Buildings Approved in H1 FY 2019 Valued at Kshs 121.3 Billion

By Rahab Mbiriti / December 16, 2019 | 8:26 am



Buildings approved

The value of buildings approved during the first half of the year came in at 121.3 billion shillings, a 20.3 percent increase from 100.8 billion shillings during the same period in 2018.

According to analysts from Cytonn Investments, this increase in the value of buildings approved, overturned the downward trend that has been witnessed over the past three years.

According to the Leading Economic Indicators December 2019 Report released by the Kenya National Bureau of Statistics (KNBS), the increase is largely attributable to the launching of mass affordable housing projects in the past two years.

While the value of buildings went up, the report notes that consumption of cement dropped to 492,695 metric tons in August 2019 from 500,601 metric tons in July 2019, indicating a slowdown in real construction activity. This is attributable to;

  • Reduced developer activity in sectors such as office and retail, which according to Cytonn Research, registered oversupplies of 5.2 million and 2.0 million SQFT, respectively, as of Q3’2019,
  • Government delays in processing building approval permits especially in 2019, and
  • Insufficient access to developer funding owing to a tough financial environment that has persisted for the past two years owing to the recently repealed interest rate capping law.

However, analysts from Cytonn Investments hold the view that with the repeal of the interest rate cap and the continued launch of mass affordable housing projects, they expect increased construction activities, and therefore, cement consumption, to pick up in 2020.

Read Also: Understanding Real Estate Investment Trusts (REITs)





About Rahab Mbiriti

Rahab Mbiriti is an Experienced Research Specialist working for Sokodirectory with a passion for collecting data, breaking down data and analyzing it for easy consumption. Rahab also has a passion for writing Business and Economic oriented articles.To reach her, email her on rahab@sokodirectory.com

View other posts by Rahab Mbiriti


More Articles From This Author







Trending Stories










Other Related Articles










SOKO DIRECTORY & FINANCIAL GUIDE



ARCHIVES

2020
  • January 2020 (272)
  • February 2020 (310)
  • March 2020 (390)
  • April 2020 (321)
  • May 2020 (335)
  • June 2020 (327)
  • July 2020 (334)
  • August 2020 (276)
  • September 2020 (202)
  • 2019
  • January 2019 (253)
  • February 2019 (216)
  • March 2019 (285)
  • April 2019 (254)
  • May 2019 (272)
  • June 2019 (251)
  • July 2019 (338)
  • August 2019 (293)
  • September 2019 (306)
  • October 2019 (313)
  • November 2019 (362)
  • December 2019 (319)
  • 2018
  • January 2018 (291)
  • February 2018 (213)
  • March 2018 (278)
  • April 2018 (225)
  • May 2018 (238)
  • June 2018 (178)
  • July 2018 (256)
  • August 2018 (249)
  • September 2018 (256)
  • October 2018 (287)
  • November 2018 (284)
  • December 2018 (185)
  • 2017
  • January 2017 (183)
  • February 2017 (194)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (205)
  • July 2017 (190)
  • August 2017 (195)
  • September 2017 (186)
  • October 2017 (235)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (165)
  • February 2016 (165)
  • March 2016 (190)
  • April 2016 (143)
  • May 2016 (245)
  • June 2016 (182)
  • July 2016 (271)
  • August 2016 (248)
  • September 2016 (234)
  • October 2016 (191)
  • November 2016 (243)
  • December 2016 (153)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (166)
  • April 2015 (108)
  • May 2015 (116)
  • June 2015 (120)
  • July 2015 (148)
  • August 2015 (157)
  • September 2015 (188)
  • October 2015 (169)
  • November 2015 (173)
  • December 2015 (207)
  • 2014
  • March 2014 (2)
  • 2013
  • March 2013 (10)
  • June 2013 (1)
  • 2012
  • March 2012 (7)
  • April 2012 (15)
  • May 2012 (1)
  • July 2012 (1)
  • August 2012 (4)
  • October 2012 (2)
  • November 2012 (2)
  • December 2012 (1)
  • 2011
    2010
    2009
    2008
    2007
    2006
    2005
    2004
    2003
    2002
    2001
    2000
    1999
    1998
    1997
    1996
    1995
    1994
    1993
    1992
    1991
    1990
    1989
    1988
    1987
    1986
    1985
    1984
    1983
    1982
    1981
    1980
    1979
    1978
    1977
    1976
    1975
    1974
    1973
    1972
    1971
    1970
    1969
    1968
    1967
    1966
    1965
    1964
    1963
    1962
    1961
    1960
    1959
    1958
    1957
    1956
    1955
    1954
    1953
    1952
    1951
    1950