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Cement firms bank on lucrative public projects to drive sale

A man supervises the clearing of bushes at Taru Trading Centre on December 7, 2014 to make way for construction of the standard gauge railway. Cement firms are poised to benefit from the project. PHOTO | LABAN WALLOGA |
A man supervises the clearing of bushes at Taru Trading Centre on December 7, 2014 to make way for construction of the standard gauge railway. Cement firms are poised to benefit from the project. PHOTO | LABAN WALLOGA |   NATION MEDIA GROUP

Cement companies are banking on infrastructure projects to drive sales this year after the eleven-month to November production surpassed full-year 2013 tonnage.

Data from Kenya National Bureau of Statistics (KNBS) show that the six cement makers, already operating in excess capacity, produced 5,208,934 metric tonnes by November compared to 4,637,081 metric tonnes in a similar period in 2013 and a total of 5,059,129 metric tonnes in the full 2013.

KNBS data shows the local market consumed an average 87 per cent of the volume produced compared to 84 per cent in 2013.

The growth in the sector is in line with the rebounding real estate sector which stalled in the last two years due to high financing costs.

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