This archive report was first published on 4 September 2021.
Published on September 4, 2021, Bamburi Cement, a subsidiary of LafargeHolcim, has secured lucrative government contracts for the supply of cement for key infrastructure projects in Kenya and Uganda. The company is fending off competition through cost-cutting measures, introduction of low-cost construction materials, and bidding for mega government cement supply contracts.
The regional cement maker has won tenders to supply cement for key government infrastructure projects in Kenya, including the Thwake dam, Nairobi Expressway, Dongu Kundu bypass, Lamu port, and the Ksh160 billion ($1.46 billion) Nairobi-Mau Summit Highway. In Uganda, the firm supplies cement to the oil and gas projects in the Albertine region and gold mines in the Democratic Republic of Congo (DRC).
"All these have contributed to improving our topline," Group Managing Director Seddiq Hassani told The EastAfrican last week. The company's sales volumes in Kenya declined by 1.9 percent last year, while its average selling prices also declined due to suppressed purchasing power by users and slow private sector credit growth.
Despite the challenges, Bamburi's sales in Uganda grew by 15 percent to 3.9 million tonnes in December 2020, compared to 3.4 million tonnes in 2019. The company's net profit declined to Ksh1.05 billion ($9.63 million) last year from Ksh5.24 billion ($48.07 million) in 2016, while total sales fell eight percent to Ksh34.88 billion ($320 million) from Ksh38.03 billion ($348.89 million) during the same period.
