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5 Reasons Why The Construction Industry Is Booming In Kenya

Kenya has surprised people from around the world due to its massive Construction Boom. The Kenyan construction sector is said to follow this uptrend for the upcoming years. Therefore, the construction companies in Kenya has a lot to enjoy in the forthcoming years. 

However, so much promise in a country’s growth might make you quite a sceptic, and look for the reason behind the sector’s growth. To analyze the construction boom, we bought you the factors that influence the development of the Construction Sector in Kenya. 

Indicators showing Construction Boom in Kenya

Constructions companies have to overcome a lot of challenges to reach this point. However, the construction company in Kenya is enjoying its Golden age, and here are the stats that prove the claim:

  • The construction sector contributed 5.2% of Kenya’s GDP in 2015. That makes the Construction Sector stand out. 
  • From 2015, the Construction sector sees the fastest sectoral growth ever, which is about 13.6%. 
  • The construction sector growth rate reaches 15.6% in the third quarter, in the year 2015.  

What Factors Contribute to the Growth in the Construction Sector of Kenya?

Government Help

In 2015, the Federal Government of Kenya allocated about 27% of the national budget for water, transport, environment, infrastructure, and sanitation. It allows the infrastructure sector to get around $4bn spendings per annum, so the boom in the construction sector. 

Easy Credits

The contractors can’t manage the cash flow without easy access to credits. Therefore, to fund the bidder and contractors, you need a lender that believes in the future and lends money to the Construction Company in Kenya. Due to the industry’s growth, leading to construction firms has increased by 30.1%. 

Plenty Work

The construction sector enjoys no shortage of work. The Kenyan Government is spending a lot of money on improving the infrastructure. It allows bidders to enjoy the environment of opportunities. Around 51% of projects related to energy and transport are with Kenya, making Kenya a Country with the maximum transport and infrastructure deals in the East Africa Region. 

Chinese Participation

The Chinese Financing and Contracting companies are acting as is the financer for the infrastructure industry in Kenya. A contractor such as China Road and Bridge Corporation will help the Kenyan infrastructure grow more in the upcoming year, which is investing in railway projects in Kenya.