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Regional cement exports fall 68 percent

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Bamburi Cement plant in Mombasa. FILE PHOTO | NMG

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Summary

  • Kenya’s cement exports to East African markets suffered a 67.9 percent slump in the first nine months of 2019, largely blamed on increased production capacity in the region amid a general economic slowdown.
  • ARM Cement’s collapse owing to massive debts saw it halt production at its Kenyan plant, further hurting sales.
  • Dangote Cement’s entry into DRC as well as Bamburi Cement Group’s investment in Uganda at Hima and at Tororo further increased competition.

Kenya’s cement exports to East African markets suffered a 67.9 percent slump in the first nine months of 2019, largely blamed on increased production capacity in the region amid a general economic slowdown.

Data from the Kenya National Bureau of Statistics (KNBS) shows that Kenyan cement makers sold 41,349 metric tonnes raking in Sh475.2 million in the first three quarters of 2019 to Uganda, Rwanda, Tanzania, South Sudan and DRC Congo down from 128,961 tonnes sold in 2018 worth Sh1.3 billion during the same period.

ARM Cement’s collapse owing to massive debts saw it halt production at its Kenyan plant, further hurting sales.

Dangote Cement’s entry into DRC as well as Bamburi Cement Group’s investment in Uganda at Hima and at Tororo further increased competition.

The exports could suffer a further beating once the ongoing 700,000 metric tonne a year cement plant by Prime Cement in Musanze District, Rwanda is completed.