The Architectural Association of Kenya (AAK) has released the Status of the Built Environment (SBE) Report 2025, offering a data-driven look into the country’s construction landscape and sounding an urgent call for reforms to strengthen regulation, boost efficiency and unlock private-sector-led housing delivery.
According to the report, the sector recorded a 14% rise in registered projects, with the National Construction Authority (NCA) listing 4,687 developments in 2025. However, this growth masks underlying systemic inefficiencies, particularly around permitting, safety oversight and investment confidence.
One of the most notable shifts is the sharp decline in development value in Nairobi, which dropped from KES 273 billion in 2024 to KES 187 billion in 2025. AAK attributes this contraction to tightening investment conditions, prolonged approval times and inconsistencies in regulatory enforcement. Approval timelines remained lengthy nationwide, averaging 13.1 weeks, with some projects taking up to 25 weeks to obtain requisite permits.
Despite efforts to modernize planning processes, 39 counties still rely on manual permitting systems, exposing developers and professionals to delays, inefficiencies and opportunities for unofficial facilitation. AAK warns that these outdated systems continue to constrain sector performance and undermine confidence among both local and international investors.
Building safety remains a critical concern. Audits conducted in 2025 found that 87% of inspected projects were either non-compliant or lacked valid approvals. The NCA issued 13,348 suspension-of-work notices and recorded six building collapses, highlighting persistent risks associated with weak enforcement and low adherence to standards. The association is calling for rapid rollout and strict implementation of the National Building Code 2024 to restore order and enhance structural safety.
On affordable housing, the report notes progress, with 1,630 units completed between January and October 2025 and 307 projects currently ongoing. However, AAK stresses that predictable regulation and stable investment conditions are essential to draw more private capital into the programme and close the country’s housing deficit.
AAK President George A. Ndege emphasized that the sector remains resilient but hampered by “avoidable inefficiencies,” urging both levels of government to fast-track digital permitting, enforce planning standards under the Physical and Land Use Planning Handbook 2025, and strengthen collaboration across regulatory agencies.
The association argues that sustained reforms, transparency and professional accountability are key to shaping a safer, more efficient and investment-ready built environment in 2025 and beyond.
