Cost of Construction Relatively Stable in 2024 – AAK

Status of Built Environment
QS. Haron Nyakundi, Chairman the Joint Building Construction Council (JBCC), Arch. Evans Juma Oino, Member of the AAK College of Fellows and representative in the Nairobi City County Physical and Land Use Planning Liaison Committee, Eng. Shammah Kiteme, President of the Institution of Engineers of Kenya (IEK), Arch. Florence Nyole, President of the Architectural Association of Kenya, Arch. Martin Tairo, CECM Public Works, Roads, Transport, Housing, Energy and Infrastructure, Taita Taveta County, Mr. Jeremiah Simu, Chairman Affordable Housing Board, Mr. Julius Wairagu, Assistant Director Ministry of Land, Housing and Urban Development.

The cost of construction remained relatively stable in 2024, according to the Architectural Association of Kenya (AAK). Arch. Florence Nyole, President of the umbrella association for building professionals, revealed that the cost of building averaged between KES 48,750 and KES 84,000 per square metre during the year. However, prices of inputs showed mixed trends, with cement rising by 11% while petrol dropped by 17% between December 2023 and December 2024. “On the other hand, land rates continued to rise, with the average price of an acre in Nairobi reaching KES 204 million, up from KES 190 million in the previous year,” she noted.

Arch. Nyole was speaking at a Nairobi hotel during the release of this year’s Status of the Built Environment (SBE) Report, an assessment of the industry regularly produced by the AAK.

The AAK President noted that the construction sector had seen a surge in activity, with the National Construction Authority (NCA) approving 77.5% of submitted applications, amounting to a total value of KES 309 billion. She stated that most of the approvals were for residential developments, reflecting a growing demand for housing driven by Kenya’s increasing population. She further noted that the Government’s Affordable Housing Programme (AHP) had made significant progress, with 730,062 housing units in the pipeline. “Through the AHP Forum, we continue to advocate for the involvement of consultants and facilitate collaboration between Built Environment professionals and the national government,” she added.

Arch. Florence Nyole, President during the release of the SBE Report, 2024
The Chair of the Nairobi City County Physical and Land Use Planning Liaison Committee DR. R.O Monda presents the Committee’s Report to Arch. Florence Nyole, AAK President in the presence of his committee members Arch. Evans Juma Oino, a Member of the AAK College of Fellows (Right) and Plnr. John Koyier Barreh (Left)
QS. Diana Musyoka, AAK Honorary Registrar, Arch. Tsalwa Waburiri, President, East African Institute of Architects and Arch. Florence Nyole, President, AAK

It has also emerged that 73% of Kenyans are dissatisfied with the current status of the built environment. Arch. Nyole mentioned that the AAK, in collaboration with the Kenya Alliance of Residents Associations (KARA), had conducted a nationwide survey across 19 counties. The survey revealed that the top areas of concern among the public were construction safety, the structural integrity of buildings, violations of zoning regulations, non-observance of permitted construction times, and traffic disruptions during construction.

“Green building practices also gained traction in 2024, with an increasing number of developments earning green building certifications,” she further observed. “For instance, the Nairobi City County governor’s office became the first government building in Africa to receive the EDGE certification.”

Arch. Nyole also highlighted the growth of Artificial Intelligence (AI), noting that it had greatly enhanced efficiency and streamlined construction processes.

Speaking at the forum, Assistant Director at the Ministry of Land, Housing, and Urban Development Julius Wairagu, who represented Housing Secretary QS Said Athman, asked Kenyans to join hands in tackling the challenges ahead. “Through innovation, collaboration, and an enduring commitment to excellence, we can transform Kenya’s built environment into a global model of sustainability and resilience,” he said.