Construction industry in Kenya is expected to grow by 8.7% to reach KES 995 billion-in 2023.
Despite short-term challenges in certain construction sectors, medium to long term growth story in Kenya remains on track. The construction industry in Kenya is expected to grow steadily over the next four quarters.
The growth momentum is expected to continue over the forecast period, recording a CAGR of 7.1% during 2023-2027. The construction output in the country is expected to reach KES 1,952 .1 billion by 2027.
KPIs
Key Performance Indicators (KPIs) are widely used in the construction industry to measure and track the performance of various aspects of a project. While specific KPIs may vary depending on the nature of the project and the goals of the construction company, here are some common KPIs used in the construction industry in Kenya. These are the key performance indicators for construction kenya:
- Schedule Performance Index (SPI): SPI measures the efficiency of project scheduling by comparing the actual progress of the project against the planned schedule. It is calculated as the ratio of the earned value (EV) to the planned value (PV). SPI values above 1 indicate that the project is ahead of schedule, while values below 1 indicate delays.SPI rose fom 43% to 71% in the period 2022/2023.
- Cost Performance Index (CPI): CPI measures the efficiency of cost management by comparing the actual project costs to the planned budget. It is calculated as the ratio of the earned value (EV) to the actual cost (AC). CPI values above 1 indicate that the project is under budget, while values below 1 indicate cost overruns. CP1 fluctuated slighlity at 59% to settle at 57%.
- Safety Performance Indicators: These KPIs focus on measuring and improving the safety performance of construction sites. They may include metrics such as the number of accidents/incidents, lost time injury frequency rate (LTIFR), total recordable incident rate (TRIR) , and near-miss reporting rate. SPI increased from 21% to 55% with minimal incidents and increased use of safety wear in construction sites.
- Quality Performance Indicators: These KPIs assess the quality of construction work and adherence to specifications. They may include metrics such as defects per unit, rework percentage, customer satisfaction surveys, and compliance with quality standards. All administrative regulations were enforced arcordingly with numerous & impromptu inspections to ensure accountability and quality standards adherence increasing fom 70% to 86%.
- Productivity: Construction productivity is a critical KPI that measures the efficiency and output of construction activities. It can be measured in various ways, such as labor productivity (output per worker), equipment utilization, or materials usage. Job creation in the sector led to a greater skilled and quality professional workforce that has been feild-tested to increase from 54% to 67%.
- Earned Value (EV): Earned value is a KPI that combines cost and schedule performance by measuring the value of work completed compared to the planned value. It helps track the progress of the project and identify any deviations from the planned schedule or budget. It increased from 40% to 65%.
- Customer Satisfaction: This KPI measures the satisfaction levels of clients or end-users of the construction project. It can be assessed through surveys, feedback forms, or other means of gathering customer input. Feedback has been mostly positive based on a field survey done by our team with positive reviews at 92.89% out of 10,000 customers.
- Environmental Sustainability: With increasing emphasis on sustainable construction practices, KPIs related to environmental impact and sustainability are becoming more important. These may include metrics such as energy consumption, waste management, water usage, and carbon footprint. Use of eco-friendly alternatives available at our store has led to increase from 14% to 88%.
These KPIs are customized based on the specific needs and objectives of each construction project in Kenya.