seen a revival in approvals after overcoming a multi-year land-use planning delay.
Nyole said that the report examines the cost of construction materials, noting the increase in prices for inputs such as cement and fuel are contributing to escalating project costs.
At the same time,she noted a concern in inefficiency of approval processes in some counties, with Nairobi’s new permitting system experiencing delays due to cumbersome cross-referencing between various departments.
“The report calls for streamlined procedures to reduce bottlenecks and prevent corruption, encouraging faster approvals to boost revenue and reduce backlogs,” she said.
Additionally,she stated that the report emphasizes the need for digital transformation in county governments while some counties like Mombasa and Kiambu have successfully implemented e-permitting systems and other counties are still relying on manual processes, hindering overall efficiency and data collection.
“Looking ahead, the report stresses the role of artificial intelligence (AI) and technology in revolutionizing the construction sector,” she stated,adding that AI could improve project management, safety and site monitoring while technologies like 3D printing and mass timber could significantly reduce construction time and costs helping the government meet its ambitious goal of building 2 million affordable housing units.
At the same time She has announced a call to action for government leadership in digitizing approval systems and embracing technological innovation to build a more efficient, sustainable, and affordable construction industry in Kenya.
