Global Headwinds Meet Local Momentum

A global slowdown in the growth of demand for “green” office buildings is creating potential headwinds for Kenya’s rapidly expanding sustainable construction sector, according to a recent analysis of international market trends. A survey by the Royal Institution of Chartered Surveyors (RICS) released in early November 2025 reported a notable dip in the growth of interest for green commercial properties, particularly in the Americas, a trend attributed to shifts in United States environmental policy. While demand across the rest of the world also fell, the findings raise questions about the impact on foreign investment in emerging markets like Kenya, which has so far bucked the trend with a robust project pipeline.

This cooling in global appetite comes at a critical time. According to the UN Environment Programme's (UNEP) 2024 Global Status Report for Buildings and Construction, the sector is a massive contributor to the climate crisis, accounting for 37% of energy and process-related carbon dioxide emissions and 34% of global energy demand in 2022. The UN has repeatedly called for accelerated action to decarbonize the built environment to meet global climate goals.

Kenya's Contrasting Green Trajectory

Unlike the global picture, Kenya's green building sector has been on a steep upward trajectory. As of March 2025, the country surpassed one million square metres of floor space certified under the Excellence in Design for Greater Efficiencies (EDGE) standard, a tenfold increase since 2020. This boom is underpinned by a strengthening policy framework designed to enforce sustainability in the nation's fast-urbanizing landscape. The government's new National Building Code 2024, which took effect on March 1, 2025, replaces a 1968 framework and introduces mandatory requirements for energy and water efficiency, smart technology integration, and the use of environmentally friendly materials. This legislative push is a core component of Kenya's commitment under the Paris Agreement to reduce its greenhouse gas emissions by 32% by 2030.

The economic case is also compelling. An International Finance Corporation (IFC) study revealed that just 22 green buildings in Kenya save a collective KSh 585 million annually in electricity costs. These savings, coupled with higher occupancy rates and increased property values, are attracting both local and international investors. Prominent examples of certified green buildings reshaping Nairobi's skyline include Britam Tower, Purple Tower, and the Garden City development.

A Test of Resilience

The slowdown reported by RICS, however, presents a potential challenge. Kenya's real estate market is increasingly interconnected with global financial flows, and a downturn in investor sentiment in major economies can reduce foreign direct investment. While local drivers like the government's affordable housing agenda and a growing environmentally conscious middle class provide a strong domestic foundation, the high-end commercial sector often relies on multinational corporations and foreign capital that may be influenced by the global trends identified in the RICS survey.

Industry leaders remain optimistic but cautious. At the Kenya Green Building Society (KGBS) conference in Nairobi in October 2025, speakers emphasized the need to secure financing and build local capacity to maintain momentum. Annastacia Mutai, Managing Director at KCB Bank, noted that Kenya faces a financing gap of approximately KSh 180 billion to achieve its 2030 building decarbonization roadmap, highlighting the need for strategic partnerships. Nicholas Maclean, RICS’s acting president, suggested the global slowdown could be a temporary “blip,” arguing that tenants and corporations ultimately know sustainability “is the right thing to do” and provides a competitive advantage.

For Kenya, the global cooling of demand serves as a crucial test. The nation's strong policy direction and clear economic benefits of green construction have positioned it as a regional leader. The coming months will determine if this domestic momentum is sufficient to insulate its burgeoning green building market from international uncertainty and secure its path toward a sustainable, low-carbon future.