This archive report was first published on 30 June 2020.
On June 30, 2020, Savannah Cement announced plans to invest in a clinker factory in Kitui, a move that comes as a rival pushes for an increase in import levies to force local sourcing of the raw material.
The company has acquired a mineral-rich land in Kitui where it plans to build a factory that will extract, grind, and process clinker, a key raw material for cement making.
According to regulatory filings, Savannah Cement's clinker factory will be the next in a series of cement firms to build its own clinker plant, following Bamburi, East African Portland Cement Company, National Cement, and Mombasa Cement.
Earlier this year, National Cement chairman Narendra Raval proposed an increase in import duty on clinker from 10 to 25 percent to support consumption of locally-sourced clinker.
Mr. Raval argued that the increase would protect local industries from competition, create more jobs for Kenyans, and save Kenya over Sh10 billion annually spent on importation of two million tonnes of clinker.
However, other cement manufacturers opposed the proposal, citing concerns that it would lead to a monopoly and increase in clinker prices, benefiting National Cement at the expense of its rivals.
