The prices of construction materials in Kenya edged lower in the first quarter of 2025, driven largely by falling costs in key inputs such as steel, bitumen, and asphalt products, easing the financial pressure in the building and infrastructure sectors.
- •According to data released by the Kenya National Bureau of Statistics, the Construction Input Price Index fell 0.3% from the previous quarter.
- •Inflation in construction inputs Year-on Year slowed sharply to just 0.18% in Q1, compared to 3.56% during the same period last year.
- •The decline was led by a notable drop in the prices of steel and reinforcement bars, which fell 2.16% to an index value of 163.94.
Dense Bitumen Macadam and precoated chippings followed closely, registering decreases of 2.12% and 1.78%, respectively, with Concrete and asphalt materials dropping 1.48%.
Paving Grade Bitumen recorded a sharp 4.03% decline, continuing a downward trend fueled by reduced oil prices and softer regional infrastructure demand. Tack-coat prices also slipped 1.24%.
Conversely, some core materials posted modest spikes in prices. Cement rose 0.92% to 117.38, while sand and quarry products increased 0.61% and 1.15%, respectively. The price of paving blocks ticked up 0.44%, while sanitary fittings and locks also edged higher.
Despite overall reduced material costs, prices remain elevated compared to pre-pandemic levels, with construction materials still indexed above 125 points, using Q4 2019 as the base.
The Building Cost Index, which measures the cost of materials specifically used in residential and commercial construction, declined slightly to 118.60 from 118.77. Similarly, the Civil Engineering Index, covering materials used in public infrastructure, dropped to 120.1 from 120.52.
The moderation in material prices comes as a relief to developers and contractors, many of whom had been grappling with cost escalations in previous years. However, the uneven performance across input categories suggests that cost pressures remain in certain pockets of the market.
