The Kenya National Bureau of Statistics (KNBS) has released the Construction Input Price Indices (CIPI) for the first quarter of 2025.
The indices are generated from price data collected from a representative sample of outlets that trade in construction materials. The prices are collected quarterly on the 15th day of the middle of the quarter for the transactions that occurred.
According to KNBS, year-over-year inflation dropped from 3.56 per cent in Q1 2024 to 0.18 per cent in Q1 2025. The indices of quarry products, sand, and cement increased by 1.15, 0.61 and 0.92 per cent to 107.44, 104.89 and 117.38, respectively while notable declines were in indices of Steel and Reinforcement bars, Dense Bitumen Macadam, Mix and precoated chippings and Concrete & Asphalts which declined by 2.16, 2.12, 1.78 and 1.48 per cent, to 163.94, 152.60, 125.63 and 144.20, respectively.
Why Building Cost Index decreased?
The Building Cost Index decreased slightly from 118.77 in Q4 2024 to 118.60 in Q1 2025. This was largely due to the decrease in the indices of BRC Mesh & Steel Reinforcement Bars (-2.08%), Water waste (-1.24%), Glass & glass putty (-0.69%).
Further, the indices of Fuel and transport index decreased by 0.39 per cent to 129.24 during the quarter. However, during the same period, indices of cement and lime, quarry products, paving blocks, sanitary fittings, locks and ironmonger increased by 0.61, 1.15, 0.44, 1,34 and 0.37 per cent respectively.
The Civil Engineering Index declined slightly from 120.52 in Q4 of 2024 to 119.95 in Q1 of 2025 (-0.43%). The decline was driven mainly by a reduction in the indices for Paving Grade Bitumen (-4.03%), Dense Bitumen Macadam (DBM) (-2.13%), BRC Mesh & Reinforcement Bars (-2.23%), Concrete & Asphalts (-1.48%) and Tack-coat (-1.24%).
Similarly, the Transport, Fuel and lubricants indices declined slightly (-0.22%), while indices of equipment costs and labor costs, went up by 0.3 and 0.04 per cent, respectively, over the same review period.
