‘Mjengo’ Gets Expensive as Price Hikes, Shortages Hit Construction Sites

The construction sector in Kenya is feeling the impact of rising prices of key products including cement and steel, as well as the fuel shortage the country continues to face.

The situation has left players grappling for solutions as activity slows down on many sites. Some contractors have reported being unable to undertake projects at initial cost, driving up project costs, while supply chain challenges have also been witnessed in delivery of cement and other products – a situation attributed to the biting fuel shortage.

The fuel shortage has persisted this week, with shortages reported in outlets in Nairobi and several other counties. Notably, a number of cargo transporters have grounded their fleets due to the fuel shortage, as bus companies also reportedly have.

Confusion over the payment of a fuel subsidy to oil marketers by the government has not helped to ease the pain at the pump.

The State introduced the subsidy in April in a bid to stabilize prices, even as others accused the major oil marketing firms of hoarding. Delayed payment has, however seen prices increase as the firms hesitate to increase supply unsure  if it would be priced into  their compensation.

READ>>Fuel Shortage: Govt Reveals Supply Details As Panic Spreads

Smaller independent retailers also haven’t been keen on buying from the firms due to the prices, which have been further driven up by conflict in Ukraine. The fuel shortage has led to delays in the transportation of products including cement across Kenya.

Metal prices have also been on the increase globally. Steel Rebar futures were last week stuck at an over 5-month high.

The situation for clients and contractors among other stakeholders in the construction industry has seen more complaints from them shared on social media.

Sample these experiences shared by  Kenyans  in construction;

There is literally no steel around…..

— brian (@abosobrian) April 12, 2022

Is bad. You order Cement they take 10 days to service the order. Then another several days for trucks to find fuel, two days from Mombasa to site. Time lost is money lost https://t.co/UV0uM6OfhV

— Kariuki (@JhKariuki) April 12, 2022

I will have to requote all quotations from last week this week. It’s crazy.

— Velma Kiome (@Mzinduzi) April 12, 2022

Site is so dry even Gari ya water tank umeshindwa kufika juu no fuel

— Cosmas (@COSMASWAWIRE) April 12, 2022

How clients wants us to work with last years quotation is not talked about https://t.co/vzt2qsc8VB

— Mjengo o’clock (@mwilu254) April 12, 2022