Kenya: Bamburi Cement signs US$250m EPC deal for Kwale clinker plant

Bamburi Cement has signed a US$250m engineering, procurement and construction (EPC) contract with China’s CBMI Construction Co., Ltd to build a new clinker production plant in Kwale county, Kenya.

The agreement covers the construction of a 1.6Mta clinkerisation line, which Bamburi said will significantly reduce the country’s reliance on imported clinker and strengthen security of supply for the domestic cement market. The project was formally announced at a signing ceremony in Nairobi attended by President William Ruto.

According to Bamburi, the new facility will use a six-stage pre-calciner system and incorporate emissions-reduction technologies, including the use of alternative fuels such as coconut husks, cashew shells and municipal solid waste. The company said the design is intended to improve energy efficiency and lower the carbon intensity of clinker production.

Bamburi chief executive Mohit Kapoor said the project would enhance production consistency and support long-term demand from Kenya’s infrastructure and housing programmes. He added that the new clinker line forms part of the company’s wider strategy to modernise its asset base and reduce exposure to imported raw materials.

The Kwale investment is expected to generate employment during construction and operation, while supporting industrial development along Kenya’s coast. Bamburi did not disclose a timeline for commissioning of the new clinker line although some sources have suggested by 2028.

Ruto rules out repeal of clinker import levy
Meanwhile, President Ruto has ruled out repealing the 17.5 per cent levy on imported clinker, reaffirming the government’s commitment to promoting domestic clinker production despite earlier signals from the trade ministry that the tax could be withdrawn.

He noted that Kenya has sufficient limestone reserves and should not rely on imported clinker for cement production. He argued that continued restrictions on clinker imports are necessary to encourage investment in local capacity and reduce dependence on foreign raw materials.