CBK survey: Why Kenya’s real estate firms are under pressure to cut costs

Kenya’s real estate sector is under pressure to reduce costs as it faces concerns about industry decline, according to the Central Bank of Kenya’s (CBK) September 2026 Market Perceptions Survey. The survey found that 33 percent of real estate respondents cited industry decline and cost reduction as factors shaping their employment expectations for 2026 compared to 2025.

This suggests that while many firms are concerned about the direction of the industry, they are also looking to control expenses as part of their decision-making process. The survey adds that other factors such as digital transformation and improving profits by cutting overheads were also significant considerations for real estate businesses, accounting for 17 percent of the factors cited.

However, the survey does not indicate that a specific percentage of firms are failing or planning layoffs. Instead, it offers a snapshot of the pressures influencing real estate businesses as they make decisions about staffing, operating expenses, and efficiency. The broader private sector survey results also highlight the need for lower and more predictable costs, improved infrastructure, and easier access to affordable credit, particularly for small and medium-sized enterprises.