A rise in cement prices and other key construction materials has driven up the costs of construction projects in the second quarter of 2025, reports People Daily.
Kenya National Bureau of Statistics (KNBS) data reported an overall Construction Input Price Index (CIPI) of 119.75, a QoQ increase from 119.05 in the 1Q25. The agency attributes the increase mainly to rising materials costs with cement a a major driver.
“This rise was mainly attributed to the increase in the materials indices, which rose from 125.90 to 127.39. Notable indices that rose were those of concrete and asphalts (2.86 per cent), cement (2.63 per cent) and steel and reinforcement bars (1.52 per cent),” the report stated.
While transport-related costs declined, including a drop of 1.62 per cent in fuel costs, developers said this decrease has been offset by the rising costs of cement and sand.