Kenya cement prices seen rising on weak shilling

Kenya cement prices seen rising on weak shilling
09 June 2015

Cement prices in Kenya are likely to rise due to a weak shilling which manufacturers say has increased spending on imported equipment and inputs, local press report.

Cliinker, coal and spare parts are the most affected due to high importation costs in the past two months.

"In May alone we lost KES160m in foreign exchange loss during the purchase of equipment and inputs. We might adjust prices in June because we are losing a lot," National Cement managing director Narendra Raval told AllAfrica News. He said the cost is likely to go up by 10 per cent.

Cement has been retailing at between KES660-700/50kg bag, according to the report.

Pradeep Paunrana, managing director of ARM Cement, said the company is not planning to increase prices anytime soon "but eventually we will be forced to reexamine our competitive position."

Meanwhile, Savannah Cement managing director Ronald Ndegwa also said the company has no immediate plan to raise prices, adding he believes that the Central Bank of Kenya's Monetary Policy Committee will act swiftly to manage the dollar rate.

Published under Cement News