Quick answer
KNBS Construction Input Price Index Q3 2024: year-on-year inflation 3.37%, index 120.38; steel up 4.66% to 170.93, cement up 4.22% to 118.98, DBM down 2.66%; building cost index up 1.97% to 119.84.
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The cost of putting up buildings in Kenya kept rising in the third quarter of 2024, with steel and cement leading the increase, according to the latest Construction Input Price Indices (CIPI) released by the Kenya National Bureau of Statistics (KNBS).
KNBS said the year-on-year inflation rate measured by the CIPI stood at 3.37 per cent in the July to September 2024 quarter. That means the general price level of construction inputs was 3.37 per cent higher than in the same quarter of 2023. The overall index rose to 120.38 from 119.06 in the second quarter, a quarter-on-quarter rise of 1.11 per cent.
“All the indices of inputs into construction increased except for bituminous products, transport and fuels,” the bureau said in its release.
Steel and cement drive the rise
Reinforcement steel posted the sharpest jump among the main materials. Its index climbed from 163.32 in the second quarter to 170.93 in the third, a rise of 4.66 per cent. The cement index rose 4.22 per cent to 118.98 from 114.16. Timber and wood products also edged up, while the index for dense bitumen macadam (DBM), the asphalt mix used on roads, fell 2.66 per cent from 162.11 to 157.80.
| Material | Q2 2024 index | Q3 2024 index | Change |
|---|---|---|---|
| Reinforcement steel | 163.32 | 170.93 | +4.66% |
| Cement | 114.16 | 118.98 | +4.22% |
| Dense bitumen macadam (DBM) | 162.11 | 157.80 | -2.66% |
How the overall index has moved
The CIPI has risen in every quarter over the past year, although the pace of increase slowed in the first half of 2024 before picking up again between July and September.
| Quarter | CIPI | Change on previous quarter | Change on a year earlier |
|---|---|---|---|
| Q3 2023 | 116.45 | 1.26% | 2.71% |
| Q4 2023 | 118.38 | 1.66% | 4.16% |
| Q1 2024 | 118.84 | 0.39% | 3.56% |
| Q2 2024 | 119.06 | 0.19% | 3.53% |
| Q3 2024 | 120.38 | 1.11% | 3.37% |
Building works feel the pinch more than roads
KNBS splits the index into building works and civil engineering works. The building cost index rose 1.97 per cent in the quarter, to 119.84 from 117.53, pushed up by higher prices of materials and labour. Over the same period the civil engineering index, which covers roads, bridges and similar works, rose more gently from 120.91 to 121.43. Higher prices of reinforcement bars and cement were partly offset by falls in bitumen products such as tack coat and DBM, which matter more for road builders than for people putting up houses.
The bureau said transport and fuel costs eased during the quarter, which took some pressure off the overall index.
What it means for people building
For a family putting up a house or a landlord adding a floor, the numbers point to a simple lesson: materials bought later cost more. Steel and cement together make up a large share of the cost of a typical concrete structure, so a 4 to 5 per cent rise in a single quarter can add tens of thousands of shillings to a modest project. Contractors who priced jobs earlier in the year on fixed quotes are also likely to feel the squeeze.
Some practical steps help. Buying steel and cement in bulk at the start of a phase, rather than in small lots, protects you from mid-project increases. Quotes from hardware suppliers should be checked against more than one shop and should state how long the price is valid. Contracts with builders can include a clause that explains how material price changes will be handled. Roofing is a separate cost line; our guide to the types of Dumu Zas mabati and their cost shows how sheet prices vary by gauge and profile.
Rising costs also feed into what homes sell for. KNBS tracks that side of the market separately, as covered in our report on house prices in the KNBS residential property index. If you are buying land before you build, the land transfer steps and costs are worth budgeting for as well. People looking for work in the sector can browse current openings on Job in Kenya.
About the index
The CIPI is published every quarter by KNBS. It tracks the prices of materials, labour, equipment hire and transport used in construction. It is used by contractors, quantity surveyors and government agencies to adjust contract prices and plan budgets, and by economists to see how fast construction costs are moving compared with general inflation.
Frequently asked questions
What was Kenya’s construction input inflation in Q3 2024?
KNBS put year-on-year construction input inflation at 3.37 per cent in the third quarter of 2024, with the overall index at 120.38.
Which building materials rose the most?
Reinforcement steel rose 4.66 per cent to an index of 170.93 and cement rose 4.22 per cent to 118.98 between the second and third quarters of 2024.
Did any construction costs fall?
Yes. The index for dense bitumen macadam fell 2.66 per cent, and transport and fuel costs eased during the quarter.
Who publishes the Construction Input Price Index?
The Kenya National Bureau of Statistics publishes the CIPI every quarter on its website.
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