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Hire Charges for Construction Equipment in Kenya

Estimated cost of hiring heavy equipment in the country.

Updated on

January 11, 2024

Equipment rental — Heavy machinery on site. PHOTO | FILE

Renting or leasing heavy equipment is a great way to run a construction business without having to incur the upfront costs associated with outright purchase of machinery.

It allows a business to obtain equipment without taking huge loans or depleting its savings account. However, while leasing can help to cut costs, rented equipment is not cheap.

Editor’s note: Obtaining construction equipment hire rates in Kenya is not easy considering there are many factors affecting the fees that companies charge for their machinery.

Let’s take a look at some of the factors affecting the cost of hiring equipment – regardless of whether you are hiring a concrete mixer, two graders, or a new machine for excavation.

1. Demand vs. supply

Whenever equipment demand is higher than supply, for example during construction of a major highway project in a neighbourhood, equipment hire rates will always edge upwards.

The charges for a lifting machine, for instance, will be higher for a customer operating in a non-industrial area compared to that of an individual working in an industrial area where such equipment is easily available.

2. Leasing period

Most companies base their charges on the hiring duration. While you can hire machinery on hourly, daily, or monthly basis, leasing equipment for a longer period – quarterly or yearly – can win you a better rate.

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That said, it is worth noting that equipment leasing can be more expensive in the long term compared to outright purchase of machinery. However, for cash-strapped businesses, leasing allows access to the required equipment without spending a lot of upfront money.

3. Regional monopoly

In some instances, local leasing companies can form a cartel to fix prices for their equipment. It is difficult to get a fair deal in such areas as such arrangements works to squeeze every penny from the customer.

Other factors that determine the cost of hiring construction equipment in Kenya include uniqueness of a machine, maintenance service availability as well as transportation costs of the machinery.