This archive report was first published on 24 October 2019.
Published on October 24, 2019, Kenya has seen a significant increase in its cement production capacity, reaching an estimated 12 million tonnes annually. This surge is attributed to new capital investments and enhanced yields from existing plants.
However, the construction sector has stalled, with annual demand ranging between 5 million and six million tonnes. This has led to a decline in market share for established players like Bamburi Cement, which has seen its share drop to about 32 percent from a high of 60 percent.
Bamburi Cement's managing director, Hassani Seddiq, has expressed concerns about the industry's sustainability, citing falling prices and rising costs. He believes that if the trend continues, the industry may not be sustainable anymore.
In an effort to protect its market share, Bamburi has invested in a Sh3.5 billion grinding plant at its Athi River facility. The company is also exploring ways to cut costs, including hauling bulky inputs from the Coast through the underutilized old railway line, which could help slash transport costs by up to 30 percent.
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