Nairobi Building Approvals Climb Sh18bn as Construction Activity Picks Up

The value of building projects approved in Nairobi County rose by Sh18.24 billion in the first five months of 2026, according to new data pointing to a pickup in construction activity within the capital.

Figures from the Kenya National Bureau of Statistics (KNBS) show approved building value climbed to Sh84.14 billion between January and May, up from Sh65.9 billion recorded during the same period in 2025.

Residential projects accounted for the bulk of that increase. Approvals for residential buildings rose by Sh9.7 billion, bringing the total value to Sh61 billion for the five-month period.

Non-residential building approvals also grew, adding Sh8.6 billion to reach Sh23.1 billion. Together, the two categories drove the overall rise in approved construction value across the county.

The increase comes amid rising demand for land and housing in several of Nairobi's high-end neighbourhoods, according to separate data from the HassConsult Land Price Index covering the first quarter of 2026.

Land prices climbed across a number of prime suburbs during that period. An acre in Nyari rose 3.1 per cent to Sh125 million, while Lang'ata recorded a 2.4 per cent increase to Sh90.9 million.

Kileleshwa land values rose 1.6 per cent to Sh336.2 million per acre, the index showed, while Karen recorded a smaller 1.3 per cent gain to Sh77 million.

House prices in upscale neighbourhoods moved in the same direction over the quarter, with limited housing supply cited as a contributing factor. Lavington posted the sharpest increase at 4.2 per cent, ahead of Spring Valley at 3.8 per cent and Kilimani at 1.8 per cent.

Karen, Loresho and Westlands each recorded house value increases of 3.8 per cent over the same period.

The apartment segment showed a more mixed picture. Muthangari and Riverside posted gains of 3.8 per cent and 1.8 per cent respectively, while apartment prices in Westlands fell 2.8 per cent and Upper Hill dropped 2.5 per cent.

The latest approvals data marks a recovery from a decline recorded the previous year. In the first eight months of 2025, the value of building approvals in Nairobi fell by Sh34.2 billion to Sh114.3 billion, down from Sh148.5 billion during the same period in 2024.

KNBS attributed that earlier decline to a combination of high interest rates and rising construction costs. Residential building approvals dropped from 122,823 to 90,142 over the period, while non-residential approvals fell from 25,456 to 24,188.

The current five-month figures suggest some of that pressure may be easing, though the data covers only part of the year and does not yet indicate whether the recovery will hold through the remaining months of 2026.