NAIROBI, Kenya, Jan 20 – The value of building approvals in Nairobi fell to Sh9.8 billion in November 2024 from Sh14.4 billion a year earlier, according to data from the Kenya National Bureau of Statistics (KNBS).
The KNBS Leading Economic Indicators report also revealed a drop in approved housing plans from 16,165.9 to 11,119.25 during the period, attributed to rising construction costs.
A study by the Architectural Association of Kenya (AAK) highlighted a sharp increase in building material costs, with steel reinforcement bars rising 14.29 percent from Sh140.6 per kilogram in December 2022 to Sh160.26 in December 2023. Cement prices also rose from Sh650 to Sh750 for a 50-kg bag.
The KNBS report showed an uptick in approved residential building plans from Sh7.3 billion in October 2024 to Sh8.9 billion in November, while non-residential plans declined from Sh3.3 billion to Sh2.2 billion over the same period.
This decline in approvals comes amid the government’s ambitious affordable housing program aiming to deliver 1 million units by 2027, with ongoing projects in various parts of the country.
