Nairobi — The cost of construction materials rose across major categories, including gravel, reinforced bars, and electrical fittings, in the third quarter (Q3) of 2025 compared to a similar period last year, according to new data from the Kenya National Bureau of Statistics (KNBS).
The Q3 Construction Input Price Indices shows that the cost of reinforced bars and steel increased by 5.2 percent, sand by 3.63 percent, ballast by 1.41 percent, and roofing materials by 2.49 percent.
"In the third quarter of 2025, the Construction Input Price Indices increased to 121.27, up from 119.75 in the second quarter, translating to a quarter-on-quarter growth of 1.27 percent. The year-on-year inflation was 0.74 percent, indicating that input prices were slightly higher in Q3 2025 compared to Q3 2024," KNBS reported.
The rise coincided with a Sh34.2 billion decline in the value of building approvals in Nairobi in the first eight months of 2025, underscoring the effects of high interest rates and costly materials on new developments.
According to KNBS, approvals dropped to Sh114.3 billion between January and August 2025, down from Sh148.5 billion in the same period last year. Approvals for non-residential projects fell from 25,456 to 24,188, while residential approvals dropped from 122,823 to 90,142.
However, the report noted a decline in the cost of cement/lime (-1.39 percent), timber (-2.75 percent), and chip boards (-3.1 percent) during the quarter.
