Kenya: Vipingo facility to make Mombassa Cement more competitive

Kenya: Vipingo facility to make Mombassa Cement more competitive
Published: 12 April 2016


African cement companies are eyeing the market created by a construction boom in east Africa and other countries in the larger region, according to All Africa news service.

At the top of the companies looking to grab a share of an increasing market is Kenya's Mombasa Cement Ltd, which plans to invest KES7.3bn (US$73m) to expand the factory's production capacity. The new clinker and cement unit is expected to ease pressure on prices, which dropped to US$7/50kg bag from US$8 in 2014.

The new facility to be located at Vipingo in Kilifi County is subject to approval by the National Environment Management Authority (Nema).

"The objective of expansion of Mombasa Cement's Vipingo factory is to increase the current clinker production capacity from 3000tpd of clinker to 9000tpd," said the company's MCL's environmental lead expert Philip Omenge in an EIA report to Nema.

Cement consumption in Kenya, Tanzania and Uganda in 2014 has been steadily on the rise. "Improved economic activity and accelerated implementation of infrastructure, were key drivers of 13 per cent YoY growth in consumption," said Standard Investment Bank.

"Production efficiency and cost control will therefore remain key pillars of the company's performance, supported by growth in volumes," said East Africa Portland Cement's Managing Director, Kephar Tande.