The Kenya National Bureau of Statistics has released Construction Input Price Indices (CIPI) for the second quarter of 2025.
CIPI measures the price changes in the inputs that are consumed/used in the construction process. The main inputs into construction projects are classified into materials, labour, equipment and transport.
The indices are generated from price data collected quarterly from a representative sample of outlets that trade in construction materials.
According to the KNBS data, year-over-year inflation was 0.18 per cent in Q1 of 2025 and stood at 0.59 per cent in Q2 of 2025.
The overall construction indices increased from 119.05 in Q1 of 2025 to 119.75 in Q2 of 2025. This rise was mainly attributed to the increase in the materials indices, which rose from 125.90 to 127.39.
Which construction materials had an increase in prices?
Notable indices that rose were those of Concrete and Asphalts (2.86%), Cement (2.63%) and steel & Reinforcement Bars (1.52%).
On the other hand, the Transport, fuels and lubricants index declined by 0.62 per cent, from 123.67 in Q1 of 2025 to 122.90 in Q2 of 2025, primarily due to a 1.62 per cent drop in fuel and lubricants indices, which fell from 129.63 to 127.53.
The labour indices remained relatively stable. However, there were marginal increases in the index of Machine/Plant Operators by 0.07 per cent to 107.24, the Carpenter/Painter /Welder/Mechanic index from 112.00 to 112.17 and mason/foreman index from 110.63 in Q1 of 2025 to 110.65 in Q2 of 2025.
The Equipment Indices remained unchanged, indicating price stability across all categories over the review period. The Building Cost Index increased slightly by 0.78 per cent to 119.52 in Q2 of 2025. This was largely due to the increase in material indices from 121.99 in Q1 of 2025 to 123.73 in Q2 of 2025. The main driver of the increase in materials indices was especially in the indices of Cement & Lime (2.62%), Reinforcement Bars (1.47%), Paving blocks (1.58%), Sand (1.44%), Timber & Wood (2.50%), among others.
Building Electrical fittings indices decreased by 0.71 per cent to 114.70 in Q2 2025. The Fuel and transport index decreased by 0.34 per cent to 128.80 in Q2 of 2025, mainly due to a drop in the fuel index by 1.68 per cent to 129.27.
Why the civil engineering index increased in Kenya
The building Equipment and Labour indices remained unchanged in the period under review, while the Civil Engineering Index increased by 0.43 per cent to 120.52 in Q2 of 2025. This was driven mainly by an increase in the material indices, especially indices for cement (2.64%), quarry products (2.70%) and Concrete & Asphalts (2.86%) among other items.
On the other hand, there were decreases in indices of Paving Grade Bitumen (1.34%) and Dense Bitumen Macadam (1.56%). The Transport, Fuel and Lubricants indices declined slightly (-0.91%).
The Equipment and labour indices remained the same over the review period.
