East African producers issue warning about imports

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Kenya: The East Africa Cement Producers Association (EACPA) has warned that cement imports are not being subjected to the same technical standards and regulations as local cement. At a meeting in Nairobi, local cement producers stated that they want imports halted as the region has surplus production.

"Cement is a very sensitive commodity yet the quality issues on imports are not being addressed at such a time when the number of collapsing buildings is rising," said Kephar Tande, the managing director of the East African Portland Cement Company and chairman of EACPA.

Kenyan manufacturers are discussing the issue with the Kenya Bureau of Standards to tighten the requirements for standards and packaging. These requirements would include expiry date markings on cement bags, and information on storage and handling. The EACPA also alleged that foreign cement manufacturers are using local agents who are 'unqualified' and should now be regulated.

The East African region has a demand for cement of 5Mt/yr and it is currently producing 7Mt/yr. Plants are currently running at 78% of capacity. The EACPA added that the local industry's net profit margin is expected to dip to below 10% in 2012 compared to 15% in 2011.

Last modified on 05 September 2012

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