Displaying items by tag: Kenya

Kenya: Cement sales fell by 8% year-on-year to 8.47Mt in 2024, the sharpest annual decline in over two decades, according to the Kenya National Bureau of Statistics (KNBS). The fall reflects budgetary cuts on public infrastructure projects and a broader slowdown in construction activity, which contracted by 3% in the third quarter of 2024, following a 2% drop in the second quarter.

KNBS said in its report “The contraction was reflected by trends in key industry indicators. For instance, cement consumption declined by 10% to 2.2Mt in the third quarter of 2024, from 2.4Mt in the same quarter of 2023.”

According to the Nation newspaper, the slowdown follows delays in the government’s payments to contractors and the stalling of infrastructure projects. The government indicated that most of the stalled projects will begin to receive funding in the next few days and weeks.

Kenya: Cement consumption rose by 27% year-on-year in January 2025, up by 4% in December 2024, according to provisional data from the Kenya National Bureau of Statistics. Cement production also grew by 21% year-on-year in January following more than a year of contraction. In the 12 months to January 2025, cement consumption fell by 5% year-on-year and cement production dropped by 6% year-on-year.

Kenya: At least 99kg of heroin and cocaine worth US$2.3m were destroyed at the Bamburi Cement Mombasa plant, at the request of the Directorate of Criminal Investigations Kenya, according to a social media post from the company. Bamburi Cement’s kiln was selected as the most secure method for incinerating the seized narcotics.

“Our kilns co-process waste and convert it into energy, reducing CO₂ emissions and supporting a clean circular economy. We are proud to contribute to this public interest solution that has eliminated a threat posed to our fellow Kenyans,” said Sustainability & Geocycle Director Jane Wangari.

Bamburi Cement has previously collaborated with multi-agency teams to dispose of over 5000t of hazardous waste imported into the country at its Mombasa facility.

Kenya: The government has warned cement producers about buying materials from unlicensed sources. Cabinet Secretary Hassan Ali Joho has berated cement producers for purchasing minerals from unauthorised sellers, arguing that this practice enables the operations of illegal miners who exploit the country’s natural resources.

During a meeting with cement producers and representatives from the Kenya Association of Manufacturers and Kenya Chamber of Mines, Joho said "We need your support in fighting against illegal mining operations, but sadly some of you provide markets for minerals extracted illegally by faceless entities that are not paying taxes, royalties and are giving nothing to communities for those minerals. This must stop.”

In the past three years, the government has closed 3000 illicit mines that were operating without licenses. The Cabinet Secretary noted that gypsum was a heavily exploited material by the illegal miners, who use it as an ingredient in cement.

Joho added “You have been buying and using gypsum in cement manufacturing, yet there is no record of anyone licensed to mine gypsum in Kenya. There are no records on production, payment of taxes and royalties or community programs undertaken by any gypsum dealer because they are doing it illegally.”

Kenya: The High Court has opposed the appointment of Bruno Oguda Obodha as the managing director of East African Portland Cement (EAPCC). The court took action following a petition in late December 2024 that argued that the selection process was opaque and not accountable to the public, according to the Nation newspaper. Oguda was chosen for the role by the country’s president William Ruto. However the role of the Public Service Commission in the appointment process has been questioned by the court. The vacancy for managing director post at EAPCC was announced in October 2024.

Kenya: The Ministry of Mining has ordered the shut down all mining operations at East Africa Portland Cement Company due to a US$4m debt the company owes the government. The cement producer has also been accused of operating illegally since 2016, according to Citizen Digital. Its sites have reportedly been lacking safety equipment, not registering vehicles that transport limestone and other infringements. Police have been sent to the company’s quarries to ensure they stop work.

The East Africa Portland Cement Company runs quarries at Portland and Sparetech in Kajiado and Kibini in Sultan Hamud.

Kenya: Holcim has completed the divestment of its Kenyan operations by selling its entire 58.6% stake in Bamburi Cement to Amsons Group. The transaction has resulted in cash proceeds of over US$100m for Holcim, according to the company's press release.

Tanzania/Kenya: Savannah Clinker has abandoned its US$198m bid to acquire Bamburi Cement, leaving Tanzania-based Amsons Group as the sole bidder with an offer of US$168m. The withdrawal followed the exit of Savannah Clinker’s financier, Global Infrastructure Finance & Development Authority, due to the arrest of chair Savannah Ndeta on suspicion of fraud and the Capital Markets Authority (CMA) declining a 60-day extension request.

A spokesperson for Savannah Clinker said "The withdrawal of the competing offer has been occasioned by the recent well-publicised arrest and indictment of the chair and main shareholder of Savannah, Benson Ndeta, which has led to the financier of the competing offer seeking additional due diligence. This is further compounded by the CMA’s decision to decline a request made on 2 December 2024 to extend the offer period by 60 days."

Kenya: A police operation in Athi River led to the arrest of five suspects and the impoundment of three trucks involved in a cement siphoning racket. Officers from the Kenya Police Service recovered over 660 bags of cement that allegedly weighed 4kg less than advertised, at 46kg each, according to The Star Kenya. The operation was initiated after a customer had complained about receiving underweight cement bags. One of the suspects said that he was paid US$3.86/day to siphon 2 - 6kg of cement from each 50kg bag, and that each truck carrying 220 bags of cement was siphoned by three people at a time, usually during the night.

Kenya: Amsons Group, a Tanzanian business conglomerate with interests in power, construction, cement and concrete, has received regulatory approval from Common Market for Eastern and Southern Africa’s (Comesa) Competition Commission for its proposed acquisition of up to 100% of Bamburi Cement. The commission confirmed that the proposed acquisition falls within its ambit and does not pose a competition risk within the common market, with a statement saying “It is unlikely that the proposed merger will lead to the creation of a dominant position that would enable the parties to engage in unilateral conduct in the market.”

In July 2024 Amsons Group issued a binding offer to acquire up to a 100% stake in Bamburi Cement through its Kenyan subsidiary and investment vehicle, Amsons Industries (K) Ltd.

Speaking as he welcomed the Comesa Competition Commission’s approval, Amsons Group CEO Edha Nahdi said that the transaction is part of the group’s strategy to expand its footprint to the Kenyan market and trade across East Africa, saying “The approval is a significant boost to our offer as we continue to engage investors of Bamburi Cement. We remain confident that our acquisition bid will be successful as it presents a win-win scenario for the investors and our two countries.”