Doubt cast on housing job gains as construction jobs fall
The 2025 Economic Survey reveals that private construction companies reduced their workforce by 2,900 people.
A new report showing a drop in construction jobs has stirred debate over the government’s claims that its affordable housing programme has created 250,000 jobs across the country.
The 2025 Economic Survey reveals that private construction companies reduced their workforce by 2,900 people, employing 223,400 workers compared to 226,300 the previous year.
The government added only 200 jobs to reach 9,900 workers in public construction.
The Kenya National Bureau of Statistics said the construction sector shrank by 0.7% in 2024, reversing the 3% growth recorded in 2023.
"There was reduced momentum in both public infrastructure projects and private sector developments that signalled a period of adjustment for the industry," KNBS stated.
This comes as President William Ruto continues to highlight the job creation impact of the affordable housing initiative.
Speaking during Jamhuri Day celebrations in 2024, he said: "The affordable housing strategic pillar of the Bottom-Up Economic Transformation Agenda has so far created 200,000 jobs and thousands of indirect opportunities across the building and construction value chain."
Last week, during Labour Day celebrations, the President raised the number even higher.
"By the end of April, it had created over 250,000 jobs spanning architecture, engineering, urban planning, masonry, carpentry, plumbing, and electrical work, while reinvigorating local economies," he said.
Despite these statements, the official data shows a decline in private sector jobs, raising doubts about how the figures presented by the government were derived.
Housing Principal Secretary Charles Hinga maintained that the government’s statistics are grounded in actual work taking place.
"Our figures are based on actual work on the ground. We have over 130,000 units under construction," he said.
The Treasury, in February, reported that 124,000 units were at different stages of construction.
KNBS pointed to a number of challenges facing the sector. Among them is a rise in construction material prices, which went up by 2.83% in 2024 compared to 2.3% in 2023.
Cement consumption dropped by 7.2% to 8.537 million tonnes, reflecting slowed building activity.
In addition, commercial lending to the construction sector was cut from Sh602.7 billion in 2023 to Sh528 billion in 2024.
This has limited the ability of private developers to fund projects, further dragging down sector performance.
The decline in jobs and other key indicators casts doubt on the large employment numbers claimed under the housing programme.
With investor confidence low and financing options limited, the true impact of the affordable housing initiative remains uncertain.