Kenya's Construction Indicators Point Upward as Cement Consumption, Project Approvals Rise

Two of the most closely watched indicators of construction activity, cement demand and building approvals, show continued growth in the first half of 2026, according to recent data from the Kenya National Bureau of Statistics (KNBS).

• Cumulative cement production reached 5.54 million metric tonnes from January to June, compared with 4.86 million metric tonnes during the corresponding period in 2025, while consumption similarly increased to 5.46 million metric tonnes during the first half of the year.
• The data shows that the total value of building plans approved in Nairobi stood at KSh 18.5 billion in May 2026, up from KSh 14.7 billion in February.
• Residential developments dominate approvals, accounting for the majority of planned investments, as developers pursue new investments despite elevated construction costs and broader economic uncertainties.

Cement production slowed from 938,136 metric tonnes in May to 911,141 metric tonnes in June, while consumption fell from 929,328 metric tonnes to 893,447 metric tonnes over the same period. Despite this monthly dip, overall performance remained significantly higher than levels recorded during the first half of 2025.

In 2025, cement production reached 10.44 million metric tonnes, an increase of approximately 18 percent from the 8.85 million metric tonnes produced in 2024, while consumption also rose strongly to 10.28 million metric tonnes, up from 8.54 million metric tonnes in the previous year. Throughout the year, monthly production consistently exceeded 800,000 metric tonnes, with several months approaching or surpassing the 950,000-tonne mark.

The growth is being driven by increased investment in housing developments, commercial projects, road construction and ongoing public infrastructure programmes. 

Nairobi’s building approvals are still above historical averages, pointing to a healthy pipeline of future developments. In May 2026, residential approvals were valued at KSh 14.7 billion, representing nearly 80 percent of all approved developments during the month, while non-residential projects accounted for KSh 3.8 billion.

January recorded the highest approvals value of 2026 at KSh 25.7 billion, supported by residential projects worth KSh 8.2 billion and a significant surge in non-residential developments valued at KSh 17.5 billion. Total approvals subsequently moderated to KSh 14.7 billion in February, before recovering to KSh 22.0 billion in March and KSh 20.1 billion in April.

In 2025, approvals peaked at KSh 40.5 billion in December and KSh 34.6 billion in March.