The Kenyan construction sector of the economy recorded an 8.5% growth in 2017 and notwithstanding the negative impacts of the COVID-19 pandemic is forecast to remain a growth out-performer in sub-Saharan Africa up to 2024, according to ResearchAndMarkets
Kenya has the largest economy in East Africa and is the most industrialized country in the region. These factors, combined with the country's historically stable democratic government, have established its position as the regional hub for trade and finance in East Africa and the natural choice for business entry to the East African region.
Prior to the headwinds from the COVID-19 pandemic, medium-term GDP growth was expected to rise by 5.8% in 2020 and 5.6% in 2021 – underpinned by private consumption, a pick-up in industrial activity and continued strong performance in the services sector.
Underpinning this positive outlook is the variety of opportunities in the market, particularly in transport, power infrastructure and commercial construction. Substantial spending by the Government of Kenya on infrastructure coupled with foreign investment flows are sustaining this high level of growth, although the government's high debt burden could threaten the pace of infrastructure development and negatively impact investor confidence in the market.
