Cement consumption grows in Kenya

According to data reported by AllAfrica.com, Kenya’s cement consumption rose by more than 20% in 1H14, growing faster than production. The figures show cement consumption of 2.40 million t in 1H14 compared to 1.96 million in 1H13. Production was greater by 17.5% at 2.75 million t, up from 2.34 million t in 1H13, which equates to capacity utilisation of around 87%.

Residential construction in Kenya is booming, leading several companies to look at expanding capacity to keep up with demand. WorldCement.com reported last month that National Cement Company Ltd has received funding from the IFC to boost capacity to 1.7 million tpa, while Standard Digital has reported that Savannah Cement is considering building a new clinker plant at an investment of KES17 billion. The new line would reportedly be completed by the end of 2017, though the company is still in the early stages of planning and has yet to secure a limestone source. Further investment would be used to scale up the plant’s existing production capacity at the Athi River plant, which uses imported limestone.

Meanwhile, Ventures Africa is reporting that cement producers are likely to suffer from East African ministers’ decision to maintain the low import duty on cement, which has previously been blamed for the lack of investment in the local East African cement industry. Cheap imports have a competitive advantage over the home-grown product, having lower production costs. Imports come from China, India and Pakistan, all of which have surplus capacity.

Edited from various sources by Katherine Guenioui

Read the article online at: https://www.worldcement.com/africa-middle-east/07082014/cement-consumption-grows-in-kenya-253/