Kenya courts foreign contractors to boost affordable housing projects

KNCCI President Eric Rutto, National Director Kennedy Onditi, DMG Events Vice President Josine Heijmans, Commercial Associate VP Hussein Abdel Khalek and Egyptian Embassy Economic Counsellor Kareem Abdallah open the Big Five Construct Kenya. [Noel Nabiswa, Standard]

Kenya is seeking to attract foreign building materials manufacturers to establish local production plants, as the government’s affordable housing programme creates investment opportunities in the construction and real estate sectors.

The Kenya National Chamber of Commerce and Industry (KNCCI) is engaging international companies attending the ninth edition of Big Five Construct Kenya to explore local manufacturing, distribution partnerships and investment opportunities.

The three-day exhibition at Sarit Centre in Nairobi has attracted more than 150 exhibitors from over 25 countries, showcasing construction materials, equipment and technology. KNCCI President Dr Erick Rutto said the chamber was conducting feasibility assessments to help interested investors evaluate raw material availability, electricity costs, factory locations and distribution networks.

“We have had almost 15 companies that are very much interested in establishing their factories and companies here in Kenya, either for distribution or production,” he said.

The chamber plans to connect the companies with Kenyan businesses through business-to-business meetings, with the aim of positioning Kenya as a manufacturing and distribution hub for East and Central Africa.

The initiative comes amid a housing deficit estimated by KNCCI at about two million units, with an annual housing requirement of 250,000 units. Rutto said local production could reduce dependence on imported finished building materials, create jobs and improve supply for housing developments.

He noted that some manufacturers at the exhibition reported that about 70 per cent of their production served the affordable housing segment, making Kenya a potential market for their products. “If we are able to attract them and provide incentives for local production, we can move towards meeting our housing needs and make Kenya a hub for building and construction in Africa,” he said.

However, the viability of such investments will depend on production costs, access to raw materials, energy prices and the consistency of government policies.

Josine Heijmans, senior vice-president at DMG Events, the exhibition organiser, said Kenya’s housing and infrastructure needs were attracting international companies seeking to expand across the region.

The country’s position as a regional gateway could allow manufacturers to serve neighbouring markets, provided locally produced materials remain competitive in price and quality.

Among the exhibitors exploring business opportunities is Turkish Firm General Makina, which manufactures stone-crushing equipment and concrete batching plants used in road, bridge and tunnel construction.

The company is seeking customers and partnerships in Kenya, where it already has equipment and technical support. It noted that access to technicians and engineers was important for customers purchasing construction machinery, particularly when equipment requires maintenance and repairs.

Royal Industries, based in Sharjah, United Arab Emirates, is also targeting the Kenyan market with construction chemicals, sports flooring and prefabricated steel structures for warehouses, factories and infrastructure projects.

Meanwhile, RIB Software is seeking to expand its presence in Kenya with digital tools to help contractors manage procurement, project costs and timelines.

KNCCI Director Nancy Muthoni said the chamber would use its business networks to facilitate partnerships between local enterprises and foreign investors.