Why investors face higher budgets in construction projects

Construction workers laying down steel frames on an on-going building under construction in Ngara area on March 15, 2024.

Photo credit: Francis Nderitu | Nation Media Group

The cost of construction input rose at the fastest pace in nearly two years during the third quarter of 2025, lifted by higher prices of steel, electrical fittings, sand and bitumen, signaling budget pressure on construction projects.

The Construction Input Price Index (Cipi) increased by 1.27 percent between July and September this year, according to Kenya National Bureau of Statistics (KNBS) data, marking the quickest quarterly rise since December 2023. The index stood at 121.27 points, up from 119.75 in the previous quarter and 120.38 in the same period last year.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.