Peter Kibugi, founder and Managing Director of Crystal Pearl Real Estate/HANDOUT
Walk through almost any rapidly growing Kenyan town and you will see the same picture: new apartment blocks rising, residential developments taking shape, commercial buildings changing skylines and roads being expanded to accommodate growing populations.
Kenya is building. But the more important question is: how efficiently, affordably and sustainably are we building? Construction remains one of the most important engines of Kenya’s economy, supporting employment, manufacturing, real estate, transport and numerous other industries.
The sector also rebounded strongly in 2025, growing by 6.8 per cent after contracting by 0.7 per cent in 2024. (Kenya National Bureau of Statistics) Yet behind the cranes and concrete is an industry facing persistent challenges that affect everyone , from the developer constructing a multi-million-shilling apartment complex to the Kenyan trying to build a modest family home.
The first challenge is cost.
Construction has become an expensive undertaking, and the cost of materials remains one of the biggest pressures facing developers and homeowners.
According to the Kenya National Bureau of Statistics, the overall Construction Input Price Index increased from 119.05 in the first quarter of 2025 to 119.75 in the second quarter.
Material costs were a significant contributor, with concrete and asphalt, cement, and steel and reinforcement bars recording increases during the period. (Kenya National Bureau of Statistics) These increases may appear small when expressed as percentages, but construction operates at scale.
A few percentage points added to cement, steel or concrete can translate into millions of shillings on a large development. And construction costs do not exist in isolation.
Financing costs, transportation, land prices, professional fees, statutory charges and unexpected project delays all contribute to the final price of a building. This raises an uncomfortable question: are we designing buildings based on what Kenyans need, or are we designing them based on a construction system that is inherently expensive?
The second challenge is the approval process.
Before a building can rise from the ground, developers must navigate a network of planning, environmental, engineering and other statutory requirements.
Regulation is necessary; buildings must be safe, properly planned and compliant with the law. The problem arises when necessary regulation becomes an unnecessarily slow or unpredictable process. Industry professionals have repeatedly raised concerns about delays in development approvals in Nairobi.
In May 2025, the Institution of Engineers of Kenya called for reforms to improve the efficiency and predictability of the county’s development approval system. (Kenya News) The issue is not simply administrative inconvenience.
Time is money in construction.
A project sitting idle while waiting for approvals still has financing costs. Land remains tied up. Contractors and consultants may have to be retained or remobilised.
Material prices may change. Market conditions can shift. When approvals take longer than expected, the eventual cost can be significantly different from the original feasibility study.
Digital permitting presents an opportunity here. According to the Architectural Association of Kenya’s 2025 Status of the Built Environment report, only eight counties had online development permitting systems in 2025, while digital systems were associated with shorter processing periods than manual systems. (AAK) Kenya does not necessarily need less regulation. It needs better regulation , regulation that protects the public while making the process transparent, predictable and efficient. Another major challenge is poor project planning.
Construction projects are complex systems. Architects, engineers, quantity surveyors, contractors, subcontractors, suppliers, regulators, financiers and clients all have different responsibilities. When these parties are not properly coordinated, the consequences can include delays, variations, disputes, rework and cost overruns. Sometimes the problem begins before construction even starts.
A developer may commence a project without sufficiently understanding the site conditions, soil characteristics, market demand, material requirements or realistic construction timeline. A client may change the design halfway through construction. Materials may be ordered late. Contractors may work from outdated drawings.
Different professionals may make decisions without adequate coordination. The result is predictable: a project that was supposed to cost and take one amount ends up costing and taking considerably more. This is where professional project management becomes critical , not as an additional expense, but as a mechanism for controlling the expenses that arise when nobody is coordinating the entire project. Quality and workmanship are another concern.
A building is not simply a collection of materials. Its safety depends on the quality of its design, materials, workmanship, supervision and compliance with approved standards. Kenya has continued to experience concerns around unapproved developments, poor workmanship and inadequate enforcement.
The Architectural Association of Kenya’s 2025 report highlighted weaknesses in development control and building inspection, illustrating the gap that can exist between regulations on paper and enforcement on the ground. (AAK) This is particularly dangerous because construction mistakes are not always immediately visible. A poorly compacted foundation, inadequate reinforcement, substandard materials or improper concrete work may remain hidden until a building develops serious defects or, in the worst cases, fails.
The answer cannot simply be more regulations. Kenya needs stronger enforcement, greater professional accountability and a construction culture that treats quality as a fundamental requirement rather than an optional cost. There is also the question of technology. Much of Kenya’s construction industry still relies heavily on conventional construction methods.
These methods have their place, but the country needs to seriously explore modern methods of construction that can improve productivity, reduce waste and shorten construction timelines. Prefabrication, modular construction, precast systems, Building Information Modelling, improved project-management software and locally appropriate alternative building materials could transform how Kenya builds. This is particularly important as urbanisation continues and demand for housing grows.
We cannot solve a large housing problem using systems that are slow, wasteful and increasingly expensive. Finally, there is a deeper structural issue: the fragmentation of the construction industry. Kenya has architects, engineers, quantity surveyors, contractors, developers, manufacturers, suppliers and regulators with considerable expertise.
But expertise alone does not guarantee a well-functioning construction ecosystem. The future of Kenyan construction will depend on how effectively these different parts of the industry work together. We need stronger collaboration between government and industry. We need faster and more transparent approval systems.
We need better project planning and management. We need greater adoption of technology. We need stronger enforcement of building standards. And we need to rethink how we source, manufacture and use construction materials.
Most importantly, we need to move from thinking about construction as simply putting up buildings to thinking about it as building an economic system. Every apartment block creates demand for cement, steel, glass, electrical equipment, plumbing products, transport and professional services.
Every infrastructure project creates jobs and stimulates economic activity. Every locally manufactured construction input creates an opportunity for industrialisation.
Therefore, improving Kenya’s construction industry is not merely about making buildings cheaper. It is about making the entire process of building Kenya more productive. The country does not have a shortage of ambition.
We have a growing population, expanding cities and an enormous demand for housing and infrastructure.
The challenge is ensuring that the way we build can keep pace with the Kenya we aspire to become. We do not simply need to build more. We need to build better.
The writer is the founder and Managing Director of Crystal Pearl Real Estate
