SURVEY

Construction sector growth declines as transport gains

The construction sector dropped oh high material costs while transport sector realised growth due to various key national infrastructure projects.

Ongoing construction of the Pangani Affordable Housing Programme on January 21, 2022
Image by ANDREW KASUKU
In Summary
  • The roads subsector in 2021 received significant boost from the private sector participation through PPPs in some of the projects.
  • In railway subsector, revenue from cargo haulage on the SGR rose by 24 per cent from 10.5 billion in 2020 to Sh 13 billion in 2021.

Kenya's construction sector slowed down in 2021, recording a 6.6 percent growth compared to 10.1 per cent in 2019, according to the Economic Survey 2022.

The transport sector on the other hand realised growth due to various key national infrastructure projects.

In line with the Big 4 Agenda the government continued to facilitate acquisition of affordable housing which saw the completion of 431 housing units at an estimated cost of Sh 741.3 million.

The value of completed housing units decreased from Sh 7,347 million in 2020 to Sh 741.3 million in 2021.

The total value of building plans approved in 2021 was Sh102.9 billion, a 23 percent decline 33 per cent compared to Sh53.6 billion recorded in 2020.

Expenditure on housing increased from Sh24.9 billion in 2019/20 to Sh25.6 billion in 2020/21, with a 93.9 per cent utilisation rate of budgeted expenditure on housing for 2021/22 decreased by 48.4 per cent to Sh 14.1 billion.

In transport the roads sub-sector in 2021 received a significant boost from the private sector participation through Public-Private Partnerships in some of the projects, key among them the Nairobi Expressway Way.

The dualling of the Nairobi Eastern Bypass and the construction of Makupa Causeway Bridge were also launched during the review period.

The total length of paved roads increased by 2.3 per cent to 21.8 thousand kilometres in the year under review, according to the Kenya National Bureau of Statistics data.

Road maintenance funding is expected to rise from Sh 66.7 billion in 2020/21 to Sh 69.1 billion in 2021/22.

National government expenditure on roads is expected to increase by 6.1 per cent from Sh 195.3 billion in 2020/21 to Sh 207.2 billion in 2021/22.

Overall national government expenditure on roads is expected to increase from Sh 195.3 billion in 2020/21 to Sh 207.2 billion in 2021/22.

In Railway sub-sector, revenue from cargo haulage on the Standard Gauge Railway(SGR) rose by 24 per cent from 10.5 billion in 2020 to Sh 13 billion in 2021.

Earnings from the Madaraka Express more than doubled to Sh 2.2 billion in 2021 from Sh 896 million in 2020.

Similarly, revenue earned from passenger services on the Meter Gauge Railway (MGR) rose significantly from 83 million in 2020 to Sh 234 million in 2021.

Revenue from cargo transported on the MGR rose marginally from Sh 1,114 million in 2020 to Sh 1,118 million in 2021.

Total employment in the construction sector went up by 2.5 per cent to 226.5 thousand persons in 2021. 

Private employment increased by 2.3 per cent to 217.3 thousand employees while public employment increased from 9.1 to 9.2 thousand employees in 2021.

Cargo throughout increased from 34.1 million Metric Tonnes (MT) in 2020 to 34.5 million  MT in 2021 representing a growth of 1.2 per cent .

Container traffic increased by 5.6 per cent from 1,359.6 thousand Twenty-foot Equivalent Units(TEUs) in 2020 to 1435.3 thousands TEUs in 2021.

The number of ship docking at the port of Mombasa rose from 1621 in 2020 to 1635 in 2021.

The volume of exports increased by9.7 per cent to 4612 thousand MT in 2021 and is partly attributed to increased exportation of iron ores and titanium.

The volume of white petroleum transported through pipeline recorded an increase of 10.1 per cent from 6761.4 thousand cubic meters in 2021.

Pipeline throughput for domestic consumption increased by 3.9 per cent from 4317.5 thousand in 2020 to 4486.3 thousand cubic meters in 2021.

Passenger traffic from all airports grew by 46.7 per cent to 6.6 million in 2021 from 4.5 million in 2020.

The number of domestic air passengers handled rose by 65.5 per cent to 3.8 million passengers while the number of international passengers handled at Kenyan airports increased by 28.9  percent to 2.7 million in 2021.