Kenya’s capital city Nairobi has been ranked the second most expensive city to construct in Africa, after South Africa’s Johannesburg and 86th globally, according to a report released on Wednesday.
According to the report released by the Architectural Association of Kenya(AAK), Nairobi’s construction costs topped other global cities including Beijing, Shangai, Kuala Lumpur and Mumbai.
The report further notes that credit advanced to the construction sector in the first quarter of 2019, declined by 1 percent reflecting a general slowdown in construction activities.
Consumption of cement (which is an indicator of construction activities) declined by 3.1 percent in the first quarter of the year, noted the status of the built environment report.
Meanwhile, the value of imported construction related materials increased from 7.1 billion shillings ($67 million) in the first quarter of 2018 to12.4 billion shillings ($115 million) in the first quarter of this year.
Businesses, on the other hand continue to relocate their offices from the Nairobi Central Business District to upcoming business nodes in search of more exclusive locations, ample space, tranquility, and less congestion.
JK/abj/APA