Cost of Construction in Kenya Drops as Cement, Steel Prices Retreat on Increased Supplies

• Kenyan developers could now access construction materials at a reduced price following an increase in supply
• The prices of cement and steel metal products dropped in September 2022 after a seven-month hike since March
• Currently, a 50 kg bag of cement retails at around KSh 650 compared to the KSh 800 to KSh 1,000 range in March 2022

Kenyans can now breathe a sigh of relief as the prices of building materials plummet for the first time since March 2022.

The prices of cement and steel products dropped amidst an increase in the supply of raw materials for the products.

Building materials in Kenya

Kenya Metal and Allied sector chairperson Bobby Johnson confirmed that the prices of building materials in the market have decreased by 25%.

Cement prices across major retail shops in the country reduced to around KSh 650 per 50kg bag, down from KSh 1,000 reported in March.

According to Business Daily, some traders are now selling cement at around KSh 630 after clinker supply in the market increased.

“Traders used to hike prices due to the shortage of raw materials. This was caused due to disruption in the global supply chain caused by the COVID-19 pandemic and the Russia-Ukraine war,” said one of the traders in Nairobi.

Steel prices

The price of a tonne of metal reduced by 35% to trade at KSh 162,134 on the New York Stock Exchange on Monday, September 26, down from KSh 247,630 reported in April 2022.

Traders said that as the international supply chain continues to ease, raw materials prices drop, making them readily available.

This came amidst an increase in demand for construction materials in the country.

The Kenya National Bureau of Statistics (KNBS) data showed that the demand for cement increased by 18% in June 2022, after plummeting at the start of the year.

Building collapse in Kiambu

In related news, TUKO.co.ke reported about a residential building that collapsed in Kiambu, claiming three lives.

Kiambu County Police Commander Perminius Kioi said the three were rushed to Kiambu Level 5 Hospital.

The National Youth Service (NYS), the Kenya Police Service and Governor Kimani Wamatangi led in the rescue operation.

Source: TUKO.co.ke