Displaying items by tag: Kenya

Kenya: Kalahari Cement will spend US$5.57m to acquire a 29% stake in East African Portland Cement (EAPC) from Associated International Cement and Cementia Holding, making it one of the largest shareholders. Kalahari will purchase a combined total of 26.3 million shares from the two parties. The deal, priced at US$0.21/share, is subject to several regulatory approvals.

Kalahari is a Kenyan-incorporated investment vehicle, backed by Pacific Cement (90%) and Comercio Et Consiel (10%). It currently has no direct stake in EAPC but is affiliated with Bamburi Cement, which owns 12.5%. EAPC operates an integrated cement plant near Nairobi.

Kenya: Ndovu Cement, owned by Karsan Ramji & Sons, will build a 600t/day greenfield clinker plant and a limestone quarry in Mukawa, Kajiado County, according to regulatory filings. The project has already secured approval from the National Environment Management Authority. The company said the limestone quarry will ensure a reliable supply of 900t/day of limestone.

The facility is expected to reduce reliance on imports following a 17.5% levy on clinker imports introduced in July 2023, according to the Business Daily Africa newspaper. The measure was aimed at boosting local production and creating jobs, but has since led to a drop in cement consumption due to price increases and a fall in imports. Kenya-based cement producers had reportedly opposed an attempt to increase import duty on clinker, instead requesting a grace period of four years, until 2026, to allow them to build their own clinker production facilities.

Karsan began as a quarry operator in Kitengela, Kilifi and Nakuru, before beginning cement production in 2015 and launching Ndovu Cement in June 2015.

Kenya: A judge has upheld the appointment of Mohamed Osman Adan as the managing director of East African Portland Cement Company (EAPCC). Employment and Labour Relations Court judge Byram Ongaya ruled that Adan was the only applicant to meet the 70% score threshold as prescribed in the company’s Human Resources and Procedures Manual.

“The court finds that the board’s recommendation that Mr Adan be appointed the managing director cannot be defeated upon the tests in Article 73(2) (a) on selection on the basis of personal integrity, competence, and suitability; and, Article 232 (g) on fair competition and merit as the basis of appointments and promotions,” said Ongaya.

Mr Adan’s appointment had been challenged by lawyer Apollo Mboya, who alleged that the board of directors had overturned Kenyan President William Ruto’s appointment of Bruno Oguda Obodha as managing director.

Kenya: The Institution of Engineers of Kenya (IEK) has called for urgent measures to tackle the rising presence of substandard cement in the market, amid a reported increase in building collapses, according to The Eastleigh Voice newspaper. The institution has called for audits of manufacturers, enforcement of verification and random sampling from hardware stores and distribution centres.

In a statement, IEK said bags labelled as 50kg were often lighter, some weighing as little as 45kg. Its members had recorded compressive strength reductions of up to 25% in concrete made with some cement brands on the market, even those bearing the Kenya Bureau of Standards (KEBS) mark of quality.

Kenya: Kenya’s cement clinker imports have dropped by 93% year-on-year to 10,340t in 2024 from 148,000t in 2023, according to the government’s 2025 Economic Survey. The value of imported clinker fell to US$27,500 from US$409,000 in 2023 and US$3.2bn in 2020. Import volumes had already fallen by 77% in 2023, from 656Mt in 2022.

Cement production declined by 7% from 9.6Mt to 8.9Mt in 2024, while consumption also fell by 7% to 8.5Mt. Construction sector growth contracted by 0.7% in 2024, down from 3% in 2023.

Kenya: Bruno Oguda Obodha, who had previously been appointed by the Kenyan President William Ruto to be managing director of East Africa Portland Cement Company (EAPCC), has been charged with fraud. He is accused of forging documents with the intent to commit fraud on various dates in 2024. Obodha never served at EAPCC, as its board rejected his appointment in December 2024, citing its suspicions of fraud.

The charges include deliberately confusing membership of the Blue Make International Security Company with that of the Protective Security Industry Association, altering a document relating to EAPCC with the intent to defraud, and making a document without authority.

Obodha will be trialled in court on 29 April 2025.

Kenya: Cement sales fell by 8% year-on-year to 8.47Mt in 2024, the sharpest annual decline in over two decades, according to the Kenya National Bureau of Statistics (KNBS). The fall reflects budgetary cuts on public infrastructure projects and a broader slowdown in construction activity, which contracted by 3% in the third quarter of 2024, following a 2% drop in the second quarter.

KNBS said in its report “The contraction was reflected by trends in key industry indicators. For instance, cement consumption declined by 10% to 2.2Mt in the third quarter of 2024, from 2.4Mt in the same quarter of 2023.”

According to the Nation newspaper, the slowdown follows delays in the government’s payments to contractors and the stalling of infrastructure projects. The government indicated that most of the stalled projects will begin to receive funding in the next few days and weeks.

Kenya: Cement consumption rose by 27% year-on-year in January 2025, up by 4% in December 2024, according to provisional data from the Kenya National Bureau of Statistics. Cement production also grew by 21% year-on-year in January following more than a year of contraction. In the 12 months to January 2025, cement consumption fell by 5% year-on-year and cement production dropped by 6% year-on-year.

Kenya: At least 99kg of heroin and cocaine worth US$2.3m were destroyed at the Bamburi Cement Mombasa plant, at the request of the Directorate of Criminal Investigations Kenya, according to a social media post from the company. Bamburi Cement’s kiln was selected as the most secure method for incinerating the seized narcotics.

“Our kilns co-process waste and convert it into energy, reducing CO₂ emissions and supporting a clean circular economy. We are proud to contribute to this public interest solution that has eliminated a threat posed to our fellow Kenyans,” said Sustainability & Geocycle Director Jane Wangari.

Bamburi Cement has previously collaborated with multi-agency teams to dispose of over 5000t of hazardous waste imported into the country at its Mombasa facility.

Kenya: The government has warned cement producers about buying materials from unlicensed sources. Cabinet Secretary Hassan Ali Joho has berated cement producers for purchasing minerals from unauthorised sellers, arguing that this practice enables the operations of illegal miners who exploit the country’s natural resources.

During a meeting with cement producers and representatives from the Kenya Association of Manufacturers and Kenya Chamber of Mines, Joho said "We need your support in fighting against illegal mining operations, but sadly some of you provide markets for minerals extracted illegally by faceless entities that are not paying taxes, royalties and are giving nothing to communities for those minerals. This must stop.”

In the past three years, the government has closed 3000 illicit mines that were operating without licenses. The Cabinet Secretary noted that gypsum was a heavily exploited material by the illegal miners, who use it as an ingredient in cement.

Joho added “You have been buying and using gypsum in cement manufacturing, yet there is no record of anyone licensed to mine gypsum in Kenya. There are no records on production, payment of taxes and royalties or community programs undertaken by any gypsum dealer because they are doing it illegally.”