Cement companies grapple with debts on demand slump

Bamburi Cement engineers during a past launch of a mobile concrete testing laboratory in Nairobi. PHOTO | SALATON NJAU | NMG

Cement makers face a tough year as pandemic-induced demand slump undermines the ability to service the huge finance costs resulting from recent investments made in their battle for market share.

Bamburi Cement #ticker:BAMB, which commissioned an additional 0.9 million-tonne grinding capacity per year to bring its total installed annual capacity to f 3.2 million tonnes, for instance, says its finance costs hit Sh436 million last year, from Sh258 million in 2018.

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