The August 17 decision to place debt-laden ARM Cement under administration was the latest manifestation of the struggles the cement industry has been going through in recent years despite real estate sector boom and increased investment in public infrastructure.
Today, two of the three publicly traded cement firms have plunged deep into losses, reflecting the industry’s challenges. Bamburi Cement remains the only profitable listed cement maker. The company, which is owned by French conglomerate Lafarge, last reported a Sh399 million profit for six months ended June 2018, a sharp drop from Sh1.84 billion it made in the same period a year earlier and Sh3.08 billion in June 2014. The industry’s woes are captured by a 7.9 per cent drop in cement uptake to just under 2.75 million tonnes between January and June this year. Seddiq Hassani, who took over as chief executive of Bamburi in February, spoke to the Business Daily on industry prospects and challenges.
