Overview

The building materials industry forms a critical part of Kenya’s industrial base, supplying inputs for housing, infrastructure, and commercial construction. It includes the production of cement, steel, glass, ceramics, paints, tiles, roofing materials, and prefabricated components, serving both domestic and regional markets.

Cement and steel dominate the sector. Kenya hosts major cement producers such as Bamburi Cement (LafargeHolcim), National Cement (Devki Group), East African Portland Cement, and Mombasa Cement, with a combined capacity of more than 12 million tonnes per year. Steel and metal fabrication firms, including Devki Steel Mills and Doshi Group, supply reinforcement bars, wire products, and roofing materials for both domestic and regional demand.

Construction Kenya 2

Economic contribution

  • The building materials industry accounts for roughly 10–12 % of total manufacturing value added, equivalent to about 2 % of national GDP. The industry is closely linked to Kenya’s construction sector, which contributes around 6 % of GDP.
  • Cement production reached 8.2 million tonnes in 2023, with exports rising to neighbouring markets such as Uganda, Tanzania, and South Sudan.
  • The sector directly employs an estimated 80 000–100 000 people, with extensive indirect employment through construction, logistics, and retail.
  • Demand for cement and steel remains driven by public infrastructure projects and urban housing development, supported by rising domestic consumption and regional trade integration under the EAC.
  • The industry generates significant fiscal revenues through VAT, excise duties, and energy levies, and serves as a benchmark for Kenya’s broader industrialisation capacity.

Outlook

Ongoing investment in housing, roads, and renewable energy projects is expected to sustain domestic demand for building materials over the medium term. Policy efforts under the Kenya National Industrial Policy (2022–2032) and the Affordable Housing Programme aim to localise production of intermediate goods such as clinker, steel, and glass to reduce import dependence. Expanding regional infrastructure, particularly along the LAPSSET Corridor and Northern Corridor, is expected to open new markets for Kenyan materials producers.

 

Challenges

  • High energy costs, which account for 30–40 % of cement production expenses.
  • Reliance on imported inputs, notably clinker, coal, and specialised steel products.
  • Exchange-rate volatility increasing production and import costs.
  • Logistics inefficiencies in road and port networks affecting bulk material transport.
  • Overcapacity in some product segments, leading to price competition and thin margins.
  • Environmental compliance and emissions constraints, especially for cement and steel plants.
  • Limited access to long-term finance for plant modernisation and technology upgrading.

 

Opportunities

  • Clinker and steel localisation to reduce imports and enhance value addition.
  • Adoption of energy-efficient and low-carbon technologies such as waste-heat recovery and alternative fuels.
  • Development of prefabricated and modular building materials for affordable housing.
  • Growth in regional exports to East and Central Africa under the AfCFTA and EAC frameworks.
  • Investment in recycling and circular construction materials (e.g. scrap steel, fly ash, glass cullet).
  • Partnerships in green building certification and production of sustainable materials.
  • Public–private collaboration in infrastructure projects to stimulate steady domestic demand.