It is a paradox of the Kenyan economy: while construction costs soar, the appetite for building materials is insatiable. Leading manufacturers of steel and roofing sheets have reported a double-digit increase in output for Q4 2025, driven by a rush to complete infrastructure projects and private housing developments.

Data from the Kenya National Bureau of Statistics (KNBS) indicates that production of galvanized sheets and steel bars rose by 12% compared to the previous year. This surge comes despite a sharp rise in the cost of raw materials, suggesting that developers are biting the bullet to beat inflation.

The "Buy Now" Mentality

"The market sentiment is panic-buying," explained a sales director at a major Athi River steel plant. "Developers fear prices will go even higher next month, so they are stockpiling now. Our machines are running 24 hours to keep up."

This demand is also fueled by the government’s Affordable Housing drive, which guarantees a steady market for local materials. The state’s "Buy Kenya, Build Kenya" policy has forced contractors to source at least 40% of their inputs locally, breathing life into the manufacturing sector even as the broader economy struggles.

• Capacity Challenges: However, the sector faces a headache: power reliability. Manufacturers have petitioned Kenya Power over frequent outages that disrupt the continuous production lines required for steel smelting, leading to costly waste.
• The Outlook: While production is up, profit margins are squeezing. The cost of energy and logistics remains high. The message from the factory floor is clear: we can build Kenya, but we need the lights to stay on.