Mega Projects Leads to Growth in Construction Industry - kenyadetails

Mega Projects Leads to Growth in Construction Industry

The high number of ongoing public infrastructure projects and increased real estate developments fuelled growth in the construction sector by 11 per cent between July and September last year. According to the Kenya National Bureau of Statistics economic survey for the quarter released last week, the growth was much faster than the 8.6 per cent recorded over a corresponding period in 2013.


"The sector's resilience has been on account of sustained development of the real estate by the private sector and infrastructure development by the public sector," the KNBS said in the report. Cement consumption rose by 11.1 per cent during the three months, it said.


During the period under review, construction of the first three berths under the Lamu Port expansion project was launched and the contract awarded to China Communication Construction Company. Construction of the first three berths at Lamu will cost the government an estimated Sh42 billion. The State has already set aside Sh4.45 billion for immediate construction works.


Another major project expected to support growth of the construction industry is the first phase of the standard gauge railway, which will run from Mombasa to Nairobi. China Road and Bridge Corporation, the main contractor for the Sh327 billion projects, has so far signed deals with local cement companies such as Athi River Mining Cement for supplies. It is also negotiating several other supply deals with local manufacturers. Construction of the railway kicked off last September.