The Kenya National Bureau of Statistics has released Construction Input Price Indices (CIPI) for the fourth quarter of 2025.
CIPI measures price changes in inputs consumed 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.
What was the construction inflation rate in Q4 of 2025
According to the KNBS data, the annual construction inflation rate was 0.62 per cent in Q4 of 2025.
The Overall Construction Index declined by 0.92 per cent, from 121.27 in Q3 2025 to 120.15 in Q4 2025. The decline was mainly driven by drop in material cost indices especially in BRC Mesh & Reinforcement Bars (4.29%), Concrete & Asphalts (2.65%), Dense Bitumen Macadam (DBM) (2.17%), Mix and precoated chippings (2.07%), Timber & Wood (1.63%), Windows (1.47%), Water wastes (1.36%), Roofing materials (0.59%), Paints (0.34%) and Cement (0.98%).
Some of the indices that recorded increases were Tiles (1.99%), Electrical fittings (0.74%), Stones (0.65%), Hardcore (0.57%), Ballast/Gravel (0.52%) and Kerbs (0.51%).
The equipment index remained largely stable, increasing marginally by 0.03 per cent from 106.98 in Q3 2025 to 107.01 in Q4 2025.
Meanwhile, the labour index declined by 0.73 per cent, from 112.45 in Q3 2025 to 111.64 in Q4 2025, reflecting reduced labour costs during the quarter.
The transport and fuel index declined by 0.13 per cent, from 127.24 in Q3 2025 to 127.08 in Q4 2025, while the Buildings Cost Index declined by 1.03 per cent to 120.04 in Q4 2025.
The decrease was mainly driven by the drop in material indices by 1.43 per cent as a result reductions in indices of BRC Mesh & Steel Reinforcement Bars (4.19%), Timber & Wood (1.87%), Cement & Lime (0.98%), Paving blocks (0.33%), Roofing materials (0.59%), Windows (1.47%) and Water wastes (1.36%).
Which construction materials had an increase in prices in Q4 of 2025
Materials that recorded increases in their indices were: Tiles (1.99%), Electrical fittings (0.74%), Hardcore (0.57%), Ballast (0.32%) and Stones (0.65%).
The building equipment indices increased marginally by 0.22 per cent, from 102.20 to 102.43, while the labour indices declined by 1.13 per cent, from 116.31 in Q3 2025 to 115.00 in Q4 2025.
The Civil Engineering Cost Indices declined by 0.85 per cent, from 121.79 in Q3 2025 to 120.75 in Q4 2025, reflecting an overall easing of civil engineering construction costs during the quarter. The decline was mainly driven by reductions in the indices of Paving Grade Bitumen (2.50%), Tack-coat (3.36%), BRC Mesh & Reinforcement Bars (4.40%), Concrete & Asphalts (2.65%), Dense Bitumen Macadam (DBM) (2.17%), Mix and precoated chippings (2.07%), Cement (0.99%) Timber & Wood (1.39%) and Paints (0.34%).
In contrast, the civil engineering equipment index declined marginally by 0.14 per cent, to 111.32 in Q4 2025, while the civil engineering transport and fuel index declined slightly by 0.18 per cent, to 121.04 over the same review period.
