Nearly all economic sectors grew at a slower pace last year, with some such as construction and mining, contracting. This saw the economy post a sluggish growth at 4.7 per cent in 2024 from 5.7 per cent in 2023.
Sectors such as construction, contracted by 0.7 per cent last year from a growth of three per cent in 2023, putting in doubt some of President William Ruto's pet projects including the affordable housing programme. The construction sector was last year expected to have received a boost from the housing project to create jobs but also increase consumption of products such as cement and steel. Nearly all the indicators in the sector were however on the decline.
According to the Economic Survey 2025, cement consumption dropped 7.2 per cent while employment registered a downward trend.
Credit from commercial banks to the sector also dropped to Sh528 billion last year from Sh602.7 billion in 2023. "The contraction was reflected in the decline of key inputs such as cement and iron and steel imports in the construction sector," said the survey, launched on Tuesday by the Kenya National Bureau of Statistics. "In addition, the number of residential housing units completed by the State Department for Housing (SDHUD) declined from 3,357 units in 2023 to 1,655 units in 2024." The National Treasury has significantly increased allocations to the sector with expectations that this will boost the sector and put the government's affordable housing programme back on track.
