Sharp Daily
No Result
View All Result
Saturday, August 9, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home News

Kenyan shilling depreciation drives up construction material prices by 2.7%

Effie Zuma by Effie Zuma
October 24, 2023
in News
Reading Time: 2 mins read

In Q3 2023, data released by the Kenya National Bureau of Statistics (KNBS) reveals that the Construction Costs Index surged by 2.7% to reach 116.5, compared to 113.4 in Q3 2022. Quarter-on-quarter (q/q), construction costs witnessed a notable increase of 1.3% from an overall Construction Cost Index of 115.0 in Q2 2023.

This escalation is primarily attributed to heightened costs associated with key construction inputs and building materials, including cement, steel, reinforcement bars, hardcore, metal doors, and windows, among others.

According to the Construction Input Price Indices (CIPI) Third Quarter report from KNBS, steel and cement indices rose by 0.5% and 1.6%, respectively, from the previous quarter. Similarly, hardcore, bitumen, metal doors, windows, transport, and fuel, as well as construction labor wages indices, all experienced increases of 1.6%, 1.6%, 3.0%, and 1.0%, respectively.

However, a few construction materials indices saw declines: paints, sanitary fittings, water fittings, waste water appliances, and electrical fittings dipped by 0.7%, 1.0%, 0.2%, 2.0%, and 0.8%, respectively. This growth rate marks the fastest annual increase since Q4 2022, with a rate of 7.1%.

RELATEDPOSTS

Why firms are shedding jobs despite survival

June 19, 2025

Opinion: Austerity wrong medicine for Kenya’s economy.

June 16, 2025

The continuous depreciation of the Kenyan Shilling has significantly impacted the costs of essential construction materials imported by the country, including steel, cement clinker, fuel, and machinery.

The Shilling’s exchange rate against the dollar has surpassed the 150-unit threshold, depreciating by 17.7% since the year’s commencement. This depreciation is more than double the 8.3% decline observed during the same period last year. The indicative rates released by the Central Bank of Kenya (CBK) at the time of writing this article report a dollar buying price of KES 149.9 and a selling rate of KES 150.2.

As a consequence of surging construction costs, the growth rate in the construction sector decelerated to 2.6% in Q2 2023, in contrast to the 4.5% growth seen in Q2 2022. If this trend persists, it could pose a threat to the optimal performance and expansion of the construction and real estate sectors.

Previous Post

Nancy Onyango to leave IMF after six years

Next Post

KRA expects KES 1.1 trillion collection from large taxpayers in 2023/24

Effie Zuma

Effie Zuma

Related Posts

commercial illustrator
News

Why Kenyan private equity firms should consider continuation funds as an exit strategy

July 23, 2025
Business

Del Monte foods files for bankruptcy in USA

July 3, 2025
News

Private vs Public Pension Funds in Kenya

June 30, 2025
Investments

Investor shift to long term bonds drives oversubscription in CBK’s reopened auction

June 19, 2025
News

The real price of Israel – Iran Conflict for Kenya.

June 19, 2025
Economy

Resilient but strained: Kenyan firms speak out in May 2025 CEO survey.

June 19, 2025

LATEST STORIES

Segregated Pension Schemes in Kenya Q2’2025 Performance

August 8, 2025
Asset allocation dividing an investment portfolio among different asset categories.

Building a Retirement Portfolio in Kenya

August 8, 2025

Steps banks can take to align with fair lending practices

August 7, 2025

The hidden cost of outdated economic statistics

August 7, 2025

EABL posts 12.2% profit surge, strengthens regional footprint despite rising illicit trade

August 1, 2025
1049795356

Maximizing Your Pension Contributions

August 1, 2025

The functional role of narrative in financial markets

August 1, 2025

Tanzania’s protectionist shift and what it means for Kenyan entrepreneurs and regional trade

July 31, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024