The Kenya National Bureau of Statistics (KNBS) said in its quarterly report that the sector had slowed down due to the deceleration of the Mombasa-Nairobi standard gauge railway project, which is set for December completion.
“The decelerated growth is partly attributable to reduced activities in the construction of the standard gauge railway as its completion draws nearer,” the KNBS said in the report posted on its website.
The slower growth was reflected in cement consumption which recorded a growth of 5.4 per cent in the period under review compared to 8.0 per cent growth in the second quarter of 2015.
The building and construction sector contributes about 5 per cent of the Kenyan economic output.
Overall, the local economy is estimated to have expanded 6.2 per cent during the first six months of the year compared to 5.9 per cent during the same period last year.
“This growth was mainly supported by better performances in agriculture; forestry and fishing; transport and storage; real estate; and wholesale and retail,” the KNBS said.
Construction, which comprises buildings, roads and rail grew 13.6 per cent last year compared to 13.1 per cent in 2014 driven by the construction of the new railway.
Large scale projects such as shopping malls, office blocks and gated communities also contributed to the improved performance of the sector last year as wealthy investors rushed to meet the rising demand for decent housing across major urban centres.