Devki Group complains of substandard imports flood

Devki Group complains of substandard imports flood
20 March 2018

Devki Group's Chairperson, Narendra Raval, has spoken out against imported cement that is disrupting the Kenyan cement market and has criticised the Kenya Bureau of Statistics (KBS) and Kenya Association of Manufacturers (KAM) for not taking action to protect local producers.

Narendra Raval said: "Those importing to Kenya are not monitored. Their cement is substandard and below the normal 50kg. This is killing the local industry." 

Mr Raval questioned why the KBS and KAM is not taking action on the regional manufacturers. "Most buildings are falling because they were constructed using substandard cement and KBS is to blame for not effectively monitoring the price wars," he said.

The Devki head added that the entry of new players such as Dangote Cement is a considerable cause for worry since they sell cement at a much cheaper price than other east African manufacturers.

Currently, imported Dangote cement retails at KES7500/t (US$74/t) in northern Kenya compared to KES11,000 (US$108.60) from Kenyan manufacturers, a 31.8 per cent difference. The firm intends to commission its plant in Kenya in 2023.

Distributors in the industrial area said they are now selling a 50kg bag at between KES600-650, down from KES770 two years ago.

Devki Group owns National Cement, which produces Simba Cement and controls approximately 20 per cent of the market.

Published under Cement News