Kenya’s diverse economy continued to perform well, driven on by cheaper fuel prices, good agricultural performance, supportive monetary policy, and ongoing infrastructure investments.
Infrastructure grew by 13.6 percent in 2015, largely due to implementation of mega-infrastructure and energy flagship projects.
Key projects are the Northern Corridor Transport Improvement Project (NCTIP) and the Lamu Port and Lamu Southern Sudan-Ethiopian Transport Corridor (LAPSSET), which have been helping to grow inbound investments in surrounding construction developments. The latter project will expand port access, boost rail construction, and include a pipeline for recently discovered oil in the country.
Funding from the World Bank and UN has been made available for the construction of 150,000 apartments in place of slums. Chinese investment is underway in numerous projects across the country..
The real estate and construction sectors continue to be key drivers of economic growth in Kenya, as they have been for the last five years, and the Kenyan construction industry contributes 7 percent of GDP.
With elections scheduled for 2017, however, there is a possibility that investors could defer investment decisions until after the elections. Election-related expenditure could also result in a cutback in infrastructure spending.