Growth in the construction sector slowed down in the third quarter of 2022 on the back of decreased cement consumption and the import of building raw materials.
The industry’s growth contracted from 6.7 per cent posted in the nine months to September of 2021 to 4.3 per cent in the same period in 2022.
“The slowed growth was mirrored in cement consumption and imports of construction materials,” the Kenya National Bureau of Statistics said in its latest report.
Cement consumption declined in the quarter under review by 14.6 per cent to 2,217.7 thousand metric tonnes from 2,596.8 thousand MT.
This was a result of a decrease in construction activities including from the government and other developers in the quarter in which the general elections had just been concluded.
The country’s economic growth slowed as well on the back of elevated inflationary pressures and August election angst, according to the statistics agency.
Official KNBS data revealed that the quantity of iron and steel imported declined from 274,134 tonnes in the third quarter of 2021 to 198,849 tonnes during the period under review.
“In addition, the volume of imported Bitumen decreased from 36,762 tonnes in the third quarter of 2021 to 24,930 tonnes in the period under review,” said KNBS in the latest report.
Bituminous materials are used for road construction, roofing, waterproofing, and other applications due to the adhesive nature of the material.
A decline in cement production resulted in a strained manufacturing sector.
The sector grew by 2.4 per cent in the third quarter of 2022 compared to a 10.2 per cent growth in the same period of 2021.
This was attributed to a local assembly of vehicles and an increase in the processing of coffee and sugar production.
Sugar production increased by 6.1 per cent from 166,994.0 metric tonnes reported in the third quarter of 2021 to 177,126.4 metric tonnes in the period under review.
The production of assembled vehicles increased by 12.7 per cent from 2,933 units in the third quarter of 2021 to 3,304 units in the quarter under review.
“However, the sector’s growth was constrained by a decline in cement production from 2,640.2 thousand metric tonnes in the third quarter of 2021 to 2,302.7 metric tonnes in the period under review,” the KNBS statement read in part.
Cement production declined due to low demand which was occasioned by a high inflation rate.
