The price of steel and steel-based items used in the construction industry has increased by 30% in the last three months following a fall in global production.
As a result, the cost of construction in Kenya has greatly spiked due to the country’s reliance on imports of the raw material, mainly from China and India, and the decreased global production of steel, particularly in China.
” That means an increase in the cost of construction, which is transferred to the end user suffer because of international prices. It could also affect projects such as affordable housing and infrastructure unless the government waives some of the costs.” Patience Mulondo, Architectural Association of Kenya Treasurer as quoted by Business Daily.
Data from the Kenya National Bureau of Statistics shows that the construction sector has slowed down in the past three months, recording a 4.3% growth compared to a growth of 6.7% in the same period of 2021.
This slowed growth is also reflected in cement consumption and imports of construction materials.
September last year, the price of steel-based items used in the construction industry in Kenya had declined 25% due to a fall in global prices of the metal caused by flagging demand from China’s real estate sector. A relief for developers as it relieved them of some of the burdens of higher prices for other building materials like cement, timber and iron.
Read Also: Steel Prices Drop 25% following a Drop in Global Prices
