Bamburi Cement posted 3.8bn pretax profit in 2006

Bamburi Cement posted 3.8bn pretax profit in 2006
14 February 2007

Bamburi Cement has posted a pretax profit of 3.8 billion shillings for the year ending December 31, 2006.

Chairman, Richard Kemoli attributed the high profits on the ability for the company to export cement products in the region.

Bamburi is among the main cement manufacturers in the East African region.

The company has grown its market in northern part of Tanzania, Southern Sudan, Democratic Republic of Congo, Rwanda and Burundi.

Kemoli said the company turnover grew by 10 per cent to stand at 16.7 billion shillings. Speaking at a news conference, Kemoli said shareholders would now earn 1 shilling and 50 cents dividend per share.

The company says a devastating drought at the beginning of last year saw the amount of disposable incomes dwindle as productivity in key sectors slowed down in the region’s economies.
Meanwhile, chairman of Bamburi Cement Company Richard Kemoli has denied any knowledge of negotiations between his company, the government and Lafarge Cement Company to reduce the latter’s shareholding in East Africa Portland Cement Company.

Bamburi and Lafarge are the main shareholders of East African Portland Cement.

Kemoli said if such negotiations were going on, an official statement would have been released to the public as required by the law.

“There would be no official statement to be made because the rules that govern public quoted company state very clearly before anything can go on in a serious way there must be a statement issued,” he said.

In August last year, Trade Minister Mukhisa Kituyi had announced that the government and Lafarge were to meet to discuss the company’s shareholding in several Kenyan cement companies, after questions had been raised over the issue.

Published under Cement News