This archive report was first published on 4 October 2021.
On October 4, 2021, the cement industry was abuzz with a collaborative initiative to increase local production of clinker, a primary component of cement manufacturing. However, National Cement's recent public outcry has sparked a heated debate among industry players.
According to reports, National Cement is planning to lay off over 800 employees, citing the government's laxity to introduce high tax duty on imports. In response, cement manufacturers have called out National Cement for being disingenuous on an industry-wide issue that key stakeholders have engaged on.
Industry players have expressed their disappointment with National Cement's stance, with some questioning the company's motives. 'I do not see why National Cement is playing politics with such a sensitive long-term industry issue that has taken over a year,' said Benson Ndeta, Chairman of Savannah Cement. 'It is completely disingenuous to allege that imported clinker is cheaper than locally produced clinker when all available information shows otherwise.'
Other industry players have also weighed in on the issue, with Seddiq Hassani, Managing Director of Bamburi Cement, stating that the company is 'shocked by some of the statements in the media.' Sarbjit Sigh Rai, Managing Director of RAI Cement, added that the industry has made significant investments to increase capacity in the country and support the government's agenda of national development.
Despite the controversy, industry players remain optimistic about the future of the sector. 'We are happy with the recommendations by the committee to give all players a stable and predictable policy framework for the next four years,' said Kishor Varsan.
