Kenya: Nairobi Building Approvals Rise Sh18bn to Sh84bn in Five Months

Nairobi — The value of building projects approved in Nairobi County rose by Sh18.24 billion in the first five months of 2026, pointing to increased construction activity in the capital.

Data from the Kenya National Bureau of Statistics (KNBS) shows the value of approved buildings increased to Sh84.14 billion between January and May, from Sh65.9 billion during the same period in 2025.

Residential projects accounted for the largest share of the increase, with approvals rising by Sh9.7 billion to Sh61 billion.

Approvals for non-residential buildings also increased by Sh8.6 billion to Sh23.1 billion.

The rise comes amid increased demand for land and housing in some of Nairobi's high-end neighbourhoods.

The HassConsult Land Price Index for the first quarter of 2026 showed land prices increasing in several prime suburbs.

An acre in Nyari rose 3.1 percent to Sh125 million, while Lang'ata recorded a 2.4 percent increase to Sh90.9 million.

Kileleshwa land prices rose 1.6 percent to Sh336.2 million per acre, while Karen recorded a 1.3 percent increase to Sh77 million.

House prices in several upscale neighbourhoods also increased during the quarter, driven partly by limited housing supply.

Lavington recorded the highest growth at 4.2 percent, followed by Spring Valley at 3.8 percent and Kilimani at 1.8 percent.

House values in Karen, Loresho and Westlands each increased by 3.8 percent.

In the apartment market, Muthangari and Riverside recorded price increases of 3.8 percent and 1.8 percent respectively.

However, apartment prices fell 2.8 percent in Westlands and 2.5 percent in Upper Hill, pointing to mixed performance in the segment.

The latest increase in building approvals marks a recovery from the decline recorded last year.

In the first eight months of 2025, the value of building approvals in Nairobi fell by Sh34.2 billion to Sh114.3 billion from Sh148.5 billion during the same period in 2024.

KNBS attributed the decline to challenges including high interest rates and rising construction costs.

Residential building approvals fell from 122,823 to 90,142, while non-residential approvals declined from 25,456 to 24,188 during the period.

Read the original article on Capital FM.