This archive report was first published on 10 September 2019.
Kenya's cement industry is on the cusp of a crisis, with four major manufacturers planning to expand their production capacities, according to a recent report by AIB Capital.
Published on September 10, 2019, the report highlights the potential for excess capacity in the industry, with production expected to increase to 18.1 million metric tonnes from the current 13.1 million.
However, local consumption remains stagnant at 45% of the current production, while distribution to neighboring countries like Uganda and Tanzania is declining.
“Presently, four of the major cement manufacturers are planning to expand and double their capacities from 2019,” the report notes.
“… the consumption level being low at six million metric tonnes accounting for only 45% of the total capacity and cement distribution to Uganda and Tanzania declining, overcapacity of cement is unavoidable,” the report warns.
