Kenya cement producer aims for regional market

by Elayne Wangalwa 0

During the East Africa Business Summit in Rwanda’s capital, Ronald Ndegwa the firm’s managing director said that the company had ongoing plans to firmly bolster the East African market on a commitment to pursue sale opportunities by next year.

“Savannah Cement’s overall corporate development is anchored on a regional market coverage strategy and we are glad that we have made good inroads in the respective East African markets. With our current installed production capacity of about 1.5 million Metric tonnes, we are well placed to meet regional demand,” Ndegwa said.

Meanwhile, the cement maker is set to begin operations in Rwanda in 2015, once it receives approval from the Rwandan Authorities. The firm – with operations in Uganda, South Sudan and Tanzania – will compete with Rwandan local producer, Cimerwa and Ugandan-based Hima Cement.

(READ MORE: Kenya’s cement market up for a stir)

To meet growing market demand for its products, Savannah Cement announced plans in April this year to build a clinker production plant. The firm is lining up development projects valued at more than 300 million US dollars. The new clinker plant is projected to enable the firm tap into the boom in the real estate and infrastructure sectors of economies.

Already, Savannah Cement has invested more than 100 million US dollar to develop one of the most advanced and eco-friendly cement manufacturing plants in sub-Sahara Africa. The firm’s plant in the outskirts of Nairobi has the capacity to produce 1.5 million metric tonnes of cement annually.

The country’s cement industry is anticipated to get more competitive as existing manufacturers increase capacity. In July this year, Nigeria’s Dangote Cement announced that it will increase the production of its upcoming cement factory in Kenya from 1.5 million tonnes a year to three million tonnes per year.

Savannah Cement recently expressed a commitment to produce market driven products in a collaborative partnership with local building and construction professionals.