Billionaire Narendra Raval eyes 5,500-tonne clinker factory in Kitui

Devki Group CEO Narendra Raval

Devki Group CEO Narendra Raval at his steel smelting plant in Samburu, Kwale County on September 11, 2022. 

Photo credit: Kevin Odit | Nation Media Group

Cemtech Limited, a subsidiary of Simba Cement Company Limited which is owned by Devki Group of Companies, has submitted the environmental impact assessment (EIA) report to the National Environment Management Authority (Nema) for review.

Clinker is the major raw material used in manufacturing cement, a key material used in construction.

“The proposed clinker production line and associated facilities are located in Mwatsuma on plot no Mwingi/Mwatsuma/36 in Mwingi Central Kitui County,” states the EIA.

The plant, if approved, will tighten Devki Group chairman Narendra Raval’s grip on local clinker production.

The total cost of the proposed Kitui clinker factory is unclear but will likely be in the billions of shillings. Mr Raval did not return our call.

Just last month, the businessman opened a Sh29 billion clinker factory in West Pokot in an event President William Ruto graced. The plant can produce 6,000 metric tonnes of clinker daily.

“We want to invest in all the counties,” said Mr Raval recently.

This comes when Kenya has slapped high taxes on imported clinker, which cushions local manufacturers such as Mr Raval from cheap imports.

Through the Finance Act 2023, the cement clinker is one of the commodities slapped with the 17.5 percent export and investment promotion levy.

Amid high taxation, local cement manufacturers are now more incentivised to make their clinker locally.

For instance, Bamburi Cement, National Cement and Mombasa Cement produce their clinker.

The East African Portland Cement Company also recently announced plans to invest $200 million (Sh26.8 billion) to set up its clinker factory in Kajiado County. The factory will have a production capacity of 5,000 metric tonnes of clinker.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.