Nairobi extends dominance in real estate projects

A number of high rise apartment buildings some complete while others under construction in the outskirts of Nairobi City on November 12, 2025.

Photo credit: Francis Nderitu | Nation Media Group

The value of building constructions in Nairobi dwarfed all 44 counties combined, underlining the concentration of real estate development in the capital city.

New Kenya National Bureau of Statistics (KNBS) data values work done on construction of buildings in Nairobi last year at Sh384.9 billion, which was 40.6 percent of all the constructions across the country.

Overall, work on setting up of buildings across the country was valued at Sh947.6 billion, inching closer to a trillion shillings after rising from Sh925 billion in 2023, and by a third over five years.

The KNBS data says during the year, the 44 counties had work valued at Sh361.7 billion on building constructions, translating to 38.2 percent of all constructions in the country.

Nairobi led with the highest value, followed by neighbouring Kiambu County, which implemented works valued at Sh120 billion, and Mombasa with works valued at Sh80.9 billion.

Nakuru County had building construction works valued at Sh35.4 billion, Machakos (Sh34.9 billion), and Kisumu (Sh23.9 billion).

The report provides context on construction across the country, at a time when the government continues to roll out projects under the affordable housing programme (AHP).

During the state of the nation address last month, President William Ruto said the government had launched the construction of 230,000 houses across the country.

“The programme has created over 428,000 jobs, including architects, engineers, fundis, plumbers, electricians, carpenters, masons, transporters, and thousands of MSMEs in fittings and interior works. At peak next year, it will employ up to 1 million Kenyans,” President Ruto said.

At least 13 counties had works valued more than Sh10 billion on the construction of buildings happening in 2024, including Machakos (Sh34.9 billion), Kisumu (Sh23.8 billion), Kajiado (Sh18.9 billion), Embu (Sh17 billion), Marsabit (Sh16 billion), and Murang’a (Sh15.9 billion).

Kirinyaga, Nyandarua, West Pokot, Tana River, and Lamu had the lowest value of construction works happening during the year, each valued below Sh1 billion.

The KNBS statistics show that 84,743 Kenyans were employed in construction of buildings last year, which was a slight drop from some 85,685 who were employed in 2023.

The industry, however, spent Sh236.2 billion paying the workers, which was a marginal increase from a wage bill of Sh235.1 billion the previous year.

Overall, output of the construction of buildings sub-sector was estimated at Sh849 billion, marking a 33.7 percent growth since 2020.

The statistics agency had earlier this year reported that the private sector completed construction of residential and commercial buildings valued at Sh149 billion in Nairobi last year, but the new report provides a wider picture of the total value of buildings that were completed, those that closed the year under construction, and those constructed by the government.

“The total value of completed buildings in Nairobi City County declined by 2.3 percent to Sh149.9 billion in 2024. The number of reported completed private buildings declined from 22,093 in 2023 to 21,807 in 2024,” KNBS said in the 2025 Economic Survey.

In the latest report on the value of building plans approved for construction in the capital, Nairobi City County data shows that buildings valued at Sh129.4 billion were approved over nine months to September 2025.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.