Kenya: The profit of Lafarge-controlled Bamburi Cement slumped by 28% to US$26.2m in the first half of 2014, as the company outlined plans to profit from Kenya's ambitious infrastructure spending plans. It said that its profit took a hit due to the higher cost of both power and imported clinker. However, its revenue increased to US$197m from US$180m in the first half of 2013.
Bamburi is the biggest cement maker in east Africa's largest economy, where a construction boom driven by infrastructure projects and real estate has helped boost demand for cement. "We are optimistic that the business environment will progressively improve in the second half of the year," said the firm.
In June 2014 the Kenyan government raised US$2bn through a debut Eurobond and said most of the proceeds would be used to finance infrastructure projects. Bamburi said it expects Kenya's planned infrastructure projects, including roads, railways and a new Indian Ocean port in Lamu, to improve sales.
