Plans for a new Dangote Cement plant in Kenya are making progress, with the Kenyan government announcing last week that a license for the new plant would be ready within a couple of months.
The 3 million tpa cement plant will take an investment of US$600 million, according to reports in the local press, and will be Dangote’s first foray into the Kenyan cement industry.
The announcement was made after Kenya’s Deputy President, William Ruto, visited Dangote Cement’s Obajana plant in Kogi State. Ruto said he was ‘impressed’ with the plant, which, at 10.25 million tpa, is one of the largest cement plants in the world. He added: “I am convinced that we are dealing with the right person…I am convinced that as soon as the remaining two licenses are secured and the company is established, it will create jobs for our people back home”.
Kenya’s cement industry is growing as more investment is made in construction. Several of the existing cement producers have announced plans to expand, and besides Dangote other players such as Cemtech Kenya, a subsidiary of India’s Sanghi Cement, are entering the market. Competition is set to heat up, which will be good news for end users who are likely to see competitive pricing. However, cement producers are still feeling the sting of the mining levy introduced in December, which will increase pressure on margins.
Edited from various sources by Katherine Guenioui