EXPANSION of the construction sector in Kenya will uplift the insurance industry which is expected to benefit from higher demand for property insurance.
This is according to a report by a global online data analysis and advisory services firm Timetric.
The UK-based company said the high number of construction projects in the pipeline or ongoing will provide growth opportunities for property insurers.
“Construction output in Kenya rose from Sh289 billion in 2010 to Sh687.5 billion in 2014, supporting the growth of property insurance,” the firm says in a summary of the report.
“The category is expected to grow its value to Sh48 billion (US$464.8 million) in 2019, mainly driven by government investments to develop the Lamu Port and South Sudan-Ethiopia transport corridor, the Mombasa–Nairobi Standard Gauge Rail network and the construction of a 2,000-kilometre road.”
Construction sector shrugged off high interest rates in 2015 as building activities increased towards the end of the year driven by rise in borrowing.
In the third quarter of last year, the sector grew by 14.1 per cent compared with 8.8 per cent in the same quarter a year earlier, latest official data show.