National Cement announces expansion plans, Kenya

National Cement announces expansion plans, Kenya
Published: 16 June 2011

National Cement, a subsidiary of Devki Group, has revealed plans to increase its production by the end of next year. The firm has announced plans to invest an additional KES13bn (US$145m) to expand production capacity to 2.5Mta, from the current 400,000t.

The investment is likely to heighten competition in the sector that has already seen older players cede more than 10 per cent market share to new entrants since January last year.

President Kibaki who presided over the commissioning of its KES2bn plant at Lukenya, Athi River, yesterday said competition in the sector had led to cheaper cement.

“The entry of more cement-makers has increased competition in the market, which has in turn raised the quality of cement while lowering the cost by about 10 per cent,” said President Kibaki.

Mr Kibaki asked manufacturers to be more efficient to achieve cheaper prices, which would enhance economic growth. Manufacturers should exploit local natural resources, including iron ore and coal used in making steel and as the cheapest source of industrial energy.